INDEMNIFICATION AGREEMENT
EXHIBIT 10.2
OFFICERS FORM
INDEMNIFICATION AGREEMENT (this “Agreement”) dated as of , 2008 among F.N.B.
Corporation, a Florida corporation (“FNB”), First National Bank of Pennsylvania, a national banking
association (“FNBPA”) and (the “Indemnitee”):
Recitals:
WHEREAS, the Board of Directors of FNB and FNBPA have determined that the inability to retain
the officers who serve it and FNBPA because of potential liability considerations would be
detrimental to the best interests of FNB and FNBPA and their respective shareholders and that FNB
and FNBPA should act to assure their respective officers that such protection will remain available
in the future; and
WHEREAS, it is reasonable, prudent and necessary for FNB and FNBPA to obligate themselves
contractually to indemnify their respective officers to the fullest extent permitted by applicable
law, subject only to the limited exceptions contained in this Agreement, so that their respective
officers will continue to serve FNB and FNBPA free from undue concern that they will not be so
indemnified.
NOW, THEREFORE, in consideration of the premises and the covenants contained herein, FNB,
FNBPA and the Indemnitee, intending to be legally bound hereby, covenant and agree as follows:
1. Indemnification. In consideration of the Indemnitee’s continued service as an
officer of FNB or FNBPA, FNB and FNBPA, jointly and severally, shall indemnify the Indemnitee to
the fullest extent permitted by applicable law in effect on the date hereof or as such laws may
from time to time be amended in furtherance of such indemnification, subject only to the limited
exceptions set forth in this Agreement or as required by law.
2. Proceedings Other Than an Action by or in the Right of FNB or FNBPA. The
Indemnitee shall be entitled to the indemnification rights provided in this Section 2 if the
Indemnitee is a party to or is threatened to be made a party to any Proceeding, as defined in
Section 17 of this Agreement, other than an action by or in the right of FNB or FNBPA, by reason of
the fact that the Indemnitee is or was a director, officer, employee, agent or fiduciary of FNB or
FNBPA or is or was serving at the request of FNB or FNBPA as a director, officer, employee, agent
or fiduciary of any other corporation, partnership, limited liability company, joint venture, trust
or other enterprise or entity or by reason of anything
done or not done by the Indemnitee in any such capacity. Pursuant to this Section 2, the
Indemnitee shall be indemnified against reasonable costs and expenses, including attorneys’ fees,
judgments, damages, penalties, fines and amounts paid in settlement actually and reasonably
incurred by the Indemnitee in connection with such 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 FNB and FNBPA, and,
with respect to any criminal Proceeding, the Indemnitee had no reasonable cause to believe his
conduct was unlawful.
3. Actions by or in the Right of FNB or FNBPA. The Indemnitee shall be entitled to
the indemnification rights provided in this Section 3 if the Indemnitee is a person who was or is
made a party or is threatened to be made a party to any Proceeding brought by or in the right of
FNB or FNBPA 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 FNB or FNBPA or is or was serving at the
request of FNB or FNBPA as a director, officer, employee, agent or fiduciary of any other
corporation, partnership, limited liability company, joint venture, trust or other enterprise or
entity by reason of anything done or not done by the Indemnitee in any such capacity. Pursuant to
this Section 3, the Indemnitee shall be indemnified against reasonable costs and expenses,
including attorneys’ fees, actually and reasonably incurred by the Indemnitee in connection with
such Proceeding, including, but not limited to, the investigation, defense, settlement 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 FNB or FNBPA, as the case may be, except that
indemnification is not authorized where there has been an adjudication of liability as to the
Indemnitee, unless a court determines in view of all of the circumstances, that such person is
fairly and reasonably entitled to indemnity for such expenses.
4. Indemnification for Costs and Expenses of Successful Party. Notwithstanding the
other provisions of this Agreement, to the extent that the Indemnitee has served as a witness on
behalf of FNB or FNBPA or has been successful on the merits or otherwise, including, without
limitation, the dismissal of a Proceeding without prejudice, in defense of any Proceeding referred
to in Sections 2 or 3 of this Agreement, or in defense of any claim, issue or matter therein, the
Indemnitee shall be indemnified against reasonable costs and expenses, including attorneys’ fees,
actually and reasonably incurred by the Indemnitee or on the Indemnitee’s behalf in connection
therewith.
5. Partial Indemnification. If the Indemnitee is only partially successful in the
defense, investigation, settlement or appeal of any Proceeding described in Sections 2 or 3 of this
Agreement, and as a result is not entitled under Section 6 of this Agreement to indemnification by
FNB or FNBPA for the reasonable costs and expenses, including attorneys’ fees, judgments,
penalties, fines and amounts paid in settlement actually and
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reasonably incurred by the Indemnitee, FNB and FNBPA shall nevertheless indemnify the
Indemnitee pursuant to Section 6 to the extent the Indemnitee has been partially successful.
6. Determination of Entitlement to Indemnification. When seeking indemnification
under any section of this Agreement, the Indemnitee shall submit a written request for
indemnification to FNB and FNBPA. Such request shall include documentation or information that is
reasonably available to the Indemnitee and reasonably necessary for FNB and FNBPA to make a
determination of the Indemnitee’s entitlement to indemnification. Determination of the
Indemnitee’s entitlement to indemnification pursuant to this Agreement shall be determined by: (a)
the Board of Directors of FNB or FNBPA, as the case may be, by a majority vote of a quorum
consisting of Disinterested Directors as defined in Section 17 of this Agreement; (b) if such a
quorum is not obtainable or, even if obtainable, if the Board of Directors of FNB or FNBPA, as the
case may be, by the majority vote of Disinterested Directors so directs, by Independent Counsel as
defined in Section 17 of this Agreement in a written opinion to such Board of Directors, a copy of
which shall be delivered to the Indemnitee or (c) by the shareholders of FNB or FNBPA, as the case
may be. Such Independent Counsel shall be selected by the Board of Directors of FNB or FNBPA, as
the case may be, and shall be reasonably acceptable to the Indemnitee. Upon failure of FNB’s Board
of Directors so to select such Independent Counsel or upon failure of the Indemnitee so to accept,
such Independent Counsel shall be selected by the Chairman of the law firm of Xxxxx Xxxxxx LLP.
Such determination of entitlement to indemnification shall be made not later than 60 days after
receipt by FNB or FNBPA of a written request for indemnification. Any reasonable costs or
expenses, including attorneys’ fees, incurred by the Indemnitee in connection with a request for
indemnification under this Agreement shall be borne by FNB and FNBPA, as the case may be, provided
that it is ultimately determined that the Indemnitee is entitled to 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 partial indemnification among such claims, issues or matters.
7. Presumptions and Effect of Certain Proceedings. The Secretary of FNB or FNBPA, or
such other officer, if any, as shall have been designated by their respective Board of Directors,
shall, promptly upon receipt of the Indemnitee’s request for indemnification, advise FNB’s or
FNBPA’s Board of Directors, as the case may be, in writing, or such other person or persons
empowered to make the determination as provided in Section 6 of this Agreement, that the Indemnitee
has made such request for indemnification. Upon making such request for indemnification, the
Indemnitee shall be presumed to be entitled to indemnification hereunder, and FNB or FNBPA, as the
case may be, shall have the burden of proof in the making of any determination contrary to such
presumption. If the person or persons so empowered to make such determination shall fail to make
the requested indemnification within 60 days after receipt by FNB or FNBPA, as the case may be, of
such request, the requisite determination of entitlement to indemnification shall be deemed to
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have been made and the Indemnitee shall be absolutely entitled to such indemnification, absent
actual and material fraud in the request for indemnification. The termination of any Proceeding
described in Sections 2 or 3 of this Agreement 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 that the Indemnitee reasonably
believed to be in or not opposed to the best interests of FNB or FNBPA, as the case may be, and,
with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that
his or her conduct was unlawful or (b) otherwise adversely affect the rights of the Indemnitee to
indemnification except as may be expressly provided herein.
8. Advancement of Expenses and Costs. Subject to the exceptions set forth in Section
10, all reasonable costs and expenses incurred by the Indemnitee, including attorneys’ fees,
retainers and advances of disbursements required of the Indemnitee, in defending a Proceeding shall
be paid by FNB or FNBPA, as the case may be, in advance of the final disposition of such Proceeding
at the request of the Indemnitee within 20 days after the receipt by FNB or FNBPA, as the case may
be, of a statement or statements from the Indemnitee requesting such advance or advances from time
to time. The Indemnitee’s entitlement to such costs and expenses shall include those costs and
expenses incurred in connection with any proceeding by the Indemnitee seeking an adjudication
pursuant to this Agreement. Such statement or statements shall reasonably evidence the costs and
expenses incurred by the Indemnitee in connection therewith and shall include or be accompanied by
a written undertaking by or on behalf of the Indemnitee to repay such amount if it is ultimately
determined that the Indemnitee is not entitled to be indemnified against such costs and expenses by
FNB or FNBPA, as the case may be, as provided by this Agreement or otherwise.
9. 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 payment has not been timely made following a determination of
entitlement to indemnification pursuant to Sections 6 and 7 of this Agreement, or if expenses are
not advanced pursuant to Section 8 of this Agreement, the Indemnitee shall be entitled to a final
adjudication in an appropriate court of the Commonwealth of Pennsylvania or any other court of
competent jurisdiction of the Indemnitee’s entitlement to such indemnification or advance. Such
judicial proceeding shall be made de novo, and the Indemnitee shall not be prejudiced in seeking
further relief 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 6 of this Agreement that the Indemnitee is entitled to indemnification, FNB and FNBPA 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. FNB and FNBPA further agree to stipulate in any such proceeding that FNB and FNBPA
are bound by all the provisions of this Agreement
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and is precluded from making any assertion to the contrary. If the court shall determine that
the Indemnitee is entitled to any indemnification hereunder, FNB or FNBPA, as the case may be,
shall pay all reasonable costs and expenses, including attorneys’ fees, actually incurred by the
Indemnitee in connection with such adjudication, including, but not limited to, any appellate
proceedings.
10. Exceptions and Modifications to Indemnification.
(a) Notwithstanding any other provision to the contrary set forth in this Agreement, unless
otherwise determined by the Board of Directors of FNB or FNBPA, as the case may be, by a majority
vote of the Disinterested Directors, the Indemnitee shall not be entitled to indemnification or
advancement of expenses from FNB and FNBPA under this Agreement in any of the following
circumstances: (i) any Proceeding initiated by or on behalf of the Indemnitee against FNB or
FNBPA, as the case may be, other than a Proceeding brought solely to seek the remedies set forth in
Section 9 for a Proceeding not initiated by the Indemnitee, or any counterclaim, cross-claim,
affirmative defense or similar claim of FNB or FNBPA, as the case may be, in connection with such
Proceeding or (ii) any Proceeding initiated by FNB or FNBPA, as the case may be, against the
Indemnitee other than as provided in Section 3 of this Agreement.
(b) Notwithstanding any other provision to the contrary set forth in this Agreement, in the
event that any insurance policy obtained by FNB or FNBPA, as the case may be, would provide
coverage for any liability, cost or expense for which indemnification or advancement of expenses is
sought by the Indemnitee under this Agreement, the provisions of this Agreement shall be modified
to the extent necessary to conform this Agreement to the requirements of such insurance policy so
as to provide coverage to the Indemnitee to the fullest extent possible, including but not limited
to, any requirement relating to incurring defense costs and retaining legal counsel.
11. Other Rights to Indemnification. The indemnification and advancement of costs and
expenses, including attorneys’ fees, provided by this Agreement shall not be deemed exclusive of
any other rights to which the Indemnitee may now or in the future be entitled under any provision
of FNB’s Certificate of Incorporation or FNBPA’s Articles of Association or the respective Bylaws
of FNB or FNBPA, as the case may be, or any agreement, vote of shareholders or Disinterested
Directors, provision of law or otherwise.
12. Attorneys’ 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 to enforce the Indemnitee’s rights under, or to
recover damages for breach of, this Agreement, if the Indemnitee prevails in whole or in part in
such Proceeding, the Indemnitee shall be entitled to recover from FNB and FNBPA and shall be
indemnified by FNB and FNBPA against, any actual expenses for attorneys’ fees and disbursements
reasonably incurred by the Indemnitee.
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13. Successors and Assigns. This Agreement shall be binding upon FNB and FNBPA and
their respective successors and assigns and shall inure to the benefit of the Indemnitee and the
Indemnitee’s spouse, assigns, heirs, devisees, executors, administrators or other legal
representatives.
14. Severability. If any provision of this Agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability
of the remaining provisions of this Agreement, including without limitation, all portions of any
paragraphs of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves 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, without limitation, 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 manifested
by the provision held invalid, illegal or unenforceable.
15. Counterparts. This Agreement may be executed in 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.
16. 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 of this Agreement.
17. Definitions and Interpretations. For purposes of this Agreement:
(a) The term “Corporation” shall include any constituent corporation, including any
constituent of a constituent, absorbed in a consolidation or merger that, if its separate existence
continued, would have had power and authority to indemnify its directors, so that any person who is
or was a director of such constituent corporation, or is or was serving at the request of such
constituent corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, shall stand in the same position under the
provisions of this Agreement with respect to the resulting or surviving corporation as such person
would have with respect to such constituent corporation if its separate existence had continued.
(b) The term “Disinterested Director” shall mean a director of FNB or FNBPA, as the case may
be, who is not or was not a party to a Proceeding in respect of which indemnification is being
sought by the Indemnitee.
(c) The term “fines” shall include any penalties and any excise or similar taxes assessed on a
person with respect to an employee benefit plan.
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(d) The term “Independent Counsel” shall mean any person who, under the applicable standards
of professional conduct then prevailing, would not have a conflict of interest in representing
either FNB, FNBPA or the Indemnitee in an Proceeding to determine the Indemnitee’s right to
indemnification under this Agreement.
(e) The term “other enterprise” shall include employee benefit plans, including but not
limited to, any employee benefit plans of FNB or FNBPA.
(f) The term “Proceeding” shall mean any threatened, pending or completed action, suit or
proceeding, whether civil, criminal, administrative or investigative in nature, including any
counterclaim.
(g) Service by the Indemnitee “at the request of FNB or FNBPA” shall include, but is not
limited to, any service that imposes duties on, or involves services by, the Indemnitee with
respect to an employee benefit plan, its participants or beneficiaries, including acting as a
fiduciary thereof.
(h) A person who acted in good faith and in a manner such person reasonably believed to be in
the interest 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 FNB or FNBPA” as referred to in
Sections 2 and 3 of this Agreement.
(i) Service by the Indemnitee as a partner, trustee, manager or member of management or
similar committee of a partnership, joint venture, trust or limited liability company, or as a
director, officer, manager, partner, trustee or manager of an entity that is a partner, trustee,
member or joint venturer, shall be considered service as a director or officer of the partnership,
joint venture, trust, limited liability company or other enterprise.
18. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by all of the parties hereto. No waiver of
any of the provisions of this Agreement shall be deemed to or shall constitute a waiver of any
other provisions hereof, whether or not similar, nor shall such waiver constitute a continuing
waiver.
19. Notice by the Indemnitee. The Indemnitee agrees promptly to notify FNB and FNBPA
in writing upon being served with any summons, citation, subpoena, complaint, indictment,
information or other document relating to any matter that may be subject to indemnification covered
hereunder, either civil, criminal or investigative.
20. Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted
for by the party to whom said notice or other communication shall have been directed or if (b)
mailed by certified or registered mail with postage prepaid, on the third business day after the
date on which it is so mailed:
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If to the Indemnitee, to the address set forth on the signature page to this Agreement.
If to FNB or FNBPA to:
F.N.B. Corporation
Xxx X.X.X. Xxxxxxxxx
Xxxxxxxxx, XX 00000
Attention: Xxxxxx X. New, Jr., President
and Chief Executive Officer
Xxx X.X.X. Xxxxxxxxx
Xxxxxxxxx, XX 00000
Attention: Xxxxxx X. New, Jr., President
and Chief Executive Officer
or to such other address as may have been furnished to the Indemnitee by FNB or FNBPA or to FNB or
FNBPA by the Indemnitee, as the case may be.
21. Governing Law. FNB, FNBPA and the Indemnitee agree that this Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the Commonwealth of
Pennsylvania.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.
| F.N.B. CORPORATION | ||||||
| By: | ||||||
| FIRST NATIONAL BANK OF PENNSYLVANIA | ||||||
| By: | ||||||
| INDEMNITEE: | ||||||
| Name (please print or type) | ||||||
| Signature | ||||||
| Address: | ||||||
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