BLUELINX HOLDINGS INC. DIRECTOR AND OFFICER INDEMNIFICATION AGREEMENT
Exhibit 10.1
This Indemnification Agreement (“Agreement”) is made as of this _____ day of _____, 20_____, by and
between BlueLinx Holdings Inc., a Delaware corporation (the “Company”), and , a
[director][officer][director and officer] of the Company [and one or more of its subsidiaries]
(“Indemnitee”).
RECITALS
WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve as officers and directors of the Company and to indemnify
its officers and directors so as to provide them with the maximum protection permitted by law;
WHEREAS, the Company and Indemnitee recognize the increasing difficulty in obtaining
directors’ and officers’ liability insurance, the significant increases in the cost of such
insurance and the general reductions in the coverage of such insurance;
WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting officers and directors to expensive litigation risks at the same
time as the availability and coverage of liability insurance has been severely limited;
WHEREAS, Article VI of the Company’s Amended and Restated Certificate of Incorporation and
Article V of the Company’s Amended and Restated Bylaws provide for indemnification of the Company’s
directors and officers to the fullest extent permitted by applicable law, and provide that such
provisions are not exclusive and may be supplemented by agreements between the Company and its
officers and directors;
WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify its directors and certain of its officers to the fullest extent permitted by
applicable law so that they will serve or continue to serve the Company free from undue concern
that they will not be so indemnified; and
WHEREAS, the Indemnitee is willing to [serve] [continue to serve] [and to take on additional
service for or] on behalf of the Company on the condition that he or she be so indemnified.
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and the Indemnitee do hereby covenant and agree as follows:
1. Continued Service. The Indemnitee agrees to serve or continue to serve, at the
will of the Company, the stockholders of the Company or under separate contract, as applicable, as
a director or officer of the Company for as long as he or she is duly elected or appointed or until
such time as he or she resigns in writing or is removed from office.
2. Definitions.
(a) “Expenses” shall include, but shall not be limited to, damages, judgments, fines,
settlements and charges, costs, expenses of investigation and expenses of defense of legal actions,
suits, proceedings or claims and appeals, and expenses of appeal, attachment or similar bonds;
provided, however, that the term “Expenses” shall not include any judgments, fines or penalties
actually levied against the Indemnitee that the Company is prohibited by applicable law from
paying.
(b) “Finally Adjudication” means that acts or omissions of Indemnitee shall have been
finally adjudged by a court having proper jurisdiction, and after all rights of appeal have been
exhausted or lapsed.
(c) “Fines” shall include any excise taxes assessed on a person with respect to an
employee benefit plan.
(d) “Proceeding” shall mean any threatened, pending or completed action, suit or
proceeding, or any inquiry, hearing or investigation, whether brought in the name of the Company or
otherwise and whether of a civil, criminal or administrative or investigative nature, including,
but not limited to, actions, suits or proceedings brought under or predicated on the Securities Act
of 1933, as amended, the Securities Exchange Act of 1934, as amended, their respective state
counterparts, or any rule or regulation promulgated under them, in which the Indemnitee may be or
may not have been involved as a party or otherwise by reason of the fact that Indemnitee is or was
a director or officer of the Company, by reason of any action taken by him or her or of any
inaction of his or her part while acting as a director or officer, or by reason of the fact that he
or she is or was serving at the request of the Company as a director, officer, employee or agent of
another corporation, limited liability company, partnership, joint venture, trust or other
enterprise, whether or not he or she is serving in that capacity at the time any indemnified
liability or reimburseable expense is incurred.
(e) The term “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.
3. Indemnification.
(a) Third Party Proceedings. The Company agrees to indemnify and hold harmless
Indemnitee if Indemnitee is a party to, threatened to be made a party to, or otherwise involved in
any Proceeding (other than a Proceeding by or in the name of the Company itself to procure a
judgment in its favor), by reason of the fact that Indemnitee is or was a director 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 the Indemnitee in connection with the investigation,
defense, settlement or appeal of the Proceeding, provided it is determined, pursuant to Section 4
hereof or by the court before which the action was brought, that the Indemnitee acted in good faith
and in a manner that he or she reasonably believed to be
in the best interests or not opposed to the best interests of the Company and, in the case of
a criminal proceeding, the Indemnitee had no reasonable cause to believe his or her action was
unlawful. 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 he or she reasonably
believed to be in the best interests 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 his or her
conduct was unlawful.
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(b) Proceedings by or in the Right of the Company. The Company shall indemnify and
hold harmless Indemnitee against all Expenses actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense, settlement, or appeal of an Proceeding by or in the
name of the Company to procure a judgment in favor of the Company by reason of the fact that the
Indemnitee was or is a director 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, but only if he or she acted in good faith and in a manner he or
she reasonably believed to be in the best interests or not opposed to the best interests of the
Company and its stockholders; except that no indemnification shall be made 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 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.
4. Expenses; Indemnification Procedure.
(a) Advance of Expenses. Expenses (including reasonable attorneys’ fees) incurred by
Indemnitee in defending any Proceeding described in Section 3(a) or (b) hereof shall be paid by the
Company in advance of the final disposition of such action, suit or proceeding upon receipt of a
written undertaking by or on behalf of Indemnitee to repay such amount if it shall ultimately be
determined that he or she is not entitled to be indemnified by the Company as authorized under this
Agreement.
(b) Statement of Undertaking. The Company’s obligations to advance Expenses pursuant
to Section 4(a) hereof is subject only to the following condition: if the Proceeding arose in
connection with Indemnitee’s service as a director and/or officer of the company or member of a
committee of the Board of Directors of the Company (and not in any other capacity in which
Indemnitee rendered service, including but not limited to service to any corporation, partnership,
joint venture, trust or other enterprise for which Indemnitee was serving as a director, officer,
employee or agent at the request of the Company), then Indemnitee or his or her representative must
have executed and delivered to the Company at the address shown in Section 11 of this Agreement (or
such address as the Company shall designate in writing to Indemnitee) an undertaking in the form of
Exhibit A hereto (the “Statement of Undertaking”) to repay all advancements of Expenses if
and to the extent that there is a Final Adjudication that Indemnitee is not entitled to be
indemnified for such advancement of Expenses pursuant to Section 3 hereof. The Statement of
Undertaking need not be secured and shall be accepted by
the Company without reference to Indemnitee’s financial ability to make repayment. No
interest shall be charged on any obligation to reimburse the Company for any advancement of
Expenses.
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(c) Notice/Cooperation By Indemnitee. Indemnitee shall, as a condition precedent to
his or her right to be indemnified under this Agreement, give the Company notice in writing as soon
as reasonably practicable of any claim made or threatened to be made against Indemnitee for which
indemnification is or will be sought under this Agreement. Notice to the Company shall be directed
to the Company at the address shown in Section 12 of this Agreement (or such address as the Company
shall designate in writing to Indemnitee). In addition, Indemnitee shall give the Company such
information and cooperation as it may reasonably require and as shall be within Indemnitee’s power.
(d) Procedure. If a claim for indemnification under Section 3 hereof is not paid in
full by the Company within ninety (90) days after a written claim has been received by the Company,
or a claim under Section 4(a) hereof for an advancement of expenses is not paid in full by the
Company within thirty (30) days after both a written claim and a Statement of Undertaking has been
received by the Company, Indemnitee may at any time thereafter bring suit against the Company to
recover the unpaid amount of the claim (an “Enforcement Action”). If successful in whole
or in part in any such suit, or in a suit brought by the Company to recover an advancement of
expenses pursuant to Section 4(a), Indemnitee shall also be entitled to be paid the expense of
prosecuting or defending such suit, including any reasonable attorneys’ fees. In any suit by the
Company to recover an advancement of expenses pursuant to Section 4(a), the Company shall be
entitled to recover such expenses, upon a Final Adjudication that Indemnitee has not met the
standards of conduct which makes it permissible under applicable law for the Company to indemnify
Indemnitee for the amounts claimed. Neither the failure of the Company (including its board of
directors, independent legal counsel or stockholders) to have made a determination prior to the
commencement of such suit that indemnification of Indemnitee is proper in the circumstances because
Indemnitee has met the standards of conduct which makes it permissible under applicable law for the
Company to indemnify Indemnitee for the amounts claimed, nor an actual determination by the Company
(including its board of directors, independent legal counsel, or stockholders) that Indemnitee has
not met such applicable standard of conduct, shall create a presumption that Indemnitee has not met
the applicable standard of conduct or, in the case of such a suit brought by Indemnitee, be a
defense to such suit. In any suit brought by Indemnitee to enforce a right to indemnification or
to an advancement of expenses pursuant to Section 4(a) hereunder, or by the Company to recover an
advancement of expenses pursuant to Section 4(a), the burden of proving that Indemnitee is not
entitled to be indemnified, or to such advancement of expenses, under this Agreement or otherwise
shall be on the Company.
(e) Notice to Insurers. If, at the time of the receipt of a notice of an actual or
threatened claim pursuant to Section 4(c) hereof, the Company has director and officer liability
insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to
the insurers in accordance with the procedures set forth in its policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance with and to the extent
of the terms of such policies.
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(f) Selection of Counsel. In the event the Company shall be obligated under Sections
3 or 4(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company, if
appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by
Indemnitee, which approval shall not be unreasonably withheld or delayed, upon the delivery to
Indemnitee of written notice of the Company’s election so to do. After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently
incurred by Indemnitee with respect to the same proceeding, provided that: (i) Indemnitee shall
have the right to employ his or her counsel in any such proceeding at Indemnitee’s expense; and
(ii) if (A) the employment of counsel by Indemnitee at the Company’s expense has been previously
authorized by the Company, or (B) the Company shall not, in fact, have employed counsel to assume
the defense of such proceeding, then the reasonable fees and expenses of Indemnitee’s counsel shall
be at the expense of the Company.
5. Additional Indemnification Rights: Nonexclusivity.
(a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby
agrees to indemnify the Indemnitee to the fullest extent permitted from time to time by the
Delaware General Corporation Law as the same presently exists or may hereafter be amended (but, if
permitted by applicable law, in the case of any amendment, only to the extent that such amendment
permits the Company to provide broader indemnification rights than permitted prior to such
amendment) or any other applicable law as presently or hereafter in effect. In the event of any
change in any applicable law, statute or rule which narrows the right of a Delaware corporation to
indemnify a member of its board of directors, an officer or other corporate agent, such changes, to
the extent not otherwise required by such law, statute or rule to be applied to this Agreement,
shall have no effect on this Agreement or the parties’ rights and obligations hereunder.
(b) Nonexclusivity. The indemnification and advancement of expenses provided by or
granted pursuant to this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may be entitled under the Company’s Amended and Restated Certificate of Incorporation
(as the same may be further amended from time to time), the Company’s Amended and Restated By-Laws
(as the same may be amended from time to time), any other agreement or contract, any vote of
stockholders or disinterested directors or otherwise, both as to action in his or her official
capacity and as to action in another capacity while holding such office.
6. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines
or penalties actually or reasonably incurred by him or her in the investigation, defense, appeal or
settlement of any civil or criminal action or proceeding, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses,
judgments, fines or penalties to which Indemnitee is entitled.
7. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that, in
certain instances, Federal law or applicable public policy may prohibit the Company from
indemnifying its directors and officers under this Agreement or otherwise.
Indemnitee understands and acknowledges that the Company may be required in the future to
submit for determination by the appropriate regulatory agency the question of whether the Company’s
obligation to indemnify Indemnitee is barred as a matter of public policy. Nothing in this
Agreement is intended to require or shall be construed as requiring the Company to do or fail to do
any act in violation of applicable law. The Company’s inability, pursuant to court order, to
perform its obligations under this Agreement shall not constitute a breach of this Agreement.
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8. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:
(a) Excluded Acts. To indemnify Indemnitee for any acts or omissions or transactions
from which an officer or a director may not be relieved of liability under the Delaware General
Corporation Law; or
(b) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to a proceeding (or part thereof) initiated or brought voluntarily by Indemnitee and
not by way of defense, except with respect to a proceeding (or part thereof) brought to enforce a
right to indemnification under this Agreement and except with respect to a proceeding (or part
thereof) authorized or consented to by the board of directors of the Company; or
(c) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by the
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a court of competent jurisdiction determines that each of the material assertions
made by the Indemnitee in such proceeding was not made in good faith or was frivolous; or
(d) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) to the extent paid, or acknowledged to be payable, directly to or on
behalf of Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability
insurance; or
(e) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities that is deemed, pursuant
to a Final Adjudication, to be in violation of Section 16(b) of the Securities Exchange Act of
1934, as amended, or any similar successor statute.
9. Counterparts. This Agreement may be executed in counterparts, each of which shall
constitute an original.
10. Binding Effect; Successors and Assigns. This Agreement shall be binding upon the
Company and its successors and assigns (including any direct or indirect successor by purchase,
merger, consolidation or otherwise to all or substantially all of the business or assets of the
Company), and shall inure to the benefit of Indemnitee and Indemnitee’s estate, heirs, legal
representative and assigns. The Company shall require and cause any successor (whether direct or
indirect, and whether by purchase, merger, consolidation or otherwise) to all or substantially all
of its business or assets expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that it would be required to perform if no such succession had
taken place.
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11. Attorney’s Fees. In the event that any action is instituted by Indemnitee under
this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be
paid all costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee with
respect to such action, unless as a part of such action, the court of competent jurisdiction
determines that each of the material assertions made by Indemnitee as a basis for such action were
not made in good faith or were frivolous. In the event of an action instituted by or in the name
of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all costs and expenses, including reasonable attorneys’
fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such action the court
determines that each of Indemnitee’s material defenses to such action were made in bad faith or
were frivolous.
12. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing, shall be deemed received three business days after the date
postmarked if sent by domestic certified or registered mail, properly addressed, or if sent
otherwise, when such notice shall actually be received, and shall be delivered by Federal Express
or a similar courier, personal delivery, certified or registered air mail, or by facsimile
transmission. Addresses for notice to either party are as follows (or at such other addresses for
a party as shall be specified by like notice):
if to the Company:
BlueLinx Holdings Inc.
0000 Xxxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxx 00000
Attention: Legal Department
Fax No.: 000-000-0000
0000 Xxxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxx 00000
Attention: Legal Department
Fax No.: 000-000-0000
if to Indemnitee:
Fax No.:
13. Consent To Jurisdiction. The Company and Indemnitee each hereby irrevocably
consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection
with any action or proceeding which arises out of or relates to this Agreement and agree that any
action instituted under this Agreement shall be brought only in the state courts of the State of
Delaware.
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14. Choice of Law. This Agreement shall be governed by and its provisions
construed in accordance with the laws of the State of Delaware, as applied to contracts
between Delaware residents entered into and to be performed entirely within Delaware.
15. Severability. The provisions of this Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the fullest extent
permitted by law. Furthermore, to the fullest extent possible, any provision of this Agreement
(including, without limitations, each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall
be construed so as to give effect to the intent manifested by the provision held invalid, illegal
or unenforceable.
16. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company effectively to bring suit to enforce such rights.
17. Continuation of Indemnification. The indemnification and advancement of expenses
provided by, or granted pursuant to, this Agreement shall, unless otherwise provided when
authorized or ratified, continue as to Indemnitee after Indemnitee has ceased to be a director,
officer, employee or agent and shall inure to the benefit of the heirs, executors, administrators
and personal representatives of Indemnitee.
18. Amendment and Termination. No amendment, modification, termination or
cancellation of this Agreement shall be effective unless in writing signed by both parties hereto.
19. Integration and Entire Agreement. This Agreement sets forth the entire
understanding between the parties hereto and supersedes and merges all previous written and oral
negotiations, commitments, understandings and agreements relating to the subject matter hereof
between the parties hereto.
20. No Construction as Employment Agreement. Nothing contained in this Agreement
shall be construed as giving Indemnitee any right to be retained in the employ of the Company or
any of its subsidiaries or affiliated entities.
[Signatures appear on following page]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.
| BLUELINX HOLDINGS INC. |
||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| INDEMNITEE | ||||
| Name: | ||||
| Title: | ||||
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EXHIBIT A
STATEMENT OF UNDERTAKING
STATE OF
|
) | |||||||
| ) | ss. | |||||||
COUNTY OF
|
) | |||||||
I, , being first duly sworn, do depose and say as follows:
| 1. | This Statement is submitted pursuant to the Indemnification Agreement (the
“Agreement”) dated between BlueLinx Holdings Inc., a Delaware
corporation (the “Company”) and me. |
||
| 2. | I am requesting an advancement of Expenses, as defined in the Agreement. |
||
| 3. | I hereby undertake to repay the advancement of Expenses if any to the extent it
is Finally Adjudicated (as defined in the Agreement) that I am not entitled under the
Agreement to be indemnified by the Company. |
||
| 4. | The expenses for which such advancement is requested, and a brief description
of the underlying Proceeding (as defined in the Agreement), are as follows: |
||
| [brief description of expenses and Proceeding(s)] |
DATED: |
||
SUBSCRIBED AND SWORN TO before me this _____day of , _____,
(seal or stamp) |
||
| Notary Signature | ||
| Print/type Name Notary Public in and for the State of |
||
| Residing at | ||
| My appointment expires |
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