Document:

exv4w11

Exhibit 4.11

BYLAWS

OF

HONDO PIPELINE, INC.

A Delaware Corporation

(hereinafter called the “Company”)

ARTICLE I

CAPITAL STOCK

     Section 1.1. Certificates Representing Shares. The shares of stock of the Company
shall be represented by certificates of stock, signed in the name of the Company (a) by the
President or a Vice President and (b) by the Treasurer or an Assistant Treasurer, or the Secretary
or an Assistant Secretary, of the Company, certifying the number of shares of stock in the Company
owned by the holder named in the certificate. Any or all of the signatures of such officers on the
certificate may be facsimiles. In case any officer who has signed or whose facsimile signature has
been placed upon a certificate shall have ceased to be such officer before such certificate is
issued, it may be issued by the Company with the same effect as if he were such officer at the date
of its issuance.

     Section 1.2. Lost, Stolen or Destroyed Certificates. The Board of Directors of the
Company (the “Board of Directors”) may direct a new certificate to be issued in place of any
certificate theretofore issued by the Company alleged to have been lost, stolen or destroyed, upon
the receipt of an affidavit of the fact by the person claiming the certificate of stock to be lost,
stolen or destroyed. When authorizing such issuance of a new certificate, the Board of Directors
may, in its discretion and as a condition precedent to the issuance thereof, require the owner of
such lost, stolen or destroyed certificate, or his legal representative, to give the Company a bond
sufficient to indemnify it against any claim that may be made against the alleged loss, theft or
destruction of any such certificate or the issuance of such new certificate.

     Section 1.3. Transfers of Stock. Stock of the Company shall be transferable in the
manner prescribed by the General Corporation Law of the State of Delaware (“DGCL”) and in these
Bylaws. Transfers of stock shall be made on the books of the Company only by the person named in
the certificate or by his attorney lawfully constituted in writing and upon the surrender of the
certificate therefor, which shall be canceled before a new certificate shall be issued.

     Section 1.4. Beneficial Owners. The Company shall be entitled to recognize the
exclusive right of a person registered on its books as the owner of shares to receive dividends,
and to vote as such owner, and to hold liable for calls and assessments a person registered on its

 

 

books as the owner of shares, and shall not be bound to recognize any equitable or other claim
to or interest in such share or shares on the part of any other person, whether or not it shall
have express or other notice thereof, except as otherwise provided by the DGCL.

     Section 1.5. Dividends. Dividends upon the capital stock of the Company, subject to
the provisions of the Certificate of Incorporation of the Company, as amended from time to time
(the “Certificate of Incorporation”), if any, may be declared by the Board of Directors at any
regular or special meeting, and may be paid in cash, in property or in shares of capital stock of
the Company. Before payment of any dividend, there may be set aside out of any funds of the
Company available for dividends such sum or sums as the Board of Directors from time to time, in
its absolute discretion, deems proper as a reserve or reserves to meet contingencies, or for
equalizing dividends, or for repairing or maintaining any property of the Company, or for any
proper purpose, and the Board of Directors may modify or abolish any such reserve.

ARTICLE II

MEETINGS OF STOCKHOLDERS

     Section 2.1. Place of Meetings. Meetings of the stockholders for the election of
directors or for any other purpose shall be held at such time and place, either within or without
the State of Delaware, as shall be designated from time to time by the Board of Directors and
stated in the notice of the meeting or in a duly executed waiver of notice thereof.

     Section 2.2. Annual Meetings. An annual meeting of the stockholders shall be held on
such date and at such time as shall be designated from time to time by the Board of Directors and
stated in the notice of the meeting or in a duly executed waiver of notice thereof. At such annual
meeting the stockholders shall elect, by a plurality vote, a Board of Directors and transact such
other business as may properly be brought before the meeting.

     Section 2.3. Special Meetings. Unless otherwise prescribed by the DGCL or by the
Certificate of Incorporation, special meetings of the stockholders, for any purpose or purposes,
may be called at any time by a majority of the Board of Directors, the President or the Secretary
of the Company and shall be called by any such officer at the request in writing of stockholders
owning a majority of the capital stock of the Company issued and outstanding and entitled to vote.
Such request shall state the purpose or purposes of the proposed meeting.

     Section 2.4. Notice of Meetings. Whenever stockholders are required or permitted to
take any action at a meeting, a written notice of the meeting shall be given which shall state the
place, date and hour of the meeting, and, in the case of a special meeting, the purpose or purposes
for which the meeting is called. Unless otherwise provided by the DGCL, the Certificate of
Incorporation or these Bylaws, the written notice of any meeting shall be given not less than ten
nor more than sixty days before the date of the meeting to each stockholder entitled to vote at
such meeting. If mailed, such notice shall be deemed to be given when deposited in the United
States mail, postage prepaid, directed to the stockholder at his address as it appears on the
records of the Company.

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     Section 2.5. Record Date. The Board of Directors may fix a date, not less than ten
nor more than sixty days preceding the date of any meeting of the stockholders, as a record date
for determination of stockholders entitled to notice of, or to vote at, such meeting. The Board of
Directors shall not close the books of the Company against transfers of shares during the whole or
any part of such period.

     Section 2.6. Quorum. Except as otherwise provided by the DGCL, by the Certificate of
Incorporation, or by these Bylaws, the presence in person or by proxy of the holders of a majority
of the outstanding shares of stock of the Company entitled to vote thereat, shall be necessary and
sufficient to constitute a quorum at all meetings of the stockholders for the transaction of
business. In the absence of a quorum, the stockholders so present may, by majority vote, adjourn
the meeting from time to time in the manner provided in Section 2.9 until a quorum shall attend.

     Section 2.7. Organization. Meetings of stockholders shall be presided over by the
President, or in the President’s absence, by a chairman designated by the Board of Directors, or,
in the absence of such designation, by a chairman chosen at the meeting. The Secretary shall keep
the records of the meeting, but, in his absence, the chairman of the meeting may appoint any person
to act as secretary of the meeting.

     Section 2.8. Voting; Proxies. Except as otherwise provided by the Certificate of
Incorporation, each stockholder entitled to vote at any meeting of stockholders shall be entitled
to one vote for each share of stock held by him which has voting power upon the matter in question.
Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to
corporate action in writing without a meeting may authorize another person or persons to act for
him by proxy, but no such proxy shall be voted or acted upon after three years from its date,
unless the proxy provides for a longer period. A duly executed proxy shall be irrevocable if it
states that it is irrevocable and if, and only as long as, it is coupled with an interest
sufficient in law to support an irrevocable power. A stockholder may revoke any proxy which is not
irrevocable by attending the meeting and voting in person or by filing an instrument in writing
revoking the proxy or another duly executed proxy bearing a later date with the Secretary. Voting
at meetings of stockholders need not be by written ballot and need not be conducted by inspectors
of election unless so determined by the holders of shares of stock having a majority of the votes
which could be cast by the holders of all outstanding shares of stock entitled to vote thereon
which are present in person or by proxy at such meeting. At all meetings of stockholders for the
election of directors, a plurality of the votes cast shall be sufficient to elect. All other
elections and questions shall, unless otherwise provided by the DGCL, the Certificate of
Incorporation or these Bylaws, be decided by the vote of the holders of shares of stock having a
majority of the votes which could be cast by the holders of all shares of stock entitled to vote
thereon which are present in person or represented by proxy at the meeting.

     Section 2.9. Adjournments. Any meetings of stockholders, annual or special, may
adjourn from time to time to reconvene at the same or some other place, and notice need not be
given of any such adjourned meeting if the time and place thereof are announced at the meeting at
which the adjournment is taken. At the adjourned meeting the Company may transact any business
which might have been transacted at the original meeting. If the adjournment is for more than
thirty days, or if after the adjournment a new record date is fixed for the adjourned

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meeting, a notice of the adjourned meeting shall be given to each stockholder of record
entitled to vote at the meeting.

     Section 2.10. List of Stockholders Entitled to Vote. The officer of the Company who
has charge of the stock ledger of the Company shall prepare and make, at least ten days before
every meeting of stockholders, a complete list of the stockholders entitled to vote at the meeting,
arranged in alphabetical order and showing the address of each stockholder and the number of shares
registered in the name of each stockholder. Such list shall be open to the examination of any
stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period
of at least ten days prior to the meeting, either at a place within the city where the meeting is
to be held, which place shall be specified in the notice of the meeting, or, if not so specified,
at the place where the meeting is to be held. The list shall also be produced and kept at the time
and place of the meeting during the whole time thereof, and may be inspected by any stockholder of
the Company who is present. In lieu of making and producing such list, the Company may make the
information therein available by any other means permitted by the DGCL.

     Section 2.11. Stock Ledger. The stock ledger of the Company shall be the only
evidence as to which stockholders are entitled (a) to vote in person or by proxy at any meeting of
stockholders, or (b) to examine either the stock ledger, the list required by Section 2.10 or the
books of the Company.

     Section 2.12. Action by Written Consent of Stockholders in Lieu of Meeting. Unless
otherwise provided by the Certificate of Incorporation, any action required or permitted to be
taken at any annual or special meeting of the stockholders of the Company may be taken without a
meeting, without prior notice and without a vote, if a consent or consents in writing, setting
forth the action so taken, shall be signed by the holders of outstanding stock having not less than
the minimum number of votes that would be necessary to authorize or take such action at a meeting
at which all shares entitled to vote thereon were present and voted and shall be delivered to the
Company to its registered office in the State of Delaware, its principal place of business, or an
officer or agent of the Company having custody of the book in which proceedings of meetings of
stockholders are recorded. Delivery made to the Company’s registered office shall be by hand or by
certified or registered mail, return receipt requested. Every written consent shall bear the date
of signature of each stockholder who signs the consent and no written consent shall be effective to
take the corporate action referred to therein unless, within 60 days of the earliest dated consent
delivered in the matter required by this Section 2.12 to the Company, written consents signed by a
sufficient number of holders to take action are delivered to the Company by delivery to its
registered office in the State of Delaware, its principal place of business, or an officer or agent
of the Company having custody of the book in which proceedings of meetings of stockholders are
recorded. Prompt notice of the taking of the corporate action without a meeting by less than
unanimous written consent shall be given to those stockholders who have not consented in writing.

     Section 2.13. Amendments. These Bylaws may be altered, amended or repealed, in whole
or in part, or new Bylaws may be adopted, only as provided in the Certificate of Incorporation or
these Bylaws. Notice of such alteration, amendment, repeal or adoption of new Bylaws shall be
contained in the notice of such meeting of stockholders. All such stockholder

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alterations, amendments, repeals or adoptions to these Bylaws must be approved by the holders
of two-thirds of the outstanding capital stock entitled to vote thereon.

ARTICLE III

DIRECTORS

     Section 3.1. Number and Tenure. The business and affairs of the Company shall be
managed by or under the direction of the Board of Directors. The Board of Directors shall consist
initially of seven directors, which may be increased or decreased, from time to time, by resolution
of a majority of the members at any time constituting the Board of Directors; provided that no such
decrease shall have the effect of shortening the term of any incumbent director. Except as
provided in Section 3.2 and except as determined by resolution of the Board of Directors, directors
shall be elected by a plurality of the votes cast at annual meetings of the stockholders, and each
director so elected shall hold office for the full term to which he shall have been elected and
until his successor is duly elected and qualified, or until the earliest of his death, resignation
or removal. A director need not be a stockholder of the Company nor a resident of the State of
Delaware.

     Section 3.2. Vacancies. Except as determined by resolution of the Board of Directors,
any newly created directorship or any vacancy occurring in the Board of Directors for any cause may
be filled by an affirmative vote of a majority of the remaining directors then in office, though
less than a quorum, or by a plurality of votes cast at a meeting of stockholders, and each director
so elected shall hold office for the remainder of the full term in which the new directorship was
created or the vacancy occurred and until such director’s successor is duly elected and qualified,
or until the earliest of his death, resignation or removal.

     Section 3.3. Duties and Powers. The business of the Company shall be managed by or
under the direction of the Board of Directors, which may exercise all such powers of the Company
and do all such lawful acts and things as are not by statute or by the Certificate of Incorporation
or by these Bylaws directed or required to be exercised or done by the stockholders.

     Section 3.4. Regular Meetings. Regular meetings of the Board of Directors may be held
at such places within or without the State of Delaware and at such times as the Board of Directors
may from time to time determine, and if so determined, notices thereof need not be given.

     Section 3.5. Special Meetings. Special meetings of the Board of Directors may be held
at any time, whenever called by the President or a majority of directors then in office, at such
place or places within or without the State of Delaware as may be stated in the notice of the
meeting. Notice of the time and place of a special meeting must be given by the person or persons
calling such meeting at least twenty-four hours before the special meeting. Notice need not be
given to any director or to any member of a committee of directors who submits a written waiver of
notice signed by him or her before or after the time stated therein.

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     Section 3.6. Meetings by Conference Telephone. Unless otherwise restricted by the
Certificate of Incorporation or these Bylaws, members of the Board of Directors, or any committee
designated by the Board of Directors, may participate in a meeting of the Board of Directors or
such committee by means of telephone conference or similar communications equipment by means of
which all persons participating in the meeting can hear each other, and participation in a meeting
pursuant to this Section 3.6 shall constitute presence in person at such meeting.

     Section 3.7. Quorum; Vote Required for Action. Except as may be otherwise
specifically provided by the DGCL, the Certificate of Incorporation or these Bylaws, at all
meetings of the Board of Directors a majority of the whole Board of Directors shall constitute a
quorum for the transaction of business. The vote of a majority of the directors present at any
meeting of the Board of Directors at which a quorum is present shall be the act of the Board of
Directors. If a quorum shall not be present at any meeting of the Board of Directors, the
directors present thereat may adjourn the meeting from time to time, without notice other than
announcement at the meeting, until a quorum shall be present.

     Section 3.8. Organization. Meetings of the Board of Directors shall be presided over
by the President, or, in the President’s absence, by a chairman chosen at the meeting. The
Secretary shall act as secretary of the meeting, but, in his absence, the chairman of the meeting
may appoint any person to act as secretary of the meeting.

     Section 3.9. Actions of the Board by Written Consent in Lieu of Meeting. Unless
otherwise restricted by the DGCL, the Certificate of Incorporation or these Bylaws, any action
required or permitted to be taken at any meeting of the Board of Directors or of any committee
thereof may be taken without a meeting, if all the members of the Board of Directors or committee,
as the case may be, consent thereto in writing setting forth the action so taken, and the writing
or writings are filed with the minutes of proceedings of the Board of Directors or such committee.

     Section 3.10. Committees. The Board of Directors may, by resolution passed by a
majority of the whole Board of Directors, designate one or more committees, each committee to
consist of one or more of the directors of the Company. The Board of Directors may designate one
or more of the directors of the Company to sit on any such committee. The Board of Directors may
designate one or more directors as alternate members of any committee, who may replace any absent
or disqualified member at any meeting of the committee. In the absence or disqualification of a
member of the committee, and in the absence of a designation by the Board of Directors of an
alternate member to replace the absent or disqualified member, the member or members thereof
present at any meeting and not disqualified from voting, whether or not he or they constitute a
quorum, may unanimously appoint another member of the Board of Directors to act at the meeting in
place of any absent or disqualified member. Any committee, to the extent permitted by the DGCL and
to the extent provided in the resolution of the Board of Directors establishing such committee,
shall have and may exercise all the powers and authority of the Board of Directors in the
management of the business and affairs of the Company, and may authorize the seal of the Company to
be affixed to all papers which may require it. Each committee shall keep regular minutes and
report to the Board of Directors when required.

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     The designation of any such committee and the delegation thereto of authority shall not
operate to relieve the Board of Directors, or any member thereof, of any responsibility imposed
upon it or him by law, nor shall such committee function where action of the Board of Directors is
required under applicable law. The Board of Directors shall have the power at any time to change
the membership of any such committee and to fill vacancies in it. A majority of the members of any
such committee shall constitute a quorum. Each such committee may elect a chairman and appoint
such subcommittees and assistants as it may deem necessary. Except as otherwise provided by the
Board of Directors, meetings of any committee shall be conducted in the same manner as the Board of
Directors conducts its business pursuant to this Article III as the same shall from time to time be
amended. Any member of any such committee elected or appointed by the Board of Directors may be
removed by the Board of Directors whenever in its judgment the best interests of the Company will
be served thereby, but such removal shall be without prejudice to the contract rights, if any, of
the person so removed. Election or appointment of a member of a committee shall not of itself
create contract rights.

     Section 3.11. Compensation and Reimbursement of Expenses. The directors shall receive
such compensation for their services as shall be determined by the Board of Directors and may be
paid their expenses, if any, of attendance at each meeting of the Board of Directors. No such
reimbursement shall preclude any director from serving the Company in any other capacity and
receiving compensation therefor. Members of special or standing committees may be allowed like
reimbursement for attending committee meetings.

     Section 3.12. Removal. Any director or the entire Board of Directors may be removed
with or without cause, by the holders of a majority of the shares then entitled to vote at the
election of directors.

     Section 3.13. Resignation. Any director of the Company may resign at any time by
giving written notice of his resignation to the President or Secretary. Such resignation shall
take effect at the date of receipt of such notice by the President or Secretary, or at any later
time specified therein. Unless otherwise specified therein, the acceptance of such resignation
shall not be necessary to make it effective.

     Section 3.14. Interested Directors. No contract or transaction between the Company
and one or more of its directors or officers, or between the Company and any other corporation,
partnership, association or other organization in which one or more of its directors or officers
are directors or officers, or have a financial interest, shall be void or voidable solely for this
reason, or solely because the director or officer is present at or participates in the meeting of
the Board of Directors or committee thereof which authorized the contract or transaction, or solely
because his or their votes are counted for such purpose, if: (a) the material facts as to his or
their relationship or interest and as to the contract or transaction are disclosed or are known to
the Board of Directors or the committee, and the Board of Directors or committee in good faith
authorizes the contract or transaction by the affirmative vote of a majority of the disinterested
directors, even though the disinterested directors be less than a quorum; (b) the material facts as
to his or their relationship or interest and as to the contract or transaction are disclosed or are
known to the stockholders entitled to vote thereon, and the contract or transaction is specifically
approved in good faith by vote of the stockholders; or (c) the contract or transaction is fair as
to the Company as of the time it is authorized, approved or ratified by the Board of Directors, a
committee

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thereof or the stockholders. Interested directors may be counted in determining the presence
of a quorum at a meeting of the Board of Directors or of a committee which authorizes the contract
or transaction. Any director of the Company may vote upon any contract or other transaction
between the Company and any subsidiary or affiliated corporation without regard to the fact that he
is also a director of such subsidiary or affiliated corporation.

ARTICLE IV

OFFICERS

     Section 4.1. General. The officers of the Company shall consist of a President,
Secretary and Treasurer, each of whom shall be elected by the Board of Directors. Such other
officers or agents, as may be deemed necessary, may be elected or appointed by the Board of
Directors. Any number of offices may be held by the same person, unless otherwise prohibited by
the DGCL, the Certificate of Incorporation or these Bylaws. The officers of the Company need not
be stockholders of the Company nor need such officers be directors of the Company. Each officer
shall hold office until the first meeting of the Board of Directors after the annual meeting of
stockholders next succeeding his election, and until his successor is elected and qualified or
until the earliest of his death, resignation or removal. Any officer may resign at any time upon
written notice to the Company. The Board of Directors may remove any officer with or without
prejudice to the contractual rights of such officer, if any, with the Company. Election or
appointment of an officer or an agent shall not of itself create contractual rights. Any vacancy
occurring in any office of the Company by death, resignation, removal or otherwise may be filled
for the unexpired portion of the term by the Board of Directors at any regular or special meeting.

     Section 4.2. Powers and Duties. The officers of the Company shall have such powers
and duties as generally pertain to their offices, except as modified herein or by the Board of
Directors, as well as such powers and duties as from time to time may be conferred by the Board of
Directors.

     Section 4.3. Voting Securities Owned by the Company. Powers of attorney, proxies,
waivers of notice of meeting, consents and other instruments relating to securities owned by the
Company may be executed in the name and on behalf of the Company by the President or any Vice
President and any such officer may, in the name of and on behalf of the Company, take all such
action as any such officer may deem advisable to vote in person or by proxy at any meeting of
security holders of any corporation in which the Company may own securities and at any such meeting
shall possess and may exercise any and all rights and powers incident to the ownership of such
securities and which, as the owner thereof, the Company might have exercised and possessed if
present. The Board of Directors may, by resolution, from time to time, confer like powers upon any
other person or persons.

ARTICLE V

INDEMNIFICATION

     Section 5.1. Right to Indemnification. The Company shall indemnify and hold harmless
each Indemnitee (as this and all other capitalized words not heretofore defined are

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defined in Section 5.12 hereof) to the fullest extent permitted by applicable law as it
presently exists or may hereafter be amended. The rights of an Indemnitee provided under the
preceding sentence shall include, but not be limited to, the right to be indemnified to the fullest
extent permitted by Section 145(b) of the DGCL in Proceedings by or in the right of the Company and
to the fullest extent permitted by Section 145(a) of the DGCL in all other Proceedings.

     Section 5.2.

     (a) Expenses. If an Indemnitee is, by reason of his Corporate Status, a witness in or
is a party to any Proceeding, and is successful on the merits or otherwise, he shall be indemnified
against all Expenses actually and reasonably incurred by him or on his behalf in connection
therewith. If the Indemnitee is a party to and is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to any Matter in such Proceeding, the Company shall
indemnify the Indemnitee against all Expenses actually and reasonably incurred by him or on his
behalf relating to each such Matter. The termination of any Matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such Matter.

     (b) Advances. In the event of any threatened or pending Proceeding to which an
Indemnitee is a party or is involved and that may give rise to a right of indemnification under
this Article, following written request to the Company by the Indemnitee, the Company shall
promptly pay to the Indemnitee amounts to cover Expenses reasonably incurred by the Indemnitee in
such Proceeding in advance of its final disposition upon the receipt by the Company of (i) a
written undertaking executed by or on behalf of the Indemnitee providing that the Indemnitee will
repay the advance if it shall ultimately be determined that the Indemnitee is not entitled to be
indemnified by the Company as provided herein and (ii) satisfactory evidence as to the amount of
such Expenses.

     (c) Repayment of Advances or Other Expenses. The Indemnitee agrees that the
Indemnitee shall reimburse the Company for all Expenses paid by the Company in defending any
Proceeding against the Indemnitee in the event and only to the extent that it shall be determined
pursuant to the provisions of this Article or by final judgment or other final adjudication under
the provisions of any applicable law that Indemnitee is not entitled to be indemnified by the
Company for such Expenses.

     Section 5.3. Determination of Indemnification. The Indemnitee’s entitlement to
indemnification shall be determined in accordance with Section 145(d) of the DGCL. If entitlement
to indemnification is to be determined by Independent Counsel, the Company shall furnish notice to
the Indemnitee within 10 days after receipt of the request for indemnification, specifying the
identity and address of the Independent Counsel. The Indemnitee may, within fourteen days after
receipt of such written notice of selection, deliver to the Company a written objection to such
selection. Such objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of Independent Counsel and the objection shall set forth
with particularity the factual basis of such assertion. If there is an objection to the selection
of Independent Counsel, either the Company or the Indemnitee may petition the Court of Chancery of
the State of Delaware or any other court of competent jurisdiction for a determination that the
objection is without a reasonable basis and/or for the appointment of Independent Counsel selected
by the Court.

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     Except in the event that the determination of entitlement to indemnification is to be made by
Independent Counsel, if the person or persons empowered under this Section 5.3 to determine
entitlement to indemnification shall not have made and furnished to the Indemnitee in writing a
determination of whether the Indemnitee is entitled to indemnification within 30 days after receipt
by the Company of the Indemnitee’s request therefor, a determination of entitlement to
indemnification shall be deemed to have been made, and the Indemnitee shall be entitled to such
indemnification unless the Indemnitee knowingly misrepresented a material fact in connection with
the request for indemnification or such indemnification is prohibited by law. The termination of
any Proceeding or of any Matter therein, by judgment, order, settlement or conviction, or upon a
plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in
this Article) of itself adversely affect the right of Indemnitee to indemnification or create a
presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed
to be in or not opposed to the best interests of the Company, or with respect to any criminal
Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.

     Section 5.4. Payments to Independent Counsel. The Company shall pay any and all
reasonable fees and expenses of Independent Counsel incurred acting pursuant to this Article and in
any Proceeding to which it is a party or witness in respect of its investigation and written report
and shall pay all reasonable fees and expenses incident to the procedures in which such Independent
Counsel was selected or appointed. No Independent Counsel may serve if a timely objection has been
made to his selection until a court has determined that such objection is without a reasonable
basis.

     Section 5.5. Right to Bring Suit. In the event that (i) a determination is made
pursuant to Section 5.3 hereof that the Indemnitee is not entitled to indemnification under this
Article, (ii) advancement of Expenses is not timely made pursuant to Section 5.3 hereof, (iii)
Independent Counsel has not made and delivered a written opinion determining the request for
indemnification (a) within 90 days after being appointed by the court, or (b) within 90 days after
objections to his selection have been overruled by the court, or (c) within 90 days after the time
for the Company or the Indemnitee to object to his selection, or (iv) payment of indemnification is
not made within five days after a determination of entitlement to indemnification, the Indemnitee
shall be entitled to an adjudication in an appropriate court of the State of Delaware, or in any
other court of competent jurisdiction, of his entitlement to such indemnification or advancement of
Expenses. In the event that a determination shall have been made that the Indemnitee is not
entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this
Section 5.5 shall be conducted in all respects as a de novo trial on the merits and the Indemnitee
shall not be prejudiced by reason of that adverse determination. If a determination shall have
been made or deemed to have been made that the Indemnitee is entitled to indemnification, the
Company shall be bound by such determination in any judicial proceeding commenced pursuant to this
Section 5.5, or otherwise, unless the Indemnitee knowingly misrepresented a material fact in
connection with the request for indemnification, or such indemnification is prohibited by law.

     The Company shall be precluded from asserting in any judicial proceeding commenced pursuant to
this Section 5.5 that the procedures and presumptions of this Article are not valid,

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binding and enforceable and shall stipulate in any such court that the Company is bound by all
provisions of this Article. In the event that the Indemnitee, pursuant to this Section 5.5, seeks
a judicial adjudication to enforce his rights under, or to recover damages for breach of, this
Article, the Indemnitee shall be entitled to recover from the Company, and shall be indemnified by
the Company against, any and all Expenses actually and reasonably incurred by him in such judicial
adjudication, but only if he prevails therein. If it shall be determined in such judicial
adjudication that the Indemnitee is entitled to receive part but not all of the indemnification or
advancement of Expenses sought, the Expenses incurred by the Indemnitee in connection with such
judicial adjudication or arbitration shall be appropriately prorated.

     Section 5.6. Non-Exclusivity of Rights. The rights to receive indemnification and
advancement of Expenses as provided by this Article shall not be deemed exclusive of any other
rights to which an Indemnitee may at any time be entitled under applicable law, the Certificate of
Incorporation, the Bylaws, any agreement, a vote of the stockholders or disinterested directors, or
otherwise.

     Section 5.7. Other Indemnification. The Company’s obligation, if any, to indemnify
any Indemnitee who was or is serving at its request as a director, officer, employee, agent or
fiduciary of another corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise or nonprofit entity shall be reduced by any amount such Indemnitee may collect as
indemnification from such other corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise or nonprofit entity.

     Section 5.8. Amendment or Repeal. No amendment, alteration or repeal of this Article
or any provision thereof shall be effective as to any Indemnitee for acts, omissions, events and
circumstances that occurred, in whole or in part, before such amendment, alteration or repeal.

     Section 5.9. Survival of Rights. The provisions of this Article shall continue as to
an Indemnitee whose Corporate Status has ceased and shall inure to the benefit of his heirs,
executors and administrators.

     Section 5.10. Insurance. The Company may purchase and maintain insurance, at its
expense, to protect itself and any director, officer, employee or agent of the Company or another
corporation, partnership, joint venture, trust or other enterprise against any such expense,
liability or loss, whether or not the Company would have the power to indemnify such person against
such expense, liability or loss under Delaware law.

     Section 5.11. Indemnity Agreements. The Company may enter into indemnity agreements
with the persons who are members of its Board of Directors from time to time, and with such
officers, employees and agents as the Board of Directors may designate.

-11-

 

     Section 5.12. Definitions. For purposes of this Article:

     “Corporate Status” describes the status of a person who is or was a director, officer,
employee, agent or fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise or nonprofit entity which such person is
or was serving at the request of the Company.

     “Expenses” shall include all reasonable costs associated with: attorneys’ fees; retainers;
court costs; transcript costs; fees of experts; witness fees; travel expenses; duplicating costs;
printing and binding costs; telephone charges; postage; delivery service fees and all other
disbursements or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness
in a Proceeding.

     “Indemnitee” consists of each director and executive officer of the Company and, upon approval
of the Board of Directors, any other person who was or is made, or is threatened to be made a party
or is otherwise involved in any Proceeding by reason of his Corporate Status.

     “Independent Counsel” means a law firm, or member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the five years previous to his
selection or appointment has been, retained to represent: (i) the Company or Indemnitee in any
matter material to either such party; or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder.

     “Matter” is a claim, a material issue or a substantial request for relief.

     “Proceeding” includes any action, suit, arbitration, alternate dispute resolution proceeding,
investigation, administrative hearing or any other proceeding, whether civil, criminal,
administrative or investigative, except one initiated by an Indemnitee pursuant to Section 5.6
hereof to enforce his rights under this Article.

     Section 5.13. Communications. Any communication required or permitted to be made to
the Company shall be addressed to the Secretary of the Company and any such communication to an
Indemnitee shall be addressed to his home address unless he specifies otherwise.

     Section 5.14. Legality. If any provision or provisions of this Article shall be held
to be invalid, illegal or unenforceable for any reason whatsoever, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby;
and, to the fullest extent possible, the provisions of this Article shall be construed so as to
give effect to the intent manifested by the provision held invalid, illegal or unenforceable.

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ARTICLE VI

MISCELLANEOUS

     Section 6.1. Disbursements. All checks or demands for money and notes of the Company
shall be signed by such officer or officers or such other person or persons as the Board of
Directors may from time to time designate.

     Section 6.2. Waiver of Notice. Whenever notice is required to be given under any
provision of the DGCL, the Certificate of Incorporation or these Bylaws, a written waiver, signed
by the person entitled to notice, whether before or after the time stated therein, shall be deemed
equivalent to notice. Attendance of a person at a meeting of stockholders, in person or by proxy,
or at a meeting of the Board of Directors or committee thereof shall constitute a waiver of notice
of such meeting, except when the person attends such meeting for the express purpose of objecting,
at the beginning of the meeting, to the transaction of any business because the meeting is not
lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any
regular or special meeting of the stockholders, directors or members of a committee of directors
need be specified in any written waiver of notice unless so required by the Certificate of
Incorporation or these Bylaws.

     Section 6.3. Fiscal Year. The fiscal year of the Company shall end on the 31st day of
December of each year unless otherwise provided by resolution of the Board of Directors.

     Section 6.4. Corporate Seal. The Corporate Seal shall have inscribed thereon the name
of the Company, the year of its organization and the words “Corporate Seal, Delaware.” The seal may
be used by causing it or a facsimile thereof to be impressed or affixed or otherwise reproduced.

-13-exv10w1

Exhibit 10.1

PIONEER NATURAL RESOURCES COMPANY

INDEMNIFICATION AGREEMENT

     This Agreement (“Agreement”) is made and entered into as of the 16th day of May, 2008, by and
between Pioneer Natural Resources Company, a Delaware corporation (the “Company”), and Scott D.
Sheffield (“Indemnitee”).

RECITALS

     A. Highly competent and experienced persons are reluctant to serve corporations as directors,
executive officers or in other capacities unless they are provided with adequate protection through
insurance and indemnification against claims and actions against them arising out of their service
to and activities on behalf of the Company.

     B. The Board of Directors of the Company (the “Board”) has determined that the inability to
attract and retain such persons would be detrimental to the best interests of the Company and its
stockholders and that the Company should act to assure such persons that there will be increased
certainty of such protection in the future.

     C. The Board has also determined that it is reasonable, prudent and necessary for the Company,
in addition to purchasing and maintaining directors’ and officers’ liability insurance (or
otherwise providing for adequate arrangements of self-insurance), contractually to obligate itself
to indemnify such persons to the fullest extent permitted by applicable law so that they will serve
or continue to serve the Company free from undue concern that they will not be adequately
protected.

     D. Indemnitee is willing to serve, continue to serve and to take on additional service for or
on behalf of the Company on the condition that Indemnitee be so indemnified to the fullest extent
permitted by law.

     E. Article Twelfth of the Amended and Restated Certificate of Incorporation of the Company
provides for indemnification of directors and officers to the fullest extent permitted by law.

     In consideration of the foregoing and the mutual covenants herein contained, and other good
and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the
parties hereby agree as follows:

ARTICLE I

Certain Definitions

 

 

     As used herein, the following words and terms shall have the following respective meanings
(whether singular or plural):

     “Acquiring Person” means any Person other than (i) the Company, (ii) any of the Company’s
Subsidiaries, (iii) any employee benefit plan of the Company or of a Subsidiary of the Company or
of a Company owned directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company, or (iv) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or of a Subsidiary of the Company
or of a Company owned directly or indirectly by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company.

     “Change in Control” means the occurrence of any of the following events:

     (i) The acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 40% or more of either (x) the then outstanding shares of
Common Stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting
power of the then outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided, however, that for
purposes of this Subparagraph (i), the following acquisitions shall not constitute a Change of
Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C)
any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company or (D) any acquisition by any corporation
pursuant to a transaction which complies with clauses (A), (B) and (C) of paragraph (iii) below; or

     (ii) Members of the Incumbent Board cease for any reason to constitute at least a majority of
the Board; or

     (iii) Consummation of a reorganization, merger or consolidation or sale or other disposition
of all or substantially all of the assets of the Company or an acquisition of assets of another
entity (a “Business Combination”), in each case, unless, following such Business Combination, (A)
all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or indirectly, more than
50% of, respectively, the then outstanding shares of common equity and the combined voting power of
the then outstanding voting securities entitled to vote generally in the election of directors or
other similar governing body, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity which as a result of such transaction owns
the Company or all or substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership, immediately prior to
such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting
Securities, as the case may be, (B) no Person (excluding any employee benefit plan (or related
trust) of the Company or the entity resulting from such Business Combination) beneficially owns,
directly or indirectly, 40% or more of, respectively, the then outstanding shares of common equity
of the entity resulting from such Business Combination or the combined voting power of the then
outstanding voting securities of

2

 

such entity except to the extent that such ownership results solely from ownership of the
Company that existed prior to the Business Combination and (C) at least a majority of the members
of the board of directors or other similar governing body of the entity resulting from such
Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such Business Combination; or

     (iv) Approval by the stockholders of the Company of a complete liquidation or dissolution of
the Company.

     “Claim” means an actual or threatened claim or request for relief which was, is or may be made
by reason of anything done or not done by Indemnitee in, or by reason of any event or occurrence
related to, Indemnitee’s Corporate Status.

     “Corporate Status” means the status of a person who is, becomes or was a director, officer,
employee, agent or fiduciary of the Company or is, becomes or was serving at the request of the
Company as a director, officer, partner, member, venturer, proprietor, trustee, employee, agent,
fiduciary or similar functionary of another foreign or domestic corporation, partnership, limited
liability company, joint venture, sole proprietorship, trust, employee benefit plan or other
enterprise. For purposes of this Agreement, the Company agrees that Indemnitee’s service on behalf
of or with respect to any Subsidiary of the Company shall be deemed to be at the request of the
Company.

     “DGCL” means the Delaware General Corporation Law and any successor statute thereto, as either
of them may from time to time be amended.

     “Disinterested Director” with respect to any request by Indemnitee for indemnification
hereunder, means a director of the Company who at the time of the vote is not a named defendant or
respondent in the Proceeding in respect of which indemnification is sought by Indemnitee.

     “Exchange Act” means the Securities Exchange Act of 1934.

     “Expenses” means all attorneys’ fees and disbursements, retainers, accountant’s fees and
disbursements, private investigator fees and disbursements, court costs, transcript costs, fees and
expenses of experts, witness fees and expenses, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees and all other disbursements, costs
or expenses of the types customarily incurred in connection with prosecuting, defending (including
affirmative defenses and counterclaims), preparing to prosecute or defend, investigating, being or
preparing to be a witness in, or participating in or preparing to participate in (including on
appeal) a Proceeding and all interest or finance charges attributable to any thereof. Should any
payments by the Company under this Agreement be determined to be subject to any federal, state or
local income or excise tax, “Expenses” shall also include such amounts as are necessary to place
Indemnitee in the same after-tax position (after giving effect to all applicable taxes) as
Indemnitee would have been in had no such tax been determined to apply to such payments.

3

 

     “Incumbent Board” means the individuals who, as of the date of this Agreement, constitute the
Board and any other individual who becomes a director of the Company after that date and whose
election or appointment by the Board or nomination for election by the Company’s stockholders was
approved by a vote of at least a majority of the directors then comprising the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Incumbent Board.

     “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither contemporaneously is, nor in the five years theretofore has
been, retained to represent: (a) the Company or Indemnitee in any matter material to either such
party (other than as Independent Counsel under this Agreement or similar agreements), (b) any other
party to the Proceeding giving rise to a claim for indemnification hereunder or (c) the beneficial
owner, directly or indirectly, of securities of the Company representing 5% or more of the combined
voting power of the Company’s then outstanding voting securities (other than, in each such case,
with respect to matters concerning the rights of Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements). Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

     “Independent Directors” means the directors on the Board that are independent directors as
defined in Section 303A of the New York Stock Exchange Listed Company Manual or successor
provision, or, if the Company’s common stock is not then quoted on the NYSE, that qualify as
independent, disinterested, or a similar term as defined in the rules of the principal securities
exchange or inter-dealer quotation system on which the Company’s common stock is then listed or
quoted.

     “Person” means any individual, entity or group (within the meaning of Sections 13(d)(3) and
14(d)(2) of the Exchange Act).

     “Potential Change in Control” shall be deemed to have occurred if (i) any Person shall have
announced publicly an intention to effect a Change in Control, or commenced any action (such as the
commencement of a tender offer for the Company’s Common Stock or the solicitation of proxies for
the election of any of the Company’s directors) that, if successful, could reasonably be expected
to result in the occurrence of a Change in Control; (ii) the Company enters into an agreement, the
consummation of which would constitute a Change in Control; or (iii) any other event occurs which
the Board declares to be a Potential Change of Control.

     “Proceeding” means any threatened, pending or completed action, suit, arbitration,
investigation, inquiry, alternate dispute resolution mechanism, administrative or legislative
hearing, or any other proceeding (including, without limitation, any securities laws action, suit,
arbitration, alternative dispute resolution mechanism, hearing or procedure) whether civil,
criminal, administrative, arbitrative or investigative and whether or not based upon events

4

 

occurring, or actions taken, before the date hereof, and any appeal in or related to any such
action, suit, arbitration, investigation, hearing or proceeding and any inquiry or investigation
(including discovery), whether conducted by or in the right of the Company or any other Person,
that Indemnitee in good faith believes could lead to any such action, suit, arbitration,
alternative dispute resolution mechanism, hearing or other proceeding or appeal thereof.

     “Subsidiary” means, with respect to any Person, any corporation or other entity of which a
majority of the voting power of the voting equity securities or equity interest is owned, directly
or indirectly, by that Person.

     “Voting Securities” means any securities that vote generally in the election of directors, in
the admission of general partners, or in the selection of any other similar governing body.

ARTICLE II

Services by Indemnitee

     Indemnitee is serving as an officer of the Company. Indemnitee may from time to time also
agree to serve, as the Company may request from time to time, in another capacity for the Company
(including another officer or director position) or as a director, officer, partner, member,
venturer, proprietor, trustee, employee, agent, fiduciary or similar functionary of another foreign
or domestic corporation, partnership, joint venture, limited liability company, sole
proprietorship, trust, employee benefit plan or other enterprise. Indemnitee and the Company each
acknowledge that they have entered into this Agreement as a means of inducing Indemnitee to serve,
or continue to serve, the Company in such capacities. Indemnitee may at any time and for any
reason resign from such position or positions (subject to any other contractual obligation or any
obligation imposed by operation of law). The Company shall have no obligation under this Agreement
to continue Indemnitee in any such position or positions.

ARTICLE III

Indemnification

     Section 3.1 General. Subject to the provisions set forth in Article IV, the Company
shall indemnify, and advance Expenses to, Indemnitee to the fullest extent permitted by applicable
law in effect on the date hereof and to such greater extent as applicable law may hereafter from
time to time permit. The other provisions set forth in this Agreement are provided in addition to
and as a means of furtherance and implementation of, and not in limitation of, the obligations
expressed in this Article III. No requirement, condition to or limitation of any right to
indemnification or to advancement of Expenses under this Article III shall in any way limit the
rights of Indemnitee under Article VII.

     Section 3.2 Additional Indemnity of the Company. Indemnitee shall be entitled to
indemnification pursuant to this Section 3.2 if, by reason of anything done or not done by
Indemnitee in, or by reason of any event or occurrence related to, Indemnitee’s Corporate Status,
Indemnitee is, was or becomes, or is threatened to be made, a party to, or witness or other
participant in any Proceeding. Pursuant to this Section 3.2, Indemnitee shall be indemnified

5

 

against any and all Expenses, judgments, penalties (including excise or similar taxes), fines
and amounts paid in settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of any such Expenses, judgments, penalties, fines and
amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee’s
behalf in connection with such Proceeding or any Claim, issue or matter therein. Notwithstanding
the foregoing, the obligations of the Company under this Section 3.2 shall be subject to the
condition that no determination (which, in any case in which Independent Counsel is involved, shall
be in a form of a written opinion) shall have been made pursuant to Article IV that Indemnitee
would not be permitted to be indemnified under applicable law. Nothing in this Section 3.2 shall
limit the benefits of Section 3.1, Section 3.3 or any other Section hereunder.

     Section 3.3 Advancement of Expenses. The Company shall pay all Expenses reasonably
incurred by, or in the case of retainers to be incurred by, or on behalf of Indemnitee (or, if
applicable, reimburse Indemnitee for any and all Expenses reasonably incurred by Indemnitee and
previously paid by Indemnitee) in connection with any Claim or Proceeding, whether brought by the
Company or otherwise, in advance of any determination respecting entitlement to indemnification
pursuant to Article IV hereof (and shall continue to pay such Expenses after such determination and
until it shall ultimately be determined (in a final adjudication by a court from which there is no
further right of appeal or in a final adjudication of an arbitration pursuant to Section 5.1 if
Indemnitee elects to seek such arbitration) that Indemnitee is not entitled to be indemnified by
the Company against such Expenses) within 10 days after the receipt by the Company of (a) a
written request from Indemnitee requesting such payment or payments from time to time, whether
prior to or after final disposition of such Proceeding, and (b) a written affirmation from
Indemnitee of Indemnitee’s good faith belief that Indemnitee has met the standard of conduct
necessary for Indemnitee to be permitted to be indemnified under applicable law. Any such payment
by the Company is referred to in this Agreement as an “Expense Advance.” In connection with any
request for an Expense Advance, if requested by the Company, Indemnitee or Indemnitee’s counsel
shall also submit an affidavit stating that the Expenses incurred were, or in the case of retainers
to be incurred are, reasonably incurred. Any dispute as to the reasonableness of the incurrence of
any Expense shall not delay an Expense Advance by the Company, and the Company agrees that any such
dispute shall be resolved only upon the disposition or conclusion of the underlying Claim against
Indemnitee. Indemnitee hereby undertakes and agrees that Indemnitee will reimburse and repay the
Company without interest for any Expense Advances to the extent that it shall ultimately be
determined (in a final adjudication by a court from which there is no further right of appeal or in
a final adjudication of an arbitration pursuant to Section 5.1 if Indemnitee elects to seek such
arbitration) that Indemnitee is not entitled to be indemnified by the Company against such
Expenses. Indemnitee shall not be required to provide collateral or otherwise secure the
undertaking and agreement described in the prior sentence.

     Section 3.4 Indemnification for Additional Expenses. The Company shall indemnify
Indemnitee against any and all costs and expenses (of the types described in the definition of
Expenses in Article I) and, if requested by Indemnitee, shall (within two business days of that
request) advance those costs and expenses to Indemnitee, that are incurred by Indemnitee in
connection with any claim asserted against, or action brought by, Indemnitee for (i)
indemnification or an Expense Advance by the Company under this Agreement or any other agreement or
provision of the Company’s Certificate of Incorporation or Bylaws now or

6

 

hereafter in effect relating to any Claim or Proceeding, (ii) recovery under any directors’
and officers’ liability insurance policies maintained by the Company, or (iii) enforcement of, or
claims for breaches of, any provision of this Agreement, in each of the foregoing situations
regardless of whether Indemnitee ultimately is determined to be entitled to that indemnification,
advance expense payment, insurance recovery, enforcement, or damage claim, as the case may be and
regardless of whether the nature of the proceeding with respect to such matters is judicial, by
arbitration, or otherwise.

     Section 3.5 Partial Indemnity. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the Expenses, judgments,
fines, penalties, and amounts paid in settlement of a Claim or Proceeding but not, however, for all
of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled. Moreover, notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense
of any or all Claims or Proceedings, or in defense of any issue or matter therein, including
dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in
connection therewith.

ARTICLE IV

Procedure for Determination of Entitlement

to Indemnification

     Section 4.1 Request by Indemnitee. To obtain indemnification under this Agreement,
Indemnitee shall submit to the Company a written request, including therein or therewith such
documentation and information as is reasonably available to Indemnitee and is reasonably necessary
to determine whether and to what extent Indemnitee is entitled to indemnification. The Secretary
or an Assistant Secretary of the Company shall, promptly upon receipt of such a request for
indemnification, advise the Board in writing that Indemnitee has requested indemnification.

     Section 4.2 Determination of Request. Upon written request by Indemnitee for
indemnification pursuant to the first sentence of Section 4.1 hereof, a determination, if required
by applicable law, with respect to whether Indemnitee is permitted under applicable law to be
indemnified shall be made in accordance with the terms of Section 4.5, in the specific case as
follows:

     (a) If a Potential Change in Control or a Change in Control shall have occurred, by
Independent Counsel (selected in accordance with Section 4.3) in a written opinion to the
Board and Indemnitee, unless Indemnitee shall request that such determination be made by the
Board, or a committee of the Board, in which case by the person or persons or in the manner
provided for in clause (i) or (ii) of paragraph (b) below; or

     (b) If a Potential Change in Control or a Change in Control shall not have occurred,
(i) by the Board by a majority vote of the Disinterested Directors even though less than a
quorum of the Board, or (ii) by a majority vote of a committee solely of two or

7

 

more Disinterested Directors designated to act in the matter by a majority vote of all
Disinterested Directors even though less than a quorum of the Board, or (iii) by Independent
Counsel selected by the Board or a committee of the Board by a vote as set forth in clauses
(i) or (ii) of this paragraph (b), or if such vote is not obtainable or such a committee
cannot be established, by a majority vote of all directors, or (iv) if Indemnitee and the
Company agree, by the stockholders of the Company in a vote that excludes the shares held by
directors who are not Disinterested Directors.

If it is so determined that Indemnitee is permitted to be indemnified under applicable law, payment
to Indemnitee shall be made within 10 days after such determination. Nothing contained in this
Agreement shall require that any determination be made under this Section 4.2 prior to the
disposition or conclusion of a Claim or Proceeding against Indemnitee; provided, however, that
Expense Advances shall continue to be made by the Company pursuant to, and to the extent required
by, the provisions of Article III. Indemnitee shall cooperate with the person or persons making
such determination with respect to Indemnitee’s entitlement to indemnification, including providing
to such person upon reasonable advance request any documentation or information that is not
privileged or otherwise protected from disclosure and that is reasonably available to Indemnitee
and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees
and disbursements) incurred by Indemnitee in so cooperating with the person or persons making such
determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification), and the Company shall indemnify and hold harmless Indemnitee
therefrom.

     Section 4.3 Independent Counsel. If a Potential Change in Control or a Change in
Control shall not have occurred and the determination of entitlement to indemnification is to be
made by Independent Counsel, the Independent Counsel shall be selected by (a) a majority vote of
the Disinterested Directors, even though less than a quorum of the Board or (b) if there are no
Disinterested Directors, by a majority vote of the Board, and the Company shall give written notice
to Indemnitee, within 10 days after receipt by the Company of Indemnitee’s request for
indemnification, specifying the identity and address of the Independent Counsel so selected. If a
Potential Change in Control or a Change in Control shall have occurred and the determination of
entitlement to indemnification is to be made by Independent Counsel, the Independent Counsel shall
be selected by Indemnitee, and Indemnitee shall give written notice to the Company, within 10 days
after submission of Indemnitee’s request for indemnification, specifying the identity and address
of the Independent Counsel so selected (unless Indemnitee shall request that such selection be made
by the Disinterested Directors or a committee of the Board, in which event the Company shall give
written notice to Indemnitee within 10 days after receipt of Indemnitee’s request for the Board or
a committee of the Disinterested Directors to make such selection, specifying the identity and
address of the Independent Counsel so selected). In either event, (i) such notice to Indemnitee or
the Company, as the case may be, shall be accompanied by a written affirmation of the Independent
Counsel so selected that it satisfies the requirements of the definition of “Independent Counsel”
in Article I and that it agrees to serve in such capacity and (ii) Indemnitee or the Company, as
the case may be, may, within seven days after such written notice of selection shall have been
given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such
selection. Any objection to the selection of Independent Counsel pursuant to this Section 4.3 may
be asserted only on the ground that the Independent Counsel so selected does not meet the
requirements of the definition of “Independent Counsel”

8

 

in Article I, and the objection shall set forth with particularity the factual basis of such
assertion. If such written objection is timely made, the Independent Counsel so selected may not
serve as Independent Counsel unless and until a court of competent jurisdiction (the “Court”) has
determined that such objection is without merit. In the event of a timely written objection to a
choice of Independent Counsel, the party originally selecting the Independent Counsel shall have
seven days to make an alternate selection of Independent Counsel and to give written notice of such
selection to the other party, after which time such other party shall have five days to make a
written objection to such alternate selection. If, within 30 days after submission of Indemnitee’s
request for indemnification pursuant to Section 4.1, no Independent Counsel shall have been
selected and not objected to, either the Company or Indemnitee may petition the Court for
resolution of any objection that shall have been made by the Company or Indemnitee to the other’s
selection of Independent Counsel and/or for the appointment as Independent Counsel of a person
selected by the Court or by such other person as the Court shall designate, and the person with
respect to whom an objection is so resolved or the person so appointed shall act as Independent
Counsel under Section 4.2. The Company shall pay any and all fees and expenses reasonably incurred
by such Independent Counsel in connection with acting pursuant to Section 4.2, and the Company
shall pay all fees and expenses reasonably incurred incident to the procedures of this Section 4.3,
regardless of the manner in which such Independent Counsel was selected or appointed. Upon the due
commencement of any judicial proceeding or arbitration pursuant to Section 5.1, Independent Counsel
shall be discharged and relieved of any further responsibility in such capacity (subject to the
applicable standards of professional conduct then prevailing).

     Section 4.4 Establishment of a Trust. In the event of a Potential Change in Control
or a Change in Control, the Company shall, upon written request by Indemnitee, create a trust for
the benefit of Indemnitee (the “Trust”) and from time to time upon written request of Indemnitee
shall fund the Trust in an amount sufficient to satisfy any and all Expenses reasonably anticipated
at the time of each such request to be incurred in connection with investigating, preparing for,
and defending any Claim, and any and all judgments, fines, penalties, and settlement amounts of any
and all Claims from time to time actually paid or claimed, reasonably anticipated, or proposed to
be paid. The amount to be deposited in the Trust pursuant to the foregoing funding obligation shall
be determined by the Independent Counsel (or other person(s) making the determination of whether
Indemnitee is permitted to be indemnified by applicable law). The terms of the Trust shall provide
that, upon a Change in Control, (i) the Trust shall not be revoked or the principal thereof
invaded, without the written consent of Indemnitee; (ii) the trustee of the Trust shall advance,
within ten business days of a request by Indemnitee, any and all Expenses reasonably incurred to
Indemnitee, any required determination concerning the reasonableness of the Expenses to be made by
the Independent Counsel (and Indemnitee hereby agrees to reimburse the Trust under the
circumstances in which Indemnitee would be required to reimburse the Company for Expenses Advances
under Section 3.3 of this Agreement); (iii) the Trust shall continue to be funded by the Company in
accordance with the funding obligation set forth above; (iv) the trustee of the Trust shall
promptly pay to Indemnitee all amounts for which Indemnitee shall be entitled to indemnification
pursuant to this Agreement; and (v) all unexpended funds in the Trust shall revert to the Company
upon a final determination by the Independent Counsel or a court of competent jurisdiction, as the
case may be, that Indemnitee has been fully indemnified under the terms of this Agreement. The
trustee of the Trust shall be

9

 

chosen by Indemnitee and shall be an institution that is not affiliated with Indemnitee.
Nothing in this Section 4.4 shall relieve the Company of any of its obligations under this
Agreement.

     Section 4.5 Presumptions and Effect of Certain Proceedings.

     (a) Indemnitee shall be presumed to be entitled to indemnification under this Agreement
upon submission of a request for indemnification under Section 4.1, and the Company shall
have the burden of proof in overcoming that presumption in reaching a determination contrary
to that presumption. Such presumption shall be used by Independent Counsel (or other person
or persons determining entitlement to indemnification) as a basis for a determination of
entitlement to indemnification unless the Company provides information sufficient to
overcome such presumption by clear and convincing evidence or unless the investigation,
review and analysis of Independent Counsel (or such other person or persons) convinces
Independent Counsel by clear and convincing evidence that the presumption should not apply.

     (b) If the person or persons empowered or selected under Article IV of this Agreement
to determine whether Indemnitee is entitled to indemnification shall not have made a
determination within 60 days after receipt by the Company of the request by Indemnitee
therefor, the determination of entitlement to indemnification shall be deemed to have been
made and Indemnitee shall be entitled to such indemnification; provided, however, that such
60-day period may be extended for a reasonable time, not to exceed an additional 30 days, if
the person making the determination with respect to entitlement to indemnification in good
faith requires such additional time for the obtaining or evaluating of documentation and/or
information relating to such determination; and provided, further, that the 60-day
limitation set forth in this Section 4.5(b) shall not apply and such period shall be
extended as necessary (i) if within 30 days after receipt by the Company of the request for
indemnification under Section 4.1 Indemnitee and the Company have agreed, and the Board has
resolved to submit such determination to the stockholders of the Company pursuant to Section
4.2(b) for their consideration at an annual meeting of stockholders to be held within 90
days after such agreement and such determination is made thereat, or a special meeting of
stockholders is called within 30 days after such receipt for the purpose of making such
determination, such meeting is held for such purpose within 60 days after having been so
called and such determination is made thereat, or (ii) if the determination of entitlement
to indemnification is to be made by Independent Counsel pursuant to Section 4.2(a) of this
Agreement, in which case the applicable period shall be as set forth in Section 5.1(c).

     (c) The termination of any Proceeding or of any Claim, issue or matter by judgment,
order, settlement (whether with or without court approval) or conviction, or upon a plea of
nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this
Agreement) by itself adversely affect the rights of Indemnitee to indemnification or create
a presumption that Indemnitee failed to meet any particular standard of conduct, that
Indemnitee had any particular belief, or that a court has determined that indemnification is
not permitted by applicable law. Indemnitee shall be deemed to have been found liable in
respect of any Claim, issue or matter only after

10

 

Indemnitee shall have been so adjudged by the Court after exhaustion of all appeals
therefrom.

ARTICLE V

Certain Remedies of Indemnitee

     Section 5.1 Indemnitee Entitled to Adjudication in an Appropriate Court. If (a) a
determination is made pursuant to Article IV that Indemnitee is not entitled to indemnification
under this Agreement; (b) there has been any failure by the Company to make timely payment or
advancement of any amounts due hereunder (including, without limitation, any Expense Advances); or
(c) the determination of entitlement to indemnification is to be made by Independent Counsel
pursuant to Section 4.2 and such determination shall not have been made and delivered in a written
opinion within 90 days after the latest of (i) such Independent Counsel’s being appointed, (ii) the
overruling by the Court of objections to such counsel’s selection, or (iii) expiration of all
periods for the Company or Indemnitee to object to such counsel’s selection, Indemnitee shall be
entitled to commence an action seeking an adjudication in the Court of Indemnitee’s entitlement to
such indemnification or advancements due hereunder, including, without limitation, Expense
Advances. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to
be conducted by a single arbitrator pursuant to the commercial arbitration rules of the American
Arbitration Association. Indemnitee shall commence such action seeking an adjudication or an award
in arbitration within 180 days following the date on which Indemnitee first has the right to
commence such action pursuant to this Section 5.1, or such right shall expire. The Company agrees
not to oppose Indemnitee’s right to seek any such adjudication or award in arbitration and it shall
continue to pay Expense Advances pursuant to Section 3.3 until it shall ultimately be determined
(in a final adjudication by a court from which there is no further right of appeal or in a final
adjudication of an arbitration pursuant to this Section 5.1 if Indemnitee elects to seek such
arbitration) that Indemnitee is not entitled to be indemnified by the Company against such
Expenses.

     Section 5.2 Adverse Determination Not to Affect any Judicial Proceeding. If a
determination shall have been made pursuant to Article IV that Indemnitee is not entitled to
indemnification under this Agreement, any judicial proceeding or arbitration commenced pursuant to
this Agreement shall be conducted in all respects as a de novo trial or arbitration on the merits,
and Indemnitee shall not be prejudiced by reason of such initial adverse determination. In any
judicial proceeding or arbitration commenced pursuant to this Agreement, Indemnitee shall be
presumed to be entitled to indemnification or advancement of Expenses, as the case may be, under
this Agreement and the Company shall have the burden of proof in overcoming such presumption and to
show by clear and convincing evidence that Indemnitee is not entitled to indemnification or
advancement of Expenses, as the case may be.

     Section 5.3 Company Bound by Determination Favorable to Indemnitee in any Judicial
Proceeding or Arbitration. If a determination shall have been made or deemed to have been made
pursuant to Article IV that Indemnitee is entitled to indemnification, the Company shall be
irrevocably bound by such determination in any judicial proceeding or arbitration commenced
pursuant to this Article V, and shall be precluded from asserting that such

11

 

determination has not been made or that the procedure by which such determination was made is
not valid, binding and enforceable.

     Section 5.4 Company Bound by the Agreement. The Company shall be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Article V that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is bound by all the
provisions of this Agreement.

ARTICLE VI

Contribution

     Section 6.1 Contribution Payment. To the extent the indemnification provided for
under any provision of this Agreement is determined (in the manner hereinabove provided) not to be
permitted under applicable law, then in the event Indemnitee was, is, or becomes a party to or
witness or other participant in, or is threatened to be made a party to or witness or other
participant in, a Proceeding by reason of (or arising in part out of) Indemnitee’s Corporate
Status, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount of any and
all Expenses, judgments, fines, or penalties assessed against or incurred or paid by Indemnitee on
account of such Proceeding and any and all amounts paid in settlement of that Proceeding (including
all interest, assessments, and other charges paid or payable in connection with or in respect of
such Expenses, judgments, fines, penalties, or amounts paid in settlement) for which such
indemnification is not permitted (“Contribution Amounts”), in such proportion as is appropriate to
reflect the relative fault with respect to the subject matter of the Proceeding giving rise to the
Contribution Amounts of Indemnitee, on the one hand, and of the Company and any and all other
parties (including officers and directors of the Company other than Indemnitee) who may be at fault
with respect to such matter (collectively, including the Company, the “Third Parties”) on the other
hand.

     Section 6.2 Relative Fault. The relative fault of the Third Parties and Indemnitee
shall be determined (i) by reference to the relative fault of Indemnitee as determined by the court
or other governmental agency assessing the Contribution Amounts or (ii) to the extent such court or
other governmental agency does not apportion relative fault, by the Independent Counsel (or such
other party which makes a determination under Article IV) after giving effect to, among other
things, the relative intent, knowledge, access to information, and opportunity to prevent or
correct the subject matter of the Proceedings and other relevant equitable considerations of each
party. The Company and Indemnitee agree that it would not be just and equitable if contribution
pursuant to this Section 6.2 were determined by pro rata allocation or by any other method of
allocation which does take account of the equitable considerations referred to in this Section 6.2.

ARTICLE VII

Miscellaneous

     Section 7.1 Non-Exclusivity. The rights of Indemnitee to receive indemnification and
advancement of Expenses under this Agreement shall be in addition to, and shall not be deemed

12

 

exclusive of, any other rights Indemnitee shall under the DGCL or other applicable law, the
charter or bylaws of the Company, any other agreement, vote of stockholders or a resolution of
directors, or otherwise. No amendment or alteration of the charter or bylaws of the Company or any
provision thereof shall adversely affect Indemnitee’s rights hereunder and such rights shall be in
addition to any rights Indemnitee may have under the charter, bylaws and the DGCL or other
applicable law. To the extent that there is a change in the DGCL or other applicable law (whether
by statute or judicial decision) that allows greater indemnification by agreement than would be
afforded currently under the Company’s charter or bylaws and this Agreement, it is the intent of
the parties hereto that Indemnitee shall enjoy by virtue of this Agreement the greater benefit so
afforded by such change. Any amendment, alteration or repeal of the DGCL that adversely affects
any right of Indemnitee shall be prospective only and shall not limit or eliminate any such right
with respect to any Proceeding involving any occurrence or alleged occurrence of any action or
omission to act that took place before such amendment or repeal.

     Section 7.2 Insurance and Subrogation.

     (a) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, agents or fiduciaries of the Company
or for individuals serving at the request of the Company as directors, officers, partners,
members, venturers, proprietors, trustees, employees, agents, fiduciaries or similar
functionaries of another foreign or domestic corporation, partnership, limited liability
company, joint venture, sole proprietorship, trust, employee benefit plan or other
enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or
their terms to the maximum extent of the coverage available for any such director, officer,
employee, agent or fiduciary under such policy or policies.

     (b) In the event of any payment by the Company under this Agreement for which
reimbursement is available under any insurance policy or policies obtained by the Company,
the Company shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee under such insurance policy or policies, who shall execute all papers
required and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such rights,
provided that all Expenses relating to such action shall be borne by the Company.

     (c) The Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise
actually received such payment under the Company’s charter or bylaws or any insurance
policy, contract, agreement or otherwise.

     (d) If Indemnitee is a director of the Company, the Company will advise the Board of
any proposed material reduction in the coverage for Indemnitee to be provided by the
Company’s directors’ and officers’ liability insurance policy and will not effect such a
reduction with respect to Indemnitee without the prior approval of at least 80% of the
Independent Directors of the Company.

13

 

     (e) If Indemnitee is a director of the Company during the term of this Agreement and if
Indemnitee ceases to be a director of the Company for any reason, the Company shall procure
a run-off directors’ and officers’ liability insurance policy with respect to claims arising
from facts or events that occurred before the time Indemnitee ceased to be a director of the
Company and covering Indemnitee, which policy, without any lapse in coverage, will provide
coverage for a period of six years after the time Indemnitee ceased to be a director of the
Company and will provide coverage (including amount and type of coverage and size of
deductibles) that are substantially comparable to the Company’s directors’ and officers’
liability insurance policy that was most protective of Indemnitee in the 12 months preceding
the time Indemnitee ceased to be a director of the Company; provided, however, that:

     (i) this obligation shall be suspended during the period immediately following
the time Indemnitee ceases to be a director of the Company if and only so long as
the Company has a directors’ and officers’ liability insurance policy in effect
covering Indemnitee for such claims that, if it were a run-off policy, would meet or
exceed the foregoing standards, but in any event this suspension period shall end
when a Change in Control occurs; and

     (ii) no later than the end of the suspension period provided in the preceding
clause (i) (whether because of failure to have a policy meeting the foregoing
standards or because a Change in Control occurs), the Company shall procure a
run-off directors’ and officers’ liability insurance policy meeting the foregoing
standards and lasting for the remainder of the six-year period.

     (f) Notwithstanding the preceding clause (e) including the suspension provisions
therein, if Indemnitee ceases to be an officer or a director of the Company in connection
with a Change in Control or at or during the one-year period following the occurrence of a
Change in Control, the Company shall procure a run-off directors’ and officers’ liability
insurance policy covering Indemnitee and meeting the foregoing standards in clause (e) and
lasting for a six-year period upon the Indemnitee’s ceasing to be an officer or a director
of the Company in such circumstances.

     Section 7.3 Self Insurance of the Company; Other Arrangements. The parties hereto
recognize that the Company may, but except as provided in Section 7.2(d), Section 7.2(e), and
Section 7.2(f) is not required to, procure or maintain insurance or other similar arrangements, at
its expense, to protect itself and any person, including Indemnitee, who is or was a director,
officer, employee, agent or fiduciary of the Company or who is or was serving at the request of the
Company as a director, officer, partner, member, venturer, proprietor, trustee, employee, agent,
fiduciary or similar functionary of another foreign or domestic corporation, partnership, limited
liability company, joint venture, sole proprietorship, trust, employee benefit plan or other
enterprise against any expense, liability or loss asserted against or incurred by such person, in
such a capacity or arising out of the person’s status as such a person, whether or not the Company
would have the power to indemnify such person against such expense or liability or loss.

14

 

     Except as provided in Section 7.2(d), Section 7.2(e) and Section 7.2(f), in considering the
cost and availability of such insurance, the Company (through the exercise of the business judgment
of its directors and officers) may, from time to time, purchase insurance which provides for
certain (i) deductibles, (ii) limits on payments required to be made by the insurer, or (iii)
coverage which may not be as comprehensive as that previously included in insurance purchased by
the Company or its predecessors. The purchase of insurance with deductibles, limits on payments
and coverage exclusions, even if in the best interest of the Company, may not be in the best
interest of Indemnitee. As to the Company, purchasing insurance with deductibles, limits on
payments and coverage exclusions is similar to the Company’s practice of self-insurance in other
areas. In order to protect Indemnitee who would otherwise be more fully or entirely covered under
such policies, the Company shall, to the maximum extent permitted by applicable law, indemnify and
hold Indemnitee harmless to the extent (i) of such deductibles, (ii) of amounts exceeding payments
required to be made by an insurer, or (iii) of amounts that prior policies of directors’ and
officers’ liability insurance held by the Company or its predecessors have provided for payment to
Indemnitee, if by reason of Indemnitee’s Corporate Status Indemnitee is or is threatened to be made
a party to any Proceeding. The obligation of the Company in the preceding sentence shall be
without regard to whether the Company would otherwise be required to indemnify such officer or
director under the other provisions of this Agreement, or under any law, agreement, vote of
stockholders or directors or other arrangement. Without limiting the generality of any provision
of this Agreement, the procedures in Article IV hereof shall, to the extent applicable, be used for
determining entitlement to indemnification under this Section 7.3.

     Section 7.4 Certain Settlement Provisions. The Company shall have no obligation to
indemnify Indemnitee under this Agreement for amounts paid in settlement of a Proceeding or Claim
without the Company’s prior written consent. The Company shall not settle any Proceeding or Claim
in any manner that would impose any fine or other obligation on Indemnitee without Indemnitee’s
prior written consent. Neither the Company nor Indemnitee shall unreasonably withhold their
consent to any proposed settlement.

     Section 7.5 Duration of Agreement. This Agreement shall continue for so long as
Indemnitee serves as a director, officer, employee, agent or fiduciary of the Company or, at the
request of the Company, as a director, officer, partner, member, venturer, proprietor, trustee,
employee, agent, fiduciary or similar functionary of another foreign or domestic corporation,
partnership, limited liability company, joint venture, sole proprietorship, trust, employee benefit
plan or other enterprise, and thereafter shall survive until and terminate upon the later to occur
of: (a) the expiration of 20 years after the latest date that Indemnitee shall have ceased to
serve in any such capacity; (b) the final termination of all pending Proceedings in respect of
which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of
any proceeding commenced by Indemnitee pursuant to Article IV relating thereto; or (c) the
expiration of all statutes of limitation applicable to possible Claims arising out of Indemnitee’s
Corporate Status.

     Section 7.6 Notice by Each Party. Indemnitee shall promptly notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document or communication relating to any Proceeding or Claim for which Indemnitee may be
entitled to indemnification or advancement of Expenses hereunder; provided,

15

 

however, that any failure of Indemnitee to so notify the Company shall not adversely affect
Indemnitee’s rights under this Agreement except to the extent the Company shall have been
materially prejudiced as a direct result of such failure. The Company shall promptly notify
Indemnitee in writing as to the pendency of any Proceeding or Claim that may involve a claim
against Indemnitee for which Indemnitee may be entitled to indemnification or advancement of
Expenses hereunder.

     Section 7.7 Amendment. This Agreement may not be modified or amended except by a
written instrument executed by or on behalf of each of the parties hereto.

     Section 7.8 Waivers. The observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or prospectively) by the
party entitled to enforce such term only by a writing signed by the party against which such waiver
is to be asserted. Unless otherwise expressly provided herein, no delay on the part of any party
hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate
as a waiver of any other right, power or privilege hereunder nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder.

     Section 7.9 Entire Agreement. This Agreement and the documents expressly referred to
herein constitute the entire agreement between the parties hereto with respect to the matters
covered hereby, and any other prior or contemporaneous oral or written understandings or agreements
with respect to the matters covered hereby, including without limitation any prior indemnification
agreements, are expressly superseded by this Agreement.

     Section 7.10 Severability. If any provision of this Agreement (including any
provision within a single section, paragraph or sentence) or the application of such provision to
any Person or circumstance, shall be judicially declared to be invalid, unenforceable or void, such
decision will not have the effect of invalidating or voiding the remainder of this Agreement or
affect the application of such provision to other Persons or circumstances, it being the intent and
agreement of the parties that this Agreement shall be deemed amended by modifying such provision to
the extent necessary to render it valid, legal and enforceable while preserving its intent, or if
such modification is not possible, by substituting therefor another provision that is valid, legal
and unenforceable and that achieves the same objective. Any such finding of invalidity or
unenforceability shall not prevent the enforcement of such provision in any other jurisdiction to
the maximum extent permitted by applicable law.

     Section 7.11 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given upon (a) transmitter’s confirmation of a receipt of a facsimile
transmission if during normal business hours of the recipient, otherwise on the next business day,
(b) confirmed delivery of a standard overnight courier or when delivered by hand or (c) the
expiration of five business days after the date mailed by certified or registered mail (return
receipt requested), postage prepaid, to the parties at the following addresses (or at such other
addresses for a party as shall be specified by like notice):

     If to the Company, to it at:

16

 

Pioneer Natural Resources Company

5205 North O’Connor Blvd.

Suite 200

Irving, Texas 75039-3746

Attn: Corporate Secretary

Facsimile: (972) 969-3552

     If to Indemnitee, to Indemnitee at:

5205 North O’Connor Blvd.

Suite 200

Irving, Texas 75039-3746

or to such other address or to such other individuals as any party shall have last designated by
notice to the other parties. All notices and other communications given to any party in accordance
with the provisions of this Agreement shall be deemed to have been given when delivered or sent to
the intended recipient thereof in accordance with and as provided in the provisions of this Section
7.11.

     Section 7.12 Governing Law. This Agreement shall be construed in accordance with and
governed by the laws of the State of Delaware without regard to the principles of conflict of laws.

     Section 7.13 Certain Construction Rules.

     (a) The article and section headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this
Agreement. As used in this Agreement, unless otherwise provided to the contrary, (1) all
references to days shall be deemed references to calendar days and (2) any reference to a
“Section” or “Article” shall be deemed to refer to a section or article of this Agreement.
The words “hereof,” “herein” and “hereunder” and words of similar import referring to this
Agreement refer to this Agreement as a whole and not to any particular provision of this
Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation.” Unless
otherwise specifically provided for herein, the term “or” shall not be deemed to be
exclusive. Whenever the context may require, any pronoun used in this Agreement shall
include the corresponding masculine, feminine or neuter forms, and the singular form of
nouns, pronouns and verbs shall include the plural and vice versa.

     (b) For purposes of this Agreement, references to “other enterprises” shall include
employee benefit plans; references to “fines” shall include any excise taxes assessed on a
person with respect to any employee benefit plan; references to “serving at the request of
the Company” shall include any service as a director, officer, employee or agent of the
Company which imposes duties on, or involves services by, such director, nominee, officer,
employee or agent with respect to an employee benefit plan, its participants or
beneficiaries; and a person who acted in good faith and in a manner the

17

 

person reasonably believed to be in the interests of the participants and beneficiaries
of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the
best interest of the Company” for purposes of this Agreement and the DGCL.

     Section 7.14 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed to be an original and all of which together shall be
deemed to be one and the same instrument, notwithstanding that both parties are not signatories to
the original or same counterpart.

     Section 7.15 Certain Persons Not Entitled to Indemnification. Notwithstanding any
other provision of this Agreement (but subject to Section 7.1), Indemnitee shall not be entitled to
indemnification or advancement of Expenses pursuant to the terms of this Agreement with respect to
any Proceeding or any Claim, issue or matter therein, brought or made by Indemnitee against the
Company, except as specifically provided in Article III, Article IV or Section 7.3. In addition,
the Company shall not be obligated pursuant to the terms of this Agreement:

     (a) To indemnify Indemnitee if (and to the extent that) a final decision by a court or
arbitration body having jurisdiction in the matter shall determine that such indemnification
is not lawful; or

     (b) To indemnify Indemnitee for the payment to the Company of profits pursuant to
Section 16(b) of the Exchange Act, or Expenses incurred by Indemnitee for Proceedings in
connection with such payment under Section 16(b) of the Exchange Act.

     Section 7.16 Indemnification for Negligence, Gross Negligence, etc. Without limiting
the generality of any other provision hereunder, it is the express intent of this Agreement that
Indemnitee be indemnified and Expenses be advanced regardless of Indemnitee’s acts of negligence,
gross negligence, intentional or willful misconduct to the extent that indemnification and
advancement of Expenses is allowed pursuant to the terms of this Agreement and under applicable
law.

     Section 7.17 Mutual Acknowledgments. Both the Company and Indemnitee acknowledge that
in certain instances, applicable law (including applicable federal law that may preempt or override
applicable state law) or public policy may prohibit the Company from indemnifying the directors,
officers, employees, agents or fiduciaries of the Company under this Agreement or otherwise. For
example, the Company and Indemnitee acknowledge that the U.S. Securities and Exchange Commission
has taken the position that indemnification of directors, officers and controlling Persons of the
Company for liabilities arising under federal securities laws is against public policy and,
therefore, unenforceable. Indemnitee understands and acknowledges that the Company has undertaken
or may be required in the future to undertake with the Securities and Exchange Commission to submit
the question of indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee. In addition, the Company and
Indemnitee acknowledge that federal law prohibits indemnifications for certain violations of the
Employee Retirement Income Security Act of 1974, as amended.

18

 

     Section 7.18 Enforcement. The Company agrees that its execution of this Agreement
shall constitute a stipulation by which it shall be irrevocably bound in any court or arbitration
in which a proceeding by Indemnitee for enforcement of Indemnitee’s rights hereunder shall have
been commenced, continued or appealed, that its obligations set forth in this Agreement are unique
and special, and that failure of the Company to comply with the provisions of this Agreement will
cause irreparable and irremediable injury to Indemnitee, for which a remedy at law will be
inadequate. As a result, in addition to any other right or remedy Indemnitee may have at law or in
equity with respect to breach of this Agreement, Indemnitee shall be entitled to injunctive or
mandatory relief directing specific performance by the Company of its obligations under this
Agreement. The Company agrees not to seek, and agrees to waive any requirement for the securing or
posting of, a bond in connection with Indemnitee’s seeking or obtaining such relief.

     Section 7.19 Successors and Assigns. All of the terms and provisions of this Agreement
shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto
and their respective successors, assigns, heirs, executors, administrators, legal representatives.

     Section 7.20 Period of Limitations. No legal action shall be brought and no cause of
action shall be asserted by or on behalf of the Company or any affiliate of the Company against
Indemnitee or Indemnitee’s spouse, heirs, executors, or personal or legal representatives after the
expiration of one year from the date of accrual of that cause of action, and any claim or cause of
action of the Company or its affiliate shall be extinguished and deemed released unless asserted by
the timely filing of a legal action within that one-year period; provided, however, that for any
claim based on Indemnitee’s breach of fiduciary duties to the Company or its stockholders, the
period set forth in the preceding sentence shall be three years instead of one year; and provided,
further, that, if any shorter period of limitations is otherwise applicable to any such cause of
action, the shorter period shall govern.

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     IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of
the date first above written.

	 	 	 	 	 
	 	PIONEER NATURAL RESOURCES COMPANY

 	 
	 	By:  	/s/ Mark S. Berg
 	 
	 	 	Name:  	Mark S. Berg 	 
	 	 	Title:  	Executive Vice President and General Counsel 	 
	 
	 	INDEMNITEE:

 	 
	 	/s/ Scott D. Sheffield
 	 
	 	Scott D. Sheffield 	 
	 	 	 

1

 

	 	 	 	 	 

Schedule I

     1. The Company entered into an Indemnification Agreement with each of Timothy L. Dove, Mark S.
Berg, Chris J. Cheatwood, Richard P. Dealy, William F. Hannes, Danny L. Kellum, David McManus, Jay
P. Still and Frank W. Hall that is otherwise identical to the one entered into with Scott D.
Sheffield.

     2. The Company entered into an Indemnification Agreement with each of James R. Baroffio,
Edison C. Buchanan, R. Hartwell Gardner, Linda K. Lawson, Andrew D. Lundquist, Charles E. Ramsey,
Jr., Frank A. Risch, Mark S. Sexton, Robert A. Solberg and Jim A. Watson, which varied from Exhibit
10.1 by modifying Section 7.15 to provide, in its entirety, the following:

     Section 7.15 Certain Persons Not Entitled to Indemnification. The Company shall not
be obligated pursuant to the terms of this Agreement:

     (a) To indemnify Indemnitee if (and to the extent that) a final decision by a court or
arbitration body having jurisdiction in the matter shall determine that such indemnification
is not lawful; or

     (b) To indemnify Indemnitee for the payment to the Company of profits pursuant to
Section 16(b) of the Exchange Act, or Expenses incurred by Indemnitee for Proceedings in
connection with such payment under Section 16(b) of the Exchange Act.

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