Document:

QEPR-2013 9.30.13 EX10.7

Exhibit 10.7
OMNIBUS AGREEMENT
This Omnibus Agreement (“Agreement”) is entered into on, and effective as of, August 14, 2013 (the “Closing Date”) among QEP Resources, Inc., a Delaware corporation (“QEP”), QEP Field Services Company, a Delaware corporation (“Field Services”), QEP Midstream Partners, LP, a Delaware limited partnership (the “Partnership”), QEP Midstream Partners GP, LLC, a Delaware limited liability company and the general partner of the Partnership (the “General Partner”), and QEP Midstream Partners Operating, LLC, a Delaware limited liability company and wholly owned subsidiary of the Partnership (the “Operating Company” and, together with QEP, Field Services, the Partnership and the General Partner, the “Parties” and each a “Party”).
RECITALS
1. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article II, with respect to certain indemnification obligations of the Parties to each other.
2. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article III, with respect to the amount to be paid by the Partnership for the centralized corporate services to be performed by QEP and its Affiliates for and on behalf of the Partnership Group.
3. The Parties desire by their execution of this Agreement to evidence their understanding, as more fully set forth in Article IV, with respect to the granting of certain licenses between the Parties.
In consideration of the premises and the covenants, conditions, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE I
Definitions and Interpretation
1.1 Definitions. In addition to the terms defined in the introductory paragraph and the recitals of this Agreement, for purposes hereof, the capitalized terms used herein and not otherwise defined shall have the meanings set forth in Appendix A.
1.2 Rules of Construction. Unless expressly provided for elsewhere in this Agreement, this Agreement shall be interpreted in accordance with the following provisions:
(a) If a word or phrase is defined, its other grammatical forms have a corresponding meaning.
(b) The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement.

(c) A reference to any Party to this Agreement or another agreement or document includes the Party’s successors and assigns.
(d) The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and article, section, subsection and schedule references are to this Agreement unless otherwise specified.
(e) The words “including,” “include,” “includes” and all variations thereof shall mean “including without limitation.”
(f) The word “or” shall have the inclusive meaning represented by the phrase “and/or.”
(g) The words “shall” and “will” have equal force and effect.
(h) The schedules identified in this Agreement are incorporated herein by reference and made a part of this Agreement.
(i) References to “$” or to “dollars” shall mean the lawful currency of the United States of America.
ARTICLE II
Indemnification
2.1 Environmental Indemnification.
(a) Each of QEP and Field Services, jointly and severally, shall indemnify, defend and hold harmless each Group Member from and against any Losses suffered or incurred by such Group Member, directly or indirectly, by reason of or arising out of:
(i) any violation of Environmental Laws as in effect prior to the Closing Date and such violation commenced, occurred or existed before the Closing Date;
(ii) any environmental event, condition or matter associated with or arising from the ownership or operation of the Assets that commenced, occurred or existed before the Closing Date (including the presence of Hazardous Substances on, under, about or migrating to or from the Assets or the disposal or the release of Hazardous Substances generated by operation of the Assets at non-Asset locations), including (A) the cost and expense of any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation, risk-based closure activities, or other corrective action required or necessary under Environmental Laws and (B) the cost and expense of the preparation and implementation of any closure, remedial, corrective action, or other plans required or necessary under Environmental Laws as in effect prior to the Closing Date; and
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(iii) any environmental event, condition or matter associated with or arising from the Retained Assets, whether occurring before, on or after the Closing Date and whether occurring under Environmental Laws as in effect prior to, at or after the Closing Date (clauses (i), (ii) and (iii) being referred to collectively as “Covered Environmental Losses”);
provided, however, that QEP and Field Services will be obligated to indemnify such Group Member for a Covered Environmental Loss described in Section 2.1(a)(i) or Section 2.1(a)(ii) only to the extent that QEP is notified in writing of such violation, event, condition or environmental matter prior to the Identification Deadline.
(b) The Partnership shall indemnify, defend and hold harmless QEP and Field Services from and against any Losses suffered or incurred by any of the QEP Entities, directly or indirectly, by reason of or arising out of:
(i) any violation of Environmental Laws as in effect on or after the Closing Date and such violation is associated with or arises from the ownership or operation of the Assets on or after the Closing Date; and
(ii) any environmental event, condition or matter associated with or arising from the ownership or operation of the Assets on or after the Closing Date (including the presence of Hazardous Substances on, under, about or migrating to or from the Assets or the disposal or the release of Hazardous Substances generated by operation of the Assets at Asset locations) including (A) the cost and expense of any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, remediation, risk-based closure activities, or other corrective action required or necessary under Environmental Laws in effect on or after the Closing Date, and (B) the cost or expense of the preparation and implementation of any closure, remedial, corrective action, or other plans required or necessary under Environmental Laws as in effect on or after the Closing Date;
and regardless of whether such violation under Section 2.1(b)(i) or such environmental event, condition or matter included under Section 2.1(b)(ii) occurred before or after the Closing Date, in each case, to the extent that any of the foregoing are not Covered Environmental Losses (without giving effect to the Environmental Deductible).
2.2 Right of Way Indemnification. Each of QEP and Field Services, jointly and severally, shall indemnify, defend and hold harmless each Group Member from and against any Losses suffered or incurred by such Group Member by reason of or arising out of (a) the failure of such Group Member to be the owner of such valid and indefeasible easement rights or fee ownership or leasehold interests in and to the lands on which any of the Assets conveyed or contributed to such Group Member on the Closing Date is located as of the Closing Date, and such failure renders such Group Member liable to a third party or unable to use or operate the Assets in substantially the same manner that the Assets were used and operated as of immediately prior to the Closing Date; (b) the failure of such Group Member to have the consents, licenses and permits necessary to allow (1) any pipeline included in the Assets to cross the roads, waterways, railroads and other areas upon which any such pipeline is located as of the Closing Date, or (2) the transfer of any of the Assets to the Partnership Group, in each case, where such failure renders the Partnership Group liable to a third party or unable to use or operate the Assets in substantially the same manner that the Assets were used and operated as of
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immediately prior to the Closing Date; and (c) the cost of curing any condition set forth in Section 2.2(a) or (b) that does not allow any Asset to be operated in accordance with prudent industry practice, in each case to the extent that QEP and Field Services are notified in writing of any of the foregoing prior to the Identification Deadline.
2.3 Additional Indemnification.
(a) Each of QEP and Field Services, jointly and severally, shall indemnify, defend, and hold harmless each Group Member from and against any Losses suffered or incurred by such Group Member by reason of or arising out of:
(i) the consummation of the transactions contemplated by the Contribution Agreement. For the avoidance of doubt, the Parties agree that, subject to the qualifications set forth on Schedule A, each Group Member shall be entitled to indemnification by QEP and Field Services under this Section 2.3(a)(i) for those litigation matters listed on Schedule A;
(ii) events and conditions associated with the Retained Assets, whether occurring before, on or after the Closing Date;
(iii) all federal, state and local tax liabilities attributable to the ownership or operation of the Assets on or prior to the Closing Date, including under Treasury Regulation Section 1.1502-6, as it may be amended (or any similar provision of state or local law), and any such tax liabilities that may result from the consummation of the formation transactions for the Partnership Group and the General Partner occurring prior to the Closing Date or from the consummation of the transactions contemplated by the Contribution Agreement;
(iv) the failure of any Group Member to have on the Closing Date any consent, license, permit or approval necessary to allow such Group Member to own or operate the Assets in substantially the same manner that the Assets were owned or operated immediately prior to the Closing Date; and
(v) events and conditions in the ordinary course of business that result in the release of a Hazardous Substance from, or failures in the integrity of, the Mesa Condensate Trunk Line, including any cost and expense incurred by a Group Member with respect to any investigation, assessment, evaluation, monitoring, containment, cleanup, repair, restoration, replacement, remediation, risk-based closure activities, or other corrective action required or necessary pursuant to (A) applicable laws, including Environmental Laws, or (B) the Partnership’s good faith determination as a reasonably prudent operator; provided, however, that such events or conditions that resulted in the release of a Hazardous Substance from, or caused a failure in the integrity of, the Mesa Condensate Trunk Line commenced, occurred or existed prior to the Identification Deadline; provided, further that the indemnification provided by QEP and Field Services in this Section 2.3(a)(v) shall terminate upon the earlier of (X) the Identification Deadline and (Y) in the event that QEP or Field Services elects, in their sole discretion, to replace the Mesa Condensate Trunk Line in its entirety, the date of such replacement.
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(b) The Partnership shall indemnify, defend, and hold harmless QEP and Field Services from and against any Losses suffered or incurred by any of the QEP Entities by reason of or arising out of events and conditions to the extent associated with the ownership or operation of the Assets and occurring after the Closing Date (other than Covered Environmental Losses which are provided for under Section 2.1(a) and Losses for which the Partnership is indemnifying QEP under Section 2.1(b)), unless such indemnification would not be permitted by any Group Member under the Partnership Agreement.
2.4 Indemnification Procedures.
(a) The Indemnified Party agrees that within a reasonable period of time after it becomes aware of facts giving rise to a claim for indemnification under this Article II, it will provide notice thereof in writing to the Indemnifying Party, specifying the nature of and specific basis for such claim.
(b) The Indemnifying Party shall have the right to control all aspects of the defense of (and any counterclaims with respect to) any claims brought against the Indemnified Party that are covered by the indemnification under this Article II, including, without limitation, the selection of counsel, determination of whether to appeal any decision of any court and the settling of any such claim or any matter or any issues relating thereto; provided, however, that no such settlement for only the payment of money shall be entered into without the consent of the Indemnified Party unless it includes a full release of the Indemnified Party from such claim; provided further, that no such settlement containing any form of injunctive or similar relief shall be entered into without the prior written consent of the Indemnified Party, which consent shall not be unreasonably delayed or withheld.
(c) The Indemnified Party agrees to cooperate in good faith and in a commercially reasonable manner with the Indemnifying Party, with respect to all aspects of the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification under this Article II, including, without limitation, the prompt furnishing to the Indemnifying Party of any correspondence or other notice relating thereto that the Indemnified Party may receive, permitting the name of the Indemnified Party to be utilized in connection with such defense and counterclaims, the making available to the Indemnifying Party of any files, records or other information of the Indemnified Party that the Indemnifying Party considers relevant to such defense and counterclaims, the making available to the Indemnifying Party of any employees of the Indemnified Party and the granting to the Indemnifying Party of reasonable access rights to the properties and facilities of the Indemnified Party; provided, however, that in connection therewith the Indemnifying Party agrees to use reasonable efforts to minimize the impact thereof on the operations of the Indemnified Party and further agrees to maintain the confidentiality of all files, records, and other information furnished by the Indemnified Party pursuant to this Section 2.4. The obligation of the Indemnified Party to cooperate with the Indemnifying Party as set forth in the immediately preceding sentence shall not be construed as imposing upon the Indemnified Party an obligation to hire and pay for counsel in connection with the defense of and pursuit of any counterclaims with respect to any claims covered by the indemnification set forth in this Article II; provided, however, that the Indemnified Party may, at its own option, cost and expense, hire and pay for counsel in connection with any such defense and counterclaims. The Indemnifying Party agrees to keep any such counsel hired by the Indemnified Party informed as
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to the status of any such defense or counterclaim, but the Indemnifying Party shall have the right to retain sole control over such defense and counterclaims so long as the Indemnified Party is still seeking indemnification hereunder.
(d) In determining the amount of any loss, cost, damage or expense for which the Indemnified Party is entitled to indemnification under this Agreement, the gross amount of the indemnification will be reduced by (i) any insurance proceeds realized by the Indemnified Party, and such correlative insurance benefit shall be net of any incremental insurance premium that becomes due and payable by the Indemnified Party as a result of such claim and (ii) all amounts recovered by the Indemnified Party under contractual indemnities from third Persons.
2.5 Limitations Regarding Indemnification.
(a) With respect to Covered Environmental Losses under Section 2.1(a)(i) or Section 2.1(a)(ii) that arise out of an event, condition or matter that is first discovered after the Closing Date, neither QEP nor Field Services shall be obligated to indemnify, defend and hold harmless any Group Member until such time as the total aggregate amount of Losses incurred by the Partnership Group for such Covered Environmental Losses exceeds $500,000 (the “Environmental Deductible”), at which time QEP and Field Services shall be obligated to indemnify the Partnership Group for the excess of such Covered Environmental Losses over the Environmental Deductible. For the avoidance of doubt, it is agreed that the Environmental Deductible shall not apply to any Covered Environmental Losses incurred by any Group Member attributable to those locations identified on Schedule B.
(b) For the avoidance of doubt, there is no deductible or cap with respect to the indemnification owed by any Indemnifying Party under any portion of this Article II other than that described in Section 2.5(a).
(c) For the avoidance of doubt, the obligation of QEP and Field Services to indemnify any Group Member, as specified in Section 2.1, Section 2.2 and Section 2.3 shall be limited to the extent of the Losses incurred by the Partnership with respect to its direct or indirect ownership interest in such Group Member.
(d) NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, IN NO EVENT SHALL ANY PARTY’S INDEMNIFICATION OBLIGATION HEREUNDER COVER OR INCLUDE CONSEQUENTIAL, INDIRECT, INCIDENTAL, PUNITIVE, EXEMPLARY, SPECIAL OR SIMILAR DAMAGES OR LOST PROFITS (INCLUDING ANY DIMINUTION IN VALUE OF ANY PARTY’S RESPECTIVE INVESTMENT IN THE PARTNERSHIP) SUFFERED, DIRECTLY OR INDIRECTLY, BY ANY OTHER PARTY ENTITLED TO INDEMNIFICATION UNDER THIS AGREEMENT, EXCEPT AS A REIMBURSEMENT FOR ANY SUCH DAMAGES AS ARE PAID TO A GOVERNMENTAL AUTHORITY OR OTHER THIRD PARTY.
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ARTICLE III
General and Administrative Services
3.1 General. QEP agrees to provide, and agrees to cause its Affiliates to provide, to the General Partner, for the Partnership Group’s benefit, the centralized general and administrative services that QEP and its Affiliates have traditionally provided in connection with the ownership and operation of the Assets, which consist of the services set forth on Schedule C (the “General and Administrative Services”). Absent the written agreement of the Parties to the contrary, the Parties agree that the General and Administrative Services will be received by the General Partner, for the benefit of the Partnership Group, at the General Partner’s principal place of business.
3.2 Administrative Fee.
(a) As consideration for QEP’s and its Affiliates’ provision of the General and Administrative Services, the Partnership Group will pay to QEP an annual fee that will reflect the costs incurred by QEP and its Affiliates in providing such General and Administrative Services (other than those costs for which QEP and its Affiliates are entitled to reimbursement pursuant to Section 3.3), as determined in good faith by QEP in accordance with Schedule C (the “Administrative Fee”). The Parties acknowledge and agree that it is the intent of the Parties that the General and Administrative Services be provided based on an arm’s-length standard, and that the Administrative Fee is intended to reflect such standard. For the avoidance of doubt, the Parties further acknowledge and agree that the Administrative Fee will cover the fully burdened cost of the General and Administrative Services provided by QEP and its Affiliates to the Partnership Group, as well as any third party costs actually incurred by QEP and its Affiliates on behalf of the Partnership Group in providing such General and Administrative Services (other than those costs for which QEP and its Affiliates are entitled to reimbursement pursuant to Section 3.3), including the following:
(i) the compensation and employee benefits of employees of QEP or its Affiliates (and any withholding or payroll taxes related thereto), to the extent, but only to the extent, such employees perform General and Administrative Services for the Partnership Group’s benefit. For the avoidance of doubt, the Administrative Fee shall include any withholding and payroll related taxes paid by QEP and its Affiliates in connection with any long-term incentive plan of the General Partner or the Partnership Group. With respect to employees that do not devote all of their business time to the Partnership Group, such compensation and employee benefits (and any withholding or payroll taxes related thereto) shall be allocated to the Partnership Group based on the annual weighted average of time spent and number of employees devoting services to the Partnership Group;
(ii) any expenses incurred or payments made by QEP or its Affiliates on behalf of the Partnership Group for insurance coverage with respect to the Assets or the business of the Partnership Group;
(iii) all expenses and expenditures incurred by QEP or its Affiliates on behalf of the Partnership Group as a result of the Partnership becoming and continuing as a publicly traded entity, including, but not limited to, costs associated with annual, quarterly and current reporting; tax return and Schedule K-1 preparation and distribution expenses; Sarbanes-Oxley compliance expenses; expenses associated with listing on the NYSE; independent auditor fees; legal fees; investor relations expenses; registrar and transfer agent fees, outside director fees and director and officer insurance expenses; and
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(iv) all sales, use, excise, value added or similar taxes, if any, that may be applicable from time to time with respect to the services provided by QEP and its Affiliates to the Partnership Group pursuant to Section 3.1.
(b) As part of the Administrative Fee, the Partnership Group shall pay to QEP a fixed fee, in the amount shown on Schedule C, in consideration for the services of certain employees of QEP and its Affiliates in their capacities as officers of the General Partner and the Group Members.
(c) The Parties acknowledge and agree that the Administrative Fee may change each calendar year, as determined by QEP in good faith, to accurately reflect the degree and extent of the General and Administrative Services provided to the Partnership Group and may be adjusted to reflect, among other things, the contribution, acquisition or disposition of assets to or by the Partnership Group or to reflect any change in the cost of providing General and Administrative Services to the Partnership Group due to changes in any law, rule or regulation applicable to the QEP Entities or the Partnership Group, including any interpretation of such laws, rules or regulations.
(d) On or prior to January 1 of each calendar year during the term of this Agreement, QEP will notify the General Partner of the estimated amount of the Administrative Fee (including both the fixed and variable portions of the Administrative Fee as described in Schedule C) to be paid by the Partnership Group for such calendar year. For the calendar year in which the Closing Date occurs, such estimate shall be made on or prior to the Closing Date and shall pertain only to the remainder of such calendar year. Commencing with the first full month following the Closing Date, the Administrative Fee shall be invoiced and paid as follows:
(i) Within 20 days following the end of each month during the term of this Agreement, QEP will submit to the Partnership Group an invoice of the amounts due for such month for the Administrative Fee. Each invoice will contain reasonably satisfactory support of such amounts and such other supporting detail as the General Partner may reasonably require.
(ii) The Partnership Group will pay the Administrative Fee within 10 days after the receipt of the invoice therefor. The Partnership Group shall not offset any amounts owing to it by QEP or any of its Affiliates against the Administrative Fee payable hereunder.
3.3 Reimbursement of Expenses.
(a) In addition to the Administrative Fee payable under Section 3.2, the Partnership Group will reimburse QEP and its Affiliates for any additional out-of-pocket costs and expenses actually incurred by QEP and its Affiliates in providing the General and Administrative Services, as well as any other out-of-pocket expenses incurred on behalf of the Partnership Group.
(b) The Partnership Group will reimburse QEP and its Affiliates for any costs and expenses incurred by QEP and its Affiliates under Section 3.3(a) as incurred on a monthly basis.
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ARTICLE IV
Licenses of Marks
4.1 Grant of QEP License. Upon the terms and conditions set forth in this Article IV, QEP hereby grants and conveys to the Partnership and each of the entities currently or hereafter comprising a part of the Partnership Group a nontransferable, nonexclusive, royalty­free right and license (the “QEP License”) to use the “QEP” logo and trademark and the other trademarks and tradenames owned by QEP (collectively, the “QEP Marks”).
4.2 Ownership and Quality of QEP Marks. The Partnership, on behalf of itself and the other Group Members, agrees that ownership of the QEP Marks and the goodwill relating thereto shall remain vested in QEP during the term of the QEP License and thereafter. The Partnership agrees, and agrees to cause the other Group Members, to the fullest extent permitted by applicable law, never to challenge, contest or question the validity of QEP’s ownership of the QEP Marks or any registration thereof by QEP. In connection with the use of the QEP Marks, the Partnership and any other Group Member shall not in any manner represent that they have any ownership in the QEP Marks or registration thereof. The Partnership, on behalf of itself and the other Group Members, acknowledges that the use of the QEP Marks shall not create any right, title or interest in or to the QEP Marks, and all use of the QEP Marks by the Partnership or any other Group Member shall inure to the benefit of QEP. The Partnership agrees, and agrees to cause the other Group Members, to use the QEP Marks in accordance with such quality standards established by QEP and communicated to the Partnership Group from time to time, it being understood that the products and services offered by the Group Members as of the Closing Date are of a quality that is acceptable to QEP.
4.3 Grant of the Partnership License. Upon the terms and conditions set forth in this Article IV, the General Partner, for the benefit of the Partnership, hereby grants and conveys to QEP and its Affiliates a nontransferable, nonexclusive, royalty-free right and license (“Partnership License”) to use the “QEPM” logo and trademark and the other trademarks and tradenames owned by the General Partner for the benefit of the Partnership (collectively, the “Partnership Marks”).
4.4 Ownership and Quality of the Partnership Marks. QEP agrees, on behalf of itself and the other QEP Entities, that ownership of the Partnership Marks and the goodwill relating thereto shall remain vested in the General Partner, for the benefit of the Partnership, during the term of the Partnership License and thereafter. QEP agrees, and agrees to cause the other QEP Entities, to the fullest extent permitted by applicable law, never to challenge, contest or question the validity of the General Partner’s ownership of the Partnership Marks or any registration thereof by the General Partner or the Partnership. In connection with the use of the Partnership Marks, neither QEP nor any of the other QEP Entities shall in any manner represent that they have any ownership in the Partnership Marks or registration thereof. QEP, on behalf of itself and the other QEP Entities, acknowledges that the use of the Partnership Marks shall not create any right, title or interest in or to the Partnership Marks, and all use of the Partnership Marks by QEP or any of the other QEP Entities shall inure to the benefit of the General Partner and the Partnership. QEP agrees, and agrees to cause the other QEP Entities, to use the Partnership Marks in accordance with such quality standards established by the General Partner, on behalf of and for the benefit of the Partnership, and communicated to QEP from time to time.
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4.5 Termination. The QEP License and the Partnership License shall each terminate upon the termination of this Agreement pursuant to Section 5.5.
ARTICLE V
Miscellaneous
5.1 Confidentiality.
(a) From and after the Closing Date, each of the Parties shall hold, and shall cause their respective Subsidiaries and Affiliates and its and their directors, officers, employees, agents, consultants, advisors, and other representatives (collectively, “Representatives”) to hold all Confidential Information in strict confidence, with at least the same degree of care that applies to such Party’s confidential and proprietary information and shall not use such Confidential Information and shall not release or disclose such Confidential Information to any other Person, except its Representatives or except as required by applicable law. Each Party shall be responsible for any breach of this section by any of its Representatives.
(b) If a Party receives a subpoena or other demand for disclosure of Confidential Information received from any other Party or must disclose to a Governmental Authority any Confidential Information received from such other Party in order to obtain or maintain any required governmental approval, the receiving Party shall, to the extent legally permissible, provide notice to the providing Party before disclosing such Confidential Information. Upon receipt of such notice, the providing Party shall promptly either seek an appropriate protective order, waive the receiving Party’s confidentiality obligations hereunder to the extent necessary to permit the receiving Party to respond to the demand, or otherwise fully satisfy the subpoena or demand or the requirements of the applicable Governmental Authority. If the receiving Party is legally compelled to disclose such Confidential Information or if the providing Party does not promptly respond as contemplated by this section, the receiving Party may disclose that portion of Confidential Information covered by the notice or demand.
(c) Each Party acknowledges that the disclosing Party would not have an adequate remedy at law for the breach by the receiving Party of any one or more of the covenants contained in this Section 5.1 and agrees that, in the event of such breach, the disclosing Party may, in addition to the other remedies that may be available to it, apply to a court for an injunction to prevent breaches of this Section 5.1 and to enforce specifically the terms and provisions of this Section 5.1. Notwithstanding any other section hereof, to the extent permitted by applicable law, the provisions of this Section 5.1 shall survive the termination of this Agreement.
5.2 Choice of Law; Mediation; Submission to Jurisdiction.
(a) This Agreement shall be subject to and governed by the laws of the State of Delaware, excluding any conflicts-of-law rule or principle that might refer the construction or interpretation of this Agreement to the laws of another state. EACH OF THE PARTIES HERETO AGREES THAT THIS AGREEMENT INVOLVES AT LEAST U.S. $100,000.00 AND THAT THIS AGREEMENT HAS BEEN ENTERED INTO IN EXPRESS RELIANCE UPON 6 Del. C. § 2708. EACH OF THE PARTIES HERETO IRREVOCABLY AND
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UNCONDITIONALLY AGREES (i) TO BE SUBJECT TO THE JURISDICTION OF THE COURTS OF THE STATE OF DELAWARE AND OF THE FEDERAL COURTS SITTING IN THE STATE OF DELAWARE, AND (ii) TO THE EXTENT SUCH PARTY IS NOT OTHERWISE SUBJECT TO SERVICE OF PROCESS IN THE STATE OF DELAWARE, TO APPOINT AND MAINTAIN AN AGENT IN THE STATE OF DELAWARE AS SUCH PARTY’S AGENT FOR ACCEPTANCE OF LEGAL PROCESS AND TO NOTIFY THE OTHER PARTY OF THE NAME AND ADDRESS OF SUCH AGENT.
(b) If the Parties cannot resolve any dispute or claim arising under this Agreement, then no earlier than 10 days nor more than 60 days following written notice to the other Parties, any Party may initiate mandatory, non-binding mediation hereunder by giving a notice of mediation (a “Mediation Notice”) to the other Parties to the dispute or claim. In connection with any mediation pursuant to this Section 5.2, the mediator shall be jointly appointed by the Parties to the dispute or claim and the mediation shall be conducted in Denver, Colorado unless otherwise agreed to by the Parties to the dispute or claim. All costs and expenses of the mediator appointed pursuant to this section shall be shared equally by the Parties to the dispute or claim. The then-current Model ADR Procedures for Mediation of Business Disputes of the Center for Public Resources, Inc., either as written or as modified by mutual agreement of the Parties to the dispute or claim, shall govern any mediation pursuant to this section. In the mediation, each Party to the dispute or claim shall be represented by one or more senior representatives who shall have authority to resolve any disputes. If a dispute or claim has not been resolved within 30 days after the receipt of the Mediation Notice by a Party, then any Party to the dispute or claim may refer the resolution of the dispute or claim to litigation.
(c) Subject to Section 5.2(b), each Party agrees that it shall bring any action or proceeding in respect of any claim arising out of or related to this Agreement, whether in tort or contract or at law or in equity, exclusively in any federal or state courts located in Delaware and (i) irrevocably submits to the exclusive jurisdiction of such courts, (ii) waives any objection to laying venue in any such action or proceeding in such courts, (iii) waives any objection that such courts are an inconvenient forum or do not have jurisdiction over it and (iv) agrees that, to the fullest extent permitted by law, service of process upon it may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address specified in Section 5.3. The foregoing consents to jurisdiction and service of process shall not constitute general consents to service of process in the State of Delaware for any purpose except as provided herein and shall not be deemed to confer rights on any Person other than the Parties.
5.3 Notice. All notices or requests or consents provided for by, or permitted to be given pursuant to, this Agreement must be in writing and must be given by e-mail or United States mail, addressed to the Person to be notified, postpaid, and registered or certified with return receipt requested or by delivering such notice in person or by facsimile to such Party. Notice given by personal delivery or mail shall be effective upon actual receipt. Notice given by e-mail or facsimile shall be effective upon actual receipt if received during the recipient’s normal business hours or at the beginning of the recipient’s next business day after receipt if not received during the recipient’s normal business hours. All notices to be sent to a Party pursuant to this Agreement shall be sent to or made at the address set forth below or at such other address as such Party may stipulate to the other Parties in the manner provided in this Section 5.3.
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If to QEP or Field Services:
QEP Resources, Inc.
1050 17thStreet, Suite 500
Denver, Colorado 80265
Attn: General Counsel
Facsimile: (303) 295-2190
E-mail: Chris.Woosley@qepres.com
If to any Group Member:
QEP Midstream Partners, LP
c/o QEP Midstream Partners GP, LLC, its General Partner
1050 17th Street, Suite 500
Denver, Colorado 80265
Attn: General Counsel
Facsimile: (303) 295-2190
E-mail: Chris.Woosley@qepres.com
5.4 Entire Agreement. This Agreement constitutes the entire agreement of the Parties relating to the matters contained herein, superseding all prior contracts or agreements, whether oral or written, relating to the matters contained herein.
5.5 Termination of Agreement. This Agreement, other than the provisions set forth in Article II hereof, may be terminated (a) by the written agreement of all of the Parties or (b) by QEP or the Partnership immediately upon a Partnership Change of Control by written notice given to the other Parties to this Agreement. For the avoidance of doubt, the Parties’ indemnification obligations under Article II shall, to the fullest extent permitted by law, survive the termination of this Agreement in accordance with their respective terms.
5.6 Amendment or Modification. This Agreement may be amended or modified from time to time only by the written agreement of all the Parties. Each such instrument shall be reduced to writing and shall be designated on its face an “Amendment” or an “Addendum” to this Agreement.
5.7 Assignment. No Party shall have the right to assign its rights or obligations under this Agreement without the consent of the other Parties; provided, however, that the Partnership Group may make a collateral assignment of this Agreement solely to secure financing for the Partnership Group.
5.8 Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all signatory parties had signed the same document and shall be construed together and shall constitute one and the same instrument.
5.9 Severability. If any provision of this Agreement shall be held invalid or unenforceable by a court or regulatory body of competent jurisdiction, the remainder of this Agreement shall remain in full force and effect.
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5.10 Further Assurances. In connection with this Agreement and all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions and conditions of this Agreement and all such transactions.
5.11 Rights of Limited Partners. The provisions of this Agreement are enforceable solely by the Parties to this Agreement, and no Limited Partner or other interest holder of the Partnership shall have the right, separate and apart from the Partnership, to enforce any provision of this Agreement or to compel any Party to this Agreement to comply with the terms of this Agreement.
[Remainder of page intentionally left blank.]
13

IN WITNESS WHEREOF, the Parties have executed this Agreement on, and effective as of, the Closing Date.
 
	
			
	 
	 
	 

	QEP Resources, Inc.

	 
	 

	By:
	 
	/s/ Richard J. Doleshek

	Name:
	 
	Richard J. Doleshek

	Title:
	 
	Executive Vice President, Chief Financial Officer and Treasurer

	 

	QEP Field Services Company

	 
	 

	By:
	 
	/s/ Richard J. Doleshek

	Name:
	 
	Richard J. Doleshek

	Title:
	 
	Executive Vice President and Chief Financial Officer

	 

	QEP Midstream Partners GP, LLC

	 
	 

	By:
	 
	/s/ Richard J. Doleshek

	Name:
	 
	Richard J. Doleshek

	Title:
	 
	Executive Vice President and Chief Financial Officer

	 

	QEP Midstream Partners, LP

	By:
	 
	QEP Midstream Partners GP, LLC, its general partner

	 
	 

	By:
	 
	/s/ Richard J. Doleshek

	Name:
	 
	Richard J. Doleshek

	Title:
	 
	Executive Vice President and Chief Financial Officer

	 

	QEP Midstream Partners Operating, LLC

	 
	 

	By:
	 
	/s/ Richard J. Doleshek

	Name:
	 
	Richard J. Doleshek

	Title:
	 
	Executive Vice President and Chief Financial Officer

[Signature page to Omnibus Agreement]

APPENDIX A
Attached to and made part of that certain Omnibus Agreement, dated as of August 14, 2013, by and among QEP Resources, Inc., a Delaware corporation, QEP Field Services Company, a Delaware corporation, QEP Midstream Partners, LP, a Delaware limited partnership (the “Partnership”), QEP Midstream Partners GP, LLC, a Delaware limited liability company and the general partner of the Partnership, and QEP Midstream Partners Operating, LLC, a Delaware limited liability company and wholly owned subsidiary of the Partnership.
“1993 Gathering Agreement” means that certain gas gathering agreement, dated September 1, 1993, between Questar Gas Company (f/k/a Mountain Fuel Supply Company) and QEP Field Services Company (f/k/a Questar Pipeline Company), as amended.
“Administrative Fee” is defined in Section 3.2(a).
“Agreement” has the meaning set forth in the preamble.
“Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.
“Assets” means the equity interests in the entities being conveyed, contributed or otherwise transferred to any Group Member pursuant to the Contribution Agreement and any gathering pipelines, transportation pipelines, compressor stations, pump stations, metering stations, vehicles, related equipment, offices, real estate, contracts and other assets, or portions thereof owned by, leased by or necessary for the operation of the business of any Group Member as of the Closing Date.
“Closing Date” has the meaning set forth in the preamble.
“Confidential Information” means any proprietary or confidential information that is competitively sensitive material or otherwise of value to a Party or its Affiliates and not generally known to the public, including trade secrets, scientific or technical information, design, invention, process, procedure, formula, improvements, product planning information, marketing strategies, financial information, information regarding operations, consumer and/or customer relationships, consumer and/or customer identities and profiles, sales estimates, business plans, and internal performance results relating to the past, present or future business activities of a Party or its Affiliates and the consumers, customers, clients and suppliers of any of the foregoing. Confidential Information includes such information as may be contained in or embodied by documents, substances, engineering and laboratory notebooks, reports, data, specifications, computer source code and object code, flow charts, databases, drawings, pilot plants or demonstration or operating facilities, diagrams, specifications, bills of material, equipment, prototypes and models, and any other tangible manifestation (including data in computer or other digital format) of the foregoing; provided, however, that Confidential Information does not include information that a receiving Party can show (A) has been published
 
Appendix A-1

or has otherwise become available to the general public as part of the public domain without breach of this Agreement, (B) has been furnished or made known to the receiving Party without any obligation to keep it confidential by a third party under circumstances which are not known to the receiving Party to involve a breach of the third party’s obligations to a Party or (C) was developed independently of information furnished or made available to the receiving Party as contemplated under this Agreement.
“Contribution Agreement” means that certain Contribution, Conveyance and Assumption Agreement, dated as of the Closing Date, among Field Services, the General Partner, the Partnership and the Operating Company, together with the additional conveyance documents and instruments contemplated or referenced thereunder, as such may be amended, supplemented or restated from time to time.
“Covered Environmental Losses” is defined in Section 2.1.
“Departing General Partner” means a former General Partner from and after the effective date of any withdrawal or removal of such former General Partner pursuant to Section 11.1 or Section 11.2 of the Partnership Agreement.
“Environmental Deductible” is defined in Section 2.5.
“Environmental Defect” is defined Section 2.5.
“Environmental Laws” means all federal, state, and local laws, statutes, rules, regulations, orders, judgments, ordinances, codes, injunctions, decrees, Environmental Permits and other legally enforceable requirements and rules of common law relating to pollution or protection of human health, natural resources, wildlife and the environment or workplace health or safety including, without limitation, the federal Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. §§9601 et seq., the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. §§6901 et seq., the Clean Air Act, as amended, 42 U.S.C. §§7401 et seq., the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§1251 et seq., the Toxic Substances Control Act, as amended, 15 U.S.C. §§2601 et seq., the Oil Pollution Act of 1990, 33 U.S.C. §§2701 et seq., the Safe Drinking Water Act of 1974, as amended, 42 USC §§300f et seq., the Hazardous Materials Transportation Act of 1994, as amended, 49 U.S.C. §§ 5101 et seq., and other environmental conservation and protection laws and the Occupational Safety and Health Act of 1970, 29 U.S.C. §§ 651 et seq, and the regulations promulgated pursuant thereto, and any state or local counterparts, each as amended from time to time.
“Environmental Permit” means any permit, approval, identification number, license, registration, certification, consent, exemption, variance or other authorization required under or issued pursuant to any applicable Environmental Law, including applications for renewal of such permits in which the application allows for continued operation under the terms of an expired permit.
“Field Services” has the meaning set forth in the preamble.
“General and Administrative Services” is defined in Section 3.1.
 
Appendix A-2

“General Partner” means QEP Midstream Partners GP, LLC, a Delaware limited liability company, and its successors and permitted assigns that are admitted to the Partnership as general partner of the Partnership, in its capacity as general partner of the Partnership (except as the context otherwise requires).
“Governmental Authority” means any federal, state, tribal, foreign or local governmental entity, authority, department, court or agency, including any political subdivision thereof, exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature, and including any arbitrating body, commission or quasi-governmental authority or self-regulating organization of competent authority exercising or enlisted to exercise similar power or authority.
“Group Member” means a member of the Partnership Group.
“Hazardous Substance” means (a) any substance, whether solid, liquid, gaseous, semi-solid, or any combination thereof, that is designated, defined or classified as a hazardous waste, solid waste, hazardous material, pollutant, contaminant or toxic or hazardous substance, or terms of similar meaning, or that is otherwise regulated under any Environmental Law, including, without limitation, any hazardous substance as defined under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, and including asbestos and lead-containing paints or coatings, and (b) petroleum, oil, gasoline, natural gas, fuel oil, motor oil, waste oil, diesel fuel, jet fuel, and other refined petroleum hydrocarbons.
“Identification Deadline” means the third anniversary of the Closing Date.
“Indemnified Party” means the Party entitled to indemnification in accordance with Article II.
“Indemnifying Party” means the Party from whom indemnification may be sought in accordance with Article II.
“Limited Partner” means, unless the context otherwise requires, each Person that becomes a Limited Partner pursuant to the terms of the Partnership Agreement and any Departing General Partner upon the change of its status from General Partner to Limited Partner pursuant to Section 11.3 of the Partnership Agreement, in each case, in such Person’s capacity as a limited partner of the Partnership; provided, however, that when the term “Limited Partner” is used herein in the context of any vote or other approval, such term shall not, solely for such purpose, include any holder of any Incentive Distribution Right (solely with respect to its Incentive Distribution Rights and not with respect to any other limited partner interest held by such Person) except as may otherwise be required by law.
“Losses” means any losses, damages, liabilities, claims, demands, causes of action, judgments, settlements, fines, penalties, costs and expenses (including, without limitation, court costs and reasonable attorney’s and expert’s fees) of any and every kind or character, known or unknown, fixed or contingent.
“Mediation Notice” is defined in Section 5.2(b).
 
Appendix A-3

“Mesa Condensate Trunk Line” means that certain section of 6  5/8” OD pipe beginning in Sublette County, Wyoming in the Center T33N R109W S18 Latitude 42.69205036 Longitude -109.8102758 traversing in a southeasterly direction approximately 68,000 linear feet and ending in the SW 1/4 NW 1/4 T31N R109W S2 Latitude 42.82930891 Longitude -109.9076653.
“Operating Company” has the meaning set forth in the preamble.
“Partnership” has the meaning set forth in the preamble.
“Partnership Agreement” means the First Amended and Restated Agreement of Limited Partnership of the Partnership, dated as of the Closing Date.
“Partnership Change of Control” means QEP ceases to control, directly or indirectly, the General Partner. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of the General Partner, whether through ownership of voting securities, by contract, or otherwise.
“Partnership Group” means, collectively, the Partnership and its Subsidiaries.
“Partnership License” is defined in Section 4.3.
“Partnership Marks” is defined in Section 4.3.
“Party” has the meaning set forth in the preamble.
“Person” means an individual or a corporation, firm, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other entity.
“QEP” has the meaning set forth in the preamble.
“QEP Entities” means QEP and each of its Affiliates, other than the General Partner and the Group Members.
“QEP License” is defined in Section 4.1.
“QEP Marks” is defined in Section 4.1.
“Representatives” is defined in Section 5.1(a).
“Retained Assets” means all pipelines, processing facilities, treating assets, vehicles, other midstream infrastructure, offices and related equipment, real estate, contracts and other related assets, or ownership interests or portions thereof owned by Field Services that were not directly or indirectly conveyed, contributed or otherwise transferred to the Partnership Group pursuant to the Contribution Agreement or the other documents referenced in the Contribution Agreement.
 
Appendix A-4

“Subsidiary” means, with respect to any Person, (a) a corporation of which more than 50% of the voting power of shares entitled (without regard to the occurrence of any contingency) to vote in the election of directors or other governing body of such corporation is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person or a combination thereof, (b) a partnership (whether general or limited) in which such Person or a Subsidiary of such Person is, at the date of determination, a general or limited partner of such partnership, but only if more than 50% of the partnership interests of such partnership (considering all of the partnership interests of the partnership as a single class) is owned, directly or indirectly, at the date of determination, by such Person, by one or more Subsidiaries of such Person, or a combination thereof; or (c) any other Person (other than a corporation or a partnership) in which such Person, one or more Subsidiaries of such Person, or a combination thereof, directly or indirectly, at the date of determination, has (i) at least a majority ownership interest or (ii) the power to elect or direct the election of a majority of the directors or other governing body of such Person.
 
Appendix A-5

Schedule A
Pre-Closing Litigation
 
	
														
	Matter Name
	 
	Matter
Type
	 
	Party
	 
	Matter
Description
	 
	Case/Docket #
	 
	Court/Agency
	 
	State

	Questar Gas Company v.
QEP Field Services Company1
	 
	Litigation
	 
	QEP Field Services Company
	 
	Contract Dispute
	 
	120,902,969
	

	 
	Third Judicial District Court
	 
	UT

	
		
	1 
	QEP Resources, Inc. and QEP Field Services Company shall not be obligated to indemnify QEP Midstream Partners, LP or any other Group Member for Losses incurred as a result of a decrease in the annual gathering rate charged under the 1993 Gathering Agreement subsequent to the date that this litigation is settled or resolved by a final, binding and non-appealable court order.

 
Schedule A-1

Schedule B
Environmental Remediation Locations
 
	
			
	 
	 
	 

	Responsible Party
	  
	Description

	Field Services
	  
	South Baxter Groundwater Monitoring (Rock Springs, Wyoming)

	Field Services
	  
	Mesa Condensate Trunk Line

 
Schedule B-1

Schedule C
General and Administrative Services
Pursuant to Section 3.1
 
		
	(1)
	Management services of QEP and its Affiliates (other than the General Partner) provided by employees who devote less than 50% of their business time to the business and affairs of the Partnership. This cost includes QEP-stock based compensation expense.

		
	(2)
	Financial and administrative services (including treasury and accounting)

		
	(3)
	Information technology services—professional services

		
	(4)
	Legal services

		
	(5)
	Health, environmental, safety and security services (including third party security services)

		
	(6)
	Human resources services

		
	(7)
	Tax services

		
	(8)
	Procurement services

		
	(9)
	Investor relations; Government & public affairs services

		
	(10)
	Analytical & engineering services

		
	(11)
	Business development services

Pursuant to Section 3.2
The fixed portion of the Administrative Fee for calendar year 2014, as described in Section 3.2, will be $1,400,000. For the avoidance of doubt, the fixed portion of the Administrative Fee for the remainder of calendar year 2013 will be the same annual amount as calendar year 2014 pro-rated based on the number of days remaining in 2013 from the Closing Date.
The portion of the Administrative Fee attributable to any marketing and transportation engineering services, information technology services, administrative/office services, and public company expenses will be a variable amount based on the costs actually incurred by QEP and its Affiliates on behalf of the Partnership Group (other than any costs for which QEP and its Affiliates are reimbursed pursuant to Section 3.3). The portion of the variable amount of the Administrative Fee attributable to any marketing and transportation engineering services described in the preceding sentence will be based on the costs incurred by QEP and its Affiliates on behalf of the Partnership Group (other than any costs for which QEP and its Affiliates are reimbursed pursuant to Section 3.3).
Pursuant to Section 3.2(b)
The fixed portion of the Administrative Fee for calendar year 2014 includes as a part thereof, the following amounts attributable to services provided by officers of the Partnership Group:
 
	
				
	 
	 

	(1)    Charles B. Stanley, Chairman of the Board, President and Chief
ExecutiveOfficer
	$
	650,000
	

	         Richard J. Doleshek, Executive Vice President and Chief Financial
Officer
	$
	350,000
	

	Perry H. Richards, Senior Vice President and General Manager
	$
	400,000
	

	Total
	$
	1,400,000
	

 
Schedule C-1QEPR-2013 9.3013 EX10.8

Exhibit 10.8

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this “Agreement”), dated as of ______________, 20__, is made by and between QEP RESOURCES, INC., a Delaware corporation (the “Company”) and [NAME] (the “Indemnitee”). 
RECITALS

A.    The Company recognizes that competent and experienced persons are increasingly reluctant to serve or to continue to serve as directors or officers of corporations unless they are protected by comprehensive liability insurance and indemnification, due to increased exposure to litigation costs and risks resulting from their service to such corporations, and because the exposure frequently bears no reasonable relationship to the compensation of such directors and officers;
B.    The statutes and judicial decisions regarding the duties of directors and officers are often difficult to apply to particular facts, can be ambiguous or conflicting, and may fail to provide such directors and officers with adequate, reliable knowledge of legal risks to which they are exposed or information regarding the proper course of action to take;
C.    The Company and Indemnitee recognize that the risk of litigation is significant;
D.    The Company does not believe its directors and officers should bear the risk of judgments and other expenses that may occur in cases in which the director or officer had no improper personal interest and in cases where the director or officer was not culpable;
E.    The Company believes that the interests of the Company and its shareholders would best be served by a combination of liability insurance and indemnification provided by the Company for the benefit of the directors and officers of the Company;
F.    The Company’s Bylaws require the Company to indemnify its directors and officers to the fullest extent permitted by the Delaware General Corporation Law (the “DGCL”). The Bylaws expressly provide that the indemnification provisions set forth therein are not exclusive and contemplate that contracts may be entered into between the Company and its directors and officers with respect to indemnification;
G.    Section 145 of the DGCL (“Section 145”), under which the Company is organized, empowers the Company to indemnify its officers, directors, employees and agents by agreement and to indemnify persons who serve, at the request of the Company, as the directors, officers, employees or agents of other corporations or enterprises, and expressly provides that the indemnification provided by Section 145 is not exclusive;
H.    Section 102(b)(7) of the DGCL allows a corporation to include in its certificate of incorporation a provision limiting or eliminating the personal liability of a director for monetary damages in respect of claims by shareholders and corporations for breach of certain fiduciary duties, and the Company has provided in its Certificate of Incorporation that each Director shall be exculpated from such liability to the maximum extent permitted by law;
I.    The Board of Directors of the Company (the “Board of Directors”) has determined that contractual indemnification as set forth herein is not only reasonable and prudent but also promotes the best interests of the Company and its shareholders;
J.    The Company desires and has requested Indemnitee to serve or continue to serve as a director or officer of the Company free from undue concern for unwarranted claims for damages arising out of or related to services to the Company; and

K.    Indemnitee is willing to serve, continue to serve or to provide additional service for or on behalf of the Company on the condition that he or she is furnished the indemnity provided for herein.
AGREEMENT
In consideration of the mutual covenants and agreements set forth below, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
Section 1.Employment Rights and Duties.  Subject to any other obligations imposed on either of the parties by contract or by law, and with the understanding that this Agreement is not intended to confer employment rights on either party which they did not possess on the date of its execution, Indemnitee agrees to serve as a director or officer so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the Certificate of Incorporation and Bylaws of the Company or any subsidiary of the Company and until such time as Indemnitee resigns or fails to stand for election or until Indemnitee’s employment, if any, terminates.  Indemnitee may from time to time also perform other services at the request of, or for the convenience of, or otherwise benefiting, the Company.  Indemnitee may at any time and for any reason resign or be removed from such position (subject to any other contractual obligation or other obligation imposed by operation of law), in which event the right to indemnification shall continue only as set forth in this Agreement.
Section 2.Indemnification Generally.  To the fullest extent permitted by the laws of the State of Delaware:
(a)The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that Indemnitee is or was or has agreed to serve at the request of the Company as a director, officer, employee or agent of the Company (“Position with the Company”), or while serving as a director or officer of the Company, is or was serving or has agreed to serve at the request of the Company as a director, officer, employee or agent (which, for purposes hereof, shall include a trustee, partner, manager or similar capacity) of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise (“Service at the Request of the Company”), or by reason of any action alleged to have been taken or omitted in such capacity.  For the avoidance of doubt, the foregoing indemnification obligation includes, without limitation, claims for monetary damages against Indemnitee in respect of an alleged breach of fiduciary duties, to the fullest extent permitted under Section 102(b)(7) of the DGCL as in existence on the date hereof.  Indemnitee will be deemed a party to a proceeding for all purposes hereof if Indemnitee is named as a defendant or respondent in a complaint or petition for relief in that proceeding, regardless of whether Indemnitee is ever served with process or makes an appearance in that proceeding.
(b)The indemnification provided by this Section 2 shall be from and against Expenses and judgments, fines and amounts paid in any settlement made in accordance with Section 10 (“Judgments”), incurred by Indemnitee or on Indemnitee’s behalf in connection with such action, suit or proceeding and any appeal therefrom, but shall not be provided if it is finally determined that the Indemnitee acted in bad faith.
(c)Notwithstanding the foregoing provisions of this Section 2, in the case of any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of Indemnitee’s Position with the Company or Service at the Request of the Company, no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged to be liable to the Company.  Indemnification may be made, however, to the extent that the Delaware Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or such other court shall deem proper. 
(d)The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had reasonable cause to believe that Indemnitee’s conduct was unlawful. 
(e)For purposes of Section 2, the meaning of the phrase “to the fullest extent permitted by the laws of the State of Delaware” shall include, but not be limited to:

2

(i)to the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and
(ii)to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.
Section 3.Indemnification for Expenses of a Party Who is Wholly or Partly Successful.  To the extent that Indemnitee has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Section 2 hereof or in defense of any claim, issue or matter therein (in whole or in part), Indemnitee shall be indemnified against all Expenses incurred in connection therewith.  If Indemnitee is not wholly successful in such action, suit or proceeding, but is successful on the merits or otherwise, as to one or more but less than all claims, issues or matters in such action, suit or proceeding, Indemnitee shall be indemnified against Expenses incurred in connection with each successfully resolved claim, issue or matter.  If Indemnitee is not wholly successful in such action, suit or proceeding, Indemnitee shall also be indemnified against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim issue or matter on which Indemnitee was successful.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such an action, suit or proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 
Section 4.Notification of Claims; Determination That Indemnification Is Proper. 
(a)Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or proceeding, Indemnitee shall, if a claim thereof is to be made against the Company hereunder, notify the Company of the commencement thereof.  The failure to promptly notify the Company of the commencement of the action, suit or proceeding, or Indemnitee’s request for indemnification, will not relieve the Company from any liability that it may have to Indemnitee hereunder, except to the extent the Company is prejudiced in its defense of such action, suit or proceeding as a result of such failure.
(b)Any indemnification hereunder shall (unless otherwise ordered by a court) be made by the Company unless a determination is made in the specific instance that indemnification of such person is not proper in the circumstances because he or she has not met the applicable standard of conduct set forth in Section 2 hereof.  Any such determination shall be made (i) if no Change in Control has occurred, (A) by a majority vote of the directors who are not parties to the action, suit or proceeding in question (“disinterested directors”), even if less than a quorum, (B) by a majority vote of a committee of disinterested directors designated by majority vote of disinterested directors, even if less than a quorum, and (C) if there are no disinterested directors or if the disinterested directors so direct, by Independent Counsel or by the Delaware Chancery Court, and (ii) if a Change in Control has occurred, or at the election of the Indemnitee at anytime, by Independent Counsel.
(c)In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 4(b) hereof, the Independent Counsel shall be selected by the Indemnitee, and the Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. The Company may, within seven days after such written notice of selection shall have been given, deliver to the Indemnitee a written objection to such selection.  Such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 8 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  If such written objection is timely made, the Independent Counsel so selected may not serve as Independent Counsel unless and until a court has determined that the Independent Counsel meets such requirements.  If, within 20 days after submission by the Company of an objection to the selection of the Independent Counsel, the Indemnitee has not proposed an alternate Independent Counsel or submitted the matter to a court of competent jurisdiction, the Company may petition the Court of Chancery of the State of Delaware or other court of competent jurisdiction for resolution of any objection that shall have been made by the Company to the Indemnitee’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom an objection is so resolved or the person so appointed shall act as Independent Counsel under Section 4(b) hereof.  The Company shall pay any and all reasonable fees and expenses incurred by such Independent Counsel in connection with acting pursuant to Section 4(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this Section 4(c), regardless of the manner in which such Independent Counsel was selected or appointed.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 6 of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

3

(d)Indemnitee and the Company shall provide to the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, documentation or information related to Indemnitee’s claim for indemnification that is not privileged or otherwise protected from disclosure and that is reasonably available to Indemnitee or the Company, as applicable, and reasonably necessary to such determination and shall otherwise cooperate with such person, persons or entity making such determination.  Any Expenses incurred by Indemnitee in providing documentation in response to inquiries from the person, persons or entity making such determination, or in so cooperating, shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification), and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
(e)The Indemnitee shall be presumed to be entitled to indemnification under this Agreement upon submission of a request for indemnification pursuant to this Section 4, and the Company shall have the burden of proof in overcoming that presumption by clear and convincing evidence in reaching a determination contrary to that presumption.
(f)Any Independent Counsel, member of the Board of Directors or court shall act reasonably and in good faith in making a determination regarding Indemnitee’s entitlement to indemnification under this Agreement.  The determination whether to grant Indemnitee’s indemnification request shall be made promptly, and in any event, with respect to indemnification for Judgments, within 60 days following receipt of a request for indemnification for Judgments. Advances of Expenses shall be paid within 20 days following receipt of a request for advancement of Expenses pursuant to Section 5(a).
Section 5.Advance Payment of Expenses; Defense of Claim.
(a)To the fullest extent permitted by the laws of the State of Delaware, Expenses incurred by Indemnitee in defending a threatened or pending civil, criminal, administrative or investigative action, suit or proceeding, or in connection with an enforcement action pursuant to Section 6(a), shall be paid by the Company in advance of the final disposition of such action, suit or proceeding within twenty (20) days after receipt by the Company of a statement or statements from Indemnitee requesting such advance or advances from time to time (which shall include invoices received by Indemnitee in connection with such expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditures made that may cause Indemnitee to waive any privilege accorded by applicable law need not be included with the invoice).  Advances shall be unsecured and interest-free and shall be made without reference to the financial ability of Indemnitee to make such repayment.  By executing this Agreement, Indemnitee hereby provides an undertaking to repay any advance or advances if, and to the extent that, it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized by this Agreement or otherwise.   
(b)In the event the Company shall be obligated to make advance payment of  the Expenses of Indemnitee with respect to an action, suit or proceeding, as provided in this Agreement, the Company, if appropriate, shall be entitled to assume the defense of such action, suit or proceeding, with counsel reasonably acceptable to Indemnitee, upon the delivery to Indemnitee of written notice of its election to do so.  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 action, suit or proceeding, provided that (i) Indemnitee shall have the right to employ Indemnitee’s own counsel in such action, suit or proceeding at Indemnitee’s expense and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized in writing by the Company, (B) counsel to the Company or Indemnitee shall have reasonably concluded that there may be a conflict of interest or position, or reasonably believes that a conflict is likely to arise, on any significant issue between the Company and Indemnitee in the conduct of any such defense, or (C) the Company shall not, in fact, have employed counsel to assume the defense of such action, suit or proceeding, then the actual and reasonable fees and expenses of Indemnitee’s counsel shall be at the expense of the Company, except as otherwise expressly provided by this Agreement.  The Company shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company or as to which counsel for the Company or Indemnitee shall have reasonably made the conclusion provided for in clause (ii)(B) above.
(c)To the fullest extent permitted by the laws of the State of Delaware, if Indemnitee is, by reason of Indemnitee’s Position with the Company or Service at the Request of the Company, a witness, including an expert witness, or otherwise participates in any action, suit or proceeding at a time when Indemnitee is not a party in the action, suit or proceeding, the Company shall advance payment to Indemnitee against all Expenses incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.
(d)This Section 5 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 9.

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Section 6.Appeal by Indemnitee of Denial of Claim for Indemnification.
(a)The right to indemnification as granted by Section 2 of this Agreement and to advancement of Expenses as provided in Section 5 of this Agreement shall be enforceable by Indemnitee in the Delaware Court of Chancery if the Company denies such request, in whole or in part, or fails to respond within the 60-day period specified in Section 4(f), with respect to a claim for indemnification for Judgments, or the 20-day period specified in Section 4(f), with respect to a claim for advancement of Expenses.  Alternatively, Indemnitee, at his or her option, may seek enforcement of this Agreement in arbitration to be conducted by a single arbitrator pursuant to the then-prevailing Commercial Arbitration Rules of the American Arbitration Association.  The parties agree that all matters subject to the arbitration, including the arbitration itself, shall remain confidential.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 6(a).  If Indemnitee elects arbitration pursuant to Section 6(a) and the parties are unable to agree on an arbitrator, the parties shall provide the American Arbitration Association (“AAA”) with a statement of the nature of the dispute and the desired qualifications of the arbitrator. AAA shall then provide a list of three available arbitrators.  Each party may strike one of the names on the list, and the remaining person shall serve as the arbitrator.  If both parties strike the same person, AAA shall select the arbitrator from the other two names.  The arbitration award shall be made within 90 days following the demand for arbitration.  The arbitration shall take place in Denver, Colorado, and the provisions of Delaware law shall apply to any such arbitration.  
(b)It shall be a defense to any such action (other than an action brought to enforce a claim for the advance of Expenses under Section 5 hereof, which action has not been concluded) that Indemnitee has not met the standard of conduct set forth in Section 2 hereof, but the burden of proving such defense by clear and convincing evidence shall be on the Company.  Any adjudication or arbitration shall be conducted as a de novo trial, or arbitration, on the merits and neither the failure of the Company (including the Board of Directors or one of its committees), Independent Counsel or the Delaware Chancery Court to have made a determination prior to the commencement of such action that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct set forth in Section 2 hereof, nor the fact that there has been an actual determination by the Company (including the Board of Directors or one of its committees), Independent Counsel or the Delaware Chancery Court that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has or has not met the applicable standard of conduct. A determination by the relevant party that the Indemnitee has met the applicable standard set forth in Section 2 hereof shall be binding on the Company in any such proceeding. The Indemnitee’s Expenses incurred in connection with successfully establishing Indemnitee’s right to indemnification, in whole or in part, in any such proceeding or otherwise shall also be indemnified by the Company.
(c)For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Company, including financial statements, or on information supplied to Indemnitee by the officers of the Company in the course of their duties, or on the advice of legal counsel for the Company or on information or records given or reports made to the Company by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by the Company.  The provisions of this Section 6(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.
(d)The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
Section 7.Insurance and Subrogation.
(a)The Company may purchase and maintain insurance on behalf of any person (including Indemnitee) by virtue of such person’s Position with the Company or Service at the Request of the Company against any liability asserted against, and incurred by, such person or on such person’s behalf in any such capacity, or arising out of such person’s status as such, whether or not the Company would have the power to indemnify such person against such liability under the provisions of this Agreement.  
(b)To the extent the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees or agents of the Company or for other persons for Service at the Request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms, to the maximum extent of the coverage available for any director, officer, employee or agent under such policy or policies.
(c)If the Company has such insurance in effect at the time the Company receives from Indemnitee any notice of the commencement of a proceeding, the Company shall give prompt notice of the 

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commencement of such proceeding to the insurer(s) at the times and in accordance with the procedures set forth in such policy or policies.  The Company shall thereafter take all actions that the Company believes, in its discretion, are reasonably necessary or desirable to cause such insurer(s) to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policy or policies.
(d)In the event of any payment by the Company under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee with respect to any insurance policy, and Indemnitee shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights in accordance with the terms of such insurance policy. The Company shall pay or reimburse all expenses actually and reasonably incurred by Indemnitee in connection with such subrogation.
(e)The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (including, but not limited to, Judgments) if and to the extent that Indemnitee has otherwise actually received such payment under this Agreement or any insurance policy, contract, agreement or otherwise. 
Section 8.Certain Definitions. For purposes of this Agreement, the following definitions shall apply:
(a)The term “action, suit or proceeding” shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal of, and the giving of testimony in, any potential, threatened, pending or completed claim, action, suit or proceeding, whether civil, criminal, administrative or investigative (including any internal investigation conducted or initiated by the Company), without regard to whether such potential, threatened, pending or completed claim, action, suit or proceeding specifically names the Indemnitee as a defendant, respondent or target thereof. 
(b)The terms “by reason of Indemnitee’s Position with the Company” and “Service at the Request of the Company” shall be broadly construed and shall include, without limitation, any actual or alleged act or omission to act by the Company, the Indemnitee or any other officer, director, employee or agent of the Company.
(c)The term “Expenses” shall be broadly and reasonably construed and shall include, without limitation, all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and related disbursements, expert witness fees, appeal bonds, other out-of-pocket costs and reasonable compensation for time spent by Indemnitee for which Indemnitee is not otherwise compensated by the Company or any third party), actually and reasonably incurred by Indemnitee in connection with either the investigation, defense or appeal of an action, suit or proceeding or establishing or enforcing a right to indemnification under this Agreement, Section 145 of the DGCL or otherwise.
(d)The term “Judgments” shall be broadly construed and shall include, without limitation, all direct and indirect payments of any type or nature whatsoever (including, without limitation, all penalties and amounts required to be forfeited or reimbursed to the Company, as well as any penalties or excise taxes assessed on a person with respect to an employee benefit plan). 
(e)The term “Company” shall include, without limitation and in addition to the resulting corporation in any business combination to which the Company is a party, any constituent corporation (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, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as he or she would have with respect to such constituent corporation if its separate existence had continued.
(f)The term “other enterprises” shall include, without limitation, employee benefit plans.
(g)The term “Service at the Request of the Company” shall include, without limitation, any service as a director, officer, employee or agent of the Company that imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries.
(h)A person who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.
(i)The term “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and trial work, and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than as Independent 

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Counsel under this Agreement or similar agreements), or (ii) any other party to the proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
(j)A “Change in Control” of the Company shall be deemed to have occurred if (i) any individual, entity, or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)) other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company, is or becomes the beneficial owner (as such term is used in Rule 13d-3 under the Exchange Act) of securities of the Company representing 30 percent or more of the combined voting power of the Company; (ii) the following individuals cease for any reason to constitute a majority of the number of directors then serving: individuals who, as of the date of this Agreement, constitute the Board of Directors and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board of Directors or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds of the directors then still in office who either were directors on the date of this Agreement, or whose appointment, election or nomination for election was previously so approved or recommended; (iii) there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any corporation, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) at least 60 percent of the combined voting power of the securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation, or a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30 percent or more of the combined voting power of the Company’s then outstanding securities; or (iv) the Company’s stockholders approve a plan of complete liquidation or dissolution of the Company or there is consummated the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 60 percent of the combined voting power of the voting securities of which are owned by the stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.
Section 9.Limitation on Indemnification.  Notwithstanding any other provision herein to the contrary, the Company shall not be obligated pursuant to this Agreement:
(a)Claims Initiated by Indemnitee. To indemnify Indemnitee for Judgments or advance Expenses to Indemnitee with respect to an action, suit or proceeding (or part thereof) initiated by Indemnitee, including by way of cross-claim, counter-claim or the like, except with respect to an action, suit or proceeding brought to establish or enforce a right to indemnification (which shall be governed by the provisions of Section 6 and Section 9(b) of this Agreement) or a compulsory counter-claim, unless such action, suit or proceeding (or part thereof) was authorized to by a majority vote of the disinterested directors.
(b)Action for Indemnification. To indemnify Indemnitee for any Expenses incurred by Indemnitee with respect to any action, suit or proceeding instituted by Indemnitee to enforce or interpret this Agreement, unless Indemnitee is successful in establishing Indemnitee’s right to indemnification in such action, suit or proceeding, in whole or in part, or unless and to the extent that the court in such action, suit or proceeding shall determine that, despite Indemnitee’s failure to establish his or her right to indemnification, Indemnitee is entitled to indemnity for such Expenses; provided, however, that nothing in this Section 9(b) is intended to limit the Company’s obligation with respect to the advancement of Expenses to Indemnitee in connection with any such action, suit or proceeding instituted by Indemnitee to enforce or interpret this Agreement, as provided in Section 6 hereof.
(c)Section 16 Violations.  To indemnify Indemnitee for Judgments or advance Expenses to Indemnitee for payment or an accounting of profits arising from the purchase or 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.
(d)Non-compete and Non-disclosure.  To indemnify Indemnitee for Judgments or advance Expenses to Indemnitee in connection with proceedings or claims involving the enforcement of non-compete and/or non-disclosure agreements or the non-compete and/or non-disclosure provisions of employment, consulting or similar agreements to which Indemnitee may be a party with the Company, the Company’s parent or any subsidiary of the Company or, at the Company’s instance, with any other foreign or domestic corporation, partnership, joint venture, trust or other enterprise.

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(e)Clawback.  To indemnify Indemnitee for Judgments as a consequence of any action involving reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the federal securities laws or stock exchange requirements (including, but not limited to, any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).
(f)Fraud or Personal Profit.  To indemnify Indemnitee for Judgments or advance Expenses to Indemnitee if it is proved by final judgment in a court of law or other final adjudication that Indemnitee was guilty of fraud or gained any personal profit or advantage to which Indemnitee was not legally entitled.
(g)Prohibited Payment.  To indemnify Indemnitee for Judgments or advance Expenses to Indemnitee for any Judgment that the Company is prohibited by applicable law from paying as indemnity, provided, however, nothing herein shall be deemed to restrict the ability of Indemnitee to obtain benefits under any insurance policy or policies or the Company’s obligations under Section 7 to support Indemnitee’s efforts to obtain such insurance benefits from the insurer(s).
(h)Payment by Insurer.  To indemnify Indemnitee for Judgments or advance Expenses to Indemnitee to the extent that Indemnitee is reimbursed pursuant to any such insurance as may exist for Indemnitee’s benefit, including but not limited to insurance for directors, officers, employees or agents of the Company or for other persons for Service at the Request of the Company.  Notwithstanding the availability of such other insurance, Indemnitee also may claim advancement of Expenses and indemnification from the Company pursuant to this Agreement by assigning to the Company any claims under such insurance if and to the extent Indemnitee is paid by the Company.  Indemnitee shall reimburse the Company for any sums Indemnitee receives as indemnification from other sources to the extent of any amount paid to Indemnitee for that purpose by the Company.
Section 10.Certain Settlement Provisions.  The Company shall have no obligation to indemnify Indemnitee under this Agreement for amounts paid in settlement of any action, suit or proceeding without the Company’s prior written consent, which shall not be unreasonably withheld.  The Company shall not settle any action, suit or proceeding in any manner that would impose any fine, penalty or other obligation or limitation on Indemnitee without Indemnitee’s prior written consent, which shall not be unreasonably withheld.
Section 11.Savings Clause. If any provision or provisions of this Agreement shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee as to Expenses and Judgments in any action, suit or proceeding, whether civil, criminal, administrative or investigative, including an action by or in the right of the Company, to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated and to the full extent permitted by applicable law. 
Section 12.Contribution.  In order to provide for just and equitable contribution in circumstances in which the indemnification provided for herein is held by a court of competent jurisdiction to be unavailable to Indemnitee in whole or in part, including by reason of applicable law or public policy, it is agreed that, in such event, in lieu of indemnification, the Company shall, to the fullest extent permitted by law, contribute to the payment of Indemnitee’s Expenses and Judgments in any action, suit or proceeding, whether civil, criminal, administrative or investigative, in connection with any claim relating to a claim for indemnification under this Agreement.  Such contribution payment shall be in the proportion deemed by any court of competent jurisdiction in which the proceeding is brought as fair and reasonable in light of all of the circumstances of such action, suit or proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such action, suit or proceeding and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s), taking into account, among other things, contributions by other directors and officers of the Company or others pursuant to indemnification agreements or otherwise. Without limiting the generality of the foregoing, the contribution contemplated by this Section 12 shall not be required where such holding by the court is due to (i) the failure of Indemnitee to meet the standard of conduct set forth in Section 2 hereof, or (ii) any limitation on indemnification set forth in Section 7(e), 9 or 10 hereof.   
Section 13.Form and Delivery of Communications.  Any notice, request or other communication required or permitted to be given to the parties under this Agreement shall be in writing and either delivered in person or sent by e-mail, overnight mail or courier service, or certified or registered mail, return receipt requested, postage prepaid, to the parties at the following addresses (or at such other addresses for a party as shall be specified by like notice):

8

If to the Company:

QEP Resources, Inc.
1050 17th Street, Suite 500
Denver, Colorado 80205
Attn:  General Counsel

If to Indemnitee:

____________________ 
____________________ 
____________________ 
____________________ 

Section 14.Subsequent Legislation. If the DGCL is amended after adoption of this Agreement to expand further the indemnification permitted to directors or officers, then the Company shall indemnify Indemnitee to the fullest extent permitted by the DGCL, as so amended.
Section 15.Nonexclusivity.  The provisions for indemnification and advancement of Expenses set forth in this Agreement shall not be deemed exclusive of any other rights which Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or Bylaws, or from action taken by a majority vote of the Company’s shareholders or disinterested directors, other agreements or otherwise. Indemnitee’s rights hereunder shall continue after Indemnitee has ceased acting as an agent of the Company and shall inure to the benefit of the heirs, executors and administrators of Indemnitee.  However, no amendment or alteration of the Company’s Certificate of Incorporation or Bylaws or any other agreement entered into after the date hereof shall adversely affect the rights provided to Indemnitee under this Agreement.
Section 16.Enforcement.  The Company shall be precluded from asserting in any judicial proceeding that the procedures and presumptions of this Agreement are not valid, binding and enforceable. The Company agrees that its execution of this Agreement shall constitute a stipulation by which it shall be irrevocably bound in any court of competent jurisdiction in which a proceeding by Indemnitee for enforcement of his or her rights hereunder shall have been commenced, continued or appealed, that its obligations set forth in this Agreement are unique and special, and that failure of the Company to comply with the provisions of this Agreement will cause irreparable and irremediable injury to Indemnitee, for which a remedy at law will be inadequate. As a result, in addition to any other right or remedy Indemnitee may have at law or in equity with respect to breach of this Agreement, Indemnitee shall be entitled to injunctive or mandatory relief directing specific performance by the Company of its obligations under this Agreement.
Section 17.Interpretation of Agreement.  It is understood that the parties hereto intend this Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the fullest extent now or hereafter permitted by law.  This Agreement is intended to be retroactive and to apply to events occurring prior to the date of this Agreement.
Section 18.Entire Agreement.  This Agreement and the documents expressly referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby, and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are expressly superseded by this Agreement.
Section 19.Modification and Waiver.  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 provision hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.
Section 20.Successor and Assigns.  All of the terms and provisions of this Agreement shall be binding upon, shall inure to the benefit of and shall be enforceable by the parties hereto and their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company shall require and cause any direct or indirect successor (whether by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company 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.
Section 21.Service of Process and Venue.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 6, the Company and Indemnitee hereby irrevocably and unconditionally:  (a) agree that 

9

any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Chancery Court, and not in any other state or federal court in the United States of America or any court in any other country; (b) consent to submit to the exclusive jurisdiction of the Delaware Chancery Court for purposes of any action or proceeding arising out of or in connection with this Agreement; (c) waive any objection to the laying of venue of any such action or proceeding in the Delaware Chancery Court; and (d) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Chancery Court has been brought in an improper or inconvenient forum, or is subject (in whole or in part) to a jury trial.  
Section 22.Governing Law.  This Agreement shall be governed exclusively by and construed according to the laws of the State of Delaware, as applied to contracts between Delaware residents entered into and to be performed entirely within Delaware.  If a court of competent jurisdiction shall make a final determination that the provisions of the law of any state other than Delaware govern indemnification by the Company of its officers and directors, then the indemnification provided under this Agreement shall in all instances be enforceable to the fullest extent permitted under such law, notwithstanding any provision of this Agreement to the contrary.
Section 23.Employment or Board Rights. Nothing in this Agreement is intended to create in Indemnitee any right to employment or continued employment or right to continued service on the Board of Directors.
Section 24.Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument, notwithstanding that both parties are not signatories to the original or same counterpart.
Section 25.Headings. The section and subsection headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.
Section 26.Disclosure. In certain instances, applicable law (including applicable federal law that may preempt or override applicable state law) or public policy may prohibit the Company from indemnifying the directors and officers of the Company under this Agreement or otherwise.  For example, the U.S. Securities and Exchange Commission has taken the position that indemnification of directors, officers and controlling persons of the Company for liabilities arising under federal securities laws is against public policy and, therefore, unenforceable.  The Company has undertaken or may be required in the future to undertake with the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee.  In addition, federal law prohibits indemnification for certain violations of the Employee Retirement Income Security Act of 1974, as amended.
Section 27.Rights Continued.  The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall continue as to Indemnitee even though Indemnitee may have ceased to be a director or officer of the Company and shall inure to the benefit of Indemnitee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.

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

By _______________________________________
Name:  
Title:  

INDEMNITEE:

_______________________________________
Name:  

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