NOVASTAR RESOURCES LTD. INDEPENDENT DIRECTOR’S CONTRACT
NOVASTAR
RESOURCES LTD.
INDEPENDENT
DIRECTOR’S CONTRACT
THIS
AGREEMENT (The “Agreement”) is made as of the 23rd
day of
October, 2006 and is by and between Novastar Resources Ltd., a Nevada
corporation (hereinafter referred to as “Company”) and Xxxx X. Xxxx (hereinafter
referred to as “Director”).
BACKGROUND
The
Board
of Directors of the Company desires to appoint Director to fill an existing
vacancy and to have the Director perform the duties of independent director
and
Director desires to be so appointed for such position and to perform the duties
required of such position in accordance with the terms and conditions of this
Agreement.
AGREEMENT
In
consideration for the above recited promises and the mutual promises contained
herein, the adequacy and sufficiency of which are hereby acknowledged, Company
and Director hereby agree as follows:
1. DUTIES.
The
Company requires that the Director be available to perform the duties of an
independent director as described in the Company’s Handbook for Prospective
Directors and such other duties customarily related to this function as may
be
determined and assigned by the Board of Directors of the Company and as may
be
required by the Company’s constituent instruments, including its certificate or
articles of incorporation, bylaws and its corporate governance and board
committee charters, each as amended or modified from time to time, and by
applicable law, including the Nevada General Corporation Law. Director agrees
to
devote as much time as is necessary to perform completely the duties as Director
of the Company, including duties as a member of the Audit Committee and such
other committees as the Director may hereafter be appointed to. The Director
will perform such duties described herein in accordance with the general
fiduciary duty of Directors arising under the Nevada General Corporation Law
and
Chapter 78 of the Nevada Revised Statutes.
2. TERM.
The
term of this Agreement shall commence as of the date of the Director’s
appointment by the board of directors of the Company (in the event the Director
is appointed to fill a vacancy) or the date of the Director’s election by the
stockholders of the Company and shall continue until the Director’s removal or
resignation.
3. COMPENSATION.
For all
services to be rendered by Director in any capacity hereunder, the Company
agrees to (i) pay Director a fee of $20,000 in cash per year payable in equal
quarterly installments (the “Cash Compensation”); (ii) issue quarterly, in
advance, such number of restricted shares equal to the value of the Cash
Compensation to be paid to the Director for the respective quarter based on
the
average closing price of the Company’s common stock, as quoted on the trading
market on which the Company’s securities are traded, over the thirty (30) day
period prior to the first day of the applicable quarter; and (iii) pursuant
to
the terms and conditions of the Company’s 2006 Stock Plan, grant to the Director
non-qualified options to purchase up to 500,000 shares of the common stock
of
the Company for each three (3) year period that the Director serves on the
Board, which options shall be exercisable within three (3) years from the grant
date and have an exercise price equal to the fair market value on the grant
date. These
options shall vest with respect to 6/36 of the total number of shares granted
(as specified above) on the six month anniversary of the grant date and shall
thereafter vest 1/36 on the first day of each month until all shares underlying
the options have vested.
If the
Director does not serve on the Board of Directors for the entire three (3)
year
period encompassing such options, the total number of options granted to the
Director will be reduced on a pro rata basis to reflect time actually served
on
the Board of Directors. The initial year’s base fee is considered earned when
paid and is nonrefundable. Upon execution of this Agreement, the Company shall
pay to the Director the pro rata portion of the initial year’s base fee and
grant to the Director the initial options described above. Thereafter, payment
shall be due on or before January 1st of
each
succeeding year. Such fee and options may be adjusted from time to time as
agreed by the parties.
4. EXPENSES.
In
addition to the compensation provided in paragraph 3 hereof, the Company will
reimburse Director for pre-approved reasonable business related expenses
incurred in good faith in the performance of Director’s duties for the Company.
Such payments shall be made by the Company upon submission by the Director
of a
signed statement itemizing the expenses incurred. Such statement shall be
accompanied by sufficient documentary matter to support the
expenditures.
5. CONFIDENTIALITY.
The
Company and Director each acknowledge that, in order for the intents and
purposes of this Agreement to be accomplished, Director shall necessarily be
obtaining access to certain confidential information concerning the Company
and
its affairs, including, but not limited to business methods, information
systems, financial data and strategic plans which are unique assets of the
Company (“Confidential Information”). Director covenants not to, either directly
or indirectly, in any manner, utilize or disclose to any person, firm,
corporation, association or other entity any Confidential
Information.
6. NON-COMPETE.
During
the Term and for a period of twenty-four months following the Director’s removal
or resignation from the Board of Directors of the Company or any of its
Subsidiaries or Affiliates (the "Restricted Period"), the Director shall not,
directly or indirectly, (i) in any manner whatsoever engage in any capacity
with
any business competitive with the Company's current lines of business or any
business then engaged in by the Company, any of its Subsidiaries or any of
its
Affiliates (the "Company's Business") for the Director’s own benefit or for the
benefit of any person or entity other than the Company or any Subsidiary or
Affiliate; or (ii) have any interest as owner, sole proprietor, shareholder,
partner, lender, director, officer, manager, employee, consultant, agent or
otherwise in any business competitive with the Company's Business; provided,
however,
that
the Director may hold, directly or indirectly, solely as an investment, not
more
than two percent (2%) of the outstanding securities of any person or entity
which are listed on any national securities exchange or regularly traded in
the
over-the-counter market notwithstanding the fact that such person or entity
is
engaged in a business competitive with the Company's Business. In addition,
during the Restricted Period, the Director shall not develop any property for
use in the Company's Business on behalf of any person or entity other than
the
Company, its Subsidiaries and Affiliates
7. TERMINATION.
With or
without cause, the Company and Director may each terminate this Agreement at
any
time upon ten (10) days written notice, and the Company shall be obligated
to
pay to Director the compensation and expenses due up to the date of the
termination. If the director voluntarily resigns prior to October 1st of any
year after the first year of this agreement, the Company shall be entitled
to
receive, upon written request by the Company, a prorated refund of the portion
of the base fee that relates to the period after the termination date. Such
written request must be submitted within ninety (90) days of the termination
date. Nothing contained herein or omitted herefrom shall prevent the
shareholder(s) of the Company from removing Director with immediate effect
at
any time for any reason.
8. INDEMNIFICATION.
The
Company shall indemnify, defend and hold harmless Director, to the full extent
allowed by the law of the State of Nevada, and as provided by, or granted
pursuant to, any charter provision, bylaw provision, agreement (including,
without limitation, the Indemnification Agreement executed herewith), vote
of
stockholders or disinterested directors or otherwise, both as to action in
Director’s official capacity and as to action in another capacity while holding
such office. The Company and the Director are executing the Indemnification
Agreement in the form attached hereto as Exhibit A.
9. EFFECT
OF WAIVER.
The
waiver by either party of the breach of any provision of this Agreement shall
not operate as or be construed as a waiver of any subsequent breach
thereof.
10. NOTICE.
Any and
all notices referred to herein shall be sufficient if furnished in writing
at
the addresses specified on the signature page hereto or, if to the Company,
to
the Company’s address as specified in filings made by the Company with the U.S.
Securities and Exchange Commission and if by fax to 000.000.0000.
11. GOVERNING
LAW.
This
Agreement shall be interpreted in accordance with, and the rights of the parties
hereto shall be determined by, the laws of the State of Nevada without reference
to that state’s conflicts of laws principles.
12. ASSIGNMENT.
The
rights and benefits of the Company under this Agreement shall be transferable,
and all the covenants and agreements hereunder shall inure to the benefit of,
and be enforceable by or against, its successors and assigns. The duties and
obligations of the Director under this Agreement are personal and therefore
Director may not assign any right or duty under this Agreement without the
prior
written consent of the Company.
13. MISCELLANEOUS.
If any
provision of this Agreement shall be declared invalid or illegal, for any reason
whatsoever, then, notwithstanding such invalidity or illegality, the remaining
terms and provisions of the within Agreement shall remain in full force and
effect in the same manner as if the invalid or illegal provision had not been
contained herein.
14. ARTICLE
HEADINGS.
The
article headings contained in this Agreement are for reference purposes only
and
shall not affect in any way the meaning or interpretation of this
Agreement.
15. COUNTERPARTS.
This
Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one instrument. Facsimile execution and delivery
of
this Agreement is legal, valid and binding for all purposes.
16. ENTIRE
AGREEMENT. Except
as
provided elsewhere herein, this Agreement sets
forth the entire agreement of the parties with respect to
its
subject
matter and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by
any
officer, employee or representative of any party to this
Agreement with respect
to
such
subject matter.
[Signature
Page Follows]
IN
WITNESS WHEREOF, the parties hereto have caused this Independent Director’s
Contract to be duly executed and signed as of the day and year first above
written.
| NOVASTAR RESOURCES LTD. | ||
| |
|
|
| By: | /s/ Seth Grae | |
|
Name: Seth Grae |
||
| Title: CEO and President | ||
| INDEPENDENT DIRECTOR | ||
| |
|
|
| By: | /s/ Xxxx X. Xxxx | |
|
Name: Xxxx X. Xxxx |
||
|
Address:
0000
Xxxx Xxxxx
Xxxxxxx,
Xxxxx 00000
|
||
[Signature
Page to Independent Director’s Contract]
EXHIBIT
A
INDEMNIFICATION
AGREEMENT
This
Indemnification Agreement, dated as of the 23rd day of October, 2006 is made
by
and between NOVASTAR RESOURCES LTD., a Nevada corporation (the "Company"),
and
Xxxx X. Xxxx, an officer or director of the Company (the
“Indemnitee”).
RECITALS
A. The
Company and the Indemnitee recognize that the present state of the law is too
uncertain to provide the Company's officers and directors with adequate and
reliable advance knowledge or guidance with respect to the legal risks and
potential liabilities to which they may become personally exposed as a result
of
performing their duties for the Company;
B. The
Company and the Indemnitee are aware of the substantial growth in the number
of
lawsuits filed against corporate officers and directors in connection with
their
activities in such capacities and by reason of their status as
such;
C. The
Company and the Indemnitee recognize that the cost of defending against such
lawsuits, whether or not meritorious, is typically beyond the financial
resources of most officers and directors of the Company;
D. The
Company and the Indemnitee recognize that the legal risks and potential
liabilities, and the threat thereof, associated with proceedings filed against
the officers and directors of the Company bear no reasonable relationship to
the
amount of compensation received by the Company's officers and
directors;
E. The
Company, after reasonable investigation prior to the date hereof, has determined
that the liability insurance coverage available to the Company as of the date
hereof is inadequate, unreasonably expensive or both. The Company believes,
therefore, that the interest of the Company and its current and future
shareholders would be best served by a combination of (i) such insurance as
the
Company may obtain pursuant to the Company's obligations hereunder and (ii)
a
contract with its officers and directors, including the Indemnitee, to indemnify
them to the fullest extent permitted by law (as in effect on the date hereof,
or, to the extent any amendment may expand such permitted indemnification,
as
hereafter in effect) against personal liability for actions taken in the
performance of their duties to the Company;
F. Section
78.7502 of the Nevada Revised Statutes empowers Nevada corporations to indemnify
their officers and directors and further states that the indemnification
provided by Section 78.7502 shall not be deemed exclusive of any other rights
to
which those seeking
indemnification may be entitled under the articles of incorporation or any
bylaw, agreement, vote of shareholders or disinterested directors or otherwise,
both as to action in an official capacity and as to action in another capacity
while holding such office; thus, Section 78.7502 does not by itself limit the
extent to which the Company may indemnify persons serving as its officers and
directors;
G. The
Company's Articles of Incorporation and Bylaws authorize the indemnification
of
the officers and directors of the Company in excess of that expressly permitted
by Section 78.7502;
H. The
Board
of Directors of the Company has concluded that, to retain and attract talented
and experienced individuals to serve as officers and directors of the Company
and to encourage such individuals to take the business risks necessary for
the
success of the Company, it is necessary for the Company to contractually
indemnify its officers and directors, and to assume for itself liability for
expenses and damages in connection with claims against such officers and
directors in connection with their service to the Company, and has further
concluded that the failure to provide such contractual indemnification could
result in great harm to the Company and its shareholders;
I. The
Company desires and has requested the Indemnitee to serve or continue to serve
as a director or officer of the Company, free from undue concern for the risks
and potential liabilities associated with such services to the Company;
and
J. The
Indemnitee is willing to serve, or continue to serve, the Company, provided,
and
on the expressed condition, that she is furnished with the indemnification
provided for herein.
AGREEMENT
NOW,
THEREFORE, the Company and Indemnitee agree as follows:
1. DEFINITIONS.
(a) “EXPENSES”
means, for the purposes of this Agreement, all direct and indirect costs of
any
type or nature whatsoever (including, without limitation, any fees and
disbursements of Indemnitee's counsel, accountants and other experts and other
out-of-pocket costs) actually and reasonably incurred by the Indemnitee in
connection with the investigation, preparation, defense or appeal of a
Proceeding; provided, however, that Expenses shall not include judgments, fines,
penalties or amounts paid in settlement of a Proceeding.
(b) “PROCEEDING”
means, for the purposes of this Agreement, any threatened, pending or completed
action or proceeding, whether civil, criminal, administrative or investigative
(including an action brought by or in the right of the Company) 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 or officer of the Company,
by
reason of any action taken by her or of any inaction on her part while acting
as
such director or officer or by reason of the fact that she is or was serving
at
the request of the Company as a director, officer, employee or agent of another
foreign or domestic corporation, partnership, joint venture, trust or other
enterprise, or was a director or officer of the foreign or domestic corporation
which was a predecessor corporation to the Company or of another enterprise
at
the request of such predecessor corporation, whether or not she 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.
2. AGREEMENT
TO SERVE.
Indemnitee
agrees to serve or continue to serve as a director or officer of the Company
to
the best of her abilities at the will of the Company or under separate contract,
if such contract exists, for so long as Indemnitee is duly elected or appointed
and qualified or until such time as she tenders her resignation in writing.
Nothing contained in this Agreement is intended to create in Indemnitee any
right to continued employment.
3. INDEMNIFICATION.
(a) THIRD
PARTY PROCEEDINGS. The Company shall indemnify Indemnitee against Expenses,
judgments, fines, penalties or amounts paid in settlement (if the settlement
is
approved in advance by the Company) actually and reasonably incurred by
Indemnitee in connection with a Proceeding (other than a Proceeding by or in
the
right of the Company) if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in the best interests of the Company,
and,
with respect to any criminal action or proceeding, had no reasonable cause
to
believe Indemnitee's conduct was unlawful. The termination of any Proceeding
by
judgment, order, settlement, conviction, or upon a plea of NOLO CONTENDERE
or
its equivalent, shall not, of itself, create a presumption that Indemnitee
did
not act in good faith and in a manner which Indemnitee reasonably believed
to be
in the best interests of the Company, or, with respect to any criminal
Proceeding, had no reasonable cause to believe that Indemnitee's conduct was
unlawful.
(b) PROCEEDINGS
BY OR IN THE RIGHT OF THE COMPANY. To the fullest extent permitted by law,
the
Company shall indemnify Indemnitee against Expenses and amounts paid in
settlement, actually and reasonably incurred by Indemnitee in connection with
a
Proceeding by or in the right of the Company to procure a judgment in its favor
if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed
to be in the best interests of the Company and its shareholders. Notwithstanding
the foregoing, no indemnification shall be made in respect of any claim, issue
or matter as to which Indemnitee shall have been adjudged liable to the Company
in the performance of Indemnitee's duty to the Company and its shareholders
unless and only to the extent that the court in which such action or proceeding
is or was pending shall determine upon application that, in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for expenses and then only to the extent that the court shall
determine.
(c) SCOPE.
Notwithstanding any other provision of this Agreement but subject to SECTION
14(b), the Company shall indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by other provisions of this Agreement, the Company's Articles of
Incorporation, the Company's Bylaws or by statute.
4. LIMITATIONS
ON INDEMNIFICATION.
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 a director may not be relieved of liability under applicable
law;
(b) EXCLUDED
INDEMNIFICATION PAYMENTS. To indemnify or advance Expenses in violation of
any
prohibition or limitation on indemnification under the statutes, regulations
or
rules promulgated by any state or federal regulatory agency having jurisdiction
over the Company.
(c) CLAIMS
INITIATED BY INDEMNITEE. To indemnify or advance Expenses to Indemnitee with
respect to Proceedings or claims initiated or brought voluntarily by Indemnitee
and not by way of defense, except with respect to proceedings brought to
establish or enforce a right to indemnification under this Agreement or any
other statute or law or otherwise as required under Section 78.7502 of the
Nevada Revised Statutes, but such indemnification or advancement of Expenses
may
be provided by the Company in specific cases if the Board of Directors has
approved the initiation or bringing of such suit;
(d) 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;
(e) 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) which have been paid directly
to
or on behalf of Indemnitee by an insurance carrier under a policy of directors'
and officers' liability insurance maintained by the Company or any other policy
of insurance maintained by the Company or Indemnitee;
(f) 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 in
violation of Section 16(b) of the Securities Exchange Act of 1934, as amended,
or any similar successor statute.
5. DETERMINATION
OF RIGHT TO INDEMNIFICATION.
Upon
receipt of a written claim addressed to the Board of Directors for
indemnification pursuant to SECTION 3, the Company shall determine by any of
the
methods set forth in Section 78.751 of the Nevada Revised Statutes whether
Indemnitee has met the applicable standards of conduct which makes it
permissible under applicable law to indemnify Indemnitee. If a claim under
SECTION 3 is not paid in full by the Company within ninety (90) days after
such
written claim has been received by the Company, the Indemnitee may at any time
thereafter bring suit against the Company to recover the unpaid amount of the
claim and, unless such action is dismissed by the court as frivolous or brought
in bad faith, the Indemnitee shall be entitled to be paid also the expense
of
prosecuting such claim. The court in which such action is brought shall
determine whether Indemnitee or the Company shall have the burden of proof
concerning whether Indemnitee has or has not met the applicable standard of
conduct.
6. ADVANCEMENT
AND REPAYMENT OF EXPENSES.
Subject
to SECTION 4 hereof, the Expenses incurred by Indemnitee in defending and
investigating any Proceeding shall be paid by the Company in advance of the
final disposition of such Proceeding within 30 days after receiving from
Indemnitee the copies of invoices presented to Indemnitee for such Expenses,
if
Indemnitee shall provide an undertaking to the Company to repay such amount
to
the extent it is ultimately determined that Indemnitee is not entitled to
indemnification. In determining whether or not to make an advance hereunder,
the
ability of Indemnitee to repay shall not be a factor. Notwithstanding the
foregoing, in a proceeding brought by the Company directly, in its own right
(as
distinguished from an action bought derivatively or by any receiver or trustee),
the Company shall not be required to make the advances called for hereby if
the
Board of Directors determines, in its sole discretion, that it does not appear
that Indemnitee has met the standards of conduct which make it permissible
under
Applicable law to indemnify Indemnitee and the advancement of Expenses would
not
be in the best interests of the Company and its shareholders.
7. PARTIAL
INDEMNIFICATION.
If
the
Indemnitee is entitled under any provision of this Agreement to indemnification
or advancement by the Company of some or a portion of any Expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, penalties, and amounts paid in settlement) incurred by him in the
investigation, defense, settlement or appeal of a Proceeding, but is not
entitled to indemnification or advancement of the total amount thereof, the
Company shall nevertheless indemnify or pay advancements to the Indemnitee
for
the portion of such Expenses or liabilities to which the Indemnitee is entitled.
8. NOTICE
TO
COMPANY BY INDEMNITEE.
Indemnitee
shall notify the Company in writing of any matter with respect to which
Indemnitee intends to seek indemnification hereunder as soon as reasonably
practicable following the receipt by Indemnitee of written notice thereof;
provided, however, that any delay in so notifying the Company shall not
constitute a waiver by Indemnitee of her rights hereunder. The written
notification to the Company shall be addressed to the Board of Directors and
shall include a description of the nature of the Proceeding and the facts
underlying the Proceeding and be accompanied by copies of any documents filed
with the court in which the Proceeding is pending. In addition, Indemnitee
shall
give the Company such information and cooperation as it may reasonably require
and as shall be within Indemnitee's power.
9. MAINTENANCE
OF LIABILITY INSURANCE.
(a) Subject
to SECTION 4 hereof, the Company hereby agrees that so long as Indemnitee shall
continue to serve as a director or officer of the Company and thereafter so
long
as Indemnitee shall be subject to any possible Proceeding, the Company, subject
to SECTION 9(B), shall use reasonable commercial efforts to obtain and maintain
in full force and effect directors' and officers' liability insurance (“D&O
Insurance”) which provides Indemnitee the same rights and benefits as are
accorded to the most favorably insured of the Company's directors, if Indemnitee
is a director; or of the Company's officers, if Indemnitee is not a director
of
the Company but is an officer.
(b) Notwithstanding
the foregoing, the Company shall have no obligation to obtain or maintain
D&O Insurance if the Company determines in good faith that such insurance is
not reasonably available, the premium costs for such insurance are
disproportionate to the amount of coverage provided, the coverage provided
by
such insurance is limited by exclusions so as to provide an insufficient
benefit, or the Indemnitee is covered by similar insurance maintained by a
subsidiary or parent of the Company.
(c) If,
at
the time of the receipt of a notice of a claim pursuant to SECTION 8 hereof,
the
Company has D&O 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 the respective 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 the terms of such policies.
10. DEFENSE
OF CLAIM.
In
the
event that the Company shall be obligated under SECTION 6 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,
upon
the delivery to Indemnitee of written notice of its election to do so. After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees of counsel subsequently incurred
by
Indemnitee with respect to the same Proceeding, provided that (i) Indemnitee
shall have the right to employ her counsel in any such Proceeding at
Indemnitee's expense; and (ii) if (A) the employment of counsel by Indemnitee
has been previously authorized by the Company, or (B) Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the
Company and the Indemnitee in the conduct of such defense or (C) the Company
shall not, in fact, have employed counsel to assume the defense of such
Proceeding, then the fees and expenses of Indemnitee's counsel shall be at
the
expense of the Company.
11. ATTORNEYS'
FEES.
In
the
event that Indemnitee or the Company institutes an action to enforce or
interpret any terms of this Agreement, the Company shall reimburse Indemnitee
for all of the Indemnitee's reasonable fees and expenses in bringing and
pursuing such action or defense, unless as part of such action or defense,
a
court of competent jurisdiction determines that the material assertions made
by
Indemnitee as a basis for such action or defense were not made in good faith
or
were frivolous.
12. CONTINUATION
OF OBLIGATIONS.
All
agreements and obligations of the Company contained herein shall continue during
the period the Indemnitee is a director or officer of the Company, or is or
was
serving at the request of the Company as a director, officer, fiduciary,
employee or agent of another corporation, partnership, joint venture, trust
or
other enterprise, and shall continue thereafter so long as the Indemnitee shall
be subject to any possible proceeding by reason of the fact that Indemnitee
served in any capacity referred to herein.
13. SUCCESSORS
AND ASSIGNS.
This
Agreement establishes contract rights that shall be binding upon, and shall
inure to the benefit of, the successors, assigns, heirs and legal
representatives of the parties hereto.
14. NON-EXCLUSIVITY.
(a) The
provisions for indemnification and advancement of expenses set forth in this
Agreement shall not be deemed to be exclusive of any other rights that the
Indemnitee may have under any provision of law, the Company's Articles of
Incorporation or Bylaws, the vote of the Company's shareholders or disinterested
directors, other agreements or otherwise, both as to action in her official
capacity and action in another capacity while occupying her position as a
director or officer of the Company.
(b) In
the
event of any changes, after the date of this Agreement, in any applicable law,
statute, or rule which expand the right of a Nevada corporation to indemnify
its
officers and directors, the Indemnitee's rights and the Company's obligations
under this Agreement shall be expanded to the full extent permitted by such
changes. In the event of any changes in any applicable law, statute or rule,
which narrow the right of a Nevada corporation to indemnify a director or
officer, 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.
15. EFFECTIVENESS
OF AGREEMENT.
To
the
extent that the indemnification permitted under the terms of certain provisions
of this Agreement exceeds the scope of the indemnification provided for in
the
Nevada Revised Statutes, such provisions shall not be effective unless and
until
the Company's Articles of Incorporation authorize such additional rights of
indemnification. In all other respects, the balance of this Agreement shall
be
effective as of the date set forth on the first page and may apply to acts
of
omissions of Indemnitee which occurred prior to such date if Indemnitee was
an
officer, director, employee or other agent of the Company, 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, at the
time
such act or omission occurred.
16. SEVERABILITY.
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. The provisions
of this Agreement shall be severable as provided in this SECTION 16. If this
Agreement or any portion hereof shall be invalidated on any ground by any court
of competent jurisdiction, then the Company shall nevertheless indemnify
Indemnitee to the full extent permitted by any applicable portion of this
Agreement that shall not have been invalidated, and the balance of this
Agreement not so invalidated shall be enforceable in accordance with its
terms.
17.
GOVERNING LAW.
This
Agreement shall be interpreted and enforced in accordance with the laws of
the
State of Nevada, without reference to its conflict of law principals. To the
extent permitted by applicable law, the parties hereby waive any provisions
of
law which render any provision of this Agreement unenforceable in any respect.
18. NOTICE.
All
notices, requests, demands and other communications under this Agreement shall
be in writing and shall be deemed duly given (i) if delivered by hand and
receipted for by the party addressee or (ii) if mailed by certified or
registered mail with postage prepaid, on the third business day after the
mailing date. Addresses for notice to either party are as shown on the signature
page of this Agreement, or as subsequently modified by written
notice.
19. 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 has undertaken or may be required in the
future to undertake with the appropriate state or federal regulatory agency
to
submit for approval any request for indemnification, and has undertaken or
may
be required in the future to undertake with the Securities and Exchange
Commission to submit the question of indemnification to a court in certain
circumstances for a determination of the Company's right under public policy
to
indemnify Indemnitee.
20. COUNTERPARTS.
This
Agreement may be executed in one or more counterparts, each of which shall
constitute an original.
21. AMENDMENT
AND TERMINATION.
No
amendment, modification, termination or cancellation of this Agreement shall
be
effective unless in writing signed by both parties hereto.
[Signature
Page Follows]
IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year
set forth above.
| COMPANY: | INDEMNITEE: | ||
| NOVASTAR RESOURCES LTD. | |||
| By: /s/ Seth Grae | /s/ Xxxx X. Xxxx | ||
|
Name: SETH GRAE
Title: CHIEF EXECUTIVE OFFICER
|
XXXX X. XXXX |
||
| Address: 0000
Xxxxxxxxxx Xxxxx, Xxxxx 000
XxXxxx,
XX 00000
|
Address: 0000
Xxxx Xxxxx
Xxxxxxx,
Xxxxx 00000
|
[Signature
Page to Indemnification Agreement]
