Document:

Exhibit 10.8

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this “Agreement”),
effective as of July 6, 2006, between Western Gas Resources, Inc., a Delaware
corporation (the “Company”), and Edward A. Aabak (the “Indemnitee”).

 

WHEREAS, it is essential to the Company to
retain and attract as officers the most capable persons available;

 

WHEREAS, Indemnitee is an officer of the
Company;

 

WHEREAS, both the Company and Indemnitee
recognize the increased risk of litigation and other claims being asserted
against officers of public companies in today’s environment;

 

WHEREAS, the Bylaws of the Company require
the Company to indemnify and advance expenses to its officers to the full
extent permitted by law and the Indemnitee has been serving and continues to
serve as an officer of the Company in part in reliance on such Bylaws;

 

WHEREAS, in recognition of Indemnitee’s
need for substantial protection against personal liability in order to enhance
Indemnitee’s continued service to the Company in an effective manner and
Indemnitee’s reliance on the aforesaid Bylaws, and in part to provide
Indemnitee with specific contractual assurance that the protection promised by
such Bylaws will be available to Indemnitee (regardless of, among other things,
any amendment to or revocation of such Bylaws, or any change in the composition
of the Company’s Board of Directors or acquisition transaction relating to the
Company), the Company wishes to provide in this Agreement for the
indemnification of and the advancing of expenses to Indemnitee to the fullest
extent (whether partial or complete) permitted by law and as set forth in this
Agreement, and, to the extent insurance is maintained, for the continued
coverage of Indemnitee under the Company’s directors’ and officers’ liability
insurance policies; and

 

WHEREAS, prior hereto, the Company and the
Indemnitee had entered into an indemnification agreement that the parties
desire to restate.

 

NOW, THERFORE, in consideration of the
premises and of Indemnitee continuing to serve the Company directly or, at its
request, another enterprise, and intending to be legally bound hereby, the
parties hereto agree as follows:

 

1.                                       Certain Definitions.

 

(a)                                  Change in Control:

 

(i)                                     The
acquisition by any individual, entity or group (within the meaning of Section
12(d) (3) or 13(d) (2) of the Exchange Act (a “Person”) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more
than thirty-five (35%) percent of either (A) the then outstanding shares of common
stock of the 

 

 

Company (the “Outstanding Common Stock”) or (B) the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “Outstanding Voting Securities”); provided,
however, that for purposes of this subsection (i), the following
acquisitions shall not constitute a Change in Control: (A) any acquisition by
the Company, (B) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by
the Company, or (C) any acquisition by any entity pursuant to a transaction
which complies with Subsection 1(a)(iii); or

 

(ii)                                  Individuals
who, as of the date hereof, constitute the Board of Directors (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the date
hereof whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of 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; 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 (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 Common Stock and Outstanding Voting
Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding
shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as
the case may be, of the entity resulting from such Business Combination
(including, without limitation, a corporation 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 Common Stock and Outstanding Voting Securities,
as the case may be, and (B) no person (excluding any corporation resulting from
such Business Combination or any employee benefit plan (or related trust) of
the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 35% or more of, respectively, the
then outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such ownership
existed prior to the Business Combination, and (C) at least a majority of the
members of the board of directors of the corporation 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 Incumbent Board providing for such Business Combination; or

 

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

 

(b)                                 Claim:  any threatened, pending or completed action,
suit or proceeding, or any inquiry or investigation, whether instituted by the
Company or any other party, that Indemnitee in good faith, believes might lead to the institution
of any such action, suit or proceeding, whether civil, criminal,
administrative, investigative or other, by
reason of any action taken by Indemnitee or of any inaction on Indemnitee’s
part while acting as a director, officer, employee or agent or by reason of the
fact that Indemnitee is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust, limited liability company or other enterprise; in each case
whether or not Indemnitee is acting or serving in any such capacity at the time
any liability or expense is incurred for which indemnification or reimbursement
can be provided under this Agreement; provided that any such action, suit or
proceeding which is brought by Indemnitee against the Company or directors,
officers, employees or agents of the Company shall not be deemed a Claim,
except (i) with respect to actions or proceedings to establish or enforce
a right to indemnify under this Agreement or any other agreement or insurance
policy or under the Company’s Certificate of Incorporation or Bylaws now or
hereafter in effect relating to Claims for Indemnifiable Events (as defined
below), (ii) in specific cases if the Board of Directors has approved the
initiation or bringing of such Claim, or (iii) as otherwise required under
the Delaware General Company Law (“DGCL”), 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)                                  Costs:  all
Expenses, judgments, fines, penalties and amounts paid in settlement (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) related to or arising as a result of any Claim.

 

(d)                                 Expenses:  shall include, without limitation, attorneys’
fees and all other costs, expenses and obligations paid or 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 Claim relating to any Indemnifiable Event.

 

(e)                                  Indemnifiable Event:  any event or occurrence, act or omission to
act, related to the fact that Indemnitee is or was a director, officer,
employee, agent or fiduciary of the Company, or is or was serving at the
request of the Company as a director, officer, employee, trustee, agent or
fiduciary of another corporation, partnership, joint venture, employee benefit
plan, trust or other enterprise, or by reason of anything done or not done by
Indemnitee in any such capacity, including, without limitation,
under the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as 

 

 

amended (the “Exchange Act”) or other federal or state statutory law or regulation, at
common law or otherwise, and which may relate directly or indirectly to the
registration, purchase, sale or ownership of any securities of the Company or
to any fiduciary obligation owed with respect thereto.

 

(f)                                    Independent Legal Counsel:  an attorney or firm of
attorneys, selected in accordance with the provisions of Section 3, who shall
not have otherwise performed services for the Company or Indemnitee within the
last three years (other than with respect to matters concerning the rights of
Indemnitee under this Agreement, or of other indemnitees under similar
indemnity agreements).

 

(g)                                 Potential Change in Control:  shall be deemed to have
occurred if (i) the Company enters into an agreement, the consummation of which
would result in the occurrence of a Change in Control; (ii) any person
(including the Company) publicly announces an intention to take or to consider
taking actions which if consummated would constitute a Change in Control; or
(iii) the Board adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control has occurred.

 

(h)                                 Reviewing Party:  any appropriate person or body consisting of a
member or members of the Company’s Board of Directors 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.

 

(i)                                     Voting Securities:  any
securities of the Company which vote generally in the election of directors.

 

2.                                       Basic Indemnification Arrangement.

 

(a)                                  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 Claim by reason of (or arising
in part out of) an Indemnifiable Event, the Company shall indemnify, defend and
hold harmless Indemnitee to the fullest extent permitted by law,
even if such indemnification is not specifically authorized by the other
provisions of this Agreement, the Company’s Certificate of Incorporation,
Bylaws or by statute. In the event of any change after the date of this
Agreement in any applicable law, statute or rule which expands the right of a
Delaware corporation to indemnify a member of its Board of Directors or an
officer, employee, controlling person, 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 which narrows the right of a Delaware 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.

 

(b)                                 Notwithstanding the foregoing, the obligations
of the Company under Section 2(a) shall be subject to the condition that the
Reviewing Party shall not have determined (in a written opinion, in any case in which the Independent 

 

 

Legal Counsel referred to in Section 4
hereof is involved) that Indemnitee would not be permitted to be indemnified
under applicable law.

 

(c)                                  If so requested by Indemnitee, the Company
shall advance (within two business days of such request) any and all Expenses
to Indemnitee (an “Expense Advance”). Such obligation of the Company to make an Expense Advance shall be
subject to Indemnitee having made the undertaking in Section 8 and 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 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
with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed).

 

(d)                                 If there has not been a Change in Control, the Reviewing Party
shall be selected by the Board of Directors, and if there has been such a
Change in Control, the Reviewing Party shall be the Independent Legal Counsel
referred to in Section 4 hereof.

 

(e)                                  Any indemnification under this Agreement, other than pursuant to
Section 2(c) above, shall be made no later than 60 days after receipt by the
Company of the written request of Indemnitee, accompanied by substantiating
documentation of the Costs incurred by or for Indemnitee and shall not require
evidence that Indemnitee has previously paid such costs. If there has been no
determination by the Reviewing Party within 60 days after written request by
Indemnitee 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 in any court in the
States of Colorado or Delaware having subject matter jurisdiction thereof and
in which venue is proper 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 end binding on the Company
and Indemnitee.

 

(f)                                    Notwithstanding anything else contained herein, in no event shall
Indemnitee be entitled to indemnification under this Agreement for any Claims
that relate to liability: (i) under Section 16(b) of the Securities Exchange
Act of 1934, as amended; (ii) from conduct finally adjudged as violating
federal or state securities laws for “insider trading”; (iii) from conduct
finally adjudged as constituting active or deliberate dishonesty or willful
fraud or illegality; (iv) from conduct finally adjudged as producing an,
unlawful personal benefit to Indemnitee; (v) from any disgorgement of bonus or
other incentive-based or equity based compensation or profits from the sale of
securities as the result of a

 

 

restatement
pursuant to Section 304 of the Sarbanes-Oxley Act, or (vi) prior to a Change of
Control and except to enforce this Agreement, under any Claim initiated by the
Indemnitee unless the Board of Directors of the Company shall have authorized
or consented to such Claim.

 

3.                                       Contribution.  If
the indemnification provided for in Section 2 for any reason is held by a court
of competent jurisdiction to be unavailable to an Indemnitee in respect of any
losses, claims, damages, expenses or liabilities referred to therein, then the
Company, in lieu of indemnifying Indemnitee thereunder, shall contribute to the
amount paid or payable by Indemnitee as a result of such losses, claims,
damages, expenses or liabilities (i) in such proportion as is appropriate
to reflect the relative benefits received by the Company and Indemnitee, or
(ii) if the allocation provided by clause (i) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault
of the Company and Indemnitee in connection with the action or inaction which
resulted in such losses, claims, damages, expenses or liabilities, as well as
any other relevant equitable considerations. In connection with the
registration of the Company’s securities, the relative benefits received by the
Company and Indemnitee shall be deemed to be in the same respective proportions
that the net proceeds from the offering (before deducting expenses) received by
the Company and the Indemnitee, in each case as set forth in the table on the
cover page of the applicable prospectus, bear to the aggregate public offering
price of the securities so offered. The relative fault of the Company and
Indemnitee shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company or Indemnitee and the parties’ relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission.

 

The Company and Indemnitee agree that it
would not be just and equitable if contribution pursuant to this Section 3 were
determined by pro rata or per capita allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph. In connection with any registration
of the Company’s securities, in no event and notwithstanding the other
provisions of this Section 3 shall an Indemnitee be required to contribute
any amount hereunder in excess of the lesser of (i) that proportion of the
total of such losses, claims, damages or liabilities indemnified against equal
to the proportion of the total securities sold under such registration
statement that is being sold by Indemnitee or (ii) the proceeds received
by Indemnitee from its sale of securities under such registration statement. No
person found guilty of fraudulent misrepresentation (within the meaning of
Section 10(f) of the Securities Act) shall be entitled to contribution from any
person who was not found guilty of such fraudulent misrepresentation.

 

4.                                       Change in Control.  The
Company agrees that if there is a Change in Control of the Company then with
respect to all matters thereafter arising concerning the rights of Indemnitee
to indemnity payments and Expense Advances under this Agreement or any other
agreement or Company Bylaw now or hereafter in; effect relating to Claims for
Indemnifiable Events, the Company shall seek legal advice only from Independent
Legal Counsel selected by Indemnitee and approved by the Company (which
approval shall not be unreasonably withheld). Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to whether
and to what extent the Indemnitee would be permitted to be indemnified under
applicable law.

 

 

The Company
agrees to pay the reasonable fees of the Independent Legal Counsel referred to
above and to 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.

 

5.                                       Establishment of Trust.

 

(a)                                  In the event of a Potential Change in
Control, the Company shall: (i) upon written request by Indemnitee, create a
trust for the benefit of Indemnitee, with the trustee chosen by Indemnitee;
(ii) from time to time upon written request of Indemnitee fund such trust,
provide an irrevocable letter of credit, or other collateral or other financial arrangement satisfactory to
Indemnitee, 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 relating to an
Indemnifiable Event, and any and all judgments, fines, penalties and settlement
amounts of any end all Claims relating to en Indemnifiable Event from time to
time actually paid or claimed, reasonably anticipated or proposed to be paid.

 

(b)                                 Notwithstanding anything else contained herein, in no event shall
the Company be required to deposit more than Five Hundred Thousand Dollars ($500,000) (whether in cash or an
irrevocable letter of credit) in any trust created hereunder in excess of
amounts deposited in respect of reasonably anticipated Expenses.

 

(c)                                  The amount or amounts to be deposited in the trust pursuant to the
foregoing funding obligation shall be determined by the Reviewing Party, in any
case in which the Independent Legal Counsel referred to above is involved.

 

(d)                                 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 the Indemnitee, (ii) the trustee shall advance, within
two business days of a request by the Indemnitee, any and all Expenses to the
Indemnitee (and the Indemnitee hereby agrees to reimburse the trust under the
circumstances under which the Indemnitee would be required to reimburse the
Company under Section 2(b) of this Agreement), (iii) the trust shall continue
to be funded by the Company in accordance with the funding obligation set forth
herein, (iv) the trustee shall promptly pay to Indemnitee all amounts for which
Indemnitee shall be entitled to indemnification pursuant to this Agreement or
otherwise, and (vi) all unexpended funds in such trust shall revert to the
Company upon a final determination by the Reviewing Party or a court of
competent jurisdiction, as the case may be, that Indemnitee has been fully
indemnified under the terms of this Agreement.

 

6.                                       Indemnification for Additional Expenses.  The Company shall
indemnify Indemnitee against any and all Expenses (including attorneys’ fees)
and, if requested by Indemnitee, shall (within two business days of such
request) make an Expense Advance to Indemnitee, which are incurred by
Indemnitee in connection with any action brought by Indemnitee for (i) indemnification
or an Expense Advance by the Company under this Agreement or any other
agreement or Company Bylaw now or hereafter in effect relating to Claims for
Indemnifiable Events and/or (ii) recovery under any directors’ and officers’

 

 

liability insurance policies maintained by the Company, regardless
of’ whether Indemnitee ultimately is determined to be entitled to such
indemnification, Expense Advance or insurance recovery, as the case may be,
unless, as a part of such action, a court of competent jurisdiction over such
action determines that the material assertions made by Indemnitee as a basis
for such action were not made in good faith or were frivolous.

 

7.                                       Partial Indemnity Etc.  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 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 relating in whole or in part to an Indemnifiable Event or in
defense of any issue or matter therein, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses incurred in connection
therewith.

 

8.                                       Undertaking by Indemnitee.  Indmenitee hereby
undertakes to repay to the Company any Expense Advance pursuant to Section 2 to
the extent that it is ultimately determined that Indemnitee is not entitled to
indemnification in accordance with the provisions of Section 2.

 

9.                                       Burden of Proof.  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.

 

10.                                 No Presumptions.  For purposes of this Agreement, the
termination of any claim, action, suit or proceeding, 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 mat 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.

 

11.                                 Nonexclusivity, Etc.  The rights of the Indemnitee hereunder shall
be in addition to any other rights Indemnitee may have under the Company’s
Bylaws or the DGCL or otherwise.

 

12.                                 Liability Insurance.

 

(a)                                  The
Company hereby covenants and agrees that, so long as the Indemnitee shall
continue to serve as a member of its Board of Directors or an officer,
employee, controlling person, agent or fiduciary of the Company and thereafter
so long as the Indemnitee shall be subject to any possible Claim by reason of
the fact that the

 

 

Indemnitee was a member of its Board of
Directors or an officer, employee, controlling person, agent or fiduciary of
the Company, the Company shall promptly maintain in full force and effect directors’ and officers’ liability
insurance in reasonable amounts from established
and reputable insurers.

 

(b)                                 In
all policies of directors’ and officers’ liability insurance,
the Indemnitee shall be named as an insured in such a manner as to provide the
Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Company’s directors, if the Indemnitee is a director; or of the
Company’s officers, if the Indemnitee is not a director of the Company but is
an officer; or of the Company’s key employees, if the Indemnitee is not a
director or officer of the Company.

 

(c)                                  If,
at the time of the receipt by the Company of a notice of a Claim pursuant to
Section 2(a) hereof, the Company has liability insurance in effect which 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 each
of the Company’s 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.

 

13.                                 Choice
of Counsel.  If
Indemnitee is not an officer of the Company, Indemnitee, together with the
other directors who are not officers of the Company (the “Outside Directors”), shall be entitled to employ, and be reimbursed for the
fees and disbursements of, counsel separate from that chosen by Indemnitees who
are officers of the Company. The principal counsel for Outside Directors (“Principal Counsel”) shall be determined by majority vote of the Outside
Directors, and the Principal Counsel for the Indemnitees who are not Outside
Directors (“Separate Counsel”) shall be determined by majority vote of such Indemnitees.
The obligation of the Company to reimburse Indemnitee for the fees and
disbursements of counsel hereunder shall not extend to the fees and
disbursements of any counsel employed by Indemnitee other than Principal
Counsel or Separate Counsel, as the case may be, provided that (i) Indemnitee
shall have the right to employ Indemnitee’s counsel in any such Claim at
Indemnitee’s expense and (ii) if (A) the employment of counsel by
Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded with the advice of counsel that there is a
substantial possibility that Principal Counsel or Separate Counsel, as the case
may be, will have a conflict of interest in representing Indemnitee, or
(C) the Company shall not continue to retain Principal Counsel or Separate
Counsel, as the case may be, to defend such Claim, then the fees and expenses
of Indemnitee’s counsel shall be at the expense of the Company

 

14.                                 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 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.

 

 

15.                                 Amendments, Etc.  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by both of 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.

 

16.                                 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 papers required and
shall do everything that may be necessary to secure such rights, including the
execution of such
documents necessary to enable the Company effectively to bring suit to enforce
such rights.

 

17.                                 Settlement of Claims.  The
Company shall not be liable to indemnify indemnitee under this Agreement for
any amounts paid in settlement of any Claim effected without the Company’s
prior written consent. The Company shall not settle any Claim in any manner
which would impose any penalty or limitation on Indemnitee without Indemnitee’s
prior written consent. Neither the Company nor Indemnitee will unreasonably
withhold or delay their consent to any proposed settlement. The Company shall
not be liable to indemnify Indemnitee under this Agreement with regard to any
judicial award if the Company was not given a reasonable and timely
opportunity, at its expense, to participate in the defense of such action.

 

18.                                 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, Bylaw or otherwise) of the amounts otherwise
indemnifiable hereunder.

 

19.                                 Binding Effect, Etc.  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, executors and personal and legal
representatives. This Agreement shall continue in effect regardless of whether
Indemnitee continues to serve as an officer or director of the Company or of
any other enterprise at the Company’s request.

 

20.                                 Severability.  The provisions of this Agreement shall be severable
in the event that any of the provisions hereof (including any provision within
a single section, paragraph or sentence) is held by a court of competent
jurisdiction to be invalid, void or otherwise unenforceable in any respect, and
the validity and enforceability of any such provision in every other respect
and of the remaining provisions hereof shall not be in any way impaired and
shall remain enforceable to the fullest extent permitted by law.

 

21.                                 Governing Law.  This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
applicable to contracts made and to be performed in such state without giving
effect to the principles of conflicts of laws.

 

[Signature Page
Follows]

 

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement as of July 6, 2006.

 

 

	
   

  	
  WESTERN GAS RESOURCES,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Peter A. Dea

  	
   

  
	
   

  	
  Name:

  	
  Peter A. Dea

  
	
   

  	
  Title:

  	
  President and Chief Executive 

  
	
   

  	
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  	
  /s/ Edward A. Aabak

  	
   

  
	
   

  	
  Name: Edward A. AabakExhibit 10.1

 

	
  Item

  	
   

  	
  Recommendation

  	
   

  	
  Note:

  
	
  Retainer

  	
   

  	
  $

  	
  20,000

  	
   

  	
  Per year, paid quarterly ($23K in FY08, $26K in
  FY09, $30K in FY10)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Committee Retainer For Chariman

  	
   

  	
  $

  	
  2,000

  	
   

  	
  Per year, Audit Committee 

  
	
   

  	
   

  	
  $

  	
  1,000

  	
   

  	
  Per year, Compensation Committee andothers

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Meeting Fee's

  	
   

  	
  $

  	
  1,500

  	
   

  	
  Per meeting

  
	
   

  	
   

  	
  $

  	
  500

  	
   

  	
  Per telephonic meeting

  
	
   

  	
   

  	
  $

  	
  750

  	
   

  	
  Per Audit Committee meeting 

  
	
   

  	
   

  	
  $

  	
  500

  	
   

  	
  All other committee meetings

  
	
  Expenses

  	
   

  	
  —

  	
   

  	
  As Per Golf Galaxy policy

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stock Options

  	
   

  	
  1,500 shares

  	
   

  	
  Annual for all members 

  
	
   

  	
   

  	
  5-10,000 shares

  	
   

  	
  One-time grant for new members

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]