INDEMNIFICATION AGREEMENT
Exhibit
10.1
This Agreement is made as of the _____
day of _____________, 200___, by and between Great Plains Energy Incorporated, a
Missouri corporation (the "Company"), and ____________________
("Indemnitee"), a Director or Officer of the Company.
WHEREAS, it is essential to the Company
to retain and attract as Directors and Officers the most capable persons
available;
WHEREAS, it is now and always has been
the express policy of the Company to indemnify its Directors and Officers so as
to provide them with the maximum possible protection permitted by
law;
WHEREAS, Indemnitee does not regard the
protection available under the Company's Articles of Incorporation and
by-laws as adequate in the present circumstances, and may not be willing to
serve as a Director or Officer without adequate protection, and the Company
desires Indemnitee to serve in such capacity;
NOW, THEREFORE, in consideration of the
premises and of Indemnitee serving the Company directly or, at its request,
another enterprise, and intending to be legally bound hereby, the parties hereto
agree as follows:
1. Certain
Definitions:
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(a)
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Beneficial
Owner: shall have the meaning set forth in Rule 13d-3 under the
Exchange Act.
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(b)
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Change in
Control: shall be deemed to have occurred
if:
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(1) any
Person is or becomes the Beneficial Owner, directly or
indirectly, of securities of the Company (not
including in the securities beneficially owned by
such Person any securities acquired directly from the Company or its
affiliates other than in connection with the acquisition by the
Company or its affiliates of a business)
representing 20% or more of either the then outstanding
shares of common stock of the Company or the combined voting
power of the Company's then outstanding securities;
or
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(2) the
following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on the date
hereof, constitute the Board and any new director (other than a
director whose initial assumption of office is in connection
with an actual or threatened election contest, including but not
limited to a consent solicitation, relating to the election of
directors of the Company, as such terms are used in Rule 14a-11 of
Regulation 14A
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under the
Exchange Act) whose appointment or election by the Board or
nomination for election by the Company's stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still
in office who either were directors on the date hereof or whose
appointment, election or nomination for election was
previously so approved; or
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(3) the
occurrence of, or the stockholders of the Company approve, a merger,
consolidation, reorganization or similar corporate transaction of the
Company, whether or not the Company is the surviving corporation in such
transaction, or the stockholders of the Company approve the issuance of
voting securities of the Company in connection with a merger,
consolidation, reorganization or similar corporate transaction of the
Company (or any direct or indirect subsidiary of the Company)
pursuant to applicable stock exchange requirements, other than (i) a
merger, consolidation, reorganization or similar corporate
transaction which would result in the voting securities of the
Company outstanding immediately prior to such merger, consolidation,
reorganization or similar corporate transaction continuing to represent
(either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof), in
combination with the ownership of any trustee or other fiduciary
holding securities under an employee benefit plan of the
Company, at least 60% of the combined voting power of the voting
securities of the Company or such surviving entity or any parent
thereof outstanding immediately after such merger, consolidation,
reorganization or similar corporate transaction, or (ii) a merger,
consolidation, reorganization or similar corporate transaction
effected to implement a recapitalization of the Company (or
similar transaction) in which no Person is or becomes the
Beneficial Owner, directly or indirectly, of securities of the Company
(not including in the securities Beneficially Owned by such Person
any securities acquired directly from the Company or its
affiliates other than in connection with the acquisition by the
Company or its affiliates of a business) representing 20% or
more of either the then outstanding shares of common stock of
the Company or the combined voting power of the Company's then outstanding
securities; or
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(4)
the occurrence of, or the stockholders of the Company approve a plan
of, a complete liquidation or dissolution of the Company or an
agreement for the sale or disposition by the Company of all or
substantially all of the Company's assets, other than a sale or
disposition by the Company of all or substantially all of the
Company's assets to an entity, at least 60% of the combined
voting power of the voting securities of which are owned by Persons in
substantially the same proportions as their ownership of the Company
immediately prior to such sale.
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Notwithstanding
the foregoing, no "Change in Control" shall be deemed to have
occurred if there is consummated any transaction or
series of integrated transactions immediately following which
the record holders of the common stock of the Company
immediately prior to such transaction or series of
transactions
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continue
to have substantially the
same proportionate ownership in an entity which owns all or
substantially all of the assets of the Company immediately
following such transaction or series of transactions.
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(c)
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Claim: any
threatened, pending or completed action, suit or proceeding, or any
inquiry or investigation, whether instituted by the
Company or any other party, that Indemnitee in good faith believes
might lead to the institution of any such action, suit or
proceeding, whether civil, criminal, administrative,
investigative or other.
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(d)
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Exchange
Act: shall mean the Securities Exchange Act of
l934, as amended from time to time.
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(e)
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Expenses: include
attorneys' fees and all other costs, expenses and obligations paid or
incurred in connection with investigating, defending, being a
witness in or participating in (including on appeal), or
preparing to defend, be a witness in or participate in any
Claim relating to any Indemnifiable
Event.
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(f)
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Indemnifiable
Event: any event or occurrence related to the fact
that 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, trustee, agent or
fiduciary of another corporation, partnership, joint venture,
employee benefit plan, trust or other enterprise, or by reason of
anything done or not done by Indemnitee in any such
capacity.
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(g)
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Independent Legal
Counsel: an attorney or firm of attorneys, selected
in accordance with the provisions of Section 3, who shall not have
otherwise performed services for the Company or
Indemnitee within the last three years (other than with
respect to matters concerning the rights of Indemnitee
under this Agreement, or of other indemnitees under similar indemnity
agreements).
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(h)
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Person: shall
have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except
that such term shall not include (i) the Company or any of its
affiliates (as defined in Rule 12b-2 promulgated under the Exchange
Act), (ii) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or
any of its affiliates, (iii) an underwriter temporarily
holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or
indirectly, by the stockholders of the Company in
substantially the same proportions as their ownership
of stock of the Company.
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(i)
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Potential Change in
Control: shall be deemed to have occurred
if:
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(1) the
Company enters into an agreement, the consummation of which would
result in the occurrence of a Change in
Control;
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(2) the
Company or any Person publicly announces an intention to take or
to consider taking actions which, if consummated, would constitute a
Change in Control;
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(3) any
Person becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing 10%
or more of either the then outstanding shares of common stock of the
Company or the combined voting power of the Company's then
outstanding securities;
or
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(4) the
Board adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control has
occurred.
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(j)
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Reviewing
Party: any appropriate person or body consisting of a
member or members of the Company's Board of Directors or any other
person or body appointed by the Board who is not a party to the
particular Claim for which Indemnitee is seeking
indemnification, or Independent Legal
Counsel.
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2. Basic Indemnification
Arrangement. (a) In the event Indemnitee was, is or
becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, a Claim by reason of (or
arising in part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee to the fullest extent permitted by law as soon as practicable
but in any event no later than thirty days after written demand is presented to
the Company, against any and all Expenses, judgments, fines, penalties and
amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses,
judgments, fines, penalties or amounts paid in settlement) of such
Claim. If so requested by Indemnitee, the Company shall advance
(within two business days of such request) any and all Expenses to
Indemnitee (an "Expense Advance").
(b) Notwithstanding the
foregoing, (i) the obligations of the Company under Section 2(a) shall be
subject to the condition that the Reviewing Party shall not have determined
(in a written opinion, in any case in which the Independent Legal Counsel
referred to in Section 3 hereof is involved) that Indemnitee would not be
permitted to be indemnified under applicable law, and (ii) the obligation
of the Company to make an Expense Advance pursuant to Section 2(a) shall be
subject to the condition that, if, when and to the extent that the
Reviewing Party determines that Indemnitee would not be permitted to be so
indemnified under applicable law, the Company shall be entitled to be reimbursed
by Indemnitee (who hereby agrees to reimburse the Company) for all such amounts
theretofore paid; provided, however, that if Indemnitee has commenced or
thereafter commences legal proceedings in a court of competent jurisdiction to
secure a determination that Indemnitee should be indemnified under
applicable law, any determination made by the Reviewing Party that
Indemnitee would not be permitted to be indemnified under applicable law shall
not be binding and Indemnitee shall not be required to reimburse the Company for
any Expense Advance until a final judicial determination is made with respect
thereto (as to which all rights of appeal therefrom have been exhausted or
lapsed). If there has not been a Change in Control, the Reviewing
Party shall be selected by the Board of Directors, and if there has been
such a Change in Control (other than a Change in Control which
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has been
approved by a majority of the Company's Board of Directors who were directors
immediately prior to such Change in Control), the Reviewing Party
shall be the Independent Legal Counsel referred to in Section 3
hereof. If there has been no determination by the Reviewing
Party or if the Reviewing Party determines that Indemnitee substantively would
not be permitted to be indemnified in whole or in part under applicable law,
Indemnitee shall have the right to commence litigation in any court in the
State of Missouri having subject matter jurisdiction thereof and
in which venue is proper seeking an initial determination by the court
or challenging any such determination by the Reviewing Party or any
aspect thereof, including the legal or factual bases therefor, and the
Company hereby consents to service of process and to appear in any such
proceeding. Any determination by the Reviewing Party otherwise shall be
conclusive and binding on the Company and Indemnitee.
(c) The
Company and Indemnitee agree that this indemnification arrangement is based upon
the statutory authorization in the Missouri General and Business Corporation
Law, §351.355, and in particular subparts 6 and 7 thereof, by virtue of the
provisions in Article Thirteenth of the Company’s Articles of Incorporation
dated February 26, 2001. No provision of this Agreement shall permit the
Company to indemnify Indemnitee from or on account of Indemnitee’s conduct which
is finally adjudged to have been knowingly fraudulent, deliberately dishonest or
willful misconduct.
3. Change in
Control. The Company agrees that if there is a Change in
Control of the Company (other than a Change in Control which has been
approved by a majority of the Company's Board of Directors who were
directors immediately prior to such Change in Control) then with respect to
all matters thereafter arising concerning the rights of Indemnitee to indemnity
payments and Expense Advances under this Agreement or any other agreement or
Company By-law now or hereafter in effect relating to Claims for Indemnifiable
Events, the Company shall seek legal advice only from Independent Legal Counsel
selected by Indemnitee and approved by the Company (which approval shall
not be unreasonably withheld). Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to
whether and to what extent the Indemnitee would be permitted to be
indemnified under applicable law. The Company agrees to pay the
reasonable fees of the Independent Legal Counsel referred to above and to
fully indemnify such counsel against any and all expenses (including
attorneys' fees), claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto.
4. Establishment of
Trust. In the event of a Potential Change in Control, the
Company shall, upon written request by Indemnitee, create a trust for the
benefit of Indemnitee and from time to time upon written request of Indemnitee
shall fund such trust in an amount sufficient to satisfy any and all Expenses
reasonably anticipated at the time of each such request to be incurred in
connection with investigating, preparing for and defending any Claim
relating to an Indemnifiable Event, and any and all judgments, fines, penalties
and settlement amounts of any and all Claims relating to an Indemnifiable Event
from time to time actually paid or claimed, reasonably anticipated or
proposed to be paid, provided that in no event shall more than $1 million be
required to be deposited in any trust created hereunder in excess of
amounts deposited in respect of reasonably anticipated Expenses. The
amount or amounts to be deposited in the
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trust
pursuant to the foregoing funding obligation shall be determined by the
Reviewing Party, in any case in which the Independent Legal Counsel referred to
above is involved. The terms of the trust shall provide that upon a
Change in Control (i) the trust shall not be revoked or the principal thereof
invaded, without the written consent of the Indemnitee, (ii) the trustee
shall advance, within two business days of a request by the Indemnitee, any and
all Expenses to the Indemnitee (and the Indemnitee hereby agrees to
reimburse the trust under the circumstances under which the Indemnitee
would be required to reimburse the Company under Section 2(b) of this
Agreement), (iii) the trust shall continue to be funded by the Company in
accordance with the funding obligation set forth above, (iv) the trustee shall
promptly pay to Indemnitee all amounts for which Indemnitee shall be
entitled to indemnification pursuant to this Agreement or otherwise, and
(v) all unexpended funds in such trust shall revert to the Company upon a final
determination by the Reviewing Party or a court of competent jurisdiction,
as the case may be, that Indemnitee has been fully indemnified under the terms
of this Agreement. The trustee shall be chosen by
Indemnitee. Nothing in this Section 4 shall relieve the Company
of any of its obligations under this Agreement.
5. Indemnification for
Additional Expenses. The Company shall indemnify
Indemnitee against any and all expenses (including attorneys' fees) and, if
requested by Indemnitee, shall (within two business days of such request)
advance such expenses to Indemnitee, which are incurred by Indemnitee in
connection with any action brought by Indemnitee for (i) indemnification or
advance payment of Expenses by the Company under this Agreement or any other
agreement or Company By-law now or hereafter in effect relating to Claims
for Indemnifiable Events and/or (ii) recovery under any directors' and officers'
liability insurance policies maintained by the Company, regardless of whether
Indemnitee ultimately is determined to be entitled to such indemnification,
advance expense payment or insurance recovery, as the case may
be.
6. Partial Indemnity,
Etc. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the
Expenses, judgments, fines, penalties and amounts paid in settlement of a
Claim but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is
entitled. Moreover, notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or
otherwise in defense of any or all Claims relating in whole or in part to an
Indemnifiable Event or in defense of any issue or matter therein, including
dismissal without prejudice, Indemnitee shall be indemnified against all
Expenses incurred in connection therewith.
7. Presumption;
Burden of
Proof. Upon making any demand for indemnification under this
Agreement, Indemnitee shall be presumed to be entitled to such
indemnification. In connection with any determination by
the Reviewing Party or otherwise as to whether Indemnitee is entitled
to be indemnified hereunder the burden of proof shall be on the
Company to establish by clear and convincing evidence that Indemnitee
is not so entitled.
8. Effect of Certain
Proceedings, Etc. For purposes of this Agreement, the
termination of any claim, action, suit or proceeding, by judgment, order,
settlement (whether with
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or
without court approval) or conviction, or upon a plea of nolo contendere, or its
equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable
law. In addition, neither the failure of the Reviewing Party to have
made a determination as to whether Indemnitee has met any particular
standard of conduct or had any particular belief, nor an actual determination by
the Reviewing Party that Indemnitee has not met such standard of conduct or
did not have such belief, prior to the commencement of legal proceedings by
Indemnitee to secure a judicial determination that Indemnitee should be
indemnified under applicable law shall be a defense to Indemnitee's claim or
create a presumption that Indemnitee has not met any particular standard of
conduct or did not have any particular belief.
9. Nonexclusivity,
Etc. The rights of the Indemnitee hereunder shall be in
addition to any other rights Indemnitee may have under the Company's
By-laws or the Missouri General and Business Corporation Law or
otherwise. To the extent that a change in the Missouri
General and Business Corporation Law (whether by statute or judicial
decision) permits greater indemnification by agreement than
would be afforded currently under the Company's By-laws and this
Agreement, it is the intent of the parties hereto that Indemnitee
shall enjoy by this Agreement the greater benefits so afforded by such
change.
10. Liability
Insurance. To the extent the Company maintains an
insurance policy or policies providing directors' and officers' liability
insurance, Indemnitee shall be covered by such policy or policies, in
accordance with its or their terms, to the maximum extent of the coverage
available for any Company director or officer.
11. Period of
Limitations. No legal action shall be brought and no cause of
action shall be asserted by or in the right of the Company against
Indemnitee, Indemnitee's spouse, heirs, executors or personal or legal
representatives after the expiration of two years from the date of accrual
of such cause of action, and any claim or cause of action of the Company shall
be extinguished and deemed released unless asserted by the timely filing of
a legal action within such two-year period; provided, however, that if any
shorter period of limitations is otherwise applicable to any such cause of
action such shorter period shall govern.
12. Amendments,
Etc. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the 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.
13. Subrogation. In
the event of payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all papers required and shall do everything that
may be necessary to secure such rights, including the execution of such
documents necessary to enable the Company effectively to bring suit to
enforce such rights.
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14. No Duplication of
Payments. The Company shall not be liable under this Agreement
to make any payment in connection with any Claim made against Indemnitee to
the extent Indemnitee has otherwise actually received payment (under any
insurance policy, By-law or otherwise) of the amounts otherwise indemnifiable
hereunder. This Indemnification Agreement shall supersede
the Prior Agreement.
15. Binding Effect,
Etc. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the parties hereto and their
respective successors, assigns, including any direct or indirect successor
by purchase, merger, consolidation or otherwise to all or substantially all of
the business and/or assets of the Company, spouses, heirs, executors and
personal and legal representatives. This Agreement shall continue in
effect regardless of whether Indemnitee continues to serve as an officer or
director of the Company or of any other enterprise at the Company's
request.
16. Severability. The
provisions of this Agreement shall be severable in the event that any of
the provisions hereof (including any provision within a single section,
paragraph or sentence) is held by a court of competent jurisdiction to be
invalid, void or otherwise unenforceable in any respect, and the validity
and enforceability of any such provision in every other respect and of the
remaining provisions hereof shall not be in any way impaired and shall remain
enforceable to the fullest extent permitted by law.
17. Governing
Law. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Missouri applicable to
contracts made and to be performed in such state without giving effect to the
principles of conflicts of laws.
IN WITNESS WHEREOF, the parties hereto
have executed this Agreement this _____ day of _____________,
200___.
GREAT PLAINS ENERGY
INCORPORATED
By
_______________________________
Name: [typed
name]
Title: Chairman
of Board and
Chief Executive Officer
INDEMNITEE:
______________________________
[typed name]
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