CENTEX CORPORATION INDEMNIFICATION AGREEMENT
Exhibit 10.1
CENTEX CORPORATION
This Indemnification Agreement (this “Agreement”) is made and entered into as of the
day of , 2006 by and between Centex Corporation, a Nevada corporation (the
“Corporation”), and (“Indemnitee”).
WITNESSETH:
WHEREAS, Indemnitee is currently serving or is about to begin serving as a director and/or
Officer of the Corporation and/or in another capacity, and Indemnitee is willing, subject to, among
other things, the Corporation’s execution and performance of this Agreement, to continue in or
assume such capacity or capacities;
WHEREAS, the Bylaws of the Corporation provide that the Corporation shall indemnify and
advance expenses to all directors and Officers of the Corporation in the manner set forth therein
and to the fullest extent permitted by applicable law, and to such greater extent as applicable law
may thereafter permit, and the Corporation’s Articles of Incorporation provide for limitation of
liability for directors; and
WHEREAS, in order to induce Indemnitee to provide services as contemplated hereby, the
Corporation has deemed it to be in its best interest to enter into this Agreement with Indemnitee;
NOW, THEREFORE, in consideration of Indemnitee’s agreement to provide services to the
Corporation and/or certain of its affiliates as contemplated hereby, the mutual agreements
contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto stipulate and agree as follows:
ARTICLE I
Definitions
Definitions
Section 1.1. As used herein, the following words and terms shall have the following respective
meanings (whether singular or plural):
“Articles of Incorporation” means the Articles of Incorporation of the Corporation (as they
may be amended or restated from time to time).
“Board of Directors” means the board of directors of the Corporation.
“Bylaws” means the By-Laws of the Corporation (as they may be amended or restated from time to
time).
“Change of Control” means:
(i) The acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange
Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (1) the then outstanding shares
of common stock of the Corporation (the “Outstanding
Corporation Common Stock”) or (2) the
combined voting power of the then outstanding voting securities of the Corporation entitled
to vote generally in the election of directors (the “Outstanding Corporation Voting
Securities”); provided, however, that for purposes of this subsection (i), the following
acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the
Corporation, (B) any acquisition by the Corporation, (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Corporation or any entity
controlled by the Corporation or (D) any acquisition by any entity pursuant to a transaction
which complies with clauses (1), (2) and (3) of subsection (iii) of this definition; or
(ii) Individuals who, as of the date hereof, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a director subsequent to the date
hereof whose election, or nomination for election by the Corporation’s stockholders, was
approved by a vote of at least a majority of the directors then comprising the Incumbent
Board shall be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of office
occurs as a result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies or consents by
or on behalf of a Person other than the Board of Directors; or
(iii) Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Corporation (a “Business
Combination”), in each case, unless, following such Business Combination, (1) all or
substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Corporation Common Stock and Outstanding Corporation Voting
Securities immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the entity resulting from
such Business Combination (including, without limitation, an entity that as a result of such
transaction owns the Corporation or all or substantially all of the Corporation’s assets
either directly or through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such Business Combination, of the Outstanding
Corporation Common Stock and Outstanding Corporation Voting Securities, as the case may be,
(2) no Person (excluding any entity resulting from such Business Combination or any employee
benefit plan (or related trust) of the Corporation or such entity resulting from such
Business Combination) beneficially owns, directly or indirectly, 20% or more of,
respectively, the then outstanding shares of common equity of the entity resulting from such
Business Combination or the combined voting power of the then outstanding voting securities
of such entity except to the extent that such ownership existed prior to the Business
Combination and (3) at least a majority of the members of the board of directors of the
-2-
corporation, or the similar managing body of a non-corporate entity, resulting from
such Business Combination were members of the Incumbent Board at the time of the execution
of the initial agreement, or of the action of the Board of Directors, providing for such
Business Combination; or
(iv) Approval by the stockholders of the Corporation of a complete liquidation or
dissolution of the Corporation; or
(v) A change of control as defined in any employment agreement, change of control
agreement or other agreement between the Corporation and Indemnitee.
“Covered Capacity” means, with respect to any person, that such person (or a person for whom
he or she is serving as a legal representative) is or was a director, officer, employee or agent of
the Corporation, or is or was serving at the request of the Corporation as director, manager,
officer, trustee, general partner, member, fiduciary, employee or agent of any other enterprise, in
each case (i) whether or not such person was serving in that capacity at the time any liability or
expense is incurred and (ii) whether the basis for any Proceeding brought against such person is
alleged action in an official capacity as a director, manager, officer, trustee, general partner,
member, fiduciary, employee or agent or any other capacity while serving as a director, manager,
officer, trustee, general partner, member, fiduciary, employee or agent.
“Expenses” include all direct and indirect costs, fees and expenses of any type or nature,
including, without limitation, all attorneys’ fees and costs, retainers, court costs, transcript
costs, fees of experts, witness fees, travel expenses, fees of private investigators and
professional advisors, duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, fax transmission charges, secretarial services and all other disbursements
or expenses in connection with prosecuting, defending, preparing to prosecute or defend,
investigating, being or preparing to be a witness in, settlement or appeal of or otherwise
participating in a Proceeding, including reasonable compensation for time spent by Indemnitee for
which he or she is not otherwise compensated by the Corporation or any third party. “Expenses”
also include expenses incurred in connection with any appeal resulting from any Proceeding,
including the premium for, security for, and other costs relating to, any cost bond, supersedeas
bond or other appeal bond or its equivalent. “Expenses” do not include amounts paid in settlement
by Indemnitee or the amount of judgments or fines against Indemnitee.
“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the five years previous to his
selection or appointment has been, retained to represent: (i) the Corporation or Indemnitee in any
matter material to either such party or (ii) any other party to the Proceeding giving rise to a
claim for indemnification hereunder. The term “Independent Counsel” does not include any person
who, under the applicable standards of professional conduct then prevailing, would have a conflict
of interest in representing either the Corporation or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement, the Bylaws of the Corporation or under any agreement
between Indemnitee and the Corporation.
“NRS” means the Nevada Revised Statutes.
-3-
“Officer” means the president, the treasurer, the secretary, and each vice president of the
Corporation and any other corporation, partnership, limited liability company, association, joint
venture, trust, employee benefit plan or other enterprise for which such person is or was serving
in such position at the request of the Corporation (and all variants of the preceding positions
such as assistant treasurer, assistant secretary, senior vice president, and similar
modifications), in each case elected or appointed pursuant to proper corporate authority, and each
other person designated by the President of the Corporation from time to time as constituting an
“Officer.”
“Prior
Agreement” means the Indemnification Agreement, dated as
of ___ ___, ___between the
Corporation and the Indemnitee.
“Proceeding” includes a threatened, pending or completed action, suit, arbitration, alternate
dispute resolution, investigation, inquiry, administrative hearing, appeal or any other actual,
threatened or completed proceedings with or brought in the right of the Corporation or otherwise
and whether civil, criminal, administrative or investigative in nature.
ARTICLE II
Services by Indemnitee
Services by Indemnitee
Section 2.1. Services by Indemnitee. Indemnitee agrees to serve or continue to serve in his
current capacity or capacities as a director, Officer, employee, agent or fiduciary of the
Corporation. Indemnitee may also serve, as the Corporation may reasonably request from time to
time, as a director, Officer, employee, agent or fiduciary of any other corporation, partnership,
limited liability company, association, joint venture, trust, employee benefit plan or other
enterprise in which the Corporation has an interest. Indemnitee and the Corporation each
acknowledge that they have entered into this Agreement as a means of inducing Indemnitee to serve
the Corporation in such capacities. Indemnitee may at any time and for any reason resign from such
position or positions (subject to any other contractual obligation or any obligation imposed by
operation of law). The Corporation shall have no obligation under this Agreement to continue
Indemnitee in any such position for any period of time and shall not be precluded by the provisions
of this Agreement from removing Indemnitee from any such position at any time.
ARTICLE III
Third Party Proceedings
Third Party Proceedings
Section 3.1. The Corporation must indemnify Indemnitee if he or she was or is a party or is
threatened to be made a party to any Proceeding, except an action by or in the right of the
Corporation, by reason of the fact that he or she is or was serving or acting in a Covered
Capacity, against Expenses, judgments, fines and amounts paid in settlement actually and reasonably
incurred by Indemnitee in connection with the Proceeding if he or she: (a) is not liable pursuant
to NRS 78.138 or (b) acted in good faith and in a manner which Indemnitee reasonably believed to be
in or not opposed to the best interests of the Corporation, and, with respect to any criminal
action or Proceeding, had no reasonable cause to believe his or her conduct was unlawful. The
termination of any Proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendere or its equivalent, does not, of itself, create a
presumption that Indemnitee is liable pursuant to NRS 78.138 or 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
-4-
the Corporation or that, with respect to any criminal action or proceeding, he or she had
reasonable cause to believe that his or her conduct was unlawful.
ARTICLE IV
Derivative Actions
Derivative Actions
Section 4.1. The Corporation must indemnify Indemnitee if he or she was or is a party or is
threatened to be made a party to any threatened, pending or completed action or suit by or in the
right of the Corporation to procure a judgment in its favor, by reason of the fact that Indemnitee
is or was serving or acting in a Covered Capacity, against Expenses and amounts paid in settlement
thereof if Indemnitee: (a) is not liable pursuant to NRS 78.138, or (b) acted in good faith and in
a manner which he or she reasonably believed to be in or not opposed to the best interests of the
Corporation. Indemnification may not be made for any claim, issue or matter as to which Indemnitee
has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom,
to be liable to the Corporation or for amounts paid in settlement to the Corporation, unless and
only to the extent that the court in which the action or suit was brought or other court of
competent jurisdiction determines upon application that in view of all the circumstances of the
case, the person is fairly and reasonably entitled to indemnity for such Expenses as the court
deems proper.
ARTICLE V
Party Who is Wholly or Partially Successful
Party Who is Wholly or Partially Successful
Section 5.1. Notwithstanding any other provisions of this Agreement, to the extent that
Indemnitee is a party to or a participant in and is successful on the merits or otherwise in any
Proceeding or in defense of any claim, issue or matter in any Proceeding, in whole or in part, to
which Indemnitee was or is a party or is otherwise involved by reason of the fact that he or she is
or was serving or acting in a Covered Capacity, the Corporation shall indemnify and hold harmless
Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with
any Proceeding or defense. If Indemnitee is not wholly successful in the Proceeding, the
Corporation must indemnify and hold harmless Indemnitee against all Expenses actually and
reasonably incurred by him or her or on his or her behalf in connection with each claim, issue or
matter on which Indemnitee was successful. The termination of any claim, issue or matter in the
Proceeding by dismissal, with or without prejudice, by reason of settlement, judgment, order or
otherwise, shall be deemed to be a successful result as to such Proceeding, claim, issue or matter,
so long as there has been no finding that Indemnitee (i) is liable pursuant to NRS 78.138 or (ii)
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 Corporation, and, with respect to any criminal proceeding or
action, had no reasonable cause to believe his or her conduct was unlawful.
ARTICLE VI
Expenses as Witness
Expenses as Witness
Section 6.1. To the extent Indemnitee is, by reason of his or her serving or acting in a
Covered Capacity, a witness in any Proceeding to which Indemnitee is not a party, Indemnitee must
be indemnified and held harmless against all Expenses actually and reasonably incurred by
-5-
him or
her or on his or her behalf in connection with the Proceeding and his or her acting as a witness in
it.
ARTICLE VII
Exclusions
Exclusions
Section 7.1. Notwithstanding any provision in this Agreement, the Corporation is not obligated
under this Agreement to make any indemnification payments in connection with any claim made against
Indemnitee:
(a) For which payment has actually been received by or on behalf of Indemnitee under
any insurance policy or other indemnity provision, except with respect to any excess beyond
the amount actually received under any insurance policy, contract, agreement or other
indemnity provision or otherwise;
(b) For an accounting of profits made from the purchase and sale, or sale and purchase,
by Indemnitee of securities of the Corporation within the meaning of Section 16(b) of the
Exchange Act; or
(c) Except as provided for in Sections 8.1 or 12.3 of this Agreement, in connection
with any Proceeding or any part of any Proceeding, initiated by Indemnitee, including those
initiated against the Corporation or its officers, directors or employees, unless (i) the
Board of Directors authorizes the Proceeding or part thereof before its initiation or (ii)
the Corporation provides the indemnification in its sole discretion, pursuant to the powers
vested in the Corporation under applicable law.
ARTICLE VIII
Advancement of Expenses
Advancement of Expenses
Section 8.1. Notwithstanding any other provision of this Agreement and to the fullest
permitted by applicable law, the Corporation must advance the Expenses incurred by Indemnitee, or
reasonably expected by Indemnitee to be incurred by him or her within three months, in connection
with any Proceeding to which Indemnitee was or is a party or is otherwise involved by reason of the
fact that he or she is or was serving or acting in a Covered Capacity, as soon as practicable but
in any event not more than ten (10) days after receipt by the Corporation of a statement requesting
the advances, whether the statement is submitted before or after final disposition of any
Proceeding. Unless otherwise required by law, the Corporation shall not require that Indemnitee
provide any form of security for repayment of or charge any interest on any amounts advanced
pursuant to this Section 8.1. The advances must be made without regard to Indemnitee’s ability to
repay the Expenses and without regard to any belief or determination as to Indemnitee’s ultimate
entitlement to be indemnified. Advances must include any and all reasonable Expenses incurred in
pursuing a Proceeding to enforce the right of advancement, including Expenses incurred in preparing
statements to the Corporation to support the advances claimed. Indemnitee qualifies for advances,
to the fullest extent permitted by applicable law,
solely upon the execution and delivery to the Corporation of an undertaking providing that
Indemnitee undertakes to repay the advance to the extent it is ultimately determined that
Indemnitee is not entitled to be indemnified by the Corporation under the provisions of this
-6-
Agreement, the Articles of Incorporation or an agreement between the Corporation and Indemnitee.
This section does not apply to any claim made by Indemnitee for any indemnification payment that is
excluded pursuant to Section 7.1 of this Agreement.
ARTICLE IX
Notices
Notices
Section 9.1. Indemnitee agrees to notify the Corporation in writing promptly after being
served with any summons, citation, subpoena, complaint, indictment, inquiry, information request or
other document relating to any Proceeding or matter which may be subject to indemnification, hold
harmless or exoneration rights or the advancement of expenses; provided, however, that the failure
of Indemnitee to so notify the Corporation shall not relieve the Corporation of any obligation it
may have to Indemnitee under this Agreement or otherwise. Indemnitee may deliver to the
Corporation a written application to indemnify and hold harmless Indemnitee in accordance with this
Agreement. The application may be delivered from time to time and may be amended and supplemented
and at such times as Indemnitee deems appropriate in his or her sole discretion. After a written
application for indemnification is delivered by Indemnitee, Indemnitee’s entitlement to
indemnification shall be determined pursuant to Articles X, XI and XII of this Agreement.
ARTICLE X
Procedures
Procedures
Section 10.1. To the fullest extent permitted by law, the indemnification provided for in this
Agreement shall be deemed mandatory. To the extent that, under applicable law, any indemnification
provided for in this Agreement is treated as discretionary, any indemnification determination,
unless ordered by a court or advanced pursuant to Section 8.1 of this Agreement, may be made by the
Corporation only as authorized in the specific case upon a determination that the indemnification
of Indemnitee is proper in the circumstances. Such determination must be made:
(i) by the stockholders of the Corporation;
(ii) by the Board of Directors by a majority vote of a quorum consisting of directors
who are not parties to the Proceeding;
(iii) if a majority vote of a quorum of directors not parties to the Proceeding so
orders, by Independent Counsel in a written opinion; or
(iv) if a quorum consisting of directors who are not parties to the Proceeding cannot
be obtained, by Independent Counsel in a written opinion.
Notwithstanding the foregoing, if at any time during the two-year period prior to the date of
any written application for indemnification submitted by Indemnitee in connection with a particular
Proceeding there shall have occurred a Change of Control, the Board of Directors shall
direct (unless Indemnitee otherwise agrees in writing) that the indemnification determination
shall be made by Independent Counsel in a written opinion.
-7-
Section 10.2. If the determination of Indemnitee’s entitlement to indemnification is to be
made by Independent Counsel, the Independent Counsel must be selected as provided in this Section
10.2. The Independent Counsel shall be selected by Indemnitee and Indemnitee must give written
notice to the Corporation advising it of the Independent Counsel’s identity so selected, unless
Indemnitee requests in writing that the Independent Counsel be selected by the Board of Directors.
If the Independent Counsel is selected by the Board of Directors, the Corporation must given
written notice to Indemnitee setting forth the identity of the Independent Counsel. In either
event, Indemnitee or the Corporation, as the case may be, may, within ten (10) days after the
written notice of selection is received, deliver to the other party a written objection to the
selection. These objections may be asserted only on the grounds that the Independent Counsel
selected does not meet the requirements of an “Independent Counsel” as defined in Article I of this
Agreement, and the objection must set forth with particularity the factual basis of the assertion.
Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If
within twenty (20) days after submission by Indemnitee of a request for indemnification, no
Independent Counsel has been selected, either the Corporation or Indemnitee may petition a court
with jurisdiction over the parties for resolution of the objection and/or the appointment of a
person to be Independent Counsel selected by the court.
Section 10.3. The Corporation agrees to pay the reasonable fees and Expenses of Independent
Counsel and to fully indemnify and hold the Independent Counsel harmless against any and all
Expenses, claims, liabilities and damages arising out of or relating to this Agreement or the
Independent Counsel’s engagement.
Section 10.4. The Corporation must promptly advise Indemnitee in writing if a determination is
made that Indemnitee is not entitled to indemnification and must include a description of the
reasons or basis for denial. If it is determined Indemnitee is entitled to indemnification, the
payment to Indemnitee must be made as soon as practicable but in no event more than ten (10) days
after the determination. Indemnitee must reasonably cooperate with the persons making the
determination and, upon request, must provide such persons with documents and information (which
are not privileged or otherwise protected) reasonably available to Indemnitee and reasonably
necessary to the determination. All Expenses incurred by Indemnitee in cooperating with the
persons making the determination shall be paid by the Corporation (irrespective of the
determination as to indemnification) and the Corporation hereby indemnifies and agrees to hold
Indemnitee harmless from those Expenses.
ARTICLE XI
Presumptions
Presumptions
Section 11.1. In determining whether Indemnitee is entitled to indemnification under this
Agreement, the person or persons making the determination must presume that Indemnitee is entitled
to indemnification under this Agreement and the Corporation has the burden of proof to overcome
that presumption. Moreover, if at any time during the two-year period prior to the date of any
written application for indemnification submitted by Indemnitee in connection with a particular
Proceeding or other matter there shall have occurred a Change of Control, the
foregoing presumption may only be overcome by clear and convincing evidence. Neither of the
following is a defense to an action seeking a determination granting indemnity to Indemnitee or
creates a presumption that Indemnitee has not met the applicable standard of conduct: (i) the
-8-
failure of the Corporation (including its directors or Independent Counsel) to have made a
determination before the beginning of an action seeking a ruling that indemnification is proper nor
(ii) an actual determination by the Corporation (including its directors or Independent Counsel)
that Indemnitee has not met the applicable standard of conduct.
Section 11.2. If the persons or entity selected under Article X of this Agreement to determine
whether Indemnitee is entitled to indemnification has not made a determination within thirty (30)
days after receipt by the Corporation of the request for it, the requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee is entitled to such
indemnification, absent (i) a misstatement by Indemnitee of a material fact or an omission of
material fact necessary to make his or her statements not materially misleading made in connection
with the request for indemnification (which misstatement or omission is shown by the Corporation to
be of sufficient importance that it would likely alter the applicable determination) or (ii) a
final judicial determination that indemnification is expressly prohibited under applicable law.
The 30-day period may be extended for a reasonable time, not to exceed fifteen (15) additional
days, if the persons or entity making the determination requires the additional time for obtaining
or evaluating documents or information.
Section 11.3. The termination of any Proceeding or any claim therein, by judgment, order,
settlement or conviction, or upon a plea of nolo contendere does not (except as expressly provided
elsewhere in this Agreement) of itself adversely affect the right of Indemnitee to indemnification
or create a presumption that Indemnitee did not meet any particular standard of conduct, 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 Corporation or, with respect to any criminal Proceeding, that Indemnitee
had reasonable cause to believe his or her conduct was unlawful.
Section 11.4. In determining good faith, Indemnitee must be deemed to have acted in good faith
and in a manner which he or she reasonably believed to be in or not opposed to the best interests
of the Corporation if Indemnitee’s action is based on the records or books of account of the
Corporation, including financial statements, or on information, opinions, reports or statements
supplied to Indemnitee by the directors or officers of the Corporation or other enterprise in the
course of their duties, or on the advice of legal counsel for the Corporation or the enterprise or
on information or records given or reports made by an independent certified public accountant or by
an appraiser or other expert.
Section 11.5. The knowledge and actions or failures to act of any other director, officer,
trustee, partner, member, fiduciary, agent or employee of the Corporation or other enterprise shall
not be imputed to Indemnitee for the purposes of determining his or her right to indemnification.
ARTICLE XII
Remedies of Indemnitee
Remedies of Indemnitee
Section 12.1. If a determination is made that Indemnitee is not entitled to indemnification
under this Agreement, any judicial Proceeding or arbitration begun pursuant to this Agreement must
be conducted in all respects as a de novo trial or arbitration, on the merits, and Indemnitee shall
not be prejudiced by reason of the adverse determination. In such a
-9-
Proceeding or arbitration,
Indemnitee is presumed to be entitled to indemnification and the Corporation has the burden of
proving Indemnitee is not entitled to be indemnified. Moreover, if at any time during the two-year
period prior to the date of any written application for indemnification submitted by Indemnitee in
connection with a particular Proceeding or other matter there shall have occurred a Change of
Control, the Corporation will be deemed to have satisfied such burden only if it meets the standard
of proof by clear and convincing evidence. The Corporation may not refer to or introduce into
evidence any determination made pursuant to Section 11.1 of this Agreement adverse to Indemnitee
for any purpose. If Indemnitee begins a judicial Proceeding or arbitration seeking
indemnification, Indemnitee is not required to reimburse the Corporation for any advances pursuant
to Section 8.1 of this Agreement until a final determination is made with respect to Indemnitee’s
right to indemnification, after all rights of appeal have been exhausted or lapsed.
Section 12.2. If it has been determined that Indemnitee is entitled to indemnification, the
Corporation is bound by that determination in any judicial Proceeding or arbitration commenced by
Indemnitee seeking to compel the indemnification, absent (i) a misstatement by Indemnitee of a
material fact or an omission of a material fact necessary to make Indemnitee’s statement not
materially misleading connected with the request for indemnification (which misstatement or
omission is shown by the Corporation to be of sufficient importance that it would likely alter the
applicable determination) or (ii) a prohibition of the indemnification under applicable law. In
any Proceeding or arbitration commenced by Indemnitee seeking indemnification, the Corporation is
precluded from asserting that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and must stipulate that the Corporation is bound by all the provisions of
this Agreement.
Section 12.3. The Corporation must indemnify and hold harmless Indemnitee to the fullest
extent permitted by applicable law against all Expenses and, upon Indemnitee’s request, must
advance to Indemnitee, within ten (10) days after the Corporation’s receipt of a request,
Indemnitee’s Expenses incurred in connection with any judicial Proceeding or arbitration brought by
Indemnitee to enforce his or her right for indemnification or to recover advances under any
insurance policy maintained for the benefit of Indemnitee, regardless of whether Indemnitee is
ultimately determined to be entitled to such indemnification, advance or insurance recovery.
ARTICLE XIII
Contribution; Joint Liability
Contribution; Joint Liability
Section 13.1. To the fullest extent permissible under applicable law, if the indemnification
rights provided for in this Agreement are unavailable to Indemnitee in whole or in part for any
reason whatsoever (other than by reason of the language of any express exclusion contained in this
Agreement), the Corporation, instead of indemnifying and holding harmless Indemnitee, must
contribute to the payment thereof, in the first instance, by paying the entire amount incurred by
Indemnitee, whether for judgments, liabilities, fines, penalties, amounts paid
or to be paid in settlement and/or for Expenses, in connection with any Proceeding without
requiring Indemnitee to contribute to the payment, and the Corporation hereby waives and
relinquishes any right of contribution it may have at any time against Indemnitee. The Corporation
shall not enter into any settlement of any Proceeding in which the Corporation is
-10-
jointly liable
with Indemnitee, or would be joined in the Proceeding, unless the settlement provides for a full
and final release of all claims asserted against Indemnitee. The Corporation hereby agrees to
fully indemnify and hold harmless Indemnitee from any claims for contribution which may be brought
by officers, directors or employees of the Corporation other than Indemnitee who may be jointly
liable with Indemnitee.
ARTICLE XIV
Subrogation
Subrogation
Section 14.1. If any payment is made under this Agreement, the Corporation is subrogated to
the extent of such payment to all the rights of recovery of Indemnitee, who must within a
reasonable period of time after payment execute all papers required and take all action necessary
to secure those rights, including the execution of such documents as are necessary to enable the
Corporation to bring suit to enforce those rights.
ARTICLE XV
Severability
Severability
Section 15.1. If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability
of the remaining provisions of this Agreement (including, but not limited to, each portion of any
paragraph containing any such provision held to be invalid, illegal or unenforceable, that is not
itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired
thereby; and (b) to the fullest extent possible, the provisions of this Agreement (including, but
not limited to, each such portion of any paragraph containing any such provision held to be
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable.
ARTICLE XVI
Miscellaneous
Miscellaneous
Section 16.1. Non-Exclusivity of Rights. The rights of Indemnitee under this Agreement are not
exclusive of any other rights to which Indemnitee may at any time be entitled under the law, the
Articles of Incorporation, the By-Laws or any agreement. The indemnification and advancement of
Expenses for Indemnitee who has ceased to be a director, officer, employee or agent shall continue
in full force and effect and shall inure to the benefit of the heirs, executors and administrators
of Indemnitee. The rights of Indemnitee under this Agreement shall be contract rights. No
amendment, alteration or repeal of this Agreement can limit or restrict any right of Indemnitee
under this Agreement with respect to any action taken before the amendment, alteration or repeal.
If a change in applicable law permits greater indemnification than that which would be afforded
under this Agreement, it is the
intent of the Corporation that Indemnitee shall enjoy by this Section 16.1 the greater benefits so
afforded.
Section 16.2. Acknowledgment of Certain Matters. Both the Corporation and Indemnitee acknowledge
that in certain instances, applicable law or public policy may prohibit indemnification of
Indemnitee by the Corporation under this Agreement or otherwise. Indemnitee understands and
acknowledges that the Corporation has undertaken or may be
-11-
required in the future to undertake, by
the Securities and Exchange Commission, to submit the question of indemnification to a court in
certain circumstances for a determination of the Corporation’s right under public policy to
indemnify Indemnitee.
Section 16.3. Waivers. The observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively) by the party
entitled to enforce such term only by a writing signed by the party against which such waiver is to
be asserted. Unless otherwise expressly provided herein, no delay on the part of any party hereto
in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall
any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a
waiver of any other right, power or privilege hereunder nor shall any single or partial exercise of
any right, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder.
Section 16.4. Entire Agreement. This Agreement and the documents referred to herein constitute the
entire agreement between the parties hereto with respect to the matters covered hereby, and the
Prior Agreement and any other prior or contemporaneous oral or written understandings or agreements
with respect to the matters covered hereby are superseded by this Agreement; provided, however,
that if this Agreement is found to be void or voidable (and, in the event this Agreement is found
to be voidable, the party who is entitled to void this Agreement elects to do so), the parties
expressly agree that the Prior Agreement shall continue in full force and effect and the Indemnitee
shall be entitled to all rights, benefits and privileges provided for thereunder.
Section 16.5. Certain Rights. The right to be indemnified or to the advancement or reimbursement
of Expenses (i) is intended to be retroactive and shall be available as to events occurring prior
to the date of this Agreement and (ii) shall continue after any rescission or restrictive
modification of such provisions as to events occurring prior thereto. Nothing in this Agreement,
expressed or implied, is intended to confer any rights or remedies under or by reason of this
Agreement on any person other than the parties to this Agreement and their respective heirs,
personal representatives, successors and assigns.
Section 16.6. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of
Nevada without regard to any principles of conflict of laws that, if applied, might permit or
require the application of the laws of a different jurisdiction.
Section 16.7. Headings. The Article and Section headings in and referred to in this Agreement are
for convenience of reference only, and shall not be deemed to alter or affect the meaning or
interpretation of any provisions hereof.
Section 16.8. Counterparts. This Agreement may be executed in 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.
Section 16.9. Use of Certain Terms. As used in this Agreement, the words “herein,” “hereof,” and
“hereunder” and other words of similar import refer to this Agreement as a whole
-12-
and not to any
particular paragraph, subparagraph, section, subsection, or other subdivision. Whenever the
context may require, any pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the
plural and vice versa.
[signatures appear on following page]
-13-
IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of
the date first above written.
| CENTEX CORPORATION | |||||||
| By: | |||||||
| Name: | |||||||
| Title: | |||||||
| INDEMNITEE | |||||||
| Name: | |||||||
-14-
