INDEMNIFICATION AGREEMENT
Exhibit 10.14
This Agreement is made as of [ ] 200[_], by and between Xxxxx, Inc., a Delaware
corporation (the “Company”), and [ ] (the “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, the substantial increase in corporate litigation subjects directors and officers to
expensive litigation risks at the same time that the availability of directors’ and officers’
liability insurance has been severely limited,
WHEREAS, it is now and has always been the express policy of the Company to indemnify its
directors and officers,
WHEREAS, the Indemnitee does not regard the protection available under the Company’s
Certificate of Incorporation and insurance as adequate in the present circumstances, and may not be
willing to serve or continue to serve as a director or officer without adequate protection, and
WHEREAS, the Company desires the Indemnitee to serve, or continue to serve, as a director or
officer of the Company.
NOW THEREFORE, the Company and the Indemnitee do hereby agree as follows:
1. Agreement to Serve. The Indemnitee agrees to serve or continue to serve as a
director or officer of the Company for so long as the Indemnitee is duly elected or appointed or
until such time as the Indemnitee tenders a resignation in writing.
2. Definitions. As used in this Agreement:
(a) The term “Change in Control” shall mean:
| (i) | the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 50% or more of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control: (1) any acquisition directly from the Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or exchanging such security acquired such security directly from the Company or an underwriter or agent of the Company), (2) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (3) any acquisition by any corporation pursuant to a Business |
| Combination (as defined below) which complies with clauses (x) and (y) of subsection (iii) of this definition; or | |||
| (ii) | such time as the Continuing Directors (as defined below) do not constitute a majority of the Board of Directors of the Company (or, if applicable, the Board of Directors of a successor corporation to the Company), where the term “Continuing Director” means at any date a member of the Board of Directors of the Company (x) who was a member of the Board of Directors of the Company on the date of this Agreement or (y) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board of Directors of the Company was recommended or endorsed by at least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office occurred as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board of Directors of the Company; or | ||
| (iii) | the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is referred to herein as the “Acquiring Company”) in substantially the same proportions as their ownership of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person (excluding any employee benefit plan (or related trust) maintained or sponsored by the Company or by the Acquiring Company) beneficially owns, directly or indirectly, 35% or more of the then-outstanding shares of common stock of the Acquiring Company, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors (except to the extent that such ownership existed prior to the Business Combination); or | ||
| (iv) | the liquidation or dissolution of the Company. |
(b) The term “Proceeding” shall include any threatened, pending or completed action,
suit, arbitration, alternative dispute resolution proceeding, administrative hearing or other
proceeding,
whether brought by or in the right of the Company or otherwise and whether of a civil,
criminal, administrative or investigative nature, and any appeal therefrom.
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(c) The term “Corporate Status” shall mean the status of a person who is or was, or has
agreed to become, a director or officer of the Company, or is or was serving, or has agreed to
serve, at the request of the Company, as a director, officer, fiduciary, partner, trustee,
member, employee or agent of, or in a similar capacity with, another corporation, partnership,
joint venture, trust, limited liability company or other enterprise.
(d) The term “Expenses” shall include, without limitation, attorneys’ fees, retainers,
court costs, transcript costs, fees and expenses of experts, travel expenses, duplicating
costs, printing and binding costs, telephone charges, postage, delivery service fees and other
disbursements or expenses of the types customarily incurred in connection with investigations,
judicial or administrative proceedings or appeals, but shall not include the amount of
judgments, fines or penalties against Indemnitee or amounts paid in settlement in connection
with such matters.
(e) The term “Special Independent Counsel” shall mean a law firm, or a member of a law
firm, that is experienced in matters of corporation law and neither currently is, 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 Proceeding giving rise to
a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Special
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 rights under this
Agreement.”
(f) References to “other enterprise” shall include employee benefit plans; references to
“fines” shall include any excise tax assessed with respect to any employee benefit plan;
references to “serving at the request of the Company” shall include any service as a director,
officer, employee or agent of the Company that imposes duties on, or involves services by,
such director, officer, employee, or agent with respect to an employee benefit plan, its
participants, or beneficiaries; and a person who acted in good faith and in a manner such
person reasonably believed to be in the interests of the participants and beneficiaries of an
employee benefit plan shall be deemed to have acted in a manner “not opposed to the best
interests of the Company” as referred to in this Agreement.
3. Indemnity of Indemnitee. Subject to Sections 6, 7 and 9, the Company shall
indemnify the Indemnitee in connection with any Proceeding as to which the Indemnitee is, was or is
threatened to be made a party (or is otherwise involved) by reason of the Indemnitee’s Corporate
Status, to the fullest extent permitted by law (as such may be amended from time to time). In
furtherance of the foregoing and without limiting the generality thereof:
(a) Indemnification in Third-Party Proceedings. The Company shall indemnify the
Indemnitee in accordance with the provisions of this Section 3(a) if the Indemnitee was or is
a party to or threatened to be made a party to or otherwise involved in any Proceeding (other
than a Proceeding by or in the right of the Company to procure a judgment in its favor or a
Proceeding referred to in Section 6 below) by reason of the Indemnitee’s Corporate Status or
by reason of any action alleged to have been taken or omitted in connection therewith, against
all Expenses, judgments, fines, penalties and amounts paid in settlement actually and
reasonably incurred by or on behalf of the Indemnitee in connection with such Proceeding, if
the Indemnitee acted in good faith and in a manner that the Indemnitee reasonably believed to
be in, or not opposed to, the best interests of the Company and, with respect to any criminal
Proceeding, had no reasonable cause to believe that his or her conduct was unlawful.
(b) Indemnification in Proceedings by or in the Right of the Company. The
Company shall indemnify the Indemnitee in accordance with the provisions of this Section 3(b)
if the Indemnitee
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was or is a party to or threatened to be made a party to or otherwise
involved in any Proceeding by or in the right of the Company to procure a judgment in its
favor by reason of the Indemnitee’s Corporate Status or by reason of any action alleged to
have been taken or omitted in connection therewith, against all Expenses and, to the extent
permitted by law, amounts paid in settlement actually and reasonably incurred by or on behalf
of the Indemnitee in connection with such Proceeding, if the Indemnitee acted in good faith
and in a manner that the Indemnitee reasonably believed to be in, or not opposed to, the best
interests of the Company, except that, if applicable law so provides, no indemnification shall
be made under this Section 3(b) 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 Delaware or the court in which such action or suit was
brought shall determine upon application that, despite the adjudication of such liability but
in view of all the circumstances of the case, the Indemnitee is fairly and reasonably entitled
to indemnity for such Expenses as the Court of Chancery or such other court shall deem proper.
4. Indemnification of Expenses of Successful Party. Notwithstanding any other
provision of this Agreement, to the extent that the Indemnitee has been successful, on the merits
or otherwise, in defense of any Proceeding or in defense of any claim, issue or matter therein
(other than a Proceeding referred to in Section 6), the Indemnitee shall be indemnified against all
Expenses actually and reasonably incurred by or on behalf of the Indemnitee in connection
therewith. Without limiting the foregoing, if any Proceeding or any claim, issue or matter therein
is disposed of, on the merits or otherwise (including a disposition without prejudice), without (i)
the disposition being adverse to the Indemnitee, (ii) an adjudication that the Indemnitee was
liable to the Company, (iii) a plea of guilty or nolo contendere by the Indemnitee, (iv) an
adjudication that the Indemnitee did not act 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 (v) with
respect to any criminal proceeding, an adjudication that the Indemnitee had reasonable cause to
believe his or her conduct was unlawful, the Indemnitee shall be considered for the purposes hereof
to have been wholly successful with respect thereto.
5. Indemnification for Expenses of a Witness. To the extent that the Indemnitee is,
by reason of the Indemnitee’s Corporate Status, a witness in any Proceeding to which the Indemnitee
is not a party, the Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by or on behalf of the Indemnitee in connection therewith.
6. Exceptions to Right of Indemnification. Notwithstanding anything to the contrary
to this Agreement, except as set forth in Section 10, the Company shall not indemnify the
Indemnitee in connection with a Proceeding (or part thereof) initiated by the Indemnitee unless (a)
the initiation thereof was approved by the Board of Directors of the Company or (b) the Proceeding
was commenced following a Change in Control. Notwithstanding anything to the contrary in this
Agreement, the Company shall not indemnify the Indemnitee to the extent the Indemnitee is
reimbursed from the proceeds of insurance, and in the event the Company makes any indemnification
payments to the Indemnitee and the Indemnitee is subsequently reimbursed from the proceeds of
insurance, the Indemnitee shall promptly refund such indemnification payments to the Company to the
extent of such insurance reimbursement.
7. Notification and Defense of Claim. As a condition precedent to the Indemnitee’s
right to be indemnified, the Indemnitee must notify the Company in writing as soon as practicable
of any Proceeding for which indemnity will or could be sought. With respect to any Proceeding of
which the Company is so notified, the Company will be entitled to participate therein at its own
expense and/or to assume the defense thereof at its own expense, with legal counsel reasonably
acceptable to the Indemnitee. After notice from the Company to the Indemnitee of its election so
to assume such defense, the Company shall
not be liable to the Indemnitee for any legal or other expenses subsequently incurred by the
Indemnitee in connection with such Proceeding, other than as provided below in this Section 7. The
Indemnitee shall
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have the right to employ his or her own counsel in connection with such
Proceeding, 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) counsel to the
Indemnitee shall have reasonably concluded that there may be a conflict of interest or position on
any significant issue between the Company and the Indemnitee in the conduct of the defense of such
Proceeding or (iii) the Company shall not in fact have employed counsel to assume the defense of
such Proceeding, in each of which cases the fees and expenses of counsel for the Indemnitee shall
be at the expense of the Company, except as otherwise expressly provided by this Agreement, and
provided that Indemnitee’s counsel shall cooperate reasonably with the Company’s counsel to
minimize the cost of defending claims against the Company and the Indemnitee. The Company shall
not be entitled, without the consent of the Indemnitee, to assume the defense of any claim brought
by or in the right of the Company or as to which counsel for the Indemnitee shall have reasonably
made the conclusion provided for in clause (ii) above. The Company shall not be required to
indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding
effected without its written consent. The Company shall not settle any Proceeding in any manner
that would impose any penalty or limitation on the Indemnitee without the Indemnitee’s written
consent. Neither the Company nor the Indemnitee will unreasonably withhold or delay their consent
to any proposed settlement.
8. Advancement of Expenses. Subject to the provisions of Section 9, in the event that
the Company does not assume the defense pursuant to Section 7 of any Proceeding of which the
Company receives notice under this Agreement, any Expenses actually and reasonably incurred by or
on behalf of the Indemnitee in defending such Proceeding shall be paid by the Company in advance of
the final disposition of such Proceeding; provided, however, that the payment of such Expenses
incurred by or on behalf of the Indemnitee in advance of the final disposition of such Proceeding
shall be made only upon receipt of an undertaking by or on behalf of the Indemnitee to repay all
amounts so advanced in the event that it shall ultimately be determined that the Indemnitee is not
entitled to be indemnified by the Company as authorized in this Agreement. Such undertaking shall
be accepted without reference to the financial ability of the Indemnitee to make repayment. Any
advances and undertakings to repay pursuant to this Section 8 shall be unsecured and interest-free.
9. Procedures.
(a) In order to obtain indemnification or advancement of Expenses pursuant to this
Agreement, the Indemnitee shall submit to the Company a written request, including in such
request such documentation and information as is reasonably available to the Indemnitee and is
reasonably necessary to determine whether and to what extent the Indemnitee is entitled to
indemnification or advancement of Expenses. Any such indemnification or advancement of
Expenses shall be made promptly, and in any event within (i) in the case of indemnification
under Section 4, 5 or 9(d) or advancement of Expenses, 30 days after receipt by the Company of
the written request of the Indemnitee, or (ii) in the case of all other indemnification, 60
days after receipt by the Company of the written request of the Indemnitee, unless with
respect to requests under this clause (ii) the Company determines, by clear and convincing
evidence, within the 60-day period referred to above that the Indemnitee did not meet the
applicable standard of conduct. Such determination, and any determination that advanced
Expenses must be repaid to the Company, shall be made as follows:
| (x) | if a Change in Control shall have occurred, by Special Independent Counsel in a written opinion to the Board of Directors of the Company, a copy of which shall be delivered to the Indemnitee (unless the Indemnitee shall request that such determination be made by the Board of Directors of the Company, in which case the |
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| determination shall be made in the manner provided below in clauses (y)(1) or (y)(2)). | |||
| (y) | in all other cases, in the discretion of the Board of Directors of the Company, (1) by a majority vote of the directors of the Company consisting of persons who are not at that time parties to the Proceeding (“disinterested directors”), whether or not a quorum, (2) by a committee of disinterested directors designated by a majority vote of disinterested directors, whether or not a quorum, (3) if there are no disinterested directors, or if the disinterested directors so direct, by independent legal counsel in a written opinion to the Board, or (4) by the stockholders of the Company. |
(b) In the event that a Change in Control shall have occurred and the determination of
entitlement to indemnification is to be made by Special Independent Counsel, the Special
Independent Counsel shall be selected as provided in this Section 9(b). The Special
Independent Counsel shall be selected by the Indemnitee, unless the Indemnitee shall request
that such selection be made by the Board of Directors of the Company. The party making the
determination shall give written notice to the other party advising it of the identity of the
Special Independent Counsel so selected. The party receiving such notice may, within seven
days after such written notice of selection shall have been given, deliver to the other party
a written objection to such selection. Such objection may be asserted only on the ground that
the Special Independent Counsel so selected does not meet the requirements of “Special
Independent Counsel” as defined in Section 2, and the objection shall set forth with
particularity the factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Special Independent Counsel. If a written objection is made,
the Special Independent Counsel so selected may not serve as Special Independent Counsel
unless and until a court has determined that such objection is without merit. If, within 20
days after submission by the Indemnitee of a written request for indemnification, no Special
Independent Counsel shall have been selected or if selected, shall have been objected to, in
accordance with this paragraph either the Company or the Indemnitee may petition the Court of
Chancery of the State of Delaware or other court of competent jurisdiction for resolution of
any objection that shall have been made by the Company or the Indemnitee to the other’s
selection of Special Independent Counsel and/or for the appointment as Special Independent
Counsel of a person selected by the court or by such other person as the court shall
designate, and the person with respect to whom an objection is favorably resolved or the
person so appointed shall act as Special Independent Counsel. The Company shall pay the
reasonable and necessary fees and expenses of Special Independent Counsel incurred in
connection with its acting in such capacity. The Company shall pay any and all reasonable and
necessary fees and expenses incident to the procedures of this paragraph, regardless of the
manner in which such Special Independent Counsel was selected or appointed. Upon the due
commencement of any judicial proceeding pursuant to Section 10 of this Agreement, any Special
Independent Counsel shall be discharged and relieved of any further responsibility in such
capacity (subject to the applicable standards of professional conduct then prevailing).
(c) 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
the Indemnitee did not act in good faith and in a manner that the Indemnitee reasonably
believed to be in, or not opposed to, the best interests of the Company, and, with respect to
any criminal Proceeding, had reasonable cause to believe that his or her conduct was unlawful.
(d) The Indemnitee shall cooperate with the person, persons or entity making such
determination with respect to the Indemnitee’s entitlement to indemnification, including
providing
to such person, persons or entity upon reasonable advance request any documentation or
information
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that is not privileged or otherwise protected from disclosure and that is
reasonably available to the Indemnitee and reasonably necessary to such determination. Any
Expenses actually and reasonably incurred by the Indemnitee in so cooperating shall be borne
by the Company (irrespective of the determination as to the Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies the Indemnitee therefrom.
10. Remedies. The right to indemnification or advancement of Expenses as provided by
this Agreement shall be enforceable by the Indemnitee in any court of competent jurisdiction if the
Company denies such request, in whole or in part, or if no disposition thereof is made within the
applicable period referred to in Section 9. Unless otherwise required by law, the burden of
proving that indemnification or advancement of Expenses is not appropriate shall be on the Company.
Neither the failure of the Company to have made a determination prior to the commencement of such
action that indemnification is proper in the circumstances because the Indemnitee has met the
applicable standard of conduct, nor an actual determination by the Company that the Indemnitee has
not met such applicable standard of conduct, shall be a defense to the action or create a
presumption that the Indemnitee has not met the applicable standard of conduct. The Indemnitee’s
Expenses actually and reasonably incurred in connection with successfully establishing the
Indemnitee’s right to indemnification, in whole or in part, in any such Proceeding shall also be
indemnified by the Company.
11. 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, penalties or amounts paid in settlement actually and reasonably incurred by or on behalf of
the Indemnitee in connection with any Proceeding but not, however, for the total amount thereof,
the Company shall nevertheless indemnify the Indemnitee for the portion of such Expenses,
judgments, fines, penalties or amounts paid in settlement to which the Indemnitee is entitled.
12. Subrogation. In the event of any payment under this Agreement, the Company shall
be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who
shall execute all papers required and take all action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights.
13. Term of Agreement. This Agreement shall continue until and terminate upon the
later of (a) six years after the date that the Indemnitee shall have ceased to serve as a director
or officer of the Company or, at the request of the Company, as a director, officer, partner,
trustee, member, employee or agent of another corporation, partnership, joint venture, trust,
limited liability company or other enterprise or (b) the final termination of all Proceedings
pending on the date set forth in clause (a) in respect of which the Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder and of any proceeding commenced by the
Indemnitee pursuant to Section 10 of this Agreement relating thereto.
14. Indemnification Hereunder Not Exclusive. The indemnification and advancement of
Expenses provided by this Agreement shall not be deemed exclusive of any other rights to which the
Indemnitee may be entitled under the Certification of Incorporation, the By-Laws, any other
agreement, any vote of stockholders or disinterested directors, the General Company Law of
Delaware, any other law (common or statutory), or otherwise, both as to action in the Indemnitee’s
official capacity and as to action in another capacity while holding office for the Company.
Nothing contained in this Agreement shall be deemed to prohibit the Company from purchasing and
maintaining insurance, at its expense, to protect itself or the Indemnitee against any expense,
liability or loss incurred by it or the Indemnitee in any such capacity, or arising out of the
Indemnitee’s status as such, whether or not the Indemnitee would be indemnified against such
expense, liability or loss under this Agreement; provided that the Company shall not be liable
under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if
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and to the extent that the Indemnitee has otherwise actually received such payment under any
insurance policy, contract, agreement or otherwise.
15. No Special Rights. Nothing herein shall confer upon the Indemnitee any right to
continue to serve as an officer or director of the Company for any period of time or at any
particular rate of compensation.
16. Savings Clause. If this Agreement or any portion thereof shall be invalidated on
any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify
the Indemnitee as to Expenses, judgments, fines, penalties and amounts paid in settlement with
respect to any Proceeding to the full extent permitted by any applicable portion of this Agreement
that shall not have been invalidated and to the fullest extent permitted by applicable law.
17. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall constitute the original.
18. Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns and shall inure to the benefit of the estate, heirs, executors,
administrators and personal representatives of the Indemnitee.
19. Headings. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.
20. Modification and Waiver. This Agreement may be amended from time to time to
reflect changes in Delaware law or for other reasons. 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 provision hereof nor shall any such waiver constitute a continuing waiver.
21. Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been given (i) when delivered by hand or (ii) if mailed
by certified or registered mail with postage prepaid, on the third day after the date on which it
is so mailed:
| (a) | if to the Indemnitee, to: | ||
| [ ] [ ] [ ] |
|||
| (b) | if to the Company, to: | ||
| Xxxxx, Inc. 00 Xxxxxxx Xxxx, Xxxxx 000 Xxxxxxxxx, XX 00000-0000 Attn.: Chief Financial Officer |
or to such other address as may have been furnished to the Indemnitee by the Company or to the
Company by the Indemnitee, as the case may be.
22. Applicable Law. This Agreement shall be governed by, and construed and enforced
in accordance with, the laws of the State of Delaware. The Indemnitee may elect to have the right
to indemnification or reimbursement or advancement of Expenses interpreted on the basis of the
applicable
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law in effect at the time of the occurrence of the event or events giving rise to the
applicable Proceeding, to the extent permitted by law, or on the basis of the applicable law in
effect at the time such indemnification or reimbursement or advancement of Expenses is sought.
Such election shall be made, by a notice in writing to the Company, at the time indemnification or
reimbursement or advancement of Expenses is sought; provided, however, that if no such notice is
given, and if the General Company Law of Delaware is amended, or other Delaware law is enacted, to
permit further indemnification of the directors and officers, then the Indemnitee shall be
indemnified to the fullest extent permitted under the General Company Law, as so amended, or by
such other Delaware law, as so enacted.
23. Enforcement. The Company expressly confirms and agrees that it has entered into
this Agreement in order to induce the Indemnitee to continue to serve as an officer or director of
the Company, and acknowledges that the Indemnitee is relying upon this Agreement in continuing in
such capacity.
24. Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto in respect of the subject matter contained herein and supercedes all prior agreements,
whether oral or written, by any officer, employee or representative of any party hereto in respect
of the subject matter contained herein; and any prior agreement of the parties hereto in respect of
the subject matter contained herein is hereby terminated and cancelled. For avoidance of doubt,
the parties confirm that the foregoing does not apply to or limit the Indemnitee’s rights under
Delaware law or the Company’s Certificate of Incorporation or By-Laws.
25. Consent to Suit. In the case of any dispute under or in connection with this
Agreement, the Indemnitee may only bring suit against the Company in the Court of Chancery of the
State of Delaware. The Indemnitee hereby consents to the exclusive jurisdiction and venue of the
courts of the State of Delaware, and the Indemnitee hereby waives any claim the Indemnitee may have
at any time as to forum non conveniens with respect to such venue. The Company shall have the
right to institute any legal action arising out of or relating to this Agreement in any court of
competent jurisdiction. Any judgment entered against either of the parties in any proceeding
hereunder may be entered and enforced by any court of competent jurisdiction.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and year first above written.
| XXXXX, INC. |
||||
| By: | ||||
| Name | ||||
| Title | ||||
| INDEMNITEE: | ||||
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