.
.
.
EXHIBIT 10.1
The following directors have executed Indemnification Agreements, a
form of which follows, with Carmike Cinemas, Inc. as of the dates indicated
below:
DIRECTOR DATE EXECUTED
-------- -------------
Xxxxxxxxx X. Xxxxxxxxxx 11/13/2003
Xxxxxxx X. Xxxxxxxx 11/13/2003
Xxxx X. Xxxxxxxxxxx 11/13/2003
Xxxx X. Xxxxxx XX 11/13/2003
S. Xxxxx Xxxxxxx III 11/13/2003
Xxxx X. Xxxxxxx, Xx. 11/13/2003
Xxxxxxx X. Xxxxxxx 11/13/2003
Xxxxxxx X. Xxxxxxxxxx 11/13/2003
Xxxxxx X. Xxxxx 11/13/2003
Xxxxxxxx X. Xxxxxx 4/1/2004
Xxxxx X. Xxxxxxxxx 11/13/2003
INDEMNIFICATION AGREEMENT
INDEMNIFICATION AGREEMENT, made and executed this _____ day of _______,
____, by and between CARMIKE CINEMAS, INC., a Delaware corporation (the
"Company"), and _________________, an individual resident of the State of
______________ (the "Indemnitee").
WHEREAS, the Company is aware that, in order to induce highly competent
persons to serve the Company as directors or officers or in other capacities,
the Company must provide such persons with adequate protection through insurance
and indemnification against inordinate risks of claims and actions against them
arising out of their service to and activities on behalf of the Company;
WHEREAS, the Company recognizes that the increasing difficulty in
obtaining directors' and officers' liability insurance, the increases in the
cost of such insurance and the general reductions in the coverage of such
insurance have increased the difficulty of attracting and retaining such
persons;
WHEREAS, the Board of Directors of the Company has determined that it
is essential to the best interests of the Company's stockholders that the
Company act to assure such persons that there will be increased certainty of
such protection in the future;
WHEREAS, it is reasonable, prudent and necessary for the Company
contractually to obligate itself to indemnify such persons to the fullest extent
permitted by applicable law so that they will 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
take on additional service for or on behalf of the Company on the condition that
he/she be so indemnified.
NOW, THEREFORE, in consideration of the premises and the mutual
promises and covenants contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and Indemnitee do hereby agree as follows:
1. SERVICE BY THE INDEMNITEE. The Indemnitee agrees to serve
and/or continue to serve as a director or officer of the Company faithfully and
will discharge his/her duties and responsibilities to the best of his/her
ability so long as the Indemnitee is duly elected or qualified in accordance
with the provisions of the Amended and Restated Certificate of Incorporation, as
amended (the "Certificate"), and Amended and Restated By-laws, as amended (the
"By-laws") of the Company and the General Corporation Law of the State of
Delaware, as amended (the "DGCL"), or until his/her earlier death, resignation
or removal. The Indemnitee may at any time and for any reason resign from such
position (subject to any other contractual obligation or other obligation
imposed by operation by law), in which event the Company shall have no
obligation under this Agreement to continue the Indemnitee in any such position.
Nothing in this Agreement shall confer upon the Indemnitee the right to continue
in the employ of the Company or as a director of the Company or affect the right
of the Company to terminate the Indemnitee's
-2-
employment at any time in the sole discretion of the Company, with or without
cause, subject to any contract rights of the Indemnitee created or existing
otherwise than under this Agreement.
2. INDEMNIFICATION. The Company shall indemnify the Indemnitee
against all Expenses (as defined below), judgments, fines and amounts paid in
settlement actually and reasonably incurred by the Indemnitee as provided in
this Agreement to the fullest extent permitted by the Certificate, By-laws and
DGCL or other applicable law in effect on the date of this Agreement and to any
greater extent that applicable law may in the future from time to time permit.
Without diminishing the scope of the indemnification provided by this Section 2,
the rights of indemnification of the Indemnitee provided hereunder shall
include, but shall not be limited to, those rights hereinafter set forth, except
that no indemnification shall be paid to the Indemnitee:
(a) on account of any suit in which judgment is rendered
against the Indemnitee for disgorgement of profits made from the
purchase or sale by the Indemnitee of securities of the Company
pursuant to the provisions of Section 16(b) of the Securities Exchange
Act of 1934, as amended (the "Act"), or similar provisions of any
federal, state or local statutory law;
(b) on account of conduct of the Indemnitee which is
finally adjudged by a court of competent jurisdiction to have been
knowingly fraudulent or to constitute willful misconduct;
(c) in any circumstance where such indemnification is
expressly prohibited by applicable law;
(d) with respect to liability for which payment is
actually made to the Indemnitee under a valid and collectible insurance
policy or under a valid and enforceable indemnity clause, By-law or
agreement (other than this Agreement), except in respect of any
liability in excess of payment under such insurance, clause, By-law or
agreement;
(e) if a final decision by a court having jurisdiction in
the matter shall determine that such indemnification is not lawful
(and, in this respect, both the Company and the Indemnitee have been
advised that it is the position of the Securities and Exchange
Commission that indemnification for liabilities arising under the
federal securities laws is against public policy and is, therefore,
unenforceable, and that claims for indemnification should be submitted
to the appropriate court for adjudication); or
(f) in connection with any proceeding by the Indemnitee
against the Company or its directors, officers, employees or other
Indemnitees, (i) unless such indemnification is expressly required to
be made by law, (ii) unless the proceeding was authorized by the Board
of Directors of the Company, (iii) unless such indemnification is
provided by the Company, in its sole discretion, pursuant to the powers
vested in the Company under applicable law, or (iv) except as provided
in Sections 11 and 13 hereof.
-3-
3. ACTIONS OR PROCEEDINGS OTHER THAN AN ACTION BY OR IN THE RIGHT
OF THE COMPANY. The Indemnitee shall be entitled to the indemnification rights
provided in this Section 3 if the Indemnitee was or is a party or is threatened
to be a party to any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative in nature,
other than an action by or in the right of the Company, by reason of the fact
that the Indemnitee is or was a director, officer, employee, agent or fiduciary
of the Company, or is or was serving at the request of the Company as a
director, officer, employee, agent or fiduciary of any other entity, including,
but not limited to, another corporation, partnership, limited liability company,
employee benefit plan, joint venture, trust or other enterprise, or by reason of
any act or omission by him/her in such capacity. Pursuant to this Section 3, the
Indemnitee shall be indemnified against all Expenses, judgments, penalties
(including excise and similar taxes), fines and amounts paid in settlement which
were actually and reasonably incurred by the Indemnitee in connection with such
action, suit or proceeding (including, but not limited to, the investigation,
defense or appeal thereof), if the Indemnitee acted in good faith and in a
manner the Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his/her conduct was unlawful.
4. ACTIONS BY OR IN THE RIGHT OF THE COMPANY. The Indemnitee
shall be entitled to the indemnification rights provided in this Section 4 if
the Indemnitee was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding brought by or in the
right of the Company to procure a judgment in its favor by reason of the fact
that the Indemnitee is or was a director, officer, employee, agent or fiduciary
of the Company, or is or was serving at the request of the Company as a
director, officer, employee, agent or fiduciary of another entity, including,
but not limited to, another corporation, partnership, limited liability company,
employee benefit plan, joint venture, trust or other enterprise, or by reason of
any act or omission by him/her in any such capacity. Pursuant to this Section 4,
the Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by him/her in connection with the defense or settlement of such action,
suit or proceeding (including, but not limited to the investigation, defense or
appeal thereof), if the Indemnitee acted in good faith and in a manner the
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company; provided however, that no such indemnification shall be made in
respect of any claim, issue, or matter as to which the Indemnitee shall have
been adjudged to be liable to the Company, unless and only to the extent that
the Court of Chancery of the State of Delaware or the court in which such
action, suit or proceeding was brought shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, the Indemnitee is fairly and reasonably entitled to be indemnified
against such Expenses actually and reasonably incurred by him/her which such
court shall deem proper.
5. GOOD FAITH DEFINITION. For purposes of this Agreement, the
Indemnitee shall be deemed to have acted in good faith and in a manner the
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company, or, with respect to any criminal action or proceeding to have had
no reasonable cause to believe the Indemnitee's conduct was unlawful, if such
action was based on (i) the records or books of the accounts of the Company or
other enterprise, including financial statements; (ii) information supplied to
the Indemnitee by the officers of the Company or other enterprise in the course
of their duties; (iii) the advice of legal counsel for the Company or other
enterprise; or (iv) information or records given in reports made
-4-
to the Company or other enterprise by an independent certified public accountant
or by an appraiser or other expert selected with reasonable care by the Company
or other enterprise.
6. INDEMNIFICATION FOR EXPENSES OF SUCCESSFUL PARTY.
Notwithstanding the other provisions of this Agreement, to the extent that the
Indemnitee has served on behalf of the Company as a witness or other participant
in any class action or proceeding, or has been successful, on the merits or
otherwise, in defense of any action, suit or proceeding referred to in Section 3
and 4 hereof, or in defense of any claim, issue or matter therein, including,
but not limited to, the dismissal of any action without prejudice, the
Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by the Indemnitee in connection therewith, regardless of whether or not
the Indemnitee has met the applicable standards of Section 3 or 4 and without
any determination pursuant to Section 8.
7. PARTIAL INDEMNIFICATION. If the Indemnitee is entitled under
any provision of this Agreement to indemnification by the Company for some or a
portion of the Expenses, judgments, fines and amounts paid in settlement
actually and reasonably incurred by the Indemnitee in connection with the
investigation, defense, appeal or settlement of such suit, action, investigation
or proceeding described in Section 3 or 4 hereof, but is not entitled to
indemnification for the total amount thereof, the Company shall nevertheless
indemnify the Indemnitee for the portion of such Expenses, judgments, penalties,
fines and amounts paid in settlement actually and reasonably incurred by the
Indemnitee to which the Indemnitee is entitled.
8. PROCEDURE FOR DETERMINATION OF ENTITLEMENT TO INDEMNIFICATION.
(a) To obtain indemnification under this Agreement, Indemnitee shall submit to
the Company a written request, including documentation and information which is
reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification. The
Secretary of the Company shall, promptly upon receipt of a request for
indemnification, advise the Board of Directors in writing that Indemnitee has
requested indemnification. Any Expenses incurred by the Indemnitee in connection
with the Indemnitee's request for indemnification hereunder shall be borne by
the Company. The Company hereby indemnifies and agrees to hold the Indemnitee
harmless for any Expenses incurred by Indemnitee under the immediately preceding
sentence irrespective of the outcome of the determination of the Indemnitee's
entitlement to indemnification.
(b) Upon written request by the Indemnitee for indemnification
pursuant to Section 3 or 4 hereof, the entitlement of the Indemnitee to
indemnification pursuant to the terms of this Agreement shall be determined by
the following person or persons, who shall be empowered to make such
determination: (i) if a Change in Control (as hereinafter defined) shall have
occurred, by Independent Counsel (as hereinafter defined) (unless the Indemnitee
shall request in writing that such determination be made by the Board of
Directors (or a committee thereof) in the manner provided for in clause (ii) of
this Section 8(b)) in a written opinion to the Board of Directors, a copy of
which shall be delivered to the Indemnitee; or (ii) if a Change in Control shall
not have occurred, (A)(1) by the Board of Directors of the Company, by a
majority vote of Disinterested Directors (as hereinafter defined) even though
less than a quorum, or (2) by a committee of Disinterested Directors designated
by majority vote of Disinterested Directors, even though less than a quorum, or
(B) if there are no such Disinterested Directors or, even if
-5-
there are such Disinterested Directors, if the Board of Directors, by the
majority vote of Disinterested Directors, so directs, by Independent Counsel in
a written opinion to the Board of Directors, a copy of which shall be delivered
to the Indemnitee. Such Independent Counsel shall be selected by the Board of
Directors and approved by the Indemnitee. Upon failure of the Board of Directors
to so select, or upon failure of the Indemnitee to so approve, such Independent
Counsel shall be selected by the Chancellor of the State of Delaware or such
other person as the Chancellor shall designate to make such selection. Such
determination of entitlement to indemnification shall be made not later than 45
days after receipt by the Company of a written request for indemnification. If
the person making such determination shall determine that the Indemnitee is
entitled to indemnification as to part (but not all) of the application for
indemnification, such person shall reasonably prorate such part of
indemnification among such claims, issues or matters. If it is so determined
that Indemnitee is entitled to indemnification, payment to Indemnitee shall be
made within ten days after such determination.
9. PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS. (a) In making
a determination with respect to entitlement to indemnification, the Indemnitee
shall be presumed to be entitled to indemnification hereunder and the Company
shall have the burden of proof in the making of any determination contrary to
such presumption.
(b) If the Board of Directors, or such other person or persons
empowered pursuant to Section 8 to make the determination of whether Indemnitee
is entitled to indemnification, shall have failed to make a determination as to
entitlement to indemnification within 45 days after receipt by the Company of
such request, the requisite determination of entitlement to indemnification
shall be deemed to have been made and the Indemnitee shall be absolutely
entitled to such indemnification, absent actual and material fraud in the
request for indemnification or a prohibition of indemnification under applicable
law. The termination of any action, suit, investigation or proceeding described
in Section 3 or 4 hereof 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 the Indemnitee did not act in good faith and in a manner which
he/she reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action or proceeding, that the
Indemnitee has reasonable cause to believe that the Indemnitee's conduct was
unlawful; or (b) otherwise adversely affect the rights of the Indemnitee to
indemnification, except as may be provided herein.
10. ADVANCEMENT OF EXPENSES. All reasonable Expenses actually
incurred by the Indemnitee in connection with any threatened or pending action,
suit or proceeding shall be paid by the Company in advance of the final
disposition of such action, suit or proceeding, if so requested by the
Indemnitee, within 20 days after the receipt by the Company of a statement or
statements from the Indemnitee requesting such advance or advances. The
Indemnitee may submit such statements from time to time. The Indemnitee's
entitlement to such Expenses shall include those incurred in connection with any
proceeding by the Indemnitee seeking an adjudication or award in arbitration
pursuant to this Agreement. Such statement or statements shall reasonably
evidence the Expenses incurred by the Indemnitee in connection therewith and
shall include or be accompanied by a written affirmation by Indemnitee of
Indemnitee's good faith belief that Indemnitee has met the standard of conduct
necessary for indemnification under this Agreement and an undertaking by or on
behalf of the Indemnitee to repay such amount if it
-6-
is ultimately determined that the Indemnitee is not entitled to be indemnified
against such Expenses by the Company pursuant to this Agreement or otherwise.
Each written undertaking to pay amounts advanced must be an unlimited general
obligation but need not be secured, and shall be accepted without reference to
financial ability to make repayment.
11. REMEDIES OF THE INDEMNITEE IN CASES OF DETERMINATION NOT TO
INDEMNIFY OR TO ADVANCE EXPENSES. In the event that a determination is made that
the Indemnitee is not entitled to indemnification hereunder or if the payment
has not been timely made following a determination of entitlement to
indemnification pursuant to Sections 8 and 9, or if Expenses are not advanced
pursuant to Section 10, the Indemnitee shall be entitled to a final adjudication
in an appropriate court of the State of Delaware or any other court of competent
jurisdiction of the Indemnitee's entitlement to such indemnification or advance.
Alternatively, the Indemnitee may, at the Indemnitee's option, seek an award in
arbitration to be conducted by a single arbitrator pursuant to the rules of the
American Arbitration Association, such award to be made within 60 days following
the filing of the demand for arbitration. The Company shall not oppose the
Indemnitee's right to seek any such adjudication or award in arbitration or any
other claim. Such judicial proceeding or arbitration shall be made de novo, and
the Indemnitee shall not be prejudiced by reason of a determination (if so made)
that the 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 Section 9
hereof that the Indemnitee is entitled to indemnification, the Company shall be
bound by such determination and shall be 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. The Company
further agrees to stipulate in any such court or before any such arbitrator that
the Company 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 the Indemnitee is entitled to any indemnification hereunder, the
Company shall pay all reasonable Expenses actually incurred by the Indemnitee in
connection with such adjudication or award in arbitration (including, but not
limited to, any appellate proceedings).
12. NOTIFICATION AND DEFENSE OF CLAIM. Promptly after receipt by
the Indemnitee of notice of the commencement of any action, suit or proceeding,
the Indemnitee will, if a claim in respect thereof is to be made against the
Company under this Agreement, notify the Company in writing of the commencement
thereof; but the omission to so notify the Company will not relieve the Company
from any liability that it may have to the Indemnitee otherwise than under this
Agreement or otherwise, except to the extent that the Company may suffer
material prejudice by reason of such failure. Notwithstanding any other
provision of this Agreement, with respect to any such action, suit or proceeding
as to which the Indemnitee gives notice to the Company of the commencement
thereof:
(a) The Company will be entitled to participate therein
at its own expense.
(b) Except as otherwise provided in this Section 12(b),
to the extent that it may wish, the Company, jointly with any other
indemnifying party similarly notified, shall be entitled to assume the
defense thereof with counsel reasonably satisfactory to the Indemnitee.
After notice from the Company to the Indemnitee of its election to so
assume the defense thereof, the Company shall not
-7-
be liable to the Indemnitee under this Agreement for any legal or other
Expenses subsequently incurred by the Indemnitee in connection with the
defense thereof other than reasonable costs of investigation or as
otherwise provided below. The Indemnitee shall have the right to employ
the Indemnitee's own counsel in such action or lawsuit, but the fees
and Expenses of such counsel incurred after notice from the Company of
its assumption of the defense thereof shall be at the expense of the
Indemnitee unless (i) the employment of counsel by the Indemnitee has
been authorized by the Company, (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between
the Company and the Indemnitee in the conduct of the defense of such
action and such determination by the Indemnitee shall be supported by
an opinion of counsel, which opinion shall be reasonably acceptable to
the Company, or (iii) the Company shall not in fact have employed
counsel to assume the defense of the action, in each of which cases the
fees and Expenses of counsel shall be at the expense of the Company.
The Company shall not be entitled to assume the defense of any action,
suit or proceeding brought by or on behalf of the Company or as to
which the Indemnitee shall have reached the conclusion provided for in
clause (ii) above.
(c) The Company shall not be liable to indemnify the
Indemnitee under this Agreement for any amounts paid in settlement of
any action or claim effected without its written consent, which consent
shall not be unreasonably withheld. The Company shall not be required
to obtain the consent of Indemnitee to settle any action or claim which
the Company has undertaken to defend if the Company assumes full and
sole responsibility for such settlement and such settlement grants
Indemnitee a complete and unqualified release in respect of potential
liability.
(d) If, at the time of the receipt of a notice of a claim
pursuant to this Section 12, 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 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 the policies.
13. OTHER RIGHT TO INDEMNIFICATION. The indemnification and
advancement of Expenses provided by this Agreement are cumulative, and not
exclusive, and are in addition to any other rights to which the Indemnitee may
now or in the future be entitled under any provision of the By-laws or
Certificate of the Company, any vote of stockholders or Disinterested Directors,
any provision of law or otherwise. Except as required by applicable law, the
Company shall not adopt any amendment to its By-laws or Certificate the effect
of which would be to deny, diminish or encumber the Indemnitee's right to
indemnification under this Agreement.
14. DIRECTOR AND OFFICER LIABILITY INSURANCE. The Company shall,
from time to time, make the good faith determination whether or not it is
practicable for the Company to obtain and maintain a policy or policies of
insurance with reputable insurance companies
-8-
providing the officers and directors of the Company with coverage for losses
from wrongful acts, or to ensure the Company's performance of its
indemnification obligations under this Agreement. Among other considerations,
the Company will weigh the costs of obtaining such insurance coverage against
the protection afforded by such coverage. In the event the Company maintains
directors' and officers' liability insurance, the Indemnitee shall be named as
an insured in such manner as to provide the Indemnitee the same rights and
benefits as are accorded to the most favorably insured of the Company's officers
or directors. However, the Company agrees that the provisions hereof shall
remain in effect regardless of whether liability or other insurance coverage is
at any time obtained or retained by the Company; except that any payments made
to, or on behalf of, the Indemnitee under an insurance policy shall reduce the
obligations of the Company hereunder. Notwithstanding the foregoing, the Company
shall have no obligation to obtain or maintain such insurance if the Company
determines in good faith that such insurance is not reasonably available, if the
premium costs for such insurance are disproportionate to the amount of coverage
provided or if the coverage provided by such insurance is limited by exclusions
so as to provide an insufficient benefit.
15. SPOUSAL INDEMNIFICATION. The Company will indemnify the
Indemnitee's spouse to whom the Indemnitee is legally married at any time the
Indemnitee is covered under the indemnification provided in this Agreement (even
if Indemnitee did not remain married to him or her during the entire period of
coverage) against any pending or threatened action, suit, proceeding or
investigation for the same period, to the same extent and subject to the same
standards, limitations, obligations and conditions under which the Indemnitee is
provided indemnification herein, if the Indemnitee's spouse (or former spouse)
becomes involved in a pending or threatened action, suit, proceeding or
investigation solely by reason of his or her status as Indemnitee's spouse,
including, without limitation, any pending or threatened action, suit,
proceeding or investigation that seeks damages recoverable from marital
community property, jointly-owned property or property purported to have been
transferred from the Indemnitee to his/her spouse (or former spouse). The
Indemnitee's spouse or former spouse also may be entitled to advancement of
Expenses to the same extent that Indemnitee is entitled to advancement of
Expenses herein. The Company may maintain insurance to cover its obligation
hereunder with respect to Indemnitee's spouse (or former spouse) or set aside
assets in a trust or escrow fund for that purpose.
16. INTENT. This Agreement is intended to be broader than any
be in addition to any other rights Indemnitee may have under the Company's
Certificate, By-laws, applicable law or otherwise. To the extent that a change
in applicable law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the
Company's Certificate, By-laws, applicable law or this Agreement, it is the
intent of the parties that Indemnitee enjoy by this Agreement the greater
benefits so afforded by such change.
17. ATTORNEY'S FEES AND OTHER EXPENSES TO ENFORCE AGREEMENT. In
the event that the 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 the Indemnitee's rights under,
or to recover damages for breach of, this Agreement the Indemnitee, if he/she
prevails in whole or in part in such action, shall be entitled to recover from
-9-
the Company and shall be indemnified by the Company against any actual expenses
for attorneys' fees and disbursements reasonably incurred by the Indemnitee.
18. EFFECTIVE DATE. The provisions of this Agreement shall cover
claims, actions, suits or proceedings whether now pending or hereafter commenced
and shall be retroactive to cover acts or omissions or alleged acts or omissions
which heretofore have taken place. The Company shall be liable under this
Agreement, pursuant to Sections 3 and 4 hereof, for all acts of the Indemnitee
while serving as a director and/or officer, notwithstanding the termination of
the Indemnitee's service, if such act was performed or omitted to be performed
during the term of the Indemnitee's service to the Company.
19. DURATION OF AGREEMENT. This Agreement shall survive and
continue even though the Indemnitee may have terminated his/her service as a
director, officer, employee, agent or fiduciary of the Company or as a director,
officer, employee, agent or fiduciary of any other entity, including, but not
limited to another corporation, partnership, limited liability company, employee
benefit plan, joint venture, trust or other enterprise or by reason of any act
or omission by the Indemnitee in any such capacity. This Agreement shall be
binding upon the Company and its successors and assigns, including, without
limitation, any corporation or other entity which may have acquired all or
substantially all of the Company's assets or business or into which the Company
may be consolidated or merged, and shall inure to the benefit of the Indemnitee
and his/her spouse, successors, assigns, heirs, devisees, executors,
administrators or other legal representations. The Company shall require any
successor or assignee (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company, by written agreement in form and substance reasonably
satisfactory to the Company and the Indemnitee, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession or assignment had
taken place.
20. DISCLOSURE OF PAYMENTS. Except as expressly required by any
Federal or state securities laws or other Federal or state law, neither party
shall disclose any payments under this Agreement unless prior approval of the
other party is obtained.
21. SEVERABILITY. If any provision or provisions of this Agreement
shall be held invalid, illegal or unenforceable for any reason whatsoever, (a)
the validity, legality and enforceability of the remaining provisions of this
Agreement (including, but not limited to, all portions of any Sections of this
Agreement containing any such provision held to be invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and (b) to
the fullest extent possible, the provisions of this Agreement (including, but
not limited to, 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 manifest by the provision held invalid, illegal or
unenforceable.
22. COUNTERPARTS. This Agreement may be executed by 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
-10-
whom enforceability is sought shall be required to be produced to evidence the
existence of this Agreement.
23. CAPTIONS. The captions and headings used in this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this
Agreement or to affect the construction thereof.
24. DEFINITIONS. For purposes of this Agreement:
(a) "Change in Control" shall mean:
(i) a "change in control" of the Company of a
nature that would be required to be reported
in response to Item 6(e) of Schedule 14A for
a proxy statement filed under Section 14(a)
of the Act as in effect on the date of this
Agreement;
(ii) a "person" (as that term is used in 14(d)(2)
of the Act) who becomes the beneficial owner
(as defined in Rule 13d-3 under the Act)
directly or indirectly of securities
representing 45% or more of the combined
voting power for election of directors of
the then outstanding securities of the
Company unless (1) such person is a
signatory to the Stockholders' Agreement and
(2) such person becomes such a beneficial
owner of such securities as a result of a
transaction with one, or more than one,
other person who is also a signatory to the
Stockholders' Agreement;
(iii) the individuals who at the beginning of any
period of two consecutive years or less
(starting on or after the date of this
Agreement) constitute the Company's Board of
Directors cease for any reason during such
period to constitute at least a majority of
the Company's Board of Directors, unless the
election or nomination for election of each
new member of the Board of Directors was
approved in advance by vote of at least
two-thirds of the members of such Board of
Directors then still in office who were
members of such Board of Directors at the
beginning of such period;
(iv) the stockholders of the Company approve any
reorganization, merger, consolidation or
share exchange as a result of which the
common stock of the Company shall be
changed, converted or exchanged into or for
securities of another organization or any
dissolution or liquidation of the Company or
any sale or the disposition of 50% or more
of the assets or business of the Company; or
(v) the stockholders of the Company approve any
reorganization, merger, consolidation or
share exchange with another corporation
-11-
unless (1) the persons who were the
beneficial owners of the outstanding shares
of the common stock of the Company
immediately before the consummation of such
transaction beneficially own more than 60%
of the outstanding shares of the common
stock of the successor or survivor
corporation in such transaction immediately
following the consummation of such
transaction and (2) the number of shares of
the common stock of such successor or
survivor corporation beneficially owned by
the persons described in Section 24(a)(v)(1)
immediately following the consummation of
such transaction is beneficially owned by
each such person in substantially the same
proportion that each such person had
beneficially owned shares of the Company
common stock immediately before the
consummation of such transaction, provided
(3) the percentage described in Section
24(a)(v)(1) of the beneficially owned shares
of the successor or survivor corporation and
the number described in Section 24(a)(v)(2)
of the beneficially owned shares of the
successor or survivor corporation shall be
determined exclusively by reference to the
shares of the successor or survivor
corporation which result from the beneficial
ownership of shares of common stock of the
Company by the persons described in Section
24(a)(v)(1) immediately before the
consummation of such transaction.
(b) "Disinterested Director" shall mean a director of the
Company who is not or was not a party to the action, suit,
investigation or proceeding in respect of which indemnification is
being sought by the Indemnitee.
(c) "Expenses" shall include all attorneys' fees,
retainers, court costs, transcript costs, fees of experts, witness
fees, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees, and all other
disbursements or expenses incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating or being or
preparing to be a witness in any threatened, pending or completed
action, suit or proceeding, whether civil, criminal, administrative or
investigative in nature.
(d) "Independent Counsel" shall mean 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) the Company or the Indemnitee
in any matter material to either such party or (ii) any other party to
the action, suit, investigation or 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 the Company or the
Indemnitee in an action to determine the Indemnitee's right to
indemnification under this Agreement.
-12-
(e) "Stockholders' Agreement" shall mean the agreement,
dated as of January 31, 2002, as amended, by and among the Company,
Xxxxxxx X. Xxxxxxx, GS Capital Partners III, L.P., GS Capital Partners
III Offshore, L.P., Xxxxxxx Sachs & Co. Xxxxxxxxxxx XxxX, Xxxxxx Xxxxxx
Xxxx 0000, L.P., Stone Street Fund 1998, L.P., The Jordan Trust,
TJT(B), TJT(B) (Bermuda) Investment Company Ltd., Xxxxx X. Xxxxxxxxx
and Xxxxxxx Xxxxxxxxx, jt ten, Leucadia Investors, Inc. and Leucadia
National Corporation as the then stockholders of the Company.
25. ENTIRE AGREEMENT, MODIFICATION AND WAIVER. This Agreement
constitutes the entire agreement and understanding of the parties hereto
regarding the subject matter hereof, and 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. No
supplement, modification or amendment of this Agreement shall limit or restrict
any right of the Indemnitee under this Agreement in respect of any act or
omission of the Indemnitee prior to the effective date of such supplement,
modification or amendment unless expressly provided therein.
26. NOTICES. All notices, requests, demands or other
communications hereunder shall be in writing and shall be deemed to have been
duly given if (i) delivered by hand with receipt acknowledged by the party to
whom said notice or other communication shall have been directed or if (ii)
mailed by certified or registered mail, return receipt requested with postage
prepaid, on the date shown on the return receipt:
(a) If to the Indemnitee to:
------------------------
------------------------
------------------------
(b) If to the Company, to:
Carmike Cinemas, Inc.
0000 Xxxxx Xxxxxx
Xxxxxxxx, Xxxxxxx 00000
Attention: Xxxxxxx X. Xxxxx
with a copy to:
King & Spalding LLP
Attn: Xxxx X. Xxxxxx
000 Xxxxxxxxx Xxxxxx
Xxxxxxx, Xxxxxxx 00000
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or to such other address as may be furnished to the Indemnitee by the Company or
to the Company by the Indemnitee, as the case may be.
27. GOVERNING LAW. The parties hereto agree that this Agreement
shall be governed by, and construed and enforced in accordance with, the laws of
the State of Delaware, applied without giving effect to any conflicts-of-law
principles.
-14-
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.
CARMIKE CINEMAS, INC.
By
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Name:
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Title:
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INDEMNITEE:
By
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Name:
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