Document:

<PAGE>
                                                                   EXHIBIT 10.30

                                                                  EXECUTION COPY

                 FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT

FIRST AMENDMENT, dated as of March 31, 2004 (this "Amendment"), to that certain
Purchase and Sale Agreement dated as of December 18, 2001 (the "Purchase and
Sale Agreement"), by and between LAND O'LAKES, INC., a Minnesota cooperative
corporation, LAND O'LAKES FARMLAND FEED LLC, a Delaware limited liability
company ("Feed"), and PURINA MILLS, LLC, a Delaware limited liability company,
as originators (each an "Originator" and collectively, the "Originators"), Feed,
as initial Servicer, and LOL Farmland Feed SPV, LLC, a Delaware limited
liability company, as purchaser (the "SPV Purchaser").

                                  WITNESSETH:

         WHEREAS, pursuant to the Purchase and Sale Agreement, each of the
Originators has sold or contributed, and will continue to sell or contribute,
all of the Receivables and Related Rights that it owns, and from time to time
hereafter will own or that it will from time to time hereafter originate in the
ordinary course of each Originator's respective businesses, to the SPV
Purchaser;

         WHEREAS, the SPV Purchaser has entered into a Receivables Purchase
Agreement, dated as of December 18, 2001 (the "Existing Receivables Purchase
Agreement"), by and among the SPV Purchaser, as Seller, Feed, as initial
Servicer, CoBank, ACB, as Administrator, and any other Persons that may, from
time to time, be party thereto as Purchasers, pursuant to which, among other
things, the SPV Purchaser may sell to the Administrator, for the benefit of the
Purchasers, undivided interests in the Receivables and Related Rights;

         WHEREAS, the parties to the Existing Receivables Purchase Agreement
desire to amend and restate the Existing Receivables Purchase Agreement on the
terms and conditions set forth in that certain Amended and Restated Receivables
Purchase Agreement, dated as of March 31, 2004 (the "Amended and Restated
Receivables Purchase Agreement"), by and among the SPV Purchaser, as Seller,
Feed, as initial Servicer, CoBank, ACB, as Administrator, and any other Persons
that may, from time to time, be party thereto as Purchasers;

<PAGE>

         WHEREAS, the amendment and restatement of the Existing Receivables
Purchase Agreement also requires certain conforming amendments to the Purchase
and Sale Agreement; and

         WHEREAS, the parties to the Purchase and Sale Agreement desire to amend
the Purchase and Sale Agreement in the manner set forth herein;

         NOW, THEREFORE, the parties hereto hereby agree as follows:

         1. Defined Terms. Terms defined in the Purchase and Sale Agreement and
used herein shall have the meanings given to them in the Purchase and Sale
Agreement (as the same may be amended hereby).

         2. Acknowledgment of and Consent to Amended and Restated Receivables
Purchase Agreement. Each of the parties hereto acknowledges and consents to the
amendment and restatement of the Existing Receivables Purchase Agreement on the
terms and conditions set forth in the Amended and Restated Receivables Purchase
Agreement

         3. Amendment to Definition of "Receivables Purchase Agreement" under
the Purchase and Sale Agreement. Each of the parties hereto agrees that all
references to the "Receivables Purchase Agreement" contained in the Purchase and
Sale Agreement shall be deemed to be references to the Amended and Restated
Receivables Agreement (as the same may be amended, amended and restated,
supplemented or otherwise modified from time to time).

         4. Amendment to Definition of "Chase Credit Documents" under the
Purchase and Sale Agreement. The Purchase and Sale Agreement is hereby amended
by changing all references to "Chase Credit Documents" to "JP Morgan Credit
Documents".

         5. Amendment to Section 2.1(c) of the Purchase and Sale Agreement. The
Purchase and Sale Agreement is hereby amended by deleting clause (ii) in the
definition of "Cost Rate" contained in Section 2.1(c) of the Purchase and Sale
Agreement and replacing it with the following:

         "(ii) one hundred thirty-seven and one half (137.5) basis points."

         6. Amendment to Section 4.1(h) of the Purchase and Sale Agreement.
Section 4.1(h) of the Credit Agreement is hereby amended by deleting the legend
set forth therein and replacing it with the following legend:

<PAGE>

         THE RECEIVABLES DESCRIBED HEREIN HAVE BEEN SOLD OR CONTRIBUTED TO LOL
         FARMLAND FEED SPV, LLC, PURSUANT TO A PURCHASE AND SALE AGREEMENT,
         DATED AS OF DECEMBER 18, 2001, AS AMENDED FROM TIME TO TIME, BY AND
         BETWEEN LOL FARMLAND FEED SPV, LLC, LAND O'LAKES, INC., LAND O'LAKES
         FARMLAND FEED LLC, AND PURINA MILLS, LLC; AN OWNERSHIP AND SECURITY
         INTEREST IN THE RECEIVABLES DESCRIBED HEREIN HAS BEEN GRANTED AND
         ASSIGNED TO COBANK, ACB, AS ADMINISTRATOR, PURSUANT TO AN AMENDED AND
         RESTATED RECEIVABLES PURCHASE AGREEMENT DATED AS OF MARCH 31, 2004, AS
         AMENDED FROM TIME TO TIME, BY AND AMONG LOL FARMLAND FEED SPV, LLC (AS
         SELLER), LAND O'LAKES FARMLAND FEED LLC (AS INITIAL SERVICER), COBANK,
         ACB, AND THE OTHER PURCHASERS FROM TIME TO TIME PARTY THERETO; AND
         COBANK, ACB (AS ADMINISTRATOR);

         7. Amendment to Section 6.1(c) of the Purchase and Sale Agreement.
Section 6.1(c) of the Credit Agreement is hereby amended by deleting the last
proviso thereof in its entirety and replacing it with the following proviso:

         "provided, however, that unless a termination event has occurred and is
continuing, Seller and/or Servicer shall not be obligated to pay for more than
two (2) such audits in any calendar year."

         8. Conditions to Effectiveness. This Amendment shall become effective
on the date (the "Amendment Effective Date") on which the following conditions
have been satisfied:

         (a) Execution and Delivery of Documents. Each of the Originators shall
         have executed and delivered this Amendment to SPV Purchaser, and the
         Administrator shall have received a copy of this Amendment executed by
         each of the Originators and the SPV Purchaser.

         (b) Effectiveness of Amended and Restated Receivables Purchase
         Agreement. The SPV Purchaser and the Administrator shall have received
         reasonably satisfactory evidence that the Amended and Restated
         Receivables Purchase Agreement has become effective.

         (c) Filing of UCC-3 Amendments. Acknowledgment or time-stamped receipt
         copies of UCC-3 financing statement amendments, amending the existing
         UCC-1 financing statements that were filed in

<PAGE>

         connection with the Purchase and Sale Agreement to include additional
         collateral in the form of Dairy Receivables, shall have been delivered
         to each of the SPV Purchaser and the Administrator.

         (d) Representations and Warranties. The SPV Purchaser shall be
         satisfied that the representations and warranties set forth in Section
         9 hereof are true and correct on and as of the Amendment Effective
         Date.

         9. Representations and Warranties. To induce the SPV Purchaser to enter
into this Amendment, by its signature below, each of the Originators hereby
represents and warrants to the SPV Purchaser that:

         (a) This Amendment has been duly executed and delivered by each of the
         Originators. The execution and delivery by each of the Originators of
         this Amendment has been duly authorized by proper proceedings, and this
         Amendment constitutes the legal, valid and binding obligation of each
         of the Originators, enforceable against each Originator in accordance
         with its terms.

         (b) The execution and delivery by each of the Originators of this
         Amendment and the performance by each of the Originators of this
         Amendment and the Purchase and Sale Agreement, as amended hereby, (i)
         are within the corporate or other legal authority of such Person, (ii)
         have been duly authorized by all necessary corporate or other
         proceedings and (iii) do not and will not conflict with or result in
         any breach or contravention of any Applicable Law or any Contractual
         Obligation or operating agreement or other governing document of each
         Originator.

         (c) After giving effect to this Amendment, each of the representations
         and warranties of each of the Originators contained in Article V of the
         Purchase and Sale Agreement or in any certificate or report delivered
         pursuant to or in connection with the Purchase and Sale Agreement was
         true in all respects as of the date as of which it was made and is true
         in all respects on the date hereof (except to the extent that such
         representations and warranties relate expressly to an earlier date).

         (d) After giving effect to this Amendment, no Unmatured Termination
         Event or Termination Event has occurred and is continuing.

<PAGE>

         (e) Each of the Originators' obligations and liabilities to the SPV
         Purchaser and the Adminstrator, as evidenced by or otherwise arising
         under the Purchase and Sale Agreement or the Transaction Documents, are
         hereby ratified and confirmed in all respects.

         10. Severability; Headings. Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. The section and
subjection headings used in this Amendment are for convenience of reference only
and are not to affect the construction hereof or to be taken into consideration
in the interpretation hereof.

         11. Continuing Effect of Other Documents. This Amendment shall not
constitute an amendment or waiver of any other provision of the Purchase and
Sale Agreement not expressly referred to herein and shall not be construed as a
waiver or consent to any further or future action on the part of any that would
require a waiver or consent of the SPV Purchaser (with the consent of the
Administrator). Except as expressly amended, modified and supplemented hereby,
the provisions of the Purchase and Sale Agreement are and shall remain in full
force and effect.

         12. GOVERNING LAW. THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF
THE PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF MINNESOTA (WITHOUT GIVING EFFECT TO THE CONFLICT
OF LAWS PRINCIPLES THEREOF).

         13. Miscellaneous. From and after the date hereof, each reference to
the Purchase and Sale Agreement in the Purchase and Sale Agreement and the other
Transaction Documents shall be deemed to be a reference to the Purchase and Sale
Agreement as modified by this Amendment. This Amendment may be executed in any
number of counterparts, but all of such counterparts shall together constitute
but one and the same agreement. Delivery of an executed counterpart of a
signature page by facsimile transmission shall be effective as delivery of a
manually executed counterpart of this Amendment. In making proof of this
Amendment, it shall not be necessary to produce or account for more than one
such counterpart.

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

                                            LAND O'LAKES INC., as Originator

                                            By: /s/ DANIEL KNUTSON
                                                -------------------------------

                                            Name: Daniel Knutson
                                                  -----------------------------
                                            Title: Senior VP and CFO
                                                   ----------------------------

                                            LAND O'LAKES FARMLAND FEED LLC,
                                            as Originator and initial Servicer

                                            By: /s/ DANIEL KNUTSON
                                                -------------------------------

                                            Name: Daniel Knutson
                                                  -----------------------------
                                            Title: Senior VP and CFO
                                                   ----------------------------

                                            PURINA MILLS, LLC, as Originator

                                            By: /s/ DANIEL KNUTSON
                                                -------------------------------

                                            Name: Daniel Knutson
                                                  -----------------------------
                                            Title: Senior VP and CFO
                                                   ----------------------------

                                            LOL Farmland Feed SPV, LLC, as SPV
                                            Purchaser

                                            By: /s/ DANIEL KNUTSON
                                                -------------------------------

                                            Name: Daniel Knutson
                                                  -----------------------------
                                            Title: Chief Financial Officer
                                                   ----------------------------

<PAGE>

ACKNOWLEDGED AND CONSENTED TO:

COBANK, ACB, as Administrator

By: /s/ MICHAEL TOUSIGNANT
    -------------------------

Name: Michael Tousignant
      -----------------------
Title: Vice President
       ----------------------exv10w11

 

EXHIBIT 10.11

PATTERSON-UTI ENERGY, INC.

FORM OF INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is entered into as of
[Date] by and between Patterson-UTI Energy, Inc., a Delaware
corporation (the “Company”) and [name] (“Indemnitee”).

RECITALS

     A. The Company and Indemnitee recognize the significant increases in the
cost of liability insurance for its directors, officers, employees, agents and
fiduciaries.

     B. 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.

     C. 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.

     D. 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,
wishes to provide for the indemnification and advancing of expenses to
Indemnitee to the maximum extent permitted by law.

     E. 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 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 (hereinafter 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 manager, officer, employee, agent or fiduciary any
subsidiary of the Company, or is or was serving at the request of the Company
as a director, manager, officer, employee, agent or fiduciary of another
corporation, limited liability company, partnership, limited 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 (hereinafter an
“Indemnifiable Event”) against any and all expenses (including attorneys’ fees
and all other costs, expenses and obligations incurred in connection with
investigating, defending, asserting a counterclaim in (if such counterclaim is
approved in advance by the Company), being a witness in or participating in
(including on appeal), or preparing to defend, assert a counterclaim in (if
such counterclaim is approved in advance by the Company), 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 from the
Company under this Agreement or as a result of the merger of UTI Energy Corp.
with the Company (collectively, hereinafter “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 five days after
written demand by Indemnitee therefor is presented to the Company.

     (b) Reviewing Party. Notwithstanding the foregoing, (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) hereof) shall not have
determined (in a written opinion, in any case in which the Independent Legal
Counsel referred to in Section 1(c) hereof 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 with respect thereto (as
to which all rights of appeal therefrom have been exhausted or lapsed).
Indemnitees’ 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) hereof), the Reviewing Party
shall be selected by the Board of Directors, 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 Company’s Board of Directors 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) hereof. 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 a determination by the court or challenging any such
determination by the Reviewing Party or any aspect thereof, including the legal
or

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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. The Company agrees that if there is a Change in
Control of the Company (other than a Change in Control which has been approved
by a majority of the Company’s Board of Directors who were directors
immediately prior to such Change in Control) then, with respect to all matters
thereafter arising concerning the rights of Indemnitees to payments of Expenses
and Expense Advances under this Agreement or any other agreement, under the
Company’s Certificate of Incorporation or Bylaws as now or hereafter in effect,
Independent Legal Counsel (as defined in Section 10(d) hereof) shall be
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
Indemnitee would be permitted to be indemnified under applicable law and the
Company agrees to abide by such opinion. 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.

     (d) Establishment of Trust. In the event of a Change in Control (other
than a Change in Control which has been approved by a majority of the Company’s
Board of Directors who were directors immediately prior to such Change in
Control) the Company shall, upon written request by Indemnitee, create a trust
for the benefit of the Indemnitee and from time to time upon written request of
Indemnitee shall fund the trust in an amount sufficient to satisfy any and all
expenses reasonably anticipated at the time of each such request to be incurred
in connection with investigating, preparing for, participating in, and/or
defending any proceeding relating to any Indemnifiable Event covered herein.
The amount or amounts to be deposited in the trust pursuant to the foregoing
funding obligation shall be determined by the Independent Legal Counsel. The
terms of the trust shall provide that (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 five 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 same circumstances for which the Indemnitee
agreed to reimburse the Company under Section 1(b) of this Agreement), (iii)
the trust shall continue to be funded by the Company in accordance with the
funding obligation set forth above, (iv) the trustee shall promptly pay to the
Indemnitee all amounts for which the Indemnitee shall be entitled to
indemnification pursuant to this Agreement or otherwise, and (v) all unexpended
funds in the trust shall revert to the Company upon a final determination by
the Independent Legal Counsel or a court of competent jurisdiction, as the case
may be, that the Indemnitee has been fully indemnified under the terms of this
Agreement. The trustee shall be chosen by the Indemnitee. Nothing in this
Section 1(d) shall relieve the Company of any of its obligations under this
Agreement. All income earned on the assets held in the trust shall be reported
as income by the Company for federal, state, local, and foreign tax purposes.
The Company shall pay all costs of establishing and maintaining the trust and
shall indemnify the trustee against any and all expenses (including attorneys’
fees), claims, liabilities, loss, and damages arising out of or relating to
this Agreement or the establishment and maintenance of the trust.

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     (e) Mandatory Payment of Expenses. Notwithstanding any other provision
of this Agreement other than Section 8 hereof, 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,
assertion of a counterclaim (if such counterclaim was approved in advance by
the Company), suit, proceeding, inquiry or investigation referred to in Section
(1)(a) hereof or in the defense of any claim, assertion of a counterclaim (if
such counterclaim was approved in advance by the Company), 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
five days after written demand by Indemnitee therefor to the Company.

     (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition
precedent to Indemnitees’ 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
Indemnitees’ 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. The knowledge and/or actions, or failure
to act, of any director, manager, officer, agent or employee of the Company or
of any subsidiary of the Company shall not be imputed to Indemnitee for
purposes of determining the right of indemnification under this Agreement.

     (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) 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

-4-

 

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. In the event 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 with respect to the
same Claim; provided that, (i) Indemnitee shall have the right to employ
Indemnitees’ 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’s 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 agrees to 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
Company’s Certificate of Incorporation, the Company’s 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, agent or
fiduciary, as the case may be, 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, as the case may
be, 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) hereof.

     (b) Nonexclusivity. The indemnification provided by this Agreement shall
be in addition to any rights to which Indemnitee may be entitled under the
Company’s Certificate of Incorporation, its Bylaws, the charter documents of
any subsidiary of the Company, any agreement, any vote of stockholders or
disinterested directors, the law of the State of Delaware, 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

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any payment in connection with any Claim made against Indemnitee to the
extent Indemnitee has otherwise actually received payment (under any insurance
policy, Certificate of Incorporation, 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 are 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 key employees, agents or fiduciaries of the Company, if
Indemnitee is not an officer or director but is a key employee, agent or
fiduciary.

     8. Exceptions. Any other provision herein to the contrary
notwithstanding, 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 or the
Indemnitee may not be indemnified under applicable law;

     (b) Claims Initiated by Indemnitee. To indemnify or advance expenses to
Indemnitee with respect to Claims initiated or brought voluntarily by
Indemnitee and not by way of defense, except (i) with respect to 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
Company’s Certificate of Incorporation or Bylaws now or hereafter in effect
relating to Claims for Indemnifiable Events, (ii) in specific cases if the
Board of Directors has approved the initiation or bringing of such Claim, or
(iii) as otherwise required under Section 145 of the Delaware General
Corporation Law, 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 with respect to 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

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     (d) Claims Under Section 16(b). To indemnify Indemnitee for 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
or other entity (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, managers, partners,
officers, employees, agents or fiduciaries, so that if Indemnitee is or was a
director, manager, partner officer, employee, agent or fiduciary of such
constituent corporation or other entity, or is or was serving at the request of
such constituent corporation or other entity as a director, manager, partner
officer, employee, agent or fiduciary of another corporation, limited liability
company, partnership, limited partnership, joint venture, employee benefit
plan, trust or other enterprise, Indemnitee shall stand in the same position
under the provisions of this Agreement with respect to the resulting or
surviving corporation or other entity as Indemnitee would have with respect to
such constituent corporation or other entity 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 with respect to an employee benefit plan;
and references to “serving at the request of the Company” shall include any
service as a director, manager, partner, officer, employee, agent or fiduciary
of the Company or any subsidiary of the Company which imposes duties on, or
involves services by, such director, manager, partner, officer, employee, agent
or fiduciary with respect to 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.

     (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

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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 his 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 Company’s then outstanding Voting
Securities, (ii) during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board of Directors of the Company
and any new director whose election by the Board of Directors 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 of the Company 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 of the Company 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 (in one transaction or a series of transactions) of
all or substantially all of the Company’s assets.

     (d) For purposes of this Agreement, “Independent Legal Counsel” shall
mean an attorney or firm of attorneys, selected in accordance with the
provisions of Section 1(c) hereof, who shall not have otherwise performed
services for the Company or Indemnitee within the last five years (other than
with respect to 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” shall mean 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 of
Directors who is not a party to the particular Claim for which Indemnitee are
seeking indemnification, or Independent Legal Counsel.

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

     11. Counterparts. This Agreement may be executed in one or more
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

-8-

 

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 with respect to
Claims relating to Indemnifiable Events regardless of whether Indemnitee
continues to serve as a director, manager, partner, officer, employee, agent or
fiduciary of the Company, any of its subsidiaries or of any other enterprise at
the Company’s request.

     13. Attorneys’ Fees. In the event that 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 with respect to such action, regardless of whether Indemnitee is
ultimately successful in such action, and shall be entitled to the advancement
of Expenses with respect to 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. In the event of an action 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 with respect to Indemnitee counterclaims and cross-claims made in such
action), and shall be entitled to the advancement of Expenses with respect to
such action, unless, as a part of such action, a court having jurisdiction over
such action determines that each of Indemnitee 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 (a) five (5) days after deposit with the U.S.
Postal Service or other applicable postal service, if delivered by first class
mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one
business day after the business day of deposit with Federal Express or similar
overnight courier, freight prepaid, or (d) 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 the Indemnitee address as set forth beneath Indemnitee
signatures 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 Delaware
for all purposes in connection with any action or proceeding which 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 the Court of
Chancery of the State of Delaware in and for New Castle County, which shall be
the exclusive and only proper forum for adjudicating such a claim.

     16. 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) 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 law.
Furthermore, to the fullest extent possible, the provisions of this Agreement
(including, without limitations, each portion of this

-9-

 

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
Delaware, as applied to contracts between Delaware residents, entered into and
to be performed entirely within the State of Delaware, 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.

[signature page follows immediately hereafter]

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

	 	 	 
	

	 	PATTERSON-UTI ENERGY, INC.
	 
	 	 
	

	 	
 
	

	 	By:
	

	 	Title:
	

	 	Address:

AGREED TO AND ACCEPTED BY:

	 	 	 	 	 
	Signature:

	 	 	 	 
	

	 	
 	 	 
	Name:
	 	 	 	 
	Address:
	 	 	 	 

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