美国优先股法律模板之Model Indemnification Agreement Clean文档格式.docx

美国优先股法律模板之Model Indemnification Agreement Clean文档格式.docx

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INTRODUCTION

Thisagreementcanbeusedforbothofficersanddirectorsofthecorporation.Insomecases,adirectorwillserveasanomineeofoneoragroupofinvestors（e.g.,anindividualventurecapitalistservingasanomineeofaventurecapitalfund）.Someventurecapitalfundswillrequestthatthefund,andnotjusttheirdirectorrepresentative,becoveredbytheindemnificationagreement.Oftenthattakestheformofindemnificationrightscoveringliabilityarisingbyvirtueof"

corporatestatus"

（wheretheinvestorisactingasanagentofthecorporation）.SeeFascianav.ElectronicDataSystems,No.19753（Del.Ch.Feb.27,2003）.Totheextentaventurecapitalfundseeksindemnificationforthefunditself,wehaveprovidedbracketedlanguageinSection1（d）forthedraftspersontoconsider.Theworkinggrouphasnottakenapositionastowhetherinvestorindemnificationis"

market."

Section145oftheDelawareGeneralCorporationLaw（“Section145”）isthestatutoryauthorityforindemnificationofdirectors,officers,employeesandagentsofthecorporation.Section145（a）permits（butdoesnotrequire）indemnificationofexpenses（includingattorneys’fees）aswellasjudgmentsandamountspaidinsettlementinthird-partyactions（i.e.,actionsnotbroughtbyorintherightofthecorporation）iftheapplicablestandardismet.Section145（b）permits（butdoesnotrequire）indemnificationofexpenses（includingattorneys’fees）butnotjudgmentsandamountspaidinsettlementinderivativeactions（i.e.,actionsbroughtbyorintherightofthecorporation）iftheapplicablestandardismet.Thus,Section145drawsabasicdistinctionbetweenthird-partyandderivativeactions.Section145（c）requiresindemnificationofexpenses（includingattorneys’fees）iftheindemniteeissuccessfulonthemeritsorotherwiseinaproceedingreferredtoinSection145（a）or（b）.Section145（d）setsforthrequirementsfordeterminingwhetherindemnificationispermittedunderSection145（a）or（b）.Section145（e）permitsadvancementofexpensesbeforefinaldispositionofaproceedingsubjecttocertainconditions.Section145（f）providesthatthestatutoryrightsandproceduresregardingindemnificationarenotexclusive,thuspermittingindemnificationunderbylaws,agreementsandothercircumstancesbeyondthelimitsspecifiedinSection145.Section145（g）allowsacorporationtoobtaindirectors’andofficers’liabilityinsurance（“D&

Oinsurance”）.Sections145（h）through（k）addressvariousotheraspectsofindemnification,includingprovisionsrelatingtosurvivorshipoftheobligationsoftheindemnifyingcorporation,survivorshipofrightstoindemnificationuponceasingtobeadirector,officer,employeeoragentandtheexclusivejurisdictionoftheDelawareCourtofChanceryoverindemnificationproceedings.

Section102（b）（7）oftheDelawareGeneralCorporationLawistheotherrelevantstatutoryauthorityrelatingtotheprotectionofdirectorsfrommonetaryliability.Section102（b）（7）allowsinclusionofaprovisioninthecertificateofincorporationthateliminatesorlimits（i.e.,caps）thepersonalliabilityofdirectorstothecorporationoritsstockholdersformonetarydamagesforbreachoffiduciaryduty.Thestatute,however,prohibitslimitationsondirectorliability（i）forbreachofadirector’sdutyofloyalty,（ii）foractsoromissionsnotingoodfaithorinvolvingintentionalmisconductorknowingviolationoflaw,（iii）forwillfulornegligentconductinpayingdividendsorrepurchasingstockoutofotherthanlawfullyavailablefunds,or（iv）foranytransactionfromwhichadirectorderivesanimproperpersonalbenefit.Inessence,Section102（b）（7）allowsacorporationtoprotectitsdirectorsfrommonetaryliabilityfordutyofcareviolations

Asnotedabove,Section145（f）providesthatstatutoryindemnificationrightsarenotexclusiveofindemnificationrightsthatmaybeprovidedbyabylawprovision,agreementorotherwise.Asdiscussedbelow,althoughSection145（f）couldbereadbroadlytoallowacorporationtograntbycontractindemnificationrightsbeyondthosepermittedbySection145,casesandcommentatorssuggestthatcontractualindemnificationrightsmaybeheldunenforceableiftheyviolateotherstatutes（includingSection145）,courtdecisionsorpublicpolicy.Asaresult,theenforceabilityofcontractsthatpurporttograntindemnificationrightsbeyondthosepermittedbySection145isatbestunclear.（Forfurtherdiscussion,seecommentunderSection2below.）

Anindemnificationagreementmayserveseveralpurposes.First,andmostimportantly,itmayprovidemoresecureprotectionthanaprovisioninacertificateofincorporationorbylawbecauseitcannotbeamendedwithouttheapprovaloftheindemnitee.Second,itcanbeusedtomakemandatoryindemnificationthatispermissiveunderSection145,tospecifyvariousproceduresandpresumptionsthatmakeindemnificationmorefavorabletotheindemniteethanisprovidedbySection145andtoperhapsprovideforindemnificationrightsthatgobeyondthosethatareexpresslyprovidedbySection145.WhilesuchprovisionscouldalsobeincludedintheCertificateofIncorporationorbylaws,anagreementpermitsdifferentrightstobegrantedtospecificdirectors,officers,employeesandagents,ratherthaninaonesizefitsallapproach.

Somecompanieschoosetoprovidemandatoryindemnificationfordirectors（i.e.,thecompanyisrequiredtoindemnifyadirectoriftheapplicableconditionsaremet）anddiscretionaryindemnificationforofficers（i.e.,indemnificationisatthediscretionofthecompanyeveniftheapplicableconditionsaremet）.Withrespecttoindemnificationofdirectors,asdiscussedinthecommentunderSection6（b）,theremaybenodisinteresteddirectorstoconsiderapprovalofdiscretionaryindemnificationfordirectors.Accordingly,absentmandatoryindemnificationaboarddecisiontoindemnifyitselfmaynotbesubjecttothecourtdeferenceunderthebusinessjudgmentrule.Withrespecttoindemnificationofofficers,theremaybesituations（e.g.,terminationofemployment,sexualharassment）wheremandatoryindemnificationofofficerswouldexposetheCompanytothepossibilityoffundingthedefenseoflitigationeitherbroughtbytheCompanyorinwhichtheCompanywantstodistanceitselffromtheactivitiesoftheofficerinquestion.Careshouldbetakentoanticipatesuchsituations.

Alsonotethatifthecompanydecidestoindemnifydirectorsbutnotofficers,theindemnificationagreementshouldmakeitclearthatanemployeedirectorisindemnifiedonlyinhisorhercapacityasadirector.

Section145（g）specificallyauthorizesacorporationtoobtainD&

OinsurancefordirectorsandofficersforliabilityassertedagainsttheminsuchcapacityorarisingoutofsuchstatuswhetherornotthecorporationhasthepowertoindemnifysuchpersonsagainstsuchliabilityunderSection145.

D&

Oinsurancecoverageisimportantforseveralreasons.First,eventhoughindemnificationmaybepermittedunderSection145,thecorporationmaybeunwillingorunabletoindemnifytheindividual.Theformersituationmayariseafterachangeincorporatecontrolwherethecorporationisunwillingtoindemnifytheindividual.Thismaybethecase,forexample,ifthedirectoristhesubjectoflitigationresultingfromeffortstopreventthechangeincontrol.Alternative,acorporationmaybeunabletoprovideindemnificationbecauseitisinsolvent.UnderChapter11oftheBankruptcyCode,forexample,indemnificationclaimsbydirectorsorofficerswouldgenerallybetreatedasunsecuredclaimspayableonlytotheextentthatotherunsecuredclaimsarepayableaspartofanapprovedplanofreorganization.

Second,D&

OinsurancemayinsureagainstliabilitieswhereindemnificationisnotallowedunderSection145.Thisoccursmostfrequentlyinthecontextofderivativeactionsandsecuritieslawactions.Inparticular,Section145（g）permitsacorporationtoobtaininsurancefor（i）judgmentsoramountspaidinsettlementinderivativeactions,and（ii）forexpensesincurredwhenadirectorhasbeenadjudgedliableinsomerespects,eventhoughindemnificationundersuchcircumstanceswouldnotbeallowedunderSection145（b）.Inaddition,aD&

OinsurancepolicymayinsureagainstliabilitiesundertheSecuritiesActof1933,asamended（the“1933Act”）andtheSecuritiesExchangeActof1934,asamended（the“1934Act”）,eventhoughtheSecuritiesandExchangeCommission（“SEC”）hastakenthepositionthatindemnificationforliabilitiesunderSection11ofthe1933Actareagainstpublicpolicyandcourtshaveheldthatindemnificationforviolationsofthe1933andthe1934Actarecontrarytothepublicpolicyincertaincircumstances.（SeecommentunderSection1（a）oftheAgreement.）Asaresult,D&

Oinsurancemaybeparticularlyimportantforpubliclyheldcompanieswherethereisgreaterriskofliabilityforderivativeactionsandsecuritieslawclaims.

However,D&

Oinsurancepoliciesgenerallycontainanumberofqualificationsandlimitationsthatnarrowthescopeofcoverage.Inparticular,D&

Oinsurancecoverageislimitedbyapplicableinsurancelawaswellaspublicpolicyconsiderations.Inaddition,D&

Oinsurancepolicesgenerallyexcludecertainconductfromcoverage,includingshort-swingprofitliabilityunderSection16（b）ofthe1934Act,unauthorizedremuneration,personalprofittowhichtheinsuredindividualisnotlegallyentitled,claimsarisingoutofcontestsforcorporatecontrolandclaimsbroughtbycorporationsagainsttheirowndirectorsandofficers.

INDEMNIFICATIONAGREEMENT

THISINDEMNIFICATIONAGREEMENT（the“Agreement