Document:

exv10w21

 

Exhibit 10.21

INDEMNITY AGREEMENT

     AGREEMENT dated as of                          ,                 by and between CSK AUTO CORPORATION, a
Delaware corporation (the “Corporation”), and the undersigned (the “Indemnitee”).

RECITALS

     The Indemnitee is a director and/or officer of the Corporation and/or an Affiliate Indemnitee
(as hereafter defined). Both the Corporation and the Indemnitee recognize the increased risk of
litigation and other claims being asserted against directors and officers in today’s environment.

     Article VIII of the Restated Certificate of Incorporation of the Corporation requires the
Corporation to indemnify its directors and officers as currently provided therein, and the
Indemnitee has been serving and continues to serve as a director and/or officer of the Corporation
in part in reliance on such provision. The Restated Certificate of Incorporation of the Corporation
permits the Corporation to purchase and maintain insurance or to furnish similar protection or make
other arrangements (any such insurance, protection or arrangement, an “Indemnification
Arrangement”) on behalf of the Indemnitee against personal liability (including, but not limited
to, providing for Advanced Amounts as hereafter defined), asserted against him or incurred by or on
behalf of him in such capacity as a director or officer of the Corporation or as an Affiliate
Indemnitee, or arising out of his status as such, whether or not the Corporation would have the
power to indemnify him against such liability under the provisions of this Agreement or under the
Delaware General Corporation Law (the “DGCL”), as it may then be in effect.

     In part to provide the Indemnitee with specific contractual assurance of substantial
protection against personal liability (regardless of, among other things, any amendment to or
revocation of the aforementioned provisions of the Corporation’s Restated Certificate of
Incorporation or any change in the composition of the Corporation’s Board of Directors or control
of the Corporation), the Corporation desires to enter into this Agreement. DGCL Section 145(f)
expressly recognized that the indemnification provisions of the DGCL are not exclusive of any other
rights to which a person seeking indemnification may be entitled under the Certificate of
Incorporation or Bylaws of the Corporation, or an agreement providing for indemnification, or a
resolution of stockholders or directors, or otherwise, and Article VIII of the Restated Certificate
of Incorporation of the Corporation expressly recognizes that the indemnification provisions of the
Restated Certificate of Incorporation of the Corporation shall be deemed exclusive of, and shall
not affect, any other rights to which a person seeking indemnification may be entitled under any
agreement, and this Agreement is being entered into pursuant to the Restated Certificate of
Incorporation of the Corporation as permitted by the DGCL as authorized by the stockholders of the
Corporation.

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     In order to induce the Indemnitee to serve as a director and/or officer of the Corporation and
in consideration of the Indemnitee’s so serving, the Corporation desires to hold harmless and
indemnify the Idemnitee and to make arrangements pursuant to which the Indemnitee may be advanced
or reimbursed expenses incurred by the Indemitee in certain proceedings, in every case to the
fullest extent authorized or permitted by the DGCL or any other applicable law, or by any amendment
thereof or other statutory provisions authorizing or permitting such indemnification which are
adopted after the date hereof (but, in the case of any such amendment, only to the extent that such
amendment permits the corporation to provide broader indemnification rights than the DGCL or other
applicable law permitted the Corporation to provide prior to such amendment).

     NOW THEREFORE, in consideration of the foregoing recitals and of the Indemnitee’s continuing
to serve the Corporation as a director and/or officer, the parties agrees as follows:

     1. Indemnification. To the fullest extent allowed by law, the Corporation shall hold
harmless and indemnify the Indemnitee, his executors, administrators or assigns against any and all
expenses, liabilities, and losses (including, without limitation, investigation expenses and expert
witnesses’ and attorney’ fees and expenses, judgements, penalties, fines, and amounts paid or to be
paid in settlement) actually incurred by the Indemnitee (net of any related insurance proceeds or
other amounts received by the Indemnitee or paid by or on behalf of the Corporation on the
Indemnitee’s behalf in compensation of such expenses, liabilities or losses), in connection with
any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or
investigative, to which the Indemnitee is a party or is threatened to be made a party (a
“Proceeding”), as a plaintiff, defendant, respondent or otherwise, based upon, arising from,
relating to or by reason of the fact that the Indemnitee is, was, shall be or shall have been a
director and/or officer of the Corporation or is or was serving, shall serve or shall have served
at the request of the Corporation as a director, officer, partner, trustee, fiduciary, employee or
agent (“Affiliate Indemnitee”) of another foreign or domestic corporation or non-profit
corporation, cooperative, partnership, joint venture, trust, employee benefit plan, or other
incorporated or unincorporated enterprise (each, a “Company Affiliate”); provided, however, that,
except as provided in Section 8(b) hereof, the Corporation shall indemnify the Indemintee in
connection with a Proceeding initiated by the Indemnitee only if such proceeding (or part thereof)
was authorized by a majority vote of the Board of Directors. The Indemnitee shall be presumed to be
entitled to such indemnification under this Agreement upon submission of a written claim pursuant
to Section 3 hereof. Thereafter, the Corporation shall have the burden of proof to overcome the
presumption that the Indemnitee is so entitled. Such presumption shall only be overcome by a
judgment or other final adjudication after all appeals and all time for appeals has expired (“Final
Determination”) adverse to the Indemnitee establishing that his acts were committed in bad faith,
or were the results of active and deliberate dishonesty and were material to the cause of action so
adjudicated, or that the Indemnitee personally gained in fact a financial profit or other

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advantage to which he was not legally entitled. Neither the failure of the Corporation
(including its Board of Directors, legal counsel, or its stockholders) to have made a determination
prior to the commencement of such Proceeding that indemnification of the Indemnitee is proper in
the circumstances because such person has met the applicable standard of conduct set forth in the
DGCL, nor an actual determination by the Corporation (including its Board of Directors, legal
counsel, or its stockholders) that the Indemnitee has not met the 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 purchase, establishment, or maintenance of any Indemnification
Arrangement shall not in any way diminish, restrict, limit or affect the rights and obligations of
the Corporation or of the Indemnitee under this Agreement except as expressly provided herein, and
the execution and delivery of this Agreement by the Corporation and the Indemnitee shall not in any
way diminish, restrict, limit or affect the Indemnitee’s right to indemnification from the
Corporation or any other party or parties under any other Indemnification Arrangement, the
Certificate of Incorporation or Bylaws of the Corporation or the DGCL.

     2. Insurance . Subject only to the provisions of this Section 2, as long as the
Indemnitee shall continue to serve as a director and/or officer of the Corporation (or shall
continue at the request of the Corporation to serve as an Affiliate Indemnitee) and thereafter as
long as the Indemnitee shall be subject to any possible Proceeding by reason of the fact that the
Indemnitee was a director and/or officer of the Corporation (or served in any of said other
capacities), the Corporation will, unless no such policies are available in any market, purchase
and maintain in effect for the benefit of the Indemnitee one or more valid, binding, and
enforceable policies (the “Insurance Policies”) of directors’ and officers’ liability insurance
(“D&O Insurance”) providing adequate liability coverage for the Indemnitee’s acts as a director
and/or officer of the Corporation or as an Affiliate Indemnitee. The Corporation shall promptly
notify the Indemnitee of any lapse, amendment or failure to renew said policy or policies or any
provisions thereof relating to the extent or nature of coverage provided thereunder. In the event
the Corporation does not purchase and maintain in effect said policy or policies of D&O Insurance
pursuant to the provision of this Section 2, the Corporation shall, in addition to and not in
limitation of the other rights granted the Indemnitee under this Agreement, hold harmless and
indemnify the Indemnitee to the full extent of coverage which would otherwise have been provided
for the benefit of the Indemnitee pursuant to the Insurance Policies.

     3. Claims for Payments. The Indemnitee shall have the right to receive from the
Corporation on demand, or at his option to have the Corporation pay promptly on his behalf, in
advance of a Final Determination of a Proceeding all amounts payable by the Corporation pursuant to
the terms of this Agreement as corresponding amounts are expended or incurred by the Indemnitee in
connection with any Proceeding or otherwise expended or incurred by the Indemnitee (such amounts so
expended or incurred being referred to as “Advanced Amounts.”) In making any claim for payment by
the Corporation of any amount, including any Advanced Amount, pursuant to this Agreement, the
Indemnitee shall submit to the Corporation a written request for payment (a “Claim”), which
includes a schedule setting forth in reasonable detail the dollar

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amount expended (or incurred or expected to be expended or incurred). Each item on such schedule
shall be supported by the bill, agreement, or other documentation relating thereto, a copy of which
shall be appended to the schedule as an exhibit.

     Where the Indemnitee is requesting Advanced Amounts, the Indemnitee must also provide an
undertaking to repay such Advanced Amounts if a Final Determination is made that the Indemnitee is
not entitled to indemnification hereunder.

     4. Section 16(b) Liability. The Corporation shall not be liable under this Agreement
to make any payment in connection with any claim made against the Indemnitee for an accounting of
profits made from the purchase or sale by the Indemnitee of securities of the Corporation within
the meaning of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or
similar provisions of any state statutory law or common law.

     5. Continuation of Indemnity. All agreements and obligations of the Corporation
contained herein shall continue during the period the Indemnitee is a director and/or officer of
the Corporation (or is serving at the request of the Corporation as an Affiliate Indemnitee) and
shall continue thereafter so long as the Indemnitee shall be subject to any possible Proceeding by
reason of the fact that the Indemnitee was a director or officer of the Corporation or was serving
as such an Affiliate Indemnitee.

     6. Successors: Binding Agreements. This Agreement shall be binding on and shall inure
to the benefit of and be enforceable by the Corporation’s successors and assigns and by the
Indemnitee’s personal or legal representatives, executors, administrators, successors, heirs,
distributee, divisees, and legatees. The Corporation shall require any successor or assignee
(whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all of the business and/or assets of the Corporation, by written agreement in form
and substance reasonably satisfactory to the Corporation and to the Indemnitee, expressly to assume
and agree to perform this Agreement in the same manner and to the same extent that the Corporation
would be required to perform if no such succession or assignment had taken place.

     7. Notification and Defense of Claim. Promptly after receipt by the Indemnitee of
notice of the commencement of any Proceeding, the Indemnitee shall, if a claim in respect thereof
is to be made against the Corporation under this Agreement, notify the Corporation of the
commencement thereof, but the omission so to notify the Corporation will not relieve the
Corporation from any liability which it may have to the Indemnitee. With respect to any such
Proceeding:

	 	(i)  	The Corporation shall be entitled to participate therein at its own expense;
	 
	 	(ii)  	Except with prior written consent of the Indemnitee, the Corporation shall
not be entitled to assume the defense of any Proceeding; and

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	 	(iii)  	The Corporation shall not settle any Proceeding in any matter which would
impose any penalty or limitation on the Indemnitee without the Indemnitee’s prior
written consent.

The Indemnitee shall not settle any Proceeding with respect to which the Indemnitee has received
indemnified amounts or Advanced Amounts without the Corporation’s prior written consent, nor will
the Indemnitee unreasonably withhold consent to any proposed settlement.

     8. Enforcement. (a) The Corporation has entered into this Agreement and assumed the
obligations imposed on the Corporation hereby in order to induce the Indemnitee to act as a
director and/or officer of the Corporation or as an Affiliate Indemnitee, and acknowledges that the
Indemnitee is relying upon this Agreement in continuing in such capacity.

          (b) In the event the Indemnitee has requested payment of any amount under this Agreement and
has not received payment thereof within thirty (30) days of such request, the Indemnitee may bring
any action to enforce rights or collect moneys due under this Agreement and if the Indemnitee is
successful in such action, the Corporation shall reimburse the Indemnitee for all of the
Indemnitee’s fees and expenses in bringing and pursuing such action. The Indemnitee shall be
entitled to the advancement of such amounts to the full extent contemplated by Section 3 hereof in
connection with such Proceeding.

     9. Separability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, all
portions of any sections or subsections 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 (ii) to the fullest extent possible, the
provisions of any sections or subsections of this Agreement containing any such provisions 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 of the parties that the Corporation provide
protection to the Indemnitee to the fullest enforceable extent.

     10. Miscellaneous. No provision of this Agreement may be modified, waived, or
discharged unless such modification, waiver, or discharge is agreed to in a writing signed by the
Indemnitee and an officer of the Corporation designated by the Board of Directors. No waiver by
either party at any time of any breach by the other party of, or of compliance with, any condition
or provision of this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same time or at any prior or subsequent time.
The validity, interpretation, construction, and performance of this Agreement shall be governed by
the laws of the State of Delaware, without giving effect to the principles of conflicts of laws
thereof. The Indemnitee may bring an action seeking resolution of disputes or controversies

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arising under or in any way related to this Agreement in the state or federal court jurisdiction in
which the Indemnitee resides or in which his place of business is located, and in any related
appellate courts, and the Corporation consents to the jurisdiction of such courts and to such
venue.

     11. Notices. For the purposes of this Agreement, notices and all other communications
provided for the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid, as
follows:

	 	 	 	 	 
	

	 	If to the Indemnitee:
	 	To the address set forth
	

	 	 	 	below his signature
	 
	 	 	 	 
	

	 	If to the Corporation:
	 	CSK Auto Corporation
	

	 	 	 	645 E. Missouri Avenue
	

	 	 	 	Phoenix, Arizona 85012
	

	 	 	 	Attn: Chief Executive Officer

or such other address as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.

     12. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original but all of which together shall constitute one and the same
instrument.

     13. Effectiveness. This Agreement shall be effective as of the day and year first
above written.

     IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	CSK AUTO CORPORATION	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Name:
	 	Maynard Jenkins	 	 
	

	 	Title:
	 	Chief Executive Officer	 	 

	 	 	 	 	 	 	 
	 	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	

	 	 	 	 	 	 
	

	 	Name:	 	 	 	 
	

	 	Address:	 	 	 	 

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Exhibit 10.36

The following table sets forth the current annual base salaries of our named executive officers:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 

	 	 	 
	 	 	 
	 	 	 	 	 	 
	 	 

	 	 	Maynard Jenkins
	 	 	Chairman & Chief Executive Officer
	 	 	$	800,000	 	 
	 	 

	 	 	Martin Fraser
	 	 	President & Chief Operating Officer
	 	 	$	400,000	 	 
	 	 

	 	 	Larry L. Buresh
	 	 	Sr. VP & Chief Information Officer
	 	 	$	275,000	 	 
	 	 

	 	 	Don Watson
	 	 	Sr. VP & Chief Financial Officer
	 	 	$	280,000	 	 
	 	 

	 	 	Dale D. Ward
	 	 	EVP — Commercial Operations
	 	 	$	295,144	 	 
	 

On May 25, 2004, the Compensation Committee of the Company’s Board of Directors (“Compensation
Committee”) approved and adopted the 2004 General and Administrative Staff Incentive Plan (the
“2004 Plan”), which is intended to provide eligible associates, including the Company’s officers
(excluding the Chairman and CEO and President and COO, discussed below), with an opportunity to
directly share in the success of the Company by paying them cash bonuses for outstanding
individual, department and Company achievements during the 2004 fiscal year. Bonuses under the
2004 Plan are payable if Company financial performance goals relating to specified earnings per
share (“EPS”); earnings before interest, taxes, depreciation and amortization (“EBITDA”), and cash
flow (“Cash Flow”), as well as individual performance goals, for fiscal 2004, are met. Bonuses
relative to Company performance goals are calculated utilizing predetermined percentages of the
officers’ salaries based on the amount by which the Company’s actual goal achievement exceeds the
specified targets. Bonuses relative to individual performance are awarded based on the level of
performance determined to have been achieved by each officer. Messrs. Buresh, Watson and Ward are
eligible to be awarded an annual incentive bonus under the 2004 Plan not to exceed 100% of their
respective base salaries depending upon the levels of EPS, EBITDA and/or Cash Flow and individual
performance actually achieved.

On April 14, 2004, the Compensation Committee approved the Executive Incentive Program, which was
approved by our stockholders in June 2004. The Executive Incentive Program provides the terms for
incentive bonuses to be paid to the CEO and COO only, for fiscal 2004, based on the Company’s
achievement of financial performance goals relative to the same EPS, EBITDA and the Cash Flow
targets as set forth under the 2004 Plan. Messrs. Jenkins and Fraser are eligible to be awarded an
annual incentive bonus for fiscal 2004 under the Executive Incentive Program not to exceed 160% of
their respective base salaries depending upon the levels of EPS, EBITDA and/or Cash Flow actually
achieved.

Awards under the 2004 Plan and the Executive Incentive Program have not yet been determined by the
Compensation Committee.

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