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EXHIBIT 10.10
INDEMNIFICATION AGREEMENT
THIS AGREEMENT is made this ____ day of March, 2000, by and
between INTERLAND, INC., a Georgia corporation (the "CORPORATION"), and
__________________ (the "INDEMNIFIED PARTY").
WITNESSETH:
WHEREAS, the Indemnified Party currently serves as a director,
officer, or both of the Corporation, and in such capacity is performing a
valuable service; and
WHEREAS, pursuant to the Corporation's Articles of Incorporation and
Bylaws, each as amended to date (collectively the "CHARTER"), the Corporation
may indemnify its directors and officers to the fullest extent authorized by
applicable law; and
WHEREAS, Section 14-2-851 of the Georgia Business Corporation Code, as
amended to date (the "STATE STATUTE"), provides the statutory basis for the
indemnification of directors and officers of a Georgia corporation; and
WHEREAS, in order to induce the Indemnified Party to continue to
serve, the Corporation has determined and agreed to enter into this Agreement
with the Indemnified Party;
NOW, THEREFORE, in consideration of Indemnified Party's continued
service on behalf of the Corporation after the date hereof, the parties hereto
agree as follows:
1. INDEMNITY. The Corporation hereby agrees to hold harmless and
indemnify the Indemnified Party to the fullest extent authorized or permitted
by the provisions of the State Statute with respect to the indemnification of
directors and officers, or by any amendment thereof or other statutory
provision authorizing or permitting such indemnification that is adopted after
the date hereof.
2. ADDITIONAL INDEMNITY. Subject only to the exclusions set forth in
SECTION 3 hereof, the Corporation hereby further agrees to hold harmless and
indemnify Indemnified Party against any and all expenses (including reasonable
attorneys' fees), judgments, fines, and amounts paid in settlement actually and
reasonably incurred by Indemnified Party in connection with any threatened,
pending, or completed action, suit, or proceeding, whether civil, criminal,
administrative, or investigative (including an action by or in the right of the
Corporation) to which Indemnified Party is, was or at any time becomes a party,
or is threatened to be made a party, by reason of the fact that Indemnified
Party is, was or at any time becomes a director, officer, employee, or agent of
the Corporation, or is or was serving or at any time serves at the request of
the Corporation as a director, officer, employee, or agent of another
corporation, partnership, joint venture, trust or other enterprise.
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3. LIMITATIONS ON ADDITIONAL INDEMNITY. No indemnity pursuant to
SECTIONS 1 or 2 hereof shall be paid by the Corporation:
(a) In respect of expenses, judgments, fines, and settlement
amounts to the extent attributable to remuneration paid or other financial
benefit provided to the Indemnified Party by the Corporation if it shall be
determined by a final judgment or other final adjudication that such
remuneration or financial benefit was paid or provided in violation of the
Indemnified Party's duties and obligations to the Corporation;
(b) On account of any suit in which judgment is rendered
against Indemnified Party for an accounting of profits, made from the purchase
or sale by the Indemnified Party of securities of the Corporation, pursuant to
the provisions of Section 16(b) of the Securities Exchange Act of 1934, as
amended, or similar provisions of any federal or state law, or on account of
any payment by the Indemnified Party to the Corporation in respect of any claim
for such accounting;
(c) On account of the Indemnified Party's conduct if it shall
be determined by a final judgment or other final adjudication to have been
knowingly fraudulent, deliberately dishonest, or grossly negligent, or to have
constituted willful misconduct; or
(d) If a final decision by a court having jurisdiction in the
matter shall determine that such indemnification is not lawful.
4. CONTRIBUTION. (a) If the indemnification provided in SECTIONS 1 OR
2 is unavailable and may not be paid to the Indemnified Party for any reason
(other than pursuant to SECTIONS 3(a), (b), (c) AND (d)), then in respect of
any threatened, pending, or completed action, suit, or proceeding in which the
Corporation is jointly liable with the Indemnified Party (or would be if joined
in such action, suit, or proceeding), the Corporation shall contribute to the
amount of expenses, judgments, fines, penalties, and settlements paid or
payable by the Indemnified Party in such proportion as is appropriate to
reflect (i) the relative benefits received by the Corporation on the one hand
and the Indemnified Party on the other from the transaction from which such
action, suit, or proceeding arose, and (ii) the relative fault of the
Corporation on the one hand and of the Indemnified Party on the other in
connection with the events that resulted in such expenses, judgments, fines,
penalties, or settlement amounts, as well as any other relevant equitable
considerations. The relative fault of the Corporation on the one hand and of
the Indemnified Party on the other shall be determined by reference to, among
other things, the parties' relative intent, knowledge, access to information,
and opportunity to correct or prevent the circumstances resulting in such
expenses, judgments, fines, penalties, or settlement amounts. The Corporation
agrees that it would not be just and equitable if contribution pursuant to this
SECTION 4 were determined by pro rata allocation or any other method of
allocation that does not take account of the foregoing equitable
considerations.
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(b) The determination as to the amount of the contribution, if
any, shall be made by: (i) a court of competent jurisdiction upon the
application of both the Indemnified Party and the Corporation (if an action or
suit had been brought in, and final determination had been rendered by, such
court); (ii) the Board of Directors by a majority vote of a quorum consisting
of directors who were not parties to such action, suit, or proceeding; or (iii)
regular outside counsel of the Corporation, if a quorum is not obtainable for
purposes of clause (ii) above, or, even if obtainable, if a quorum of
disinterested directors so directs.
5. CONTINUATION OF OBLIGATIONS. All agreements and obligations of the
Corporation contained herein shall continue during the period the Indemnified
Party is a director, officer, employee, or agent of the Corporation (or is
serving at the request of the Corporation as a director, officer, employee, or
agent of another corporation, partnership, joint venture, trust, employee
benefit plan, or other enterprise), and shall continue thereafter for so long
as the Indemnified Party shall be subject to any possible claim or threatened,
pending, or completed action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, by reason of the fact that the Indemnified
Party was serving in any such capacity on behalf of the Corporation.
6. ADVANCEMENT OF EXPENSES. Expenses (including attorneys' fees),
judgments, fines, penalties, and amounts paid in settlement actually and
reasonably incurred by the Indemnified Party with respect to any action, suit,
or proceeding referred to in SECTIONS 1 or 2 shall be advanced by the
Corporation prior to the time of the disposition of such action, suit, or
proceeding promptly upon the receipt of a (a) written affirmation from the
Indemnified Party of his good faith belief that he is entitled to be
indemnified by the Corporation for such expenses, judgments, fines, penalties,
or amounts paid in settlement under the provisions of the State Statute, the
Charter, this Agreement, or otherwise, and (b) written undertaking to return
promptly any amounts advanced hereunder if it shall ultimately be determined
that the Indemnified Party is not entitled to indemnification from the
Corporation for such amounts under the provisions of the State Statute, the
Charter, this Agreement, or otherwise.
7. NOTIFICATION AND DEFENSE OF CLAIM. Promptly after receipt by the
Indemnified Party of notice of the commencement of any action, suit, or
proceeding, the Indemnified Party will, if a claim in respect thereof is to be
made against the Corporation under this Agreement, notify the Corporation of
the commencement thereof, but the failure to notify the Corporation will not
relieve it from any liability that it may have to the Indemnified Party
otherwise than under this Agreement. With respect to any such action, suit, or
proceeding as to which the Indemnified Party so notifies the Corporation:
(a) The Corporation will be entitled to participate at its
own expense;
(b) Except as otherwise provided below, the Corporation may
assume the defense thereof, with counsel reasonably satisfactory to the
Indemnified Party. After notice from the Corporation to the Indemnified Party
of its election to assume such defense, the Corporation will not be liable to
the Indemnified Party under this Agreement for any legal or other expenses
subsequently incurred by the Indemnified Party in connection with the defense
thereof, other than reasonable costs of investigation or as otherwise provided
below. The Indemnified Party shall have
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the right to employ its own counsel in such action, suit, or proceeding, but
the fees and expenses of such counsel incurred after notice from the
Corporation of its assumption of the defense thereof shall be at the expense of
the Indemnified Party, unless (i) the employment of counsel by the Indemnified
Party has been authorized by the Corporation, (ii) counsel to the Indemnified
Party shall have reasonably concluded that there may be a conflict of interest
between the Corporation and the Indemnified Party in the conduct of the defense
of such action and has advised the Indemnified Party in writing that such a
conflict of interest exists, or (iii) the Corporation shall not in fact have
employed counsel to assume the defense of such action, in each of which cases
the fees and expenses of counsel for the Indemnified Party shall be at the
expense of the Corporation. The Corporation shall not be entitled to assume the
defense of any action, suit, or proceeding brought by or on behalf of the
Corporation or as to which the Indemnified Party shall have made the conclusion
provided for in clause (ii) above; and
(c) The Corporation shall have no obligation to indemnify the
Indemnified Party under this Agreement for any amounts paid in settlement of
any action or claim effected without the Corporation's prior written consent.
The Corporation shall not settle any action or claim in any manner that would
impose any penalty or limitation on the Indemnified Party without the
Indemnified Party's prior written consent. Neither the Corporation nor the
Indemnified Party will unreasonably withhold their consent to any proposed
settlement.
8. REPAYMENT OF EXPENSES. The Indemnified Party agrees to reimburse
the Corporation for all reasonable expenses, judgments, fines, penalties, and
settlement amounts paid by the Corporation in defending any civil, criminal,
administrative, or investigative action, suit, or proceeding against the
Indemnified Party or advanced by the Corporation to the Indemnified Party in
such event, but only to the extent that it shall be ultimately determined that
the Indemnified Party is not entitled to be indemnified by the Corporation for
such expenses, judgments, fines, penalties, or amounts paid in settlement under
the provisions of the State Statute, the Charter, this Agreement, or otherwise.
9. ENFORCEMENT. (a) The Corporation expressly confirms and agrees that
it has entered into this Agreement and assumed the obligations imposed on it
hereby in order to induce the Indemnified Party to continue to serve on behalf
of the Corporation, and acknowledges that the Indemnified Party is relying upon
this Agreement in continuing to serve in such capacity.
(b) If the Indemnified Party is required to bring any action
to enforce rights or to collect moneys due under this Agreement and is
successful in such action, then the Corporation shall reimburse the Indemnified
Party for all of the Indemnified Party's reasonable fees and expenses in
bringing and pursuing such action.
10. SEVERABILITY. Each of the provisions of this Agreement is a
separate and distinct agreement and independent of the others, so that if any
provision hereof shall be held to be invalid or unenforceable in whole or in
part for any reason, such invalidity or unenforceability shall not affect the
validity or enforceability of the other provisions hereof.
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11. GENERAL AND MISCELLANEOUS. (a) This Agreement shall be governed by
and construed and enforced in accordance with the laws of the State of Georgia,
without regard to its conflicts of laws rules.
(b) This Agreement shall be binding upon the Indemnified
Party, his heirs, personal representative, and assigns and upon the Corporation
and its successors and assigns, and shall inure to the benefit of and be
enforceable by the Indemnified Party, his heirs, personal representatives, and
assigns, and by the Corporation and its successors and assigns.
(c) No amendment, modification, termination, or cancellation
of this Agreement shall be effective unless in a writing signed by both parties
hereto.
12. NO DUPLICATION OF PAYMENTS. The Corporation shall not be liable
under this Agreement to make any payment to the extent the Indemnified Party
has otherwise actually received payment (under any insurance policy, Charter
provision, or otherwise) of the amounts otherwise indemnifiable hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
and as of the day and year first above written.
CORPORATION:
INTERLAND, INC.
By:
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Xxxxxxx Xxxxxxxxxx,
President and Chief Executive Officer
INDEMNIFIED PARTY:
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