Document:

EXHIBIT 10.2

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION
AGREEMENT (this “Agreement”) is effective as of September 13, 2005,
between Meadows Springs, Inc., a Nevada corporation, dba Earth Biofuels, Inc.
(the “Company”), and Tommy W. Johnson (“Indemnitee”).

WHEREAS, the Company and
Indemnitee recognize that currently D&O liability coverage is in place, but
in today’s litigious society the limits may be inadequate. Further the parties
recognize the continued difficulty in obtaining liability insurance for directors,
officers, employees, agents and fiduciaries of the Company , the significant
increases in the cost of such insurance and the general reductions in the
coverage of such insurance;

WHEREAS, the Company and
Indemnitee further recognize the substantial increase in corporate litigation
in general, subjecting directors, officers, employees, agents and fiduciaries
to expensive litigation risks at the same time as the availability and coverage
of liability insurance has been severely limited;

WHEREAS, Indemnitee does not
regard the current protection available as adequate under the present
circumstances, and Indemnitee and other directors, officers, employees, agents
and fiduciaries of the Company may not be willing to continue to serve in such
capacities without additional protection;

WHEREAS, the Company desires
to attract and retain the services of highly qualified individuals, such as
Indemnitee, to serve the Company and, in part, in order to induce Indemnitee to
continue to provide services to the Company, desires to provide for the
indemnification and advancement of expenses to Indemnitee to the maximum extent
permitted by law; and

WHEREAS, in view of the
considerations set forth above, the Company desires that Indemnitee be
indemnified by the Company as set forth herein.

NOW, THEREFORE, the Company
and Indemnitee hereby agree as follows:

1.                                       Indemnification.

(a)                                  Indemnification of Expenses.  The Company shall indemnify
Indemnitee to the fullest extent permitted by applicable law if Indemnitee was
or 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, any
threatened, pending or completed action, suit, proceeding or alternative
dispute resolution mechanism, or any hearing, inquiry or investigation that
Indemnitee in good faith believes might lead to the institution of any such
action, suit, proceeding or alternative dispute resolution mechanism, whether
civil, criminal, administrative, investigative or other (a “Claim”) by reason of (or arising in part out of) any event or occurrence
related to the fact that Indemnitee is or was a director, officer, employee,
agent or fiduciary of the Company, or any subsidiary of the Company, or is or
was serving at the request of the Company as a director, officer, employee,
agent or fiduciary of another corporation, partnership, joint venture, trust or
other enterprise, or by reason of any action or inaction on the part of
Indemnitee while serving in such capacity (an “Indemnifiable Event”)
against any and all expenses (including attorneys’ fees and all other costs,
expenses and obligations incurred in connection with investigating, defending,
being a witness in or participating in (including on appeal), or

 

preparing to defend, be a witness in or participate in, any such
action, suit, proceeding, alternative dispute resolution mechanism, hearing,
inquiry or investigation), judgments, fines, penalties and amounts paid in
settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) of such Claim and any federal,
state, local or foreign taxes imposed on Indemnitee as a result of the actual
or deemed receipt of any payments under this Agreement (collectively, “Expenses”), including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses.  Such payment of Expenses shall be made by the
Company as soon as practicable but in any event no later than 25 days
after written demand by Indemnitee therefor is presented to the Company.

(b)                                 Reviewing Party.  Notwithstanding any provision of
Section 1(a) to the contrary, (i) the obligations of the
Company under Section 1(a) shall be subject to the condition that
the Reviewing Party (as described in Section 10(e)) shall not have
determined (in a written opinion, in any case in which the Independent Legal
Counsel referred to in Section 1(c) is involved) that Indemnitee
would not be permitted to be indemnified under applicable law, and (ii) the
obligation of the Company to make an advance payment of Expenses to Indemnitee
pursuant to Section 2(a) (an “Expense Advance”)
shall be subject to the condition that, if, when and to the extent that the
Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be
reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all
such amounts theretofore paid; provided, however, that if
Indemnitee has commenced or thereafter commences legal proceedings in a court
of competent jurisdiction to secure a determination that Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing Party
that Indemnitee would not be permitted to be indemnified under applicable law
shall not be binding and Indemnitee shall not be required to reimburse the
Company for any Expense Advance until a final judicial determination is made in
respect thereof (as to which all rights of appeal therefrom have been exhausted
or lapsed).  Indemnitee’s obligation to
reimburse the Company for any Expense Advance shall be unsecured and no
interest shall be charged thereon.  If
there has not been a Change in Control (as defined in Section 10(c)),
the Reviewing Party shall be selected by the Board of Directors of the Company
(the “Board”), and if there has been such a Change in Control (other
than a Change in Control which has been approved by a majority of the Board who
were directors immediately prior to such Change in Control), the Reviewing
Party shall be the Independent Legal Counsel referred to in Section 1(c).  If there has been no determination by the
Reviewing Party or if the Reviewing Party determines that Indemnitee
substantively would not be permitted to be indemnified in whole or in part
under applicable law, Indemnitee shall have the right to commence litigation
seeking an initial determination by the court or challenging any such
determination by the Reviewing Party or any aspect thereof, including the legal
or factual bases therefor, and the Company hereby consents to service of
process and to appear in any such proceeding. 
Any determination by the Reviewing Party otherwise shall be conclusive
and binding on the Company and Indemnitee.

(c)                                  Change in Control.  If there is a Change in Control
(other than a Change in Control which has been approved by a majority of the
Board who were directors immediately prior to such Change in Control) then, in
respect of all matters thereafter arising concerning the rights of Indemnitee
to payments of Expenses and Expense Advances under this Agreement or any other
agreement or under the Company’s Articles

 

of Incorporation (the “Charter”) or the Company’s Bylaws (“Bylaws”)
as now or hereafter in effect, Independent Legal Counsel (as defined in Section 10(d))
shall be selected by Indemnitee and approved by the Company (which approval
shall not be unreasonably withheld). 
Such counsel shall, among other things, render its written opinion to
the Company and Indemnitee as to whether and to what extent Indemnitee would be
permitted to be indemnified under applicable law and Indemnitee and the Company
shall abide by such opinion.  The Company
shall pay the reasonable fees of the Independent Legal Counsel referred to
above and shall fully indemnify such counsel against any and all expenses
(including attorneys’ fees), claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.

(d)                                 Mandatory Payment of Expenses.  Notwithstanding any other
provision of this Agreement to the contrary (other than Section 9),
to the extent that Indemnitee has been successful on the merits or otherwise,
including, without limitation, the dismissal of an action without prejudice, in
defense of any action, suit, proceeding, inquiry or investigation referred to
in Section (1)(a) or in the defense of any claim, issue or matter
therein, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

2.                                       Expenses; Indemnification Procedure.

(a)                                  Advancement of Expenses.  The Company shall advance all
Expenses incurred by Indemnitee.  The
advances to be made hereunder shall be paid by the Company to Indemnitee as
soon as practicable but in any event no later than 10 days after written
demand by Indemnitee therefor to the Company.

(b)                                 Notice/Cooperation by Indemnitee.  Indemnitee shall, as a condition
precedent to Indemnitee’s right to be indemnified under this Agreement, give
the Company notice in writing as soon as practicable of any Claim made against
Indemnitee for which indemnification will or could be sought under this
Agreement.  Notice to the Company shall
be directed to the Chief Executive Officer of the Company at the address shown
on the signature page of this Agreement (or such other address as the Company
shall designate in writing to Indemnitee). 
In addition, Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s
power.

(c)                                  No Presumptions; Burden of Proof.  For purposes of this Agreement,
the termination of any Claim by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall
not create a presumption that Indemnitee did not meet any particular standard
of conduct or have any particular belief or that a court has determined that
indemnification is not permitted by applicable law.  In addition, neither the failure of the
Reviewing Party to have made a determination as to whether Indemnitee has met
any particular standard of conduct or had any particular belief, nor an actual
determination by the Reviewing Party that Indemnitee has not met such standard
of conduct or did not have such belief, prior to the commencement of legal proceedings
by Indemnitee to secure a judicial determination that Indemnitee should be
indemnified under applicable law, shall be a defense to Indemnitee’s claim or
create a presumption that Indemnitee has not met any particular standard of
conduct or did not have any particular belief. 
In connection with any determination by the Reviewing Party or otherwise
as to whether Indemnitee is entitled to

 

be indemnified hereunder, the burden of proof shall be on the Company
to establish that Indemnitee is not so entitled.

(d)                                 Notice to Insurers.  If, at the time of the receipt
by the Company of a notice of a Claim pursuant to Section 2(b), the
Company has liability insurance in effect that may cover such Claim, the
Company shall give prompt notice of the commencement of such Claim to the
insurers in accordance with the procedures set forth in the respective
policies.  The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of Indemnitee, all amounts payable as a result of such action, suit,
proceeding, inquiry or investigation in accordance with the terms of such
policies.

(e)                                  Selection of Counsel.  If the Company shall be
obligated hereunder to pay the Expenses of any Claim, the Company shall be
entitled to assume the defense of such Claim with counsel approved by
Indemnitee, which approval shall not be unreasonably withheld, upon the
delivery to Indemnitee of written notice of its election so to do.  After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees
of counsel subsequently incurred by Indemnitee in respect of the same Claim; provided,
however, that (i) Indemnitee shall have the right to employ
Indemnitee’s counsel in any such Claim at Indemnitee expense and (ii) if
(A) the employment of counsel by Indemnitee has been previously authorized
by the Company, (B) Indemnitee shall have reasonably concluded that there
is a conflict of interest between the Company and Indemnitee in the conduct of
any such defense, or (C) the Company shall not continue to retain such
counsel to defend such Claim, then the fees and expenses of Indemnitee counsel
shall be at the expense of the Company. 
The Company shall have the right to conduct such defense as it sees fit
in its sole discretion, including the right to settle any claim against
Indemnitee without the consent of the Indemnitee.

3.                                       Additional Indemnification Rights;
Nonexclusivity.

(a)                                  Scope.  The Company hereby shall indemnify Indemnitee to the
fullest extent permitted by law, notwithstanding that such indemnification is
not specifically authorized by the other provisions of this Agreement, the
Charter, the Bylaws or by statute.  In the
event of any change after the date hereof in any applicable law, statute or
rule which expands the right of a Nevada corporation to indemnify a member of
its board of directors or an officer, employee, agent or fiduciary, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits afforded by such change. 
In the event of any change in any applicable law, statute or rule that
narrows the right of a Nevada corporation to indemnify a member of its board of
directors or an officer, employee, agent or fiduciary, such change, to the
extent not otherwise required by such law, statute or rule to be applied to
this Agreement, shall have no effect on this Agreement or the parties’ rights
and obligations hereunder except as set forth in Section 8(a).

(b)                                 Nonexclusivity.  The indemnification provided by
this Agreement shall be in addition to any rights to which Indemnitee may be
entitled under the Charter, the Bylaws, any agreement, any vote of stockholders
or disinterested directors, the Revised Statutes of the State of Nevada, or
otherwise.  The indemnification provided
under this

 

Agreement shall continue as to Indemnitee for any action Indemnitee
took or did not take while serving in an indemnified capacity even though
Indemnitee may have ceased to serve in such capacity.

4.                                       No Duplication of Payments.  The Company shall not be liable
under this Agreement to make any payment in connection with any Claim made
against Indemnitee to the extent Indemnitee has otherwise actually received
payment (under any insurance policy, the Charter, Bylaw or otherwise) of the
amounts otherwise indemnifiable hereunder.

5.                                       Partial Indemnification.  If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of Expenses incurred in connection with any Claim, but not, however,
for all of the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

6.                                       Mutual Acknowledgement.  Both the Company and Indemnitee
acknowledge that in certain instances, federal law or applicable public policy
may prohibit the Company from indemnifying its directors, officers, employees,
agents or fiduciaries under this Agreement or otherwise.  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.

7.                                       Liability Insurance.  To the extent the Company
maintains liability insurance applicable to directors, officers, employees,
agents or fiduciaries, Indemnitee shall be covered by such policies in such a
manner as to provide Indemnitee the same rights and benefits as are accorded to
the most favorably insured of the Company’s directors, if Indemnitee is a
director; or of the Company’s officers, if Indemnitee is not a director of the
Company but is an officer; or of the Company’s key employees, agents or
fiduciaries, if Indemnitee is not an officer or director but is a key employee,
agent or fiduciary.

8.                                       Exceptions.  Notwithstanding any other provision of this Agreement to
the contrary, the Company shall not be obligated pursuant to the terms of this
Agreement:

(a)                                  Excluded Action or Omissions.  To indemnify Indemnitee for
Indemnitee’s acts, omissions or transactions from which Indemnitee may not be
relieved of liability under applicable law;

(b)                                 Claims Initiated by Indemnitee.  To indemnify or advance expenses
to Indemnitee in respect of Claims initiated or brought voluntarily by
Indemnitee and not by way of defense, except (i) in respect of actions or
proceedings brought to establish or enforce a right to indemnification under
this Agree­ment or any other agreement or insurance policy or under the Charter
or Bylaws now or hereafter in effect relating to Claims for Indemnifiable
Events, (ii) in specific cases if the Board has approved the initiation or
bringing of such Claim, or (iii) as otherwise required under the Nevada
Revised Statutes, regardless of whether Indemnitee ultimately is determined to
be entitled to such indemnification, advance expense payment or insurance recovery,
as the case may be;

 

(c)                                  Lack of Good Faith.  To indemnify Indemnitee for any
expenses incurred by Indemnitee in respect of any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by Indemnitee
in such proceeding was not made in good faith or was frivolous; or

(d)                                 Claims Under Section 16(b).  To indemnify Indemnitee for
expenses and the payment of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or any similar successor statute.

9.                                       Period of Limitations.  No legal action shall be brought
and no cause of action shall be asserted by or in the right of the Company
against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or personal
or legal representatives after the expiration of two years from the date of
accrual of such cause of action, and any claim or cause of action of the Company
shall be extinguished and deemed released unless asserted by the timely filing
of a legal action within such two-year period; provided, however,
that if any shorter period of limitations is otherwise applicable to any such
cause of action, such shorter period shall govern.

10.                                 Construction of Certain Phrases.

(a)                                  For purposes of this Agreement, references to
the “Company” shall include, in addition to the resulting corporation,
any constituent corporation (including any constituent of a constituent) absorbed
in a consolidation or merger that, if its separate existence had continued,
would have had power and authority to indemnify its directors, officers,
employees, agents or fiduciaries, so that if Indemnitee is or was a director,
officer, employee, agent or fiduciary of such constituent corporation, or is or
was serving at the request of such constituent corporation as a director,
officer, employee, agent or fiduciary of another corporation, partnership,
joint venture, employee benefit plan, trust or other enterprise, Indemnitee
shall stand in the same position under the provisions of this Agreement in
respect of the resulting or surviving corporation as Indemnitee would have in
respect of such constituent corporation if its separate existence had continued.

(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 Indemnitee in respect of an employee
benefit plan; and references to “serving at the request of the Company”
shall include any service as a director, officer, employee, agent or fiduciary
of the Company that imposes duties on, or involves services by, such director,
officer, employee, agent or fiduciary in respect of an employee benefit plan,
its participants or its beneficiaries; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed to the best interests of the
Company” as referred to in this Agreement.

(c)                                  For purposes of this Agreement a “Change
in Control” shall be deemed to have occurred if (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned
directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company, (A) who is or
becomes the

 

beneficial owner, directly or indirectly, of securities of the Company
representing 10% or more of the combined voting power of the Company’s then
outstanding Voting Securities, increases its beneficial ownership of such
securities by 5% or more over the percentage so owned by such person, or
(B) becomes the “beneficial owner” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing more
than 20% of the total voting power represented by the then outstanding Voting
Securities, (ii) during any period of two consecutive years, individuals
who at the beginning of such period constitute the Board and any new director
whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors
then still in office who either were directors at the beginning of the period
or whose election or nomination for election was previously so approved, cease
for any reason to constitute a majority thereof, or (iii) the stockholders
of the Company approve a merger or consolidation of the Company with any other
corporation other than a merger or consolidation which would result in the
Voting Securities outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into Voting Securities
of the surviving entity) at least 80% of the total voting power represented by
the Voting Securities or such surviving entity outstanding immediately after
such merger or consolidation, or the stockholders of the Company approve a plan
of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of (in one transaction or a series of transactions)
all or substantially all of the Company’s assets.

(d)                                 For purposes of this Agreement, “Independent
Legal Counsel” means an attorney or firm of attorneys, selected in
accordance with Section 1(c), who shall not have otherwise
performed services for the Company or Indemnitee within the last three years
(other than in respect of matters concerning the rights of Indemnitee under
this Agreement, or of other indemnitees under similar indemnity agreements).

(e)                                  For purposes of this Agreement, a “Reviewing
Party” means any appropriate person or body consisting of a member or
members of the Board or any other person or body appointed by the Board who is
not a party to the particular Claim for which Indemnitee is seeking
indemnification, or Independent Legal Counsel.

(f)                                    For purposes of this Agreement, “Voting
Securities” means any securities of the Company that vote generally in the
election of directors.

11.                                 Counterparts.  This Agreement may be executed
in multiple counterparts, each of which shall constitute an original.

12.                                 Binding Effect; Successors and Assigns.  This Agreement shall be binding
upon and inure to the benefit of and be enforce­able by the parties hereto and
their respective successors, assigns, including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company, spouses, heirs,
and personal and legal representatives. 
The Company shall require and cause any successor (whether direct or
indirect by purchase, merger, consolidation or otherwise) to all, substantially
all, or a substantial part, of the business and/or assets of the Company, by
written agreement in form and substance satisfactory to Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession
had taken place.  This Agreement shall continue
in effect in respect of Claims relating to Indemnifiable Events regardless of
whether Indemnitee continues to serve as

 

a director, officer,
employee, agent or fiduciary of the Company or of any other enterprise at the
Company’s request.

13.                                 Attorneys’ Fees.  If any action is instituted by
Indemnitee under this Agreement or under any liability insurance policies
maintained by the Company to enforce or interpret any of the terms hereof or
thereof, Indemnitee shall be entitled to be paid all Expenses incurred by
Indemnitee in respect of such action, regardless of whether Indemnitee is
ultimately successful in such action, and shall be entitled to the advancement
of Expenses in respect of such action, unless, as a part of such action, a
court of competent jurisdiction over such action determines that each of the
material assertions made by Indemnitee as a basis for such action was not made
in good faith or was frivolous.  If an
action is instituted by or in the name of the Company under this Agreement to
enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all Expenses incurred by Indemnitee in defense of such
action (including costs and expenses incurred in respect of Indemnitee
counterclaims and cross-claims made in such action), and shall be entitled to
the advancement of Expenses in respect of such action, unless, as a part of
such action, a court having jurisdiction over such action determines that each
of Indemnitee’s material defenses to such action was made in bad faith or was
frivolous.

14.                                 Notice.  All notices and other communications required or permitted
hereunder shall be in writing, shall be effective when given, and shall in any
event be deemed to be given (i) five days after deposit with the U.S.
Postal Service or other applicable postal service, if delivered by first class
mail, postage prepaid, (ii) upon delivery, if delivered by hand,
(iii) one business day after the business day of deposit with Federal
Express or similar overnight courier, freight prepaid, or (iv) one day
after the business day of delivery by facsimile transmission, if delivered by
facsimile transmission, with copy by first class mail, postage prepaid, and
shall be addressed if to Indemnitee, at Indemnitee’s address as set forth
beneath Indemnitee’s signature to this Agreement and if to the Company at the
address of its principal corporate offices (attention:  Secretary) or at such other address as such
party may designate by ten days’ advance written notice to the other party
hereto.

15.                                 Consent to Jurisdiction.  The Company and Indemnitee each
hereby irrevocably consent to the jurisdiction of the courts of the State of
Texas for all purposes in connection with any action or proceeding that arises
out of or relates to this Agreement and agree that any action instituted under
this Agreement shall be commenced, prosecuted and continued only in a Texas
state court sitting in Dallas County, Texas, which shall be the exclusive and
only proper forum for adjudicating such a claim.

16.                                 Severability.  The provisions of this Agreement
shall be severable if any of the provisions hereof (including any provision
within a single section, paragraph or sentence) are held by a court of
competent jurisdiction to be invalid, void or otherwise unenforceable, and the
remaining provisions shall remain enforceable to the fullest extent permitted
by applicable law.  Furthermore, to the
fullest extent possible, the provisions of this Agreement (including, without
limitation, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

17.                                 Choice of Law.  This Agreement shall be governed
by and its provisions construed and enforced in accordance with the laws of the
State of Nevada, as applied to contracts between Nevada residents, entered into
and to be performed entirely within the State of Nevada, without regard to the
conflict of laws principles thereof.

 

18.                                 Subrogation.  In the event of payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee who shall execute all documents required and shall do all
acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

19.                                 Amendment and Termination.  No amendment, modification,
termination or cancellation of this Agreement shall be effective unless it is
in writing signed by both the parties hereto. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

20.                                 Integration and Entire Agreement.  This Agreement sets forth the
entire understanding between the parties hereto and supersedes and merges all
previous written and oral negotiations, commitments, understandings and
agreements relating to the subject matter hereof between the parties hereto.

21.                                 No Construction as Employment Agreement.  Nothing contained in this
Agreement shall be construed as giving Indemnitee any right to be retained in
the employ of the Company or any of its subsidiaries.

* * * * *

[THE REMAINDER OF THIS PAGE
IS INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first
above written.

	
  THE COMPANY:

  
	
   

  
	
  MEADOWS SPRINGS, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ DENNIS G. MCLAUGHLIN, III

  	
   

  
	
  Name:

  	
  Dennis G. McLaughlin, III

  
	
  Title:

  	
  Chairman of the Board of Directors

  
	
   

  	
   

  
	
  Address:

  	
  3001 Knox Street, Suite 403

  
	
   

  	
  Dallas, Texas
  75205

  
	
   

  	
  214 389 9800

  
	
  Facsimile No.:

  	
  214 389 9805

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ MORGAN FREEMAN

  	
   

  
	
  Name:

  	
  Morgan Freeman

  
	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ BRUCE BLACKWELL

  	
   

  
	
  Name:

  	
  Bruce Blackwell

  
	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ WILLIAM O. LUCKETT, JR.

  	
   

  
	
  Name:

  	
  William O. Luckett, Jr.

  
	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  INDEMNITEE:

  
	
   

  
	
   

  
	
  /s/ TOMMY W.
  JOHNSON

  	
   

  
	
  TOMMY W. JOHNSON

  	
   

  
	
   

  	
   

  
	
  Address:

  	
  6070 I55 North

  
	
   

  	
  Jackson,
  Mississippi

  
	
   

  	
  601 372 8445

  
	
  Facsimile:

  	
  601 372 6455EXHIBIT 10.3

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION
AGREEMENT (this “Agreement”) is entered into as of September 29, 2005,
between Meadows Springs, Inc., a Nevada corporation, dba Earth Biofuels, Inc.
(the “Company”), and William O. Luckett, Jr. (“Indemnitee”).

WHEREAS, the Company and
Indemnitee recognize that currently D&O liability coverage is in place, but
in today’s litigious society the limits may be inadequate. Further the parties
recognize the continued difficulty in obtaining liability insurance for
directors, officers, employees, agents and fiduciaries of the Company , the
significant increases in the cost of such insurance and the general reductions
in the coverage of such insurance;

WHEREAS, the Company and
Indemnitee further recognize the substantial increase in corporate litigation
in general, subjecting directors, officers, employees, agents and fiduciaries
to expensive litigation risks at the same time as the availability and coverage
of liability insurance has been severely limited;

WHEREAS, Indemnitee does not
regard the current protection available as adequate under the present
circumstances, and Indemnitee and other directors, officers, employees, agents
and fiduciaries of the Company may not be willing to continue to serve in such capacities
without additional protection;

WHEREAS, the Company desires
to attract and retain the services of highly qualified individuals, such as
Indemnitee, to serve the Company and, in part, in order to induce Indemnitee to
continue to provide services to the Company, desires to provide for the
indemnification and advancement of expenses to Indemnitee to the maximum extent
permitted by law; and

WHEREAS, in view of the
considerations set forth above, the Company desires that Indemnitee be
indemnified by the Company as set forth herein.

NOW, THEREFORE, the Company
and Indemnitee hereby agree as follows:

1.                                       Indemnification.

(a)                                  Indemnification of Expenses.  The Company shall indemnify
Indemnitee to the fullest extent permitted by applicable law if Indemnitee was
or 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, any
threatened, pending or completed action, suit, proceeding or alternative
dispute resolution mechanism, or any hearing, inquiry or investigation that
Indemnitee in good faith believes might lead to the institution of any such
action, suit, proceeding or alternative dispute resolution mechanism, whether
civil, criminal, administrative, investigative or other (a “Claim”) by reason of (or arising in part out of) any event or occurrence
related to the fact that Indemnitee is or was a director, officer, employee,
agent or fiduciary of the Company, or any subsidiary of the Company, or is or
was serving at the request of the Company as a director, officer, employee,
agent or fiduciary of another corporation, partnership, joint venture, trust or
other enterprise, or by reason of any action or inaction on the part of
Indemnitee while serving in such capacity (an “Indemnifiable Event”)
against any and all expenses (including attorneys’ fees and all other costs,
expenses and obligations incurred in connection with investigating, defending,
being a witness in or participating in (including on appeal), or

 

preparing to defend, be a witness in or participate in, any such
action, suit, proceeding, alternative dispute resolution mechanism, hearing,
inquiry or investigation), judgments, fines, penalties and amounts paid in
settlement (if such settlement is approved in advance by the Company, which
approval shall not be unreasonably withheld) of such Claim and any federal,
state, local or foreign taxes imposed on Indemnitee as a result of the actual
or deemed receipt of any payments under this Agreement (collectively, “Expenses”), including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses.  Such payment of Expenses shall be made by the
Company as soon as practicable but in any event no later than 25 days
after written demand by Indemnitee therefor is presented to the Company.

(b)                                 Reviewing Party.  Notwithstanding any provision of
Section 1(a) to the contrary, (i) the obligations of the
Company under Section 1(a) shall be subject to the condition that
the Reviewing Party (as described in Section 10(e)) shall not have
determined (in a written opinion, in any case in which the Independent Legal
Counsel referred to in Section 1(c) is involved) that Indemnitee
would not be permitted to be indemnified under applicable law, and (ii) the
obligation of the Company to make an advance payment of Expenses to Indemnitee
pursuant to Section 2(a) (an “Expense Advance”)
shall be subject to the condition that, if, when and to the extent that the
Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be
reimbursed by Indemnitee (who hereby agrees to reimburse the Company) for all
such amounts theretofore paid; provided, however, that if
Indemnitee has commenced or thereafter commences legal proceedings in a court
of competent jurisdiction to secure a determination that Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing Party
that Indemnitee would not be permitted to be indemnified under applicable law
shall not be binding and Indemnitee shall not be required to reimburse the
Company for any Expense Advance until a final judicial determination is made in
respect thereof (as to which all rights of appeal therefrom have been exhausted
or lapsed).  Indemnitee’s obligation to
reimburse the Company for any Expense Advance shall be unsecured and no
interest shall be charged thereon.  If
there has not been a Change in Control (as defined in Section 10(c)),
the Reviewing Party shall be selected by the Board of Directors of the Company
(the “Board”), and if there has been such a Change in Control (other
than a Change in Control which has been approved by a majority of the Board who
were directors immediately prior to such Change in Control), the Reviewing
Party shall be the Independent Legal Counsel referred to in Section 1(c).  If there has been no determination by the
Reviewing Party or if the Reviewing Party determines that Indemnitee
substantively would not be permitted to be indemnified in whole or in part
under applicable law, Indemnitee shall have the right to commence litigation
seeking an initial determination by the court or challenging any such
determination by the Reviewing Party or any aspect thereof, including the legal
or factual bases therefor, and the Company hereby consents to service of
process and to appear in any such proceeding. 
Any determination by the Reviewing Party otherwise shall be conclusive
and binding on the Company and Indemnitee.

(c)                                  Change in Control.  If there is a Change in Control
(other than a Change in Control which has been approved by a majority of the
Board who were directors immediately prior to such Change in Control) then, in
respect of all matters thereafter arising concerning the rights of Indemnitee
to payments of Expenses and Expense Advances under this Agreement or any other
agreement or under the Company’s Articles

 

of Incorporation (the “Charter”) or the Company’s Bylaws (“Bylaws”)
as now or hereafter in effect, Independent Legal Counsel (as defined in Section 10(d))
shall be selected by Indemnitee and approved by the Company (which approval
shall not be unreasonably withheld). 
Such counsel shall, among other things, render its written opinion to
the Company and Indemnitee as to whether and to what extent Indemnitee would be
permitted to be indemnified under applicable law and Indemnitee and the Company
shall abide by such opinion.  The Company
shall pay the reasonable fees of the Independent Legal Counsel referred to
above and shall fully indemnify such counsel against any and all expenses
(including attorneys’ fees), claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.

(d)                                 Mandatory Payment of Expenses.  Notwithstanding any other
provision of this Agreement to the contrary (other than Section 9),
to the extent that Indemnitee has been successful on the merits or otherwise,
including, without limitation, the dismissal of an action without prejudice, in
defense of any action, suit, proceeding, inquiry or investigation referred to
in Section (1)(a) or in the defense of any claim, issue or matter
therein, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

2.                                       Expenses; Indemnification Procedure.

(a)                                  Advancement of Expenses.  The Company shall advance all
Expenses incurred by Indemnitee.  The
advances to be made hereunder shall be paid by the Company to Indemnitee as
soon as practicable but in any event no later than 10 days after written
demand by Indemnitee therefor to the Company.

(b)                                 Notice/Cooperation by Indemnitee.  Indemnitee shall, as a condition
precedent to Indemnitee’s right to be indemnified under this Agreement, give
the Company notice in writing as soon as practicable of any Claim made against
Indemnitee for which indemnification will or could be sought under this
Agreement.  Notice to the Company shall
be directed to the Chief Executive Officer of the Company at the address shown
on the signature page of this Agreement (or such other address as the Company
shall designate in writing to Indemnitee). 
In addition, Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s
power.

(c)                                  No Presumptions; Burden of Proof.  For purposes of this Agreement,
the termination of any Claim by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall
not create a presumption that Indemnitee did not meet any particular standard
of conduct or have any particular belief or that a court has determined that
indemnification is not permitted by applicable law.  In addition, neither the failure of the Reviewing
Party to have made a determination as to whether Indemnitee has met any
particular standard of conduct or had any particular belief, nor an actual
determination by the Reviewing Party that Indemnitee has not met such standard
of conduct or did not have such belief, prior to the commencement of legal
proceedings by Indemnitee to secure a judicial determination that Indemnitee
should be indemnified under applicable law, shall be a defense to Indemnitee’s
claim or create a presumption that Indemnitee has not met any particular
standard of conduct or did not have any particular belief.  In connection with any determination by the
Reviewing Party or otherwise as to whether Indemnitee is entitled to

 

be indemnified hereunder, the burden of proof shall be on the Company
to establish that Indemnitee is not so entitled.

(d)                                 Notice to Insurers.  If, at the time of the receipt
by the Company of a notice of a Claim pursuant to Section 2(b), the
Company has liability insurance in effect that may cover such Claim, the
Company shall give prompt notice of the commencement of such Claim to the
insurers in accordance with the procedures set forth in the respective
policies.  The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of Indemnitee, all amounts payable as a result of such action, suit,
proceeding, inquiry or investigation in accordance with the terms of such
policies.

(e)                                  Selection of Counsel.  If the Company shall be
obligated hereunder to pay the Expenses of any Claim, the Company shall be
entitled to assume the defense of such Claim with counsel approved by
Indemnitee, which approval shall not be unreasonably withheld, upon the
delivery to Indemnitee of written notice of its election so to do.  After delivery of such notice, approval of
such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees
of counsel subsequently incurred by Indemnitee in respect of the same Claim; provided,
however, that (i) Indemnitee shall have the right to employ
Indemnitee’s counsel in any such Claim at Indemnitee expense and (ii) if
(A) the employment of counsel by Indemnitee has been previously authorized
by the Company, (B) Indemnitee shall have reasonably concluded that there
is a conflict of interest between the Company and Indemnitee in the conduct of
any such defense, or (C) the Company shall not continue to retain such
counsel to defend such Claim, then the fees and expenses of Indemnitee counsel
shall be at the expense of the Company. 
The Company shall have the right to conduct such defense as it sees fit
in its sole discretion, including the right to settle any claim against
Indemnitee without the consent of the Indemnitee.

3.                                       Additional Indemnification Rights; Nonexclusivity.

(a)                                  Scope.  The Company hereby shall indemnify Indemnitee to the
fullest extent permitted by law, notwithstanding that such indemnification is
not specifically authorized by the other provisions of this Agreement, the
Charter, the Bylaws or by statute.  In
the event of any change after the date hereof in any applicable law, statute or
rule which expands the right of a Nevada corporation to indemnify a member of
its board of directors or an officer, employee, agent or fiduciary, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits afforded by such change. 
In the event of any change in any applicable law, statute or rule that
narrows the right of a Nevada corporation to indemnify a member of its board of
directors or an officer, employee, agent or fiduciary, such change, to the
extent not otherwise required by such law, statute or rule to be applied to
this Agreement, shall have no effect on this Agreement or the parties’ rights
and obligations hereunder except as set forth in Section 8(a).

(b)                                 Nonexclusivity.  The indemnification provided by
this Agreement shall be in addition to any rights to which Indemnitee may be
entitled under the Charter, the Bylaws, any agreement, any vote of stockholders
or disinterested directors, the Revised Statutes of the State of Nevada, or
otherwise.  The indemnification provided
under this

 

Agreement shall continue as to Indemnitee for any action Indemnitee
took or did not take while serving in an indemnified capacity even though
Indemnitee may have ceased to serve in such capacity.

4.                                       No Duplication of Payments.  The Company shall not be liable
under this Agreement to make any payment in connection with any Claim made
against Indemnitee to the extent Indemnitee has otherwise actually received
payment (under any insurance policy, the Charter, Bylaw or otherwise) of the
amounts otherwise indemnifiable hereunder.

5.                                       Partial Indemnification.  If Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of Expenses incurred in connection with any Claim, but not, however,
for all of the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

6.                                       Mutual Acknowledgement.  Both the Company and Indemnitee
acknowledge that in certain instances, federal law or applicable public policy
may prohibit the Company from indemnifying its directors, officers, employees,
agents or fiduciaries under this Agreement or otherwise.  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.

7.                                       Liability Insurance.  To the extent the Company
maintains liability insurance applicable to directors, officers, employees,
agents or fiduciaries, Indemnitee shall be covered by such policies in such a
manner as to provide Indemnitee the same rights and benefits as are accorded to
the most favorably insured of the Company’s directors, if Indemnitee is a
director; or of the Company’s officers, if Indemnitee is not a director of the
Company but is an officer; or of the Company’s key employees, agents or
fiduciaries, if Indemnitee is not an officer or director but is a key employee,
agent or fiduciary.

8.                                       Exceptions.  Notwithstanding any other provision of this Agreement to
the contrary, the Company shall not be obligated pursuant to the terms of this
Agreement:

(a)                                  Excluded Action or Omissions.  To indemnify Indemnitee for
Indemnitee’s acts, omissions or transactions from which Indemnitee may not be
relieved of liability under applicable law;

(b)                                 Claims Initiated by Indemnitee.  To indemnify or advance expenses
to Indemnitee in respect of Claims initiated or brought voluntarily by
Indemnitee and not by way of defense, except (i) in respect of actions or
proceedings brought to establish or enforce a right to indemnification under
this Agree­ment or any other agreement or insurance policy or under the Charter
or Bylaws now or hereafter in effect relating to Claims for Indemnifiable
Events, (ii) in specific cases if the Board has approved the initiation or
bringing of such Claim, or (iii) as otherwise required under the Nevada
Revised Statutes, regardless of whether Indemnitee ultimately is determined to
be entitled to such indemnification, advance expense payment or insurance
recovery, as the case may be;

 

(c)                                  Lack of Good Faith.  To indemnify Indemnitee for any
expenses incurred by Indemnitee in respect of any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by Indemnitee
in such proceeding was not made in good faith or was frivolous; or

(d)                                 Claims Under Section 16(b).  To indemnify Indemnitee for
expenses and the payment of profits arising from the purchase and sale by
Indemnitee of securities in violation of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or any similar successor statute.

9.                                       Period of Limitations.  No legal action shall be brought
and no cause of action shall be asserted by or in the right of the Company
against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or personal
or legal representatives after the expiration of two years from the date of
accrual of such cause of action, and any claim or cause of action of the
Company shall be extinguished and deemed released unless asserted by the timely
filing of a legal action within such two-year period; provided, however,
that if any shorter period of limitations is otherwise applicable to any such
cause of action, such shorter period shall govern.

10.                                 Construction of Certain Phrases.

(a)                                  For purposes of this Agreement, references to
the “Company” shall include, in addition to the resulting corporation,
any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger that, if its separate existence had
continued, would have had power and authority to indemnify its directors,
officers, employees, agents or fiduciaries, so that if Indemnitee is or was a
director, officer, employee, agent or fiduciary of such constituent
corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee, agent or fiduciary of another
corporation, partnership, joint venture, employee benefit plan, trust or other
enterprise, Indemnitee shall stand in the same position under the provisions of
this Agreement in respect of the resulting or surviving corporation as
Indemnitee would have in respect of such constituent corporation if its
separate existence had continued.

(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 Indemnitee in respect of an employee
benefit plan; and references to “serving at the request of the Company”
shall include any service as a director, officer, employee, agent or fiduciary
of the Company that imposes duties on, or involves services by, such director,
officer, employee, agent or fiduciary in respect of an employee benefit plan,
its participants or its beneficiaries; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner “not opposed to the best interests of the
Company” as referred to in this Agreement.

(c)                                  For purposes of this Agreement a “Change
in Control” shall be deemed to have occurred if (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned
directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company, (A) who is or
becomes the

 

beneficial owner, directly or indirectly, of securities of the Company
representing 10% or more of the combined voting power of the Company’s then
outstanding Voting Securities, increases its beneficial ownership of such
securities by 5% or more over the percentage so owned by such person, or
(B) becomes the “beneficial owner” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing more
than 20% of the total voting power represented by the then outstanding Voting
Securities, (ii) during any period of two consecutive years, individuals
who at the beginning of such period constitute the Board and any new director
whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors
then still in office who either were directors at the beginning of the period
or whose election or nomination for election was previously so approved, cease
for any reason to constitute a majority thereof, or (iii) the stockholders
of the Company approve a merger or consolidation of the Company with any other
corporation other than a merger or consolidation which would result in the
Voting Securities outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into Voting Securities
of the surviving entity) at least 80% of the total voting power represented by
the Voting Securities or such surviving entity outstanding immediately after
such merger or consolidation, or the stockholders of the Company approve a plan
of complete liquidation of the Company or an agreement for the sale or disposition
by the Company of (in one transaction or a series of transactions) all or
substantially all of the Company’s assets.

(d)                                 For purposes of this Agreement, “Independent
Legal Counsel” means an attorney or firm of attorneys, selected in
accordance with Section 1(c), who shall not have otherwise
performed services for the Company or Indemnitee within the last three years
(other than in respect of matters concerning the rights of Indemnitee under
this Agreement, or of other indemnitees under similar indemnity agreements).

(e)                                  For purposes of this Agreement, a “Reviewing
Party” means any appropriate person or body consisting of a member or
members of the Board or any other person or body appointed by the Board who is
not a party to the particular Claim for which Indemnitee is seeking
indemnification, or Independent Legal Counsel.

(f)                                    For purposes of this Agreement, “Voting
Securities” means any securities of the Company that vote generally in the
election of directors.

11.                                 Counterparts.  This Agreement may be executed
in multiple counterparts, each of which shall constitute an original.

12.                                 Binding Effect; Successors and Assigns.  This Agreement shall be binding
upon and inure to the benefit of and be enforce­able by the parties hereto and
their respective successors, assigns, including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company, spouses, heirs,
and personal and legal representatives. 
The Company shall require and cause any successor (whether direct or
indirect by purchase, merger, consolidation or otherwise) to all, substantially
all, or a substantial part, of the business and/or assets of the Company, by
written agreement in form and substance satisfactory to Indemnitee, expressly
to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession
had taken place.  This Agreement shall
continue in effect in respect of Claims relating to Indemnifiable Events
regardless of whether Indemnitee continues to serve as

 

a director, officer,
employee, agent or fiduciary of the Company or of any other enterprise at the
Company’s request.

13.                                 Attorneys’ Fees.  If any action is instituted by
Indemnitee under this Agreement or under any liability insurance policies
maintained by the Company to enforce or interpret any of the terms hereof or
thereof, Indemnitee shall be entitled to be paid all Expenses incurred by
Indemnitee in respect of such action, regardless of whether Indemnitee is
ultimately successful in such action, and shall be entitled to the advancement
of Expenses in respect of such action, unless, as a part of such action, a
court of competent jurisdiction over such action determines that each of the
material assertions made by Indemnitee as a basis for such action was not made
in good faith or was frivolous.  If an
action is instituted by or in the name of the Company under this Agreement to
enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all Expenses incurred by Indemnitee in defense of such
action (including costs and expenses incurred in respect of Indemnitee
counterclaims and cross-claims made in such action), and shall be entitled to
the advancement of Expenses in respect of such action, unless, as a part of
such action, a court having jurisdiction over such action determines that each
of Indemnitee’s material defenses to such action was made in bad faith or was
frivolous.

14.                                 Notice.  All notices and other communications required or permitted
hereunder shall be in writing, shall be effective when given, and shall in any
event be deemed to be given (i) five days after deposit with the U.S.
Postal Service or other applicable postal service, if delivered by first class
mail, postage prepaid, (ii) upon delivery, if delivered by hand,
(iii) one business day after the business day of deposit with Federal
Express or similar overnight courier, freight prepaid, or (iv) one day after
the business day of delivery by facsimile transmission, if delivered by
facsimile transmission, with copy by first class mail, postage prepaid, and
shall be addressed if to Indemnitee, at Indemnitee’s address as set forth
beneath Indemnitee’s signature to this Agreement and if to the Company at the
address of its principal corporate offices (attention:  Secretary) or at such other address as such
party may designate by ten days’ advance written notice to the other party
hereto.

15.                                 Consent to Jurisdiction.  The Company and Indemnitee each
hereby irrevocably consent to the jurisdiction of the courts of the State of
Texas for all purposes in connection with any action or proceeding that arises
out of or relates to this Agreement and agree that any action instituted under
this Agreement shall be commenced, prosecuted and continued only in a Texas
state court sitting in Dallas County, Texas, which shall be the exclusive and
only proper forum for adjudicating such a claim.

16.                                 Severability.  The provisions of this Agreement
shall be severable if any of the provisions hereof (including any provision
within a single section, paragraph or sentence) are held by a court of
competent jurisdiction to be invalid, void or otherwise unenforceable, and the
remaining provisions shall remain enforceable to the fullest extent permitted
by applicable law.  Furthermore, to the
fullest extent possible, the provisions of this Agreement (including, without
limitation, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or
unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.

17.                                 Choice of Law.  This Agreement shall be governed
by and its provisions construed and enforced in accordance with the laws of the
State of Nevada, as applied to contracts between Nevada residents, entered into
and to be performed entirely within the State of Nevada, without regard to the
conflict of laws principles thereof.

 

18.                                 Subrogation.  In the event of payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

19.                                 Amendment and Termination.  No amendment, modification,
termination or cancellation of this Agreement shall be effective unless it is
in writing signed by both the parties hereto. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar)
nor shall such waiver constitute a continuing waiver.

20.                                 Integration and Entire Agreement.  This Agreement sets forth the
entire understanding between the parties hereto and supersedes and merges all
previous written and oral negotiations, commitments, understandings and
agreements relating to the subject matter hereof between the parties hereto.

21.                                 No Construction as Employment Agreement.  Nothing contained in this
Agreement shall be construed as giving Indemnitee any right to be retained in
the employ of the Company or any of its subsidiaries.

* * * * *

[THE REMAINDER OF THIS PAGE
IS INTENTIONALLY LEFT BLANK]

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first
above written.

	
  THE COMPANY:

  
	
   

  
	
  MEADOWS SPRINGS, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ DENNIS G. MCLAUGHLIN, III

  	
   

  
	
  Name:

  	
  Dennis G. McLaughlin, III

  
	
  Title:

  	
  Chairman of the Board of Directors

  
	
   

  	
   

  
	
  Address:

  	
  3001 Knox Street, Suite 403

  
	
   

  	
  Dallas, Texas
  75205

  
	
   

  	
  214 389 9800

  
	
  Facsimile No.:

  	
  214 389 9805

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ MORGAN FREEMAN

  	
   

  
	
  Name:

  	
  Morgan Freeman

  
	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ TOMMY W. JOHNSON

  	
   

  
	
  Name:

  	
  Tommy W. Johnson

  
	
  Title:

  	
  Director, Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ BRUCE BLACKWELL

  	
   

  
	
  Name:

  	
  Bruce Blackwell

  
	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  INDEMNITEE:

  
	
   

  
	
   

  
	
  /s/ WILLIAM O. LUCKETT, JR.

  	
   

  
	
  WILLIAM O. LUCKETT, JR.

  
	
   

  
	
  Address:

  	
  Luckett Tyner Law Firm

  
	
   

  	
  143 Yazoo Avenue

  
	
   

  	
  Post Office
  Drawer 1000

  
	
   

  	
  Clarksdale,
  Mississippi 38614-1000

  
	
   

  	
  662 624 2591

  
	
  Facsimile:

  	
  662 627 5403

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