PURE RESOURCES INC
INDEMNITY AGREEMENT
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>dex101.txt
<DESCRIPTION>INDEMNITY AGREEMENT
<TEXT>
<PAGE>

                                                                    Exhibit 10.1

                               INDEMNITY AGREEMENT

         This Agreement made and entered into as of this 16th day of May, 2002,
by and between Pure Resources, Inc., a Delaware corporation (the "Company"), and
Jack F. Harper ("Indemnitee"), who is currently serving the Company in the
capacity of an officer thereof;

                              W I T N E S S E T H:

         WHEREAS, the Company and Indemnitee recognize that the interpretation
of ambiguous statutes, regulations and court opinions and of the Certificate of
Incorporation and Bylaws of the Company, and the vagaries of public policy, are
too uncertain to provide the directors and officers of the Company with adequate
or reliable advance knowledge or guidance with respect to the legal risks and
potential liabilities to which they become personally exposed as a result of
performing their duties in good faith for the Company; and

         WHEREAS, the Company and the Indemnitee are aware that highly
experienced and capable persons are often reluctant to serve as directors or
officers of a corporation unless they are protected to the fullest extent
permitted by law by comprehensive insurance or indemnification, especially since
the legal risks and potential liabilities, and the very threat thereof,
associated with lawsuits filed against the officers and directors of a
corporation, and the resultant substantial time, expense, harassment, ridicule,
abuse and anxiety spent and endured in defending against such lawsuits, whether
or not meritorious, bear no reasonable or logical relationship to the amount of
compensation received by the directors or officers from the corporation; and

         WHEREAS, Section 145 of the General Corporation Law of the State of
Delaware, which sets forth certain provisions relating to the mandatory and
permissive indemnification of, and advancement of expenses to, officers and
directors (among others) of a Delaware corporation by such corporation, is
specifically not exclusive of other rights to which those indemnified thereunder
may be entitled under any bylaw, agreement, vote of stockholders or
disinterested directors or otherwise, and, thus, does not by itself limit the
extent to which the Company may indemnify persons serving as its officers and
directors (among others); and

         WHEREAS, after due consideration and investigation of the terms and
provisions of this Agreement and the various other options available to the
Company and the Indemnitee in lieu thereof, the board of directors of the
Company has determined that the following Agreement is not only reasonable and
prudent but necessary to promote and ensure the best interests of the Company
and its stockholders; and

         WHEREAS, the Company desires to have Indemnitee serve or continue to
serve as an officer of the Company, free from undue concern for unpredictable,
inappropriate or unreasonable legal risks and personal liabilities by reason of
his acting in good faith in the performance of his duty to the Company; and
Indemnitee desires to serve, or to continue to serve (provided that he is
furnished the indemnity provided for hereinafter), in either or both of such
capacities;

         NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth and for other good and valuable consideration, the
receipt and sufficiency of which are

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hereby acknowledged, the Company and Indemnitee, intending to be legally bound,
do hereby agree as follows:

         1.   Agreement to Serve. Indemnitee agrees to serve or continue to
serve as an officer of the Company, at the will of the Company or under separate
contract, if such exists, for so long as he is duly elected or appointed and
qualified in accordance with the provisions of the Bylaws of the Company or
until such time as he tenders his resignation in writing.

         2.   Definitions.  As used in this Agreement:

              (a) The term "Proceeding" shall mean any action, suit or
         proceeding, whether civil, criminal, administrative, arbitrative or
         investigative, any appeal in such an action, suit or proceeding, and
         any inquiry or investigation that could lead to such an action, suit or
         proceeding, except one initiated by Indemnitee to enforce his rights
         under this Agreement.

              (b) The term "Expenses" includes, without limitation, all
         reasonable attorneys' fees, retainers, court costs, transcript costs,
         fees of experts, witness fees, travel expenses, duplicating costs,
         printing and binding costs, telephone charges, postage, delivery
         service fees and all other disbursements or expenses of the types
         customarily incurred in connection with prosecuting, defending,
         preparing to prosecute or defend, investigating, or being or preparing
         to be a witness in a Proceeding.

              (c) References to "other enterprise" shall include employee
         benefit plans; references to "fines" shall include any (i) excise taxes
         assessed with respect to any employee benefit plan and (ii) penalties;
         references to "serving at the request of the Company" shall include any
         service as a director, officer, employee or agent of the Company which
         imposes duties on, or involves services by, such director, officer,
         employee or agent with respect to an employee benefit plan, its
         participants or beneficiaries; and a person who acts in good faith and
         in a manner he reasonably believes 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.

         3.   Indemnity in Third Party Proceedings.  The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is
a party to or is threatened to be made a party to or otherwise involved in any
threatened, pending or completed Proceeding (other than a Proceeding by or in
the right of the Company to procure a judgment in its favor) by reason of the
fact that Indemnitee is or was a director and/or officer of the Company, or is
or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, against all Expenses, judgments, fines and amounts paid in
settlement actually and reasonably incurred by Indemnitee in connection with
such Proceeding, provided it is determined pursuant to Section 7 of this
Agreement or by the court having jurisdiction in the matter, that Indemnitee
acted in good faith and in a manner that he reasonably believed to be in or not
opposed to the best interests of the Company, and, with respect to any criminal
Proceeding, had no reasonable cause to believe his conduct was unlawful. The
termination of any Proceeding by judgment, order, settlement or 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 that he
reasonably

<PAGE>

believed to be in or not opposed to the best interests of the Company, and, with
respect to any criminal Proceeding, had reasonable cause to believe that his
conduct was unlawful.

         4.   Indemnity in Proceedings By or In the Right of the Company. The
Company shall indemnify Indemnitee in accordance with the provisions of this
Section 4 if Indemnitee is a party to or is threatened to be made a party to or
otherwise involved in any threatened, pending or completed Proceeding by or in
the right of the Company to procure a judgment in its favor by reason of the
fact that Indemnitee is or was a director and/or officer of the Company, or is
or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other
enterprise, against all Expenses actually and reasonably incurred by Indemnitee
in connection with the defense, settlement or other disposition of such
Proceeding, but only if he acted in good faith and in a manner that he
reasonably believed to be in or not opposed to the best interests of the
Company, except that no indemnification shall be made under this Section 4 in
respect of any claim, issue or matter as to which Indemnitee shall have been
adjudged to be liable to the Company unless and only to the extent that the
Delaware Court of Chancery or the court in which such Proceeding 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 as the Delaware Court of
Chancery or such other court shall deem proper.

         5.   Indemnification for Expenses of Successful Party. Notwithstanding
any other provision of this Agreement to the contrary, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any
Proceeding referred to in Sections 3 and/or 4 of this Agreement, or in defense
of any claim, issue or matter therein, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by Indemnitee in connection therewith.

         6.   Advances of Expenses. The Expenses incurred by Indemnitee pursuant
to Sections 3 and/or 4 of this Agreement in connection with any Proceeding
shall, at the written request of the Indemnitee, be paid by the Company in
advance of the final disposition of such Proceeding upon receipt by the Company
of an undertaking by or on behalf of Indemnitee ("Indemnitee's Undertaking") to
repay such amount to the extent that it is ultimately determined that Indemnitee
is not entitled to be indemnified by the Company. The request for advancement of
Expenses by Indemnitee and the undertaking to repay of Indemnitee, which need
not be secured, shall be substantially in the form of Exhibit A to this
Agreement.

         7.   Right of Indemnitee to Indemnification or Advancement of Expenses
Upon Application; Procedure Upon Application.

              (a) If required by the terms of this Agreement, indemnification
         under Sections 3 and/or 4 of this Agreement shall be made no later than
         45 days after receipt by the Company of the written request of
         Indemnitee. A determination shall be made within said 45-day period by
         (i) a majority vote of the directors of the Company who are not parties
         to the involved Proceeding, even though less than a quorum, or (ii)
         independent legal counsel in a written opinion (which counsel shall be
         appointed if there are no such directors or if such directors so
         direct), as to whether the Indemnitee has met the applicable standards
         for indemnification set forth in Section 3 or 4, as the case may be.

              (b) Any advancement of Expenses under Section 6 of this Agreement
         shall be made no later than 10 days after receipt by the Company of
         Indemnitee's Undertaking.

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              (c) In any action to establish or enforce the right of
         indemnification or to receive advancement of Expenses as provided in
         this Agreement, the burden of proving that indemnification or
         advancement of Expenses is not appropriate shall be on the Company.
         Neither the failure of the Company (including its board of directors or
         independent legal counsel) to have made a determination prior to the
         commencement of such action that indemnification or advancement of
         Expenses is proper in the circumstances because Indemnitee has met the
         applicable standard of conduct, nor an actual determination by the
         Company (including its board of directors or independent legal counsel)
         that Indemnitee has not met such applicable standard of conduct, shall
         be a defense to the action or create a presumption that Indemnitee has
         not met the applicable standard of conduct. The Company shall also
         indemnify Indemnitee against all Expenses incurred by Indemnitee in
         connection with successfully establishing or enforcing his right of
         indemnification or to receive advancement of Expenses, in whole or in
         part, under this Agreement.

         8.   Indemnification and Advancement of Expenses Under this Agreement
Not Exclusive. The rights of indemnification and to receive advancement of
Expenses as provided by this Agreement shall not be deemed exclusive of any
other rights to which Indemnitee may be entitled under the Certificate of
Incorporation or Bylaws of the Company, any other agreement, any vote of
stockholders or disinterested directors, the General Corporation Law of the
State of Delaware, or otherwise, both as to action in his official capacity and
as to action in another capacity while holding such office.

         9.   Partial Indemnification. If Indemnitee is entitled under any
provision of this Agreement to indemnification or to receive advancement by the
Company for a portion of the Expenses, judgments, fines or amounts paid in
settlement actually and reasonably incurred by Indemnitee in the investigation,
defense, appeal, settlement or other disposition of any Proceeding but not,
however, for the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion thereof to which Indemnitee is entitled.

         10.  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.

         11.  No Construction as an Employment Agreement or Any Other
Commitment. Nothing contained in this Agreement shall be construed as giving
Indemnitee any right to be retained in the employ of the Company or any of its
subsidiaries, if Indemnitee currently serves as an officer of the Company, or to
be renominated as a director of the Company, if Indemnitee currently serves as a
director of the Company.

         12.  Liability Insurance. To the extent the Company maintains an
insurance policy or policies providing directors' and officers' liability
insurance, 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 or officer of the Company under such policy or policies.

<PAGE>

         13.  No Duplication of Payments. The Company shall not be liable under
this Agreement to make any payment of amounts otherwise indemnifiable under this
Agreement if, and to the extent that, Indemnitee has otherwise actually received
such payment under any contract, agreement or insurance policy, the Certificate
of Incorporation or Bylaws of the Company, or otherwise.

         14.  Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all the rights of
recovery of Indemnitee, who shall execute all papers required and shall do
everything that may be necessary to secure such rights, including without
limitation the execution of such documents as may be necessary to enable the
Company effectively to bring suit to enforce such rights.

         15.  Exceptions. Notwithstanding any other provision in this Agreement,
the Company shall not be obligated pursuant to the terms of this Agreement, to
indemnify or advance Expenses to Indemnitee with respect to any Proceeding, or
any claim therein, (i) brought or made by Indemnitee against the Company, or
(ii) in which final judgment is rendered against Indemnitee for an accounting of
profits made from the purchase and sale or the sale and purchase by Indemnitee
of securities of the Company pursuant to the provisions of Section 16(b) of the
Securities Exchange Act of 1934, as amended, or similar provisions of any
federal, state or local statute.

         16.  Notices. Any notice or other communication required or permitted
to be given or made to the Company or Indemnitee pursuant to this Agreement
shall be given or made in writing by depositing the same in the United States
mail, with postage thereon prepaid, addressed to the person to whom such notice
or communication is directed at the address of such person on the records of the
Company, and such notice or communication shall be deemed given or made at the
time when the same shall be so deposited in the United States mail. Any such
notice or communication to the Company shall be addressed to the Secretary of
the Company.

         17.  Contractual Rights. The right to be indemnified or to receive
advancement of Expenses under this Agreement (i) is a contract right based upon
good and valuable consideration, pursuant to which Indemnitee may sue, (ii) is
and is intended to be retroactive and shall be available as to events occurring
prior to the date of this Agreement and (iii) shall continue after any
rescission or restrictive modification of this Agreement as to events occurring
prior thereto.

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

         19.  Successors; Binding Agreement. The Company shall require any
successor to all or substantially all of the business and/or assets of the
Company (whether direct or indirect, by purchase, merger, consolidation or
otherwise), by agreement in form and substance reasonably satisfactory to
Indemnitee, to expressly 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. As used in this Agreement, "Company" shall
mean the Company as hereinbefore defined and any successor to its business
and/or assets as aforesaid

<PAGE>

that executes and delivers the agreement provided for in this Section 19 or that
otherwise becomes bound by the terms and provisions of this Agreement by
operation of law.

         20.  Counterparts, Modification, Headings, Gender.

              (a)  This Agreement may be executed in counterparts, each of which
         shall constitute one and the same instrument, and either party hereto
         may execute this Agreement by signing any such counterpart.

              (b)  No provisions of this Agreement may be modified, waived or
         discharged unless such waiver, modification or discharge is agreed to
         in writing and signed by Indemnitee and an appropriate officer of the
         Company. No waiver by any party at any time of any breach by any other
         party of, or compliance with, any condition or provision of this
         Agreement to be performed by any other party shall be deemed a waiver
         of similar or dissimilar provisions or conditions at the same time or
         at any prior or subsequent time.

              (c)  Section headings are not to be considered part of this
         Agreement, are solely for convenience of reference, and shall not
         affect the meaning or interpretation of this Agreement or any provision
         set forth herein.

              (d)  Pronouns in masculine, feminine and neuter genders shall be
         construed to include any other gender, and words in the singular form
         shall be construed to include the plural and vice versa, unless the
         context otherwise requires.

         21.  Assignability. This Agreement shall not be assignable by either
party without the consent of the other.

         22.  Exclusive Jurisdiction; Governing Law. The Company and Indemnitee
agree that all disputes in any way relating to or arising under this Agreement,
including, without limitation, any action for advancement of Expenses or
indemnification, shall be litigated, if at all, exclusively in the Delaware
Court of Chancery, and, if necessary, the corresponding appellate courts. This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware applicable to contracts made and to be performed
in such state without giving effect to the principles of conflicts of laws. The
Company and Indemnitee expressly submit themselves to the personal jurisdiction
of the State of Delaware.

         23.  Termination.

              (a)  This Agreement shall terminate upon the mutual agreement of
         the parties that this Agreement shall terminate or upon the death of
         Indemnitee or the resignation, retirement, removal or replacement of
         Indemnitee from all of his positions as a director and/or officer of
         the Company.

              (b)  The termination of this Agreement shall not terminate:

                   (i)  the Company's liability for claims or actions against
              Indemnitee arising out of or related to acts, omissions,
              occurrences, facts or circumstances occurring or alleged to have
              occurred prior to such termination; or

<PAGE>

                   (ii) the applicability of the terms and conditions of this
              Agreement to such claims or actions.

         IN WITNESS WHEREOF, the Company and Indemnitee have executed this
Agreement as of the date and year first above written.

                                     PURE RESOURCES, INC.


                                     By:   /s/ William K. White
                                           -------------------------------------
                                           Name:  William K. White
                                                --------------------------------
                                           Title: Vice President Finance, CFO
                                                 -------------------------------


                                     INDEMNITEE


                                     /s/ Jack F. Harper
                                     -------------------------------------------
                                     Jack F. Harper

<PAGE>

                                                                       EXHIBIT A

                            INDEMNITEE'S UNDERTAKING

                                ___________, 2000

Pure Resources, Inc.
500 W. Texas Avenue, Suite 200
Midland, Texas 79701

                  Re: Indemnity Agreement

Ladies and Gentlemen:

         Reference is made to the Indemnity Agreement dated as of August 9, 2000
by and between Pure Resources, Inc. and the undersigned Indemnitee, and
particularly to Section 6 thereof relating to advance payment by the Company of
certain Expenses incurred by the undersigned Indemnitee. Capitalized terms used
and not otherwise defined in this Indemnitee's Undertaking shall have the
respective meanings given to such terms in the Agreement.

         The undersigned Indemnitee has incurred Expenses pursuant to Section 3
and/or 4 of the Agreement in connection with a Proceeding. The types and amounts
of Expenses are itemized on Attachment I to this Indemnitee's Undertaking. The
undersigned Indemnitee hereby requests that the total amount of these Expenses
(the "Advanced Amount") be paid by the Company in advance of the final
disposition of such Proceeding in accordance with the Agreement.

         The undersigned Indemnitee hereby agrees to repay the Advanced Amount
to the Company to the extent that it is ultimately determined that the
undersigned Indemnitee is not entitled to be indemnified therefor by the
Company. This agreement of Indemnitee to repay shall be unsecured.

                                     Very truly yours,



                                     ___________________________________________
                                     Signature

                                     ___________________________________________
Name of Indemnitee (Type or Print)

<PAGE>

                                 ATTACHMENT I TO
                            INDEMNITEE'S UNDERTAKING

                                 ITEMIZATION OF
                          TYPES AND AMOUNTS OF EXPENSES

         Attached hereto are receipts, statements or invoices for the following
qualifying Expenses which Indemnitee represents have been incurred by Indemnitee
in connection with a Proceeding:

         Type                                                       Amount

1.





Total Advanced Amount
                                                                  ==========

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