IndemnityAgreement损失补偿合同完整篇doc.docx
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IndemnityAgreement损失补偿合同完整篇doc
IndemnityAgreement损失补偿合同-
A.TheCompanyisawarethatcompetentandexperiencedpersonsareincreasinglyreluctanttoserveasdirectorsorofficersofcorporationsunlesstheyareprotectedbycomprehensiveliabilityinsuranceand/orindemnification,duetoincreasedexposuretolitigationcostsandrisksresultingfromtheirservicetosuchcorporations,andduetothefactthattheexposurefrequentlybearsnoreasonablerelationshiptothecompensationofsuchdirectorsandofficers;
B.Basedupontheirexperienceasbusinessmanagers,theBoardofDirectorsoftheCompany(theBoard)hasconcludedthat,toretainandattracttalentedandexperiencedindividualstoserveasofficersanddirectorsoftheCompany,andtoencouragesuchindividualstotakethebusinessrisksnecessaryforthesuccessoftheCompany,itisnecessaryfortheCompanycontractuallytoindemnifyofficersanddirectorsandtoassumeforitselfmaximumliabilityforexpensesanddamagesinconnectionwithclaimsagainstsuchofficersanddirectorsinconnectionwiththeirservicetotheCompany;
C.Section145oftheGeneralCorporationLawof_________(PLACENAME),underwhichtheCompanyisorganized(theLaw),empowerstheCompanytoindemnifybyagreementitsofficers,directors,employeesandagents,andpersonswhoserve,attherequestoftheCompany,asdirectors,officers,employeesoragentsofothercorporationsorenterprises,andexpresslyprovidesthattheindemnificationprovidedbytheLawisnotexclusive;and
D.TheCompanydesiresandhasrequestedtheIndemniteetoserveorcontinuetoserveasadirectororofficeroftheCompanyfreefromundueconcernforclaimsfordamagesarisingoutoforrelatedtosuchservicestotheCompany.
NOW,THEREFORE,thepartieshereto,intendingtobelegallybound,herebyagreeasfollows:
1.Definitions.
1.1Agent.ForthepurposesofthisAgreement,agentoftheCompanymeansanypersonwhoisorwasadirectororofficeroftheCompanyorasubsidiaryoftheCompany;orisorwasservingattherequestof,fortheconvenienceof,ortorepresenttheinterestoftheCompanyorasubsidiaryoftheCompanyasadirectororofficerofanotherforeignordomesticcorporation,partnership,jointventure,trustorotherenterpriseoranaffiliateoftheCompany;orwasadirectororofficerofaforeignordomesticcorporationwhichwasapredecessorcorporationoftheCompany,including,withoutlimitation,NetSelect,Inc.,a_________(PLACENAME)corporation,orwasadirectororofficerofanotherenterpriseoraffiliateoftheCompanyattherequestof,fortheconvenienceof,ortorepresenttheinterestsofsuchpredecessorcorporation.ThetermenterpriseincludesanyemployeebenefitplanoftheCompany,itssubsidiaries,affiliatesandpredecessorcorporations.
1.2Expenses.ForpurposesofthisAgreement,expensesincludesalldirectandindirectcostsofanytypeornaturewhatsoever(including,withoutlimitation,allattorneys’feesandrelateddisbursementsandotherout-of-pocketcosts)actuallyandreasonablyincurredbytheIndemniteeinconnectionwiththeinvestigation,defenseorappealofaproceedingorestablishingorenforcingarighttoindemnificationoradvancementofexpensesunderthisAgreement,Section145orotherwise;provided,however,thatexpensesshallnotincludeanyjudgments,fines,ERISAexcisetaxesorpenaltiesoramountspaidinsettlementofaproceeding.
1.3Proceeding.ForthepurposesofthisAgreement,proceedingmeansanythreatened,pendingorcompletedaction,suitorotherproceeding,whethercivil,criminal,administrative,investigativeoranyothertypewhatsoever.
1.4Subsidiary.ForpurposesofthisAgreement,subsidiarymeansanycorporationofwhichmorethanfiftypercent(50%)oftheoutstandingvotingsecuritiesisowneddirectlyorindirectlybytheCompany,bytheCompanyandoneormoreofitssubsidiariesorbyoneormoreoftheCompany’ssubsidiaries.
2.AgreementtoServe.TheIndemniteeagreestoserveand/orcontinuetoserveasanagentoftheCompany,atthewilloftheCompany(orunderseparateagreement,ifsuchagreementexists),inthecapacitytheIndemniteecurrentlyservesasanagentoftheCompany,faithfullyandtothebestofhisability,solongasheisdulyappointedorelectedandqualifiedinaccordancewiththeapplicableprovisionsofthecharterdocumentsoftheCompanyoranysubsidiaryoftheCompany;provided,however,thattheIndemniteemayatanytimeandforanyreasonresignfromsuchposition(subjecttoanycontractualobligationthattheIndemniteemayhaveassumedapartfromthisAgreement),andtheCompanyoranysubsidiaryshallhavenoobligationunderthisAgreementtocontinuetheIndemniteeinanysuchposition.
3.Directors’andOfficers’Insurance.TheCompanyshall,totheextentthattheBoarddeterminesittobeeconomicallyreasonable,maintainapolicyofdirectors’andofficers’liabilityinsurance(DOInsurance),onsuchtermsandconditionsasmaybeapprovedbytheBoard.
4.MandatoryIndemnification.SubjecttoSection9below,theCompanyshallindemnifytheIndemnitee:
4.1ThirdPartyActions.IftheIndemniteeisapersonwhowasorisapartyoristhreatenedtobemadeapartytoanyproceeding(otherthananactionbyorintherightoftheCompany)byreasonofthefactthatheisorwasanagentoftheCompany,orbyreasonofanythingdoneornotdonebyhiminanysuchcapacity,againstanyandallexpensesandliabilitiesofanytypewhatsoever(including,butnotlimitedto,judgments,fines,ERISAexcisetaxesorpenaltiesandamountspaidinsettlement)actuallyandreasonablyincurredbyhiminconnectionwiththeinvestigation,defense,settlementorappealofsuchproceedingifheactedingoodfaithandinamannerhereasonablybelievedtobein,ornotopposedto,thebestinterestsoftheCompanyand,withrespecttoanycriminalactionorproceeding,hadnoreasonablecausetobelievehisconductwasunlawful;and
4.2DerivativeActions.IftheIndemniteeisapersonwhowasorisapartyoristhreatenedtobemadeapartytoanyproceedingbyorintherightoftheCompanytoprocureajudgmentinitsfavorbyreasonofthefactthatheisorwasanagentoftheCompany,orbyreasonofanythingdoneornotdonebyhiminanysuchcapacity,againstanyamountspaidinsettlementofanysuchproceedingandallexpensesactuallyandreasonablyincurredbyhiminconnectionwiththeinvestigation,defense,settlementorappealofsuchproceedingifheactedingoodfaithandinamannerhereasonablybelievedtobein,ornotopposedto,thebestinterestsoftheCompany;exceptthatnoindemnificationunderthissubsectionshallbemadeinrespectofanyclaim,issueormatterastowhichsuchpersonshallhavebeenfinallyadjudgedtobeliabletotheCompanybyacourtofcompetentjurisdictionduetowillfulmisconductofaculpablenatureintheperformanceofhisdutytotheCompany,unlessandonlytotheextentthattheCourtofChanceryorthecourtinwhichsuchproceedingwasbroughtshalldetermineuponapplicationthat,despitetheadjudicationofliabilitybutinviewofallthecircumstancesofthecase,suchpersonisfairlyandreasonablyentitledtoindemnityforsuchamountswhichtheCourtofChanceryorsuchothercourtshalldeemproper;and
4.3ExceptionforAmountsCoveredbyInsurance.Notwithstandingtheforegoing,theCompanyshallnotbeobligatedtoindemnifytheIndemniteeforexpensesorliabilitiesofanytypewhatsoever(including,butnotlimitedto,judgments,fines,ERISAexcisetaxesorpenaltiesandamountspaidinsettlement)totheextentsuchhavebeenpaiddirectlytotheIndemniteebyDOInsurance.
5.PartialIndemnificationandContribution.
5.1PartialIndemnification.IftheIndemniteeisentitledunderanyprovisionofthisAgreementtoindemnificationbytheCompanyforsomeoraportionofanyexpensesorliabilitiesofanytypewhatsoever(including,butnotlimitedto,judgments,fines,ERISAexcisetaxesorpenaltiesandamountspaidinsettlement)incurredbyhimintheinvestigation,defense,settlementorappealofaproceedingbutisnotentitled,however,toindemnificationforallofthetotalamountthereof,thentheCompanyshallneverthelessindemnifytheIndemniteeforsuchtotalamountexceptastotheportionthereoftowhichtheIndemniteeisnotentitledtoindemnification.
5.2Contribution.IftheIndemniteeisnotentitledtotheindemnificationprovidedinSection4foranyreasonotherthanthestatutorylimitationssetforthintheLaw,theninrespectofanythreatened,pendingorcompletedproceedinginwhichtheCompanyisjointlyliablewiththeIndemnitee(orwouldbeifjoinedinsuchproceeding),theCompanyshallcontributetotheamountofexpenses(includingattorneys’fees),judgments,finesandamountspaidinsettlementactuallyandreasonablyincurredandpaidorpayablebytheIndemniteeinsuchproportionasisappropriatetoreflect(i)therelativebenefitsreceivedbytheCompanyontheonehandandtheIndemniteeontheotherhandfromthetransactionfromwhichsuchproceedingaroseand(ii)therelativefaultoftheCompanyontheonehandandoftheIndemniteeontheotherhandinconnectionwiththeeventswhichresultedinsuchexpenses,judgments,finesorsettlementamounts,aswellasanyotherrelevantequitableconsiderations.TherelativefaultoftheCompanyontheonehandandoftheIndemniteeontheotherhandshallbedeterminedbyreferenceto,amongotherthings,theparties’relativeintent,knowledge,accesstoinformationandopportunitytocorrectorpreventthecircumstancesresultinginsuchexpenses,judgments,finesorsett