INDEMNIFICATION AGREEMENT (“Agreement”) between FEDERAL NATIONAL MORTGAGE ASSOCIATION (“Fannie Mae”), and (“Indemnitee”)
Exhibit 10.15
INDEMNIFICATION AGREEMENT (“Agreement”)
between
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(“Xxxxxx Xxx”), and (“Indemnitee”)
WHEREAS, the inability to attract and retain qualified persons as directors and officers is
detrimental to the best interests of Xxxxxx Mae’s stockholders and Xxxxxx Xxx should act to assure
such persons that there will be adequate certainty of protection through insurance and
indemnification against risks of claims and actions against them arising out of their service to
and activities on behalf of Xxxxxx Mae; and
WHEREAS, Xxxxxx Xxx has adopted provisions in its By-laws providing for indemnification of its
officers and directors to the fullest extent permitted by applicable law, and Xxxxxx Mae wishes to
clarify and enhance the rights and obligations of Xxxxxx Xxx and Indemnitee with respect to
indemnification; and
WHEREAS, Xxxxxx Mae has elected to follow the corporate governance practices and procedures of
the Delaware General Corporation Law, as the same may be amended from time to time; and
WHEREAS, in order to induce and encourage highly experienced and capable persons such as
Indemnitee to serve and continue to serve as directors and officers of Xxxxxx Xxx and in any other
capacity with respect to Xxxxxx Mae, and to otherwise promote the desirable end that such persons
will resist what they consider unjustified lawsuits and claims made against them in connection with
the good faith performance of their duties to Xxxxxx Xxx, with the knowledge that certain costs,
judgments, penalties, fines, liabilities and expenses incurred by them in their defense of such
litigation are to be borne by Xxxxxx Mae and they will receive the maximum protection against such
risks and liabilities as may be afforded by law; and
WHEREAS, Xxxxxx Xxx desires to have Indemnitee continue to serve as a director or officer of
Xxxxxx Mae and in such other capacity with respect to Xxxxxx Xxx as Xxxxxx Xxx may request, as the
case may be, free from undue concern for unpredictable, inappropriate or unreasonable legal risks
and personal liabilities by reason of Indemnitee acting in good faith in the performance of
Indemnitee’s duty to Xxxxxx Mae; and Indemnitee desires to continue so to serve Xxxxxx Xxx,
provided, and on the express condition, that he or she is furnished with the indemnity set forth
hereinafter;
WHEREAS, the Federal Housing Finance Agency (“FHFA”) was appointed conservator of Xxxxxx Mae
on September 6, 2008;
Now, therefore, in consideration of Indemnitee’s continued service as a director or officer of
Xxxxxx Xxx, the parties hereto agree as follows:
1. Service by Indemnitee. Indemnitee will serve and/or continue to serve as a
director or officer of Xxxxxx Mae faithfully and to the best of Indemnitee’s ability so long as
Indemnitee is duly elected or appointed and until such time as Indemnitee is removed as permitted
by law or tenders a resignation in writing.
2. Indemnification. Xxxxxx Xxx shall indemnify Indemnitee to the fullest extent
permitted by the Delaware General Corporation Law in effect on the date hereof or as such law may
from time to time be amended (but, in the case of any such amendment, only to the extent that such
amendment permits Xxxxxx Mae to provide broader indemnification rights than said law permitted
Xxxxxx Xxx to provide prior to such amendment). Without diminishing the scope of the
indemnification provided by this Section, the rights of indemnification of Indemnitee provided
hereunder shall include but shall not be limited to those rights hereinafter set forth, except that
no indemnification shall be paid to Indemnitee:
(a) to the extent expressly prohibited by Delaware law;
(b) for which payment is actually made to Indemnitee or for Indemnitee’s benefit under a
valid and collectible insurance policy or under a valid and enforceable indemnity clause,
by-law or agreement of Xxxxxx Mae or any other company or organization on whose board
Indemnitee serves at the request of Xxxxxx Xxx, except in respect of any indemnity exceeding
the payment under such insurance, clause, by-law or agreement;
(c) in connection with an action, suit or proceeding, or part thereof (including claims and
counterclaims) initiated by Indemnitee, except a judicial proceeding or arbitration pursuant
to Section 10 to enforce rights under this Agreement, unless the action, suit or proceeding
(or part thereof) was authorized by the Board of Directors of Xxxxxx Mae or, if there is no
functioning Board of Directors, authorized by the CEO pursuant to a written opinion provided
by Independent Counsel (defined below);
(d) with respect to any action, suit or proceeding brought by or on behalf of Xxxxxx Xxx
against Indemnitee that is authorized by the Board of Directors of Xxxxxx Mae or, if there
is no functioning Board of Directors, authorized by the CEO pursuant to a written opinion
provided by Independent Counsel (defined below) except as provided in Sections 4, 5 and 6
below.
3. Action or Proceedings Other than an Action by or in the Right of Xxxxxx Xxx.
Except as limited by Section 2 above, Indemnitee shall be entitled to the indemnification rights
provided in this Section if Indemnitee is a party or is threatened to be made a party to any
Proceeding (other than an action by or in the name of Xxxxxx Mae) by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of Xxxxxx Xxx, or is or was serving at
the request of Xxxxxx Mae as a director, officer, employee or agent or fiduciary of any other
entity (including, but not limited to, another corporation, partnership, joint venture or trust);
or by reason of anything done or not done by Indemnitee in any such capacity. Pursuant to this
Section, Indemnitee shall be indemnified against all costs, judgments, penalties, fines,
liabilities, amounts paid in settlement by or on behalf of Indemnitee, and Expenses (defined below)
actually and reasonably incurred by Indemnitee in connection with such Proceeding, if Indemnitee
acted in good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of Xxxxxx Xxx, and with respect to any criminal Proceeding, had no reasonable cause to
believe his or her conduct was unlawful.
2
4. Indemnity in Proceedings by or in the Name of Xxxxxx Mae. Except as limited by
Section 2 above, Indemnitee shall be entitled to the indemnification rights provided in this
Section if Indemnitee was or is a party or is threatened to be made a party to any Proceeding
brought by or in the name of Xxxxxx Xxx to procure a judgment in its favor by reason of the fact
that Indemnitee is or was a director, officer, employee or agent or fiduciary of Xxxxxx Mae, or by
reason of anything done or not done by Indemnitee in any such capacity. Pursuant to this Section,
Indemnitee shall be indemnified against all costs, judgments, penalties, fines, liabilities,
amounts paid in settlement by or on behalf of Indemnitee, and Expenses actually and reasonably
incurred by Indemnitee in connection with such Proceeding if Indemnitee acted in good faith and in
a manner Indemnitee reasonably believed to be in or not opposed to the best interests of Xxxxxx
Xxx; provided, however, that no such indemnification shall be made in respect of any claim, issue,
or matter as to which Delaware law expressly prohibits such indemnification by reason of any
adjudication of liability of Indemnitee to Xxxxxx Mae, unless and only to the extent that the Court
of Chancery of the State of Delaware 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 entitled to indemnification for such costs, judgments,
penalties, fines, liabilities and Expenses as such court shall deem proper.
5. Indemnification for Costs, Charges and Expenses of Successful Party.
Notwithstanding the limitations of Section 2(d), 3 and 4 above, to the extent that Indemnitee has
been successful, on the merits or otherwise, in whole or in part, in defense of any action, suit or
proceeding (including an action, suit or proceeding brought by or on behalf of Xxxxxx Xxx) or in
defense of any claim, issue or matter therein, including, without limitation, the dismissal of any
action without prejudice, or if it is ultimately determined that Indemnitee is otherwise entitled
to be indemnified against Expenses, Indemnitee shall be indemnified against all Expenses actually
and reasonably incurred in connection therewith.
6. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by Xxxxxx Mae for some or a portion of the costs, judgments,
penalties, fines, liabilities or Expenses actually and reasonably incurred in connection with any
action, suit or proceeding (including an action, suit or proceeding brought by or on behalf of
Xxxxxx Xxx), but not, however, for all of the total amount thereof, Xxxxxx Mae shall nevertheless
indemnify Indemnitee for the portion of such costs, judgments, penalties, fines, liabilities and
Expenses actually and reasonably incurred to which Indemnitee is entitled.
7. Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the maximum extent permitted by applicable law, Indemnitee shall be entitled to
indemnification against all Expenses actually and reasonably incurred or suffered by Indemnitee or
on Indemnitee’s behalf if Indemnitee appears as a witness or otherwise incurs legal expenses as a
result of or related to Indemnitee’s service as a director or
officer of Xxxxxx Xxx, in any threatened, pending or completed legal, administrative, investigative or
other proceeding or matter to which Indemnitee neither is, nor is threatened to be made, a party.
3
8. Determination of Entitlement to Indemnification. Upon written request by
Indemnitee for indemnification pursuant to Sections 3, 4, 5, 6 or 7 the entitlement of Indemnitee
to indemnification, to the extent not provided pursuant to the terms of this Agreement, shall be
determined by the following person or persons who shall be empowered to make such determination:
(a) the Board of Directors of Xxxxxx Mae by a majority vote of Disinterested Directors (defined
below), whether or not such majority constitutes a quorum; (b) a committee of Disinterested
Directors designated by a majority vote of such directors, whether or not such majority constitutes
a quorum; (c) if there are no Disinterested Directors, or if the Disinterested Directors so direct,
by Independent Counsel (defined below) in a written opinion to the Board of Directors, a copy of
which shall be delivered to Indemnitee; or (d) if there is no functioning Board of Directors, by
Independent Counsel (defined below) pursuant to a written opinion provided to the CEO or, if it is
the CEO that is seeking indemnification, to the Chief Compliance Officer. Such Independent Counsel
shall be selected by the Board of Directors or, if there is no functioning Board of Directors, by
the CEO or, if it is the CEO that is seeking indemnification, by the Chief Compliance Officer, and
approved by Indemnitee. Upon failure of the Board, CEO, or Chief Compliance Officer, as
applicable, so to select such Independent Counsel, or upon failure of Indemnitee so to approve,
such Independent Counsel shall be selected upon application to a court of competent jurisdiction.
Such determination of entitlement to indemnification shall be made not later than 30 calendar days
after receipt by Xxxxxx Xxx of a written request for indemnification. Such request shall include
documentation or information which is necessary for such determination and which is reasonably
available to Indemnitee. Any Expenses incurred by Indemnitee in connection with a request for
indemnification or payment of Expenses hereunder, under any other agreement, any provision of
Xxxxxx Mae’s By-laws or any directors’ and officers’ liability insurance, shall be borne by Xxxxxx
Xxx. Xxxxxx Xxx hereby indemnifies Indemnitee for any such Expense and agrees to hold Indemnitee
harmless therefrom irrespective of the outcome of the determination of Indemnitee’s entitlement to
indemnification. If the person making such determination shall determine that Indemnitee is
entitled to indemnification as to part (but not all) of the application for indemnification, such
person shall reasonably prorate such partial indemnification among the claims, issues or matters at
issue at the time of the determination.
9. Presumptions and Effect of Certain Proceedings. The Secretary of Xxxxxx Mae shall,
promptly upon receipt of Indemnitee’s request for indemnification, advise in writing the Board of
Directors or such other person or persons empowered to make the determination as provided in
Section 8 that Indemnitee has made such request for indemnification. The Secretary of Xxxxxx Xxx
shall also promptly notify the Conservator that such a request has been made. Upon making such
request for indemnification, Indemnitee shall be presumed to be entitled to indemnification
hereunder and Xxxxxx Mae shall have the burden of proof in making any determination contrary to
such presumption. If the person or persons so empowered to make such determination shall have
failed to make the requested determination with respect to indemnification within 30 calendar days
after receipt by Xxxxxx Xxx of such request, a requisite determination of entitlement to
indemnification shall be deemed to have been made and Indemnitee shall be absolutely entitled to
such indemnification, absent actual and material fraud in the request for indemnification. The
termination of any Proceeding described in Sections 3 or 4 by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its
equivalent, shall not, of itself: (a) create a presumption that Indemnitee did not act in good
faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best
interests of Xxxxxx Mae, or, with respect to any criminal Proceeding, that Indemnitee had
reasonable cause to believe that Indemnitee’s conduct was unlawful; or (b) otherwise adversely
affect the rights of Indemnitee to indemnification except as may be provided herein.
4
10. Remedies of Indemnitee in Cases of Determination not to Indemnify or to Pay
Expenses. In the event that a determination is made that Indemnitee is not entitled to
indemnification hereunder or if payment has not been timely made following a determination of
entitlement to indemnification pursuant to Sections 8 and 9, or if Expenses are not paid pursuant
to Section 15, Indemnitee shall be entitled to final adjudication in a court of competent
jurisdiction of entitlement to such indemnification or payment from Xxxxxx Xxx. Alternatively,
Indemnitee at Indemnitee’s option may seek an award in an arbitration to be conducted by a single
arbitrator pursuant to the rules of the American Arbitration Association, such award to be made
within sixty days following the filing of the demand for arbitration. Xxxxxx Mae shall not oppose
Indemnitee’s right to seek any such adjudication or award in arbitration or any other claim. The
determination in any such judicial proceeding or arbitration shall be made de novo and Indemnitee
shall not be prejudiced by reason of a determination (if so made) pursuant to Sections 8 or 9 that
Indemnitee is not entitled to indemnification. If a determination is made or deemed to have been
made pursuant to the terms of Section 8 or 9 that Indemnitee is entitled to indemnification, Xxxxxx
Xxx shall be bound by such determination and is precluded from asserting that such determination
has not been made or that the procedure by which such determination was made is not valid, binding
and enforceable. Xxxxxx Mae further agrees to stipulate in any such court or before any such
arbitrator that Xxxxxx Xxx is bound by all the provisions of this Agreement and is precluded from
making any assertions to the contrary. If the court or arbitrator shall determine that Indemnitee
is entitled to any indemnification or payment of Expenses hereunder, Xxxxxx Mae shall pay all
Expenses actually and reasonably incurred by Indemnitee in connection with such adjudication or
award in arbitration (including, but not limited to, any appellate Proceedings).
11. Other Rights to Indemnification. Indemnification and payment of Expenses provided
by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may now or
in the future be entitled under any provision of the By-laws or other organizational documents of
Xxxxxx Xxx, vote of stockholders or Disinterested Directors, provision of law, agreement or
otherwise.
12. Expenses to Enforce Agreement. In the event that Indemnitee is subject to or
intervenes in any Proceeding in which the validity or enforceability of this Agreement is at issue
or seeks an adjudication or award in arbitration to enforce Indemnitee’s rights under, or to
recover damages for breach of, this Agreement, Indemnitee, if Indemnitee prevails in whole or in
part in such action, shall be entitled to recover from Xxxxxx Mae and shall be indemnified by
Xxxxxx Xxx against any actual Expenses incurred by Indemnitee.
13. Effective Date and Continuation of Indemnity. This agreement shall be retroactive
to and effective as of . All agreements and obligations of Xxxxxx Mae contained
herein shall continue during the period Indemnitee is a director,
officer, employee or agent of Xxxxxx Xxx or is serving at the request of Xxxxxx Mae as a director,
officer, employee or agent or fiduciary of any other entity (including, but not limited to, another
corporation, partnership, joint venture or trust) of Xxxxxx Xxx and shall continue thereafter with
respect to any possible claims based on the fact that Indemnitee was a director, officer employee
or agent of Xxxxxx Mae or was serving at the request of Xxxxxx Xxx as a director, officer, employee
or agent or fiduciary of any other entity (including, but not limited to, another corporation,
partnership, joint venture or trust). This Agreement shall be binding upon all successors and
assigns of Xxxxxx Mae (including any transferee of all or substantially all of its assets and any
successor by merger or operation of law) and shall inure to the benefit of the heirs, personal
representatives and estate of Indemnitee.
5
14. Notification and Defense of Claim. Promptly after receipt by Indemnitee of notice
of any Proceeding, Indemnitee will, if a claim in respect thereof is to be made against Xxxxxx Xxx
under this Agreement, notify Xxxxxx Mae in writing of the commencement thereof; but the omission so
to notify Xxxxxx Xxx will not relieve it from any liability that it may have to Indemnitee.
Notwithstanding any other provision of this Agreement, with respect to any such Proceeding of which
Indemnitee notifies Xxxxxx Mae:
(a) Xxxxxx Xxx shall be entitled to participate therein at its own expense; and
(b) Except as otherwise provided in this Section 14(b), to the extent that it may wish,
Xxxxxx Mae, jointly with any other indemnifying party similarly notified, shall be entitled
to assume the defense thereof, with counsel satisfactory to Indemnitee. After notice from
Xxxxxx Xxx to Indemnitee of its election so to assume the defense thereof, Xxxxxx Mae shall
not be liable to Indemnitee under this Agreement for any expenses of counsel subsequently
incurred by Indemnitee in connection with the defense thereof except as otherwise provided
below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such
Proceeding, but the fees and expenses of such counsel incurred after notice from Xxxxxx Xxx
of its assumption of the defense thereof shall be at the expense of Indemnitee unless
(i) the employment of counsel by Indemnitee has been authorized by Xxxxxx Mae,
(ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest
between Xxxxxx Xxx and Indemnitee in the conduct of the defense of such action or
(iii) Xxxxxx Mae shall not within 60 calendar days of receipt of notice from Indemnitee in
fact have employed counsel to assume the defense of the action, in each of which cases the
fees and expenses of Indemnitee’s counsel shall be at the expense of Xxxxxx Xxx. Xxxxxx Xxx
shall not be entitled to assume the defense of any Proceeding brought by or on behalf of
Xxxxxx Mae or as to which Indemnitee shall have made the conclusion provided for in (ii)
above; and
(c) If Xxxxxx Xxx has assumed the defense of a Proceeding, Xxxxxx Mae shall not be liable to
indemnify Indemnitee under this Agreement for any amounts paid in settlement of any
Proceeding effected without Xxxxxx Mae’s written consent. Xxxxxx Mae shall not settle any
Proceeding in any manner that would impose any penalty or limitation on or disclosure
obligation with respect to Indemnitee without Indemnitee’s written consent. Neither Xxxxxx
Xxx nor Indemnitee will unreasonably withhold its consent to any proposed settlement.
6
15. Payment of Expenses. All Expenses incurred by Indemnitee in advance of the final
disposition of any Proceeding shall be paid by Xxxxxx Mae at the request of Indemnitee, each such
payment to be made within twenty calendar days after the receipt by Xxxxxx Xxx of a statement or
statements from Indemnitee requesting such payment or payments from time to time. Indemnitee’s
entitlement to such Expenses shall include those incurred in connection with any Proceeding by
Indemnitee seeking a judgment in court or an adjudication or award in arbitration pursuant to this
Agreement (including the enforcement of this provision). Such statement or statements shall
reasonably evidence the expenses and costs incurred by Indemnitee in connection therewith and shall
include or be accompanied by an undertaking, in substantially the form attached as Exhibit 2, by or
on behalf of Indemnitee to reimburse such amount if it is finally determined, after all appeals by
a court of competent jurisdiction that Indemnitee is not entitled to be indemnified against such
Expenses by Xxxxxx Mae as provided by this Agreement or otherwise. Indemnitee’s undertaking to
reimburse any such amounts is not required to be secured.
16. Separability; Prior Indemnification Agreements. 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
without limitation, all portions of any paragraphs of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that are not by themselves 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, without limitation, all portions of any
paragraph of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as
to give effect to the intent of the parties that Xxxxxx Xxx provide protection to Indemnitee to the
fullest enforceable extent. This Agreement shall supersede and replace any prior indemnification
agreements entered into by and between Xxxxxx Mae and Indemnitee and any such prior agreements
shall be terminated upon execution of this Agreement.
17. Headings; References; Pronouns. The headings of the sections of this Agreement
are inserted for convenience only and shall not be deemed to constitute part of this Agreement or
to affect the construction thereof. References herein to section numbers are to sections of this
Agreement. All pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine, neuter, singular or plural as appropriate.
18. Definitions. For purposes of this Agreement:
(a) “Disinterested Director” means an individual director of Xxxxxx Xxx who is (i) not or
was not a party to the Proceeding in respect of which indemnification is being sought by
Indemnitee and (ii) during a period of conservatorship, was a director of Xxxxxx Mae as of
the effective date of the FHFA’s delegation of authority to the Board of Directors of Xxxxxx
Xxx pursuant to the FHFA’s Order dated November 24, 2008, or was elected or approved by a
majority of such directors in accordance with such Order.
(b) “Expenses” includes, without limitation, expenses incurred in connection with the
defense or settlement of any and all investigations, judicial or
administrative proceedings or appeals, attorneys’ fees, witness fees and expenses, fees and expenses of accountants and
other advisors, retainers and disbursements and advances thereon, the premium, security for,
and other costs relating to any bond (including cost bonds, appraisal bonds or their
equivalents), and any expenses of establishing a right to indemnification under
Sections 8, 10 and 12 above but shall not include the amount of judgments, fines or
penalties actually levied against Indemnitee.
7
(c) “Independent Counsel” means a law firm or a member of a law firm that neither is
presently nor in the past five years has been retained to represent: (i) Xxxxxx Mae 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. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the
applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either Xxxxxx Xxx or Indemnitee in an action to determine
Indemnitee’s right to indemnification under this Agreement.
(d) “Proceeding” includes any threatened, pending or completed investigation (other than
internal investigations of the conduct of Xxxxxx Mae employees), action, suit or other
proceeding, whether brought in the name of Xxxxxx Xxx or otherwise, against Indemnitee, for
which indemnification is not prohibited under Sections 2(a)-(c) above and whether of a
civil, criminal, administrative or investigative nature, including, but not limited to,
actions, suits or proceedings in which Indemnitee may be or may have been involved as a
party or otherwise, by reason of the fact that Indemnitee is or was a director, officer,
employee or agent of Xxxxxx Mae, or is or was serving, at the request of Xxxxxx Xxx, as a
director, officer, employee or agent or fiduciary of any other entity, including, but not
limited to, another corporation, partnership, joint venture or trust, or by reason of
anything done or not done by Indemnitee in any such capacity, whether or not Indemnitee is
serving in such capacity at the time any liability or expense is incurred for which
indemnification or reimbursement can be provided under this Agreement.
19. Other Provisions.
(a) This Agreement shall be interpreted and enforced in accordance with the laws of
Delaware.
(b) This Agreement may be executed in one or more counterparts, each of which shall for all
purposes be deemed to be an original but all of which together shall constitute one and the
same Agreement. Only one such counterpart signed by the party against whom enforceability
is sought needs to be produced as evidence of the existence of this Agreement.
(c) This agreement shall not be deemed an employment contract between Xxxxxx Mae and any
Indemnitee who is an officer of Xxxxxx Xxx, and, if Indemnitee is an officer of Xxxxxx Mae,
Indemnitee specifically acknowledges that Indemnitee may be discharged at any time for any
reason, with or without cause, and with or without severance compensation, except as may be
otherwise provided in a separate written contract between Indemnitee and Xxxxxx Xxx.
8
(d) Upon a payment to Indemnitee under this Agreement, Xxxxxx Mae shall be subrogated to the
extent of such payment to all of the rights of Indemnitee to recover against any person for
such liability, and Indemnitee shall execute all documents and instruments required and
shall take such other actions as may be necessary to secure such rights, including the
execution of such documents as may be necessary for Xxxxxx Xxx to bring suit to enforce such
rights.
(e) No supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both parties hereto. No waiver of any of the provisions of this
Agreement shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.
(f) Nothing in this Agreement shall be construed to permit indemnification expressly
prohibited by 12 U.S.C. 4636.
(g) Notwithstanding any provision to the contrary in this Agreement, indemnification for
actions instituted by the Agency will be governed by the standards set forth in the Agency’s
Notice of Proposed Rulemaking, transmitted to the Federal Register on November 6, 2008,
implementing 12 USC 4518.
(h) Nothing in this Agreement is intended to, or shall be construed to, create in any way
any liability or obligation on the part of the United States or any department or agency
thereof under or in any provision of this Agreement, it being the intention of Xxxxxx Mae
and Indemnitee that the obligations undertaken by Xxxxxx Xxx hereunder are the sole and
exclusive responsibility of Xxxxxx Mae.
(i) In the event conservatorship is terminated, this Agreement shall remain in full force
and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year written
below.
| FEDERAL NATIONAL MORTGAGE ASSOCIATION | ||||||
| By | ||||||
| , Indemnitee | ||||||
9
EXHIBIT 1
THE FOLLOWING IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY
AND DOES NOT CONSTITUTE LEGAL ADVICE
AND DOES NOT CONSTITUTE LEGAL ADVICE
Delaware General Corporation Law
Title 8, § 145 (December 2002)
Title 8, § 145 (December 2002)
§ 145. Indemnification of officers, directors, employees and agents; insurance.
(a) A corporation shall have power to indemnify any person who was or is a party or is
threatened to be made a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative (other than an action
by or in the right of the corporation) by reason of the fact that the person is or was a
director, officer, employee or agent of the corporation, or is or was serving at the request
of the corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, against expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by the person in connection with such action, suit or proceeding if the person
acted in good faith and in a manner the person 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 the person’s conduct 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 the person did not act in good faith and in a manner which the person 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 reasonable cause to believe that the person’s
conduct was unlawful.
(b) A corporation shall have power to indemnify any person who 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 the person is or was a director, officer, employee or agent of the corporation, or is
or was serving at the request of the corporation as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise against
expenses (including attorneys’ fees) actually and reasonably incurred by the person in
connection with the defense or settlement of such action or suit if the person acted in good
faith and in a manner the person reasonably believed to be in or not opposed to the best
interests of the corporation and except that no indemnification shall be made in respect of
any claim, issue or matter as to which such person shall have been adjudged to be liable to
the corporation unless and only to the extent that the 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, such person is
fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or
such other court shall deem proper.
0
(c) To the extent that a present or former director or officer of a corporation has been
successful on the merits or otherwise in defense of any action, suit or proceeding referred
to in subsections (a) and (b) of this section, or in defense of any claim, issue or matter
therein, such person shall be indemnified against expenses (including attorneys’ fees)
actually and reasonably incurred by such person in connection therewith.
(d) Any indemnification under subsections (a) and (b) of this section (unless ordered by a
court) shall be made by the corporation only as authorized in the specific case upon a
determination that indemnification of the present or former director, officer, employee or
agent is proper in the circumstances because the person has met the applicable standard of
conduct set forth in subsections (a) and (b) of this section. Such determination shall be
made, with respect to a person who is a director or officer at the time of such
determination, (1) by a majority vote of the directors who are not parties to such action,
suit or proceeding, even though less than a quorum, or (2) by a committee of such directors
designated by majority vote of such directors, even though less than a quorum, or (3) if
there are no such directors, or if such directors so direct, by independent legal counsel in
a written opinion, or (4) by the stockholders.
(e) Expenses (including attorneys’ fees) incurred by an officer or director in defending any
civil, criminal, administrative or investigative action, suit or proceeding may be paid by
the corporation in advance of the final disposition of such action, suit or proceeding upon
receipt of an undertaking by or on behalf of such director or officer to repay such amount
if it shall ultimately be determined that such person is not entitled to be indemnified by
the corporation as authorized in this section. Such expenses (including attorneys’ fees)
incurred by former directors and officers or other employees and agents may be so paid upon
such terms and conditions, if any, as the corporation deems appropriate.
(f) The indemnification and advancement of expenses provided by, or granted pursuant to, the
other subsections of this section shall not be deemed exclusive of any other rights to which
those seeking indemnification or advancement of expenses may be entitled under any bylaw,
agreement, vote of stockholders or disinterested directors or otherwise, both as to action
in such person’s official capacity and as to action in another capacity while holding such
office.
(g) A corporation shall have power to purchase and maintain insurance on behalf of any
person who is or was a director, officer, employee or agent of the corporation, or is or was
serving at the request of the corporation as a director, officer, employee or agent of
another corporation, partnership, joint venture, trust or other enterprise against any
liability asserted against such person and incurred by such person in any such capacity, or
arising out of such person’s status as such, whether or not the corporation would have the
power to indemnify such person against such liability under this section.
(h) For purposes of this section, references to “the corporation” shall include, in addition
to the resulting corporation, any constituent corporation (including any constituent of a
constituent) absorbed in a consolidation or merger which, if its separate existence had
continued, would have had power and authority to indemnify its
directors, officers, and employees or agents, so that any person who is or was a director, officer, employee or agent
of such constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, shall stand in the same position under this
section with respect to the resulting or surviving corporation as such person would have
with respect to such constituent corporation if its separate existence had continued.
1
(i) For purposes of this section, references to “other enterprises” shall include employee
benefit plans; references to “fines” shall include any excise taxes assessed on a person
with respect to any employee benefit plan; and references to “serving at the request of the
corporation” shall include any service as a director, officer, employee or agent of the
corporation 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 acted in good faith and in a manner such person reasonably
believed to be in the interest of the participants and beneficiaries of an employee benefit
plan shall be deemed to have acted in a manner “not opposed to the best interests of the
corporation” as referred to in this section.
(j) The indemnification and advancement of expenses provided by, or granted pursuant to,
this section shall, unless otherwise provided when authorized or ratified, continue as to a
person who has ceased to be a director, officer, employee or agent and shall inure to the
benefit of the heirs, executors and administrators of such a person.
(k) The Court of Chancery is hereby vested with exclusive jurisdiction to hear and determine
all actions for advancement of expenses or indemnification brought under this section or
under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise.
The Court of Chancery may summarily determine a corporation’s obligation to advance expenses
(including attorneys’ fees).
HISTORY: 8 Del. C. 1953, § 145; 56 Del. Laws, c. 50; 56 Del. Laws, c. 186, § 6; 57 Del.
Laws, c. 421, § 2; 59 Del. Laws, c. 437, § 7; 63 Del. Laws, c. 25, § 1; 64 Del. Laws, c.
112, § 7; 65 Del. Laws, c. 289, §§ 3-6; 67 Del. Laws, c. 376, § 3; 69 Del. Laws, c. 261, §§
1, 2; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 120, §§ 3-11.
2
EXHIBIT 2
UNDERTAKING TO REPAY INDEMNIFICATION EXPENSES
I , agree to reimburse Federal National
Mortgage Association (“Xxxxxx Xxx”) for all expenses paid to me by Xxxxxx Mae for my defense in any
civil or criminal action, suit, or proceeding, in the event, and to the extent that it shall
ultimately be determined that I am not entitled to be indemnified by Xxxxxx Xxx for such expenses.
| Signature | ||||||
| Typed Name | ||||||
| Office |
DISTRICT OF COLUMBIA ) ss:
Before me , on this day personally appeared
, known to me to be the person whose name is subscribed to the foregoing
instrument, and who, after being duly sworn, stated that the contents of said instrument is to the
best of his/her knowledge and belief true and correct and who acknowledged that he/she executed the
same for the purpose and consideration therein expressed.
GIVEN under my hand and official seal at Washington, D.C., this day of
, 200___.
My commission expires:
3
