Document:

Exhibit 10.7.9 - Form of Change in Control Agreement

    Exhibit
      10.7.9

    

    FORM
      OF TWO-YEAR CHANGE IN CONTROL AGREEMENT

    

    

    THIS
      CHANGE IN CONTROL AGREEMENT was originally made and entered into as of
      _______________ and is hereby amended and restated as of January 3, 2006, by
      and
      between NewAlliance Bank, a Connecticut savings bank (the “Bank” or the
“Employer”), and ______________(the “Executive”).

    

    

    WITNESSETH

    

    WHEREAS,
      the Bank has converted from the mutual to the stock form of organization (the
      “Conversion”) and has concurrently become a wholly owned subsidiary of
      NewAlliance Bancshares, Inc., a business corporation organized under the laws
      of
      the State of Delaware (the “Company”);

    

    WHEREAS,
      the Executive is currently employed as a ____________________________ of the
      Bank;

    

    WHEREAS,
      the Company and the Bank desire to be ensured of the Executive's continued
      active participation in the business of the Bank; and

    

    WHEREAS,
      in order to induce the Executive to remain in the employ of the Bank and in
      consideration of the Executive's agreeing to remain in the employ of the Bank,
      the parties desire to specify the severance benefits which shall be due the
      Executive in the event that his employment with the Bank is terminated under
      specified circumstances;

    

    NOW
      THEREFORE, in consideration of the mutual agreements herein contained, and
      upon
      the other terms and conditions hereinafter provided, the parties hereby agree
      as
      follows:

    

        1.
      Definitions.
      The
      following words and terms shall have the meanings set forth below for the
      purposes of this Agreement:

    

        (a)
      Annual
      Compensation.
      The
      Executive's “Annual Compensation” for purposes of this Agreement shall be deemed
      to mean the sum of (i) the Executive's base salary in effect as of the Date
      of
      Termination of his employment and (ii) the highest level of cash incentive
      compensation earned by the Executive from the Bank or any subsidiary thereof
      in
      any one of the three calendar years immediately preceding the year in which
      the
      termination occurs; provided,
      however,
      for
      purposes of clause (ii) bonuses earned under the Bank’s Performance Unit Plan
      will not be included in cash incentive compensation for purposes of determining
      average cash incentive compensation.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

        (b)
      Cause.
      Termination of the Executive's employment for “Cause” shall mean termination
      because of personal dishonesty, incompetence, willful misconduct, breach of
      fiduciary duty involving personal profit, intentional failure to perform stated
      duties, willful violation of any law, rule or regulation (other than traffic
      violations or similar offenses) or final cease-and-desist order. For purposes
      of
      this paragraph, no act or failure to act on the Executive's part shall be
      considered “willful” unless done, or omitted to be done, by the Executive not in
      good faith and without reasonable belief that the Executive's action or omission
      was in the best interests of the Employers.

     

        (c)
      Change
      in Control.“Change
      in Control” shall mean a change in the ownership of the Company, a change in the
      effective control of the Company or a change in the ownership of a substantial
      portion of the assets of the Company as provided under Section 409A of the
      Code,
      as amended from time to time, and any Internal Revenue Service guidance,
      including Notice 2005-1, and regulations issued in connection with Section
      409A
      of the Code. In no event, however, shall a Change in Control be deemed to have
      occurred as a result of any acquisition of securities or assets of the Company,
      the Bank, or a subsidiary of either of them, by the Company, the Bank, or any
      subsidiary of either of them, or by any employee benefit plan maintained by
      any
      of them.

    

        (d)
      Code.“Code”
      shall mean the Internal Revenue Code of 1986, as amended.

    

        (e)
      Date
      of Termination.“Date
      of
      Termination” shall mean (i) if the Executive's employment is terminated for
      Cause, the date on which the Notice of Termination is given, and (ii) if the
      Executive's employment is terminated for any other reason, the date specified
      in
      the Notice of Termination.

    

        (f)
      Disability.
      Termination by the Employer of the Executive's employment based on “Disability”
shall mean the Executive: (i) is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental impairment
      which can be expected to result in death or can be expected to last for a
      continuous period of not less than 12 months, or (ii) is, by reason of any
      medically determinable physical or mental impairment which can be expected
      to
      result in death or can be expected to last for a continuous period of not less
      than 12 months, receiving income replacement benefits for a period of not less
      than three months under an accident and health plan covering employees of the
      Employer.

    

        (g)
      Good
      Reason.
      Termination by the Executive of the Executive's employment for “Good Reason”
shall mean termination by the Executive following a Change in Control based
      on:

    

            (i)
      Without the
      Executive's express written consent, the assignment by the Employer to the
      Executive of any duties which are materially inconsistent with the Executive's
      positions, duties, responsibilities and status with the Employer immediately
      prior to a Change in Control, or a material change in the Executive's reporting
      responsibilities, titles or offices as an employee and as in effect immediately
      prior to such a Change in Control, or any removal of the Executive from or
      any
      failure to re-elect the Executive to any of such responsibilities, titles or
      offices, except in connection with the termination of the Executive's employment
      for Cause, Disability or Retirement or as a result of the Executive's death
      or
      by the Executive other than for Good Reason;

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

            (ii)
      Without the
      Executive's express written consent, a reduction by the Employer in the
      Executive's base salary as in effect immediately prior to the date of the Change
      in Control or as the same may be increased from time to time thereafter or
      a
      reduction in the package of fringe benefits provided to the
      Executive;

    

            (iii)
      A Board
      approved change in the Executive's principal place of employment by a distance
      in excess of 50 miles from its location immediately prior to the Change in
      Control;

    

            (iv)
      Any purported
      termination of the Executive's employment for Disability or Retirement which
      is
      not effected pursuant to a Notice of Termination satisfying the requirements
      of
      paragraph (i) below; or

    

            (v)
      The failure by
      the Employer to obtain the assumption of and agreement to perform this Agreement
      by any successor as contemplated in Section 10 hereof.

    

        (h)
      IRS.
      IRS
      shall mean the Internal Revenue Service.

    

        (i)
      Notice
      of Termination.
      Any
      purported termination of the Executive's employment by the Employer for any
      reason, including without limitation for Cause, Disability or Retirement, or
      by
      the Executive for any reason, including without limitation for Good Reason,
      shall be communicated by written “Notice of Termination” to the other party
      hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a
      dated notice which (i) indicates the specific termination provision in this
      Agreement relied upon, (ii) sets forth in reasonable detail the facts and
      circumstances claimed to provide a basis for termination of the Executive's
      employment under the provision so indicated, (iii) specifies a Date of
      Termination, which shall be not less than thirty (30) nor more than ninety
      (90)
      days after such Notice of Termination is given, except in the case of the
      Employer’s termination of the Executive's employment for Cause, which shall be
      effective immediately; and (iv) is given in the manner specified in Section
      11
      hereof.

    

        (j)
      Retirement.“Retirement”
      shall mean voluntary termination by the Executive in accordance with the
      Employer’s retirement policies, including early retirement, generally applicable
      to their salaried employees.

    

        2.
      Term of
      Agreement.
      The term
      of this Agreement shall be for two years, commencing on the date of this
      Agreement (the “Effective Date”). Prior to the first annual anniversary of the
      date first above written and each annual anniversary thereafter, the Board
      of
      Directors of the Bank shall consider and review (after taking into account
      all
      relevant factors, including the Executive's performance) a one-year extension
      of
      the term of this Agreement, and the term shall continue to extend each year
      (beginning with the first annual anniversary date) if the Board of Directors
      so
      approves such extension unless the Executive gives written notice to the
      Employer of the Executive's election not to extend the term, with such notice
      to
      be given not less than ninety (90) days prior to any such anniversary date.
      If
      the Board of Directors elects not to extend the term, it shall give written
      notice of such decision to the Executive not less than ninety (90) days prior
      to
      any such anniversary date. Upon termination of the Executive's employment with
      the Employer for any reason whatsoever, any annual extensions provided pursuant
      to this Section 2, if not theretofore discontinued, shall automatically cease.
      Furthermore, nothing in this Agreement shall be deemed to prohibit the Employer
      at any time from terminating the Executive's employment during the term of
      this
      Agreement with or without notice for any reason, subject, however, to such
      rights and obligations of the Employer and the Executive in the event of any
      such termination as may be provided for under this Agreement. In addition,
      no
      annual renewals shall extend beyond the Executive's 65th
      birthday, and in no event shall the term of this Agreement extend beyond the
      Executive's 65th
      birthday.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

        3.
      Benefits
      Upon Termination.
      If the
      Executive's employment by the Employer shall be terminated subsequent to a
      Change in Control and during the term of this Agreement by (i) the Employer
      for
      other than Cause, Disability, Retirement or the Executive's death or (ii) the
      Executive for Good Reason, then the Employer shall

    

    
      	
              (a)

            	
              pay
                to the Executive in a lump sum as of the Date of
                Termination:

            
	 	 
	
              (i)

            	
              a
                cash severance amount equal to two (2) times the Executive's Annual
                Compensation; and

            
	
              (ii)

            	
              an
                amount equal to the pro rata portion of any target bonus awarded
                to the
                Executive under the Bank's Executive Incentive Plan (or such other
                short-term incentive compensation plan(s) that the Employer may adopt
                subsequent to the date hereof as a replacement therefor) which relates
                to
                the calendar year in which such termination occurs; provided
                that,
                such pro rata portion will be calculated by multiplying the amount
                of the
                target bonus by a fraction the numerator of which is the number of
                days
                elapsed in the calendar year as of the Date of Termination and the
                denominator is 365; and

            
	
               

            	 
	
              (b)

            	
              maintain
                and provide for a period ending the earlier of (i) the expiration
                of the
                remaining term of this Agreement as of the Date of Termination or
                (ii) the
                date of the Executive's full-time employment by another employer
                (provided
                that the Executive is entitled under the terms of such employment
                to
                benefits substantially similar to those described in this subparagraph
                (b)), at no greater cost to the Executive than he is paying as of
                the Date
                of Termination, the Executive's continued participation in all group
                insurance, life insurance, health and accident insurance, disability
                insurance and other similar types of employee benefit plans, programs
                and
                arrangements offered by the Employer in which the Executive was entitled
                to participate immediately prior to the Date of Termination (excluding
                other types of benefits, plans or arrangements including (w) the
                Company's
                Employee Stock Ownership Plan, (y) stock benefit plans of the Company
                or
                the Bank and (z) cash incentive compensation included in Annual
                Compensation), except as set forth below. In the event that the Employer
                is unable to provide the benefits set forth in this subparagraph
                (b) due
                to the change in Executive's status to that of a non-employee, the
                Employer shall include in the lump sum payment due pursuant to the
                terms
                of Section 3(a) the value of the benefits required to be provided
                by this
                subparagraph (b). In addition, if the provision of any of the benefits
                covered by this Section 3(b) would trigger the 20% excise tax and
                interest
                penalties under Section 409A of the Code, then the benefit(s) that
                would
                trigger such tax and interest penalties shall not be provided (the
                “Excluded Benefits”), and in lieu of the Excluded Benefits the Employer
                shall pay to the Executive, in a lump sum within 30 days following
                termination of employment or within 30 days after such determination
                should it occur after termination of employment, a cash amount equal
                to
                the cost to the Employer of providing the Excluded
                Benefits;

            

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

        4.
      Limitation
      of Benefits under Certain Circumstances.
      If the
      payments and benefits pursuant to Section 3 hereof, either alone or together
      with other payments and benefits which the Executive has the right to receive
      from the Employer, would constitute a “parachute payment” under Section 280G of
      the Code, the payments and benefits payable by the Employer pursuant to Section
      3 hereof shall be reduced by the amount, if any, which is the minimum necessary
      to result in no portion of the payments and benefits payable by the Employer
      under Section 3 being non-deductible to the Employer pursuant to Section 280G
      of
      the Code and subject to the excise tax imposed under Section 4999 of the Code.
      If the payments and benefits are required to be reduced, the cash severance
      shall be reduced first, followed by a reduction in the fringe benefits to be
      provided in kind. The determination of any reduction in the payments and
      benefits to be made pursuant to Section 3 shall be based upon the opinion of
      independent counsel selected by the Employer’s independent public accountants
      and paid by the Employer. Such counsel shall be reasonably acceptable to the
      Employer and the Executive; shall promptly prepare the foregoing opinion, but
      in
      no event later than thirty (30) days from the Date of Termination; and may
      use
      such actuaries as such counsel deems necessary or advisable for the purpose.
      Nothing contained herein shall result in a reduction of any payments or benefits
      to which the Executive may be entitled upon termination of employment under
      any
      circumstances other than as specified in this Section 4, or a reduction in
      the
      payments and benefits specified in Section 3 below zero.

    

        5.
      Mitigation; Exclusivity of Benefits.

    

        (a)
      The
      Executive shall not be required to mitigate the amount of any benefits hereunder
      by seeking other employment or otherwise. The amount of severance to be provided
      pursuant to Sections 3(a) and 3(b) hereof shall not be reduced by any
      compensation earned by or benefits provided to the Executive as a result of
      employment by another employer after the Date of Termination or
      otherwise.

    

        (b)
      The
      specific arrangements referred to herein are not intended to exclude any other
      benefits which may be available to the Executive upon a termination of
      employment with the Employer pursuant to employee benefit plans of the Employer
      or otherwise.

    

        6.
      Withholding.
      All
      payments required to be made by the Employer hereunder to the Executive shall
      be
      subject to the withholding of such amounts, if any, relating to tax and other
      payroll deductions as the Employer may reasonably determine should be withheld
      pursuant to any applicable law or regulation.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

        7.
      Nature of
      Employment and Obligations.

    

        (a)
      Nothing
      contained herein shall be deemed to create other than a terminable at will
      employment relationship between the Employer and the Executive, and the Employer
      may terminate the Executive's employment at any time, subject to providing
      any
      payments specified herein in accordance with the terms hereof.

    

        (b)
      Nothing
      contained herein shall create or require the Employer to create a trust of
      any
      kind to fund any benefits which may be payable hereunder, and to the extent
      that
      the Executive acquires a right to receive benefits from the Employer hereunder,
      such right shall be no greater than the right of any unsecured general creditor
      of the Employer.

    

        8.
      Source of
      Payments.
      It is
      intended by the parties hereto that all payments provided in this Agreement
      shall be paid in cash or check from the general funds of the Bank. 

    

        9.
      No
      Attachment.
      

     

        (a)
      Except as
      required by law, no right to receive payments under this Agreement shall be
      subject to anticipation, commutation, alienation, sale, assignment, encumbrance,
      charge, pledge, or hypothecation, or to execution, attachment, levy, or similar
      process or assignment by operation of law, and any attempt, voluntary or
      involuntary, to affect any such action shall be null, void, and of no
      effect.

    

        (b)
      This
      Agreement shall be binding upon, and inure to the benefit of, the Executive,
      the
      Bank and their respective successors and assigns.

    

        10.
      Assignability.
      The
      Employer may assign this Agreement and its rights and obligations hereunder
      in
      whole, but not in part, to any corporation, bank or other entity with or into
      which the Employer may hereafter merge or consolidate or to which the Employer
      may transfer all or substantially all of its assets, if in any such case said
      corporation, bank or other entity shall by operation of law or expressly in
      writing assume all obligations of the Employer hereunder as fully as if it
      had
      been originally made a party hereto, but may not otherwise assign this Agreement
      or their rights and obligations hereunder. The Executive may not assign or
      transfer this Agreement or any rights or obligations hereunder.

    

        11.
      Notice.
      For the
      purposes of this Agreement, notices and all other communications provided for
      in
      this Agreement shall be in writing and shall be deemed to have been duly given
      when delivered or mailed by certified or registered mail, return receipt
      requested, postage prepaid, addressed to the respective addresses set forth
      below:

    

    
      	
               To
                the Bank:

            	
               Secretary

            
	 	
              NewAlliance
                Bank

            
	 	
              195
                Church Street

            
	 	
              New
                Haven, CT 06510

            
	 	 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	 	 
	
              To
                the Executive:  

            	
              ______________________

            
	 	
              At
                the address last appearing

            
	 	
              on
                the personnel records of 

            
	 	
              the
                Employer 

            

    

     

        12.
      Amendment; Waiver.
      No
      provisions of this Agreement may be modified, waived or discharged unless such
      waiver, modification or discharge is agreed to in writing and signed by the
      Executive and such officer or officers as may be specifically designated by
      the
      Board of Directors of the Employer to sign on its behalf;
      provided,
      however, that if the Employer determines, after a review of the final
      regulations issued under Section 409A of the Code and all applicable Internal
      Revenue Service guidance, that this Agreement should be further amended to
      avoid
      triggering the tax and interest penalties imposed by Section 409A of the Code,
      the Employer may amend this Agreement to the extent necessary to avoid
      triggering the tax and interest penalties imposed by Section 409A of the Code.
      No waiver by either party hereto at any time of any breach by any other party
      hereto of, or 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 or at any prior or subsequent
      time.

    

        13.
      Governing
      Law.
      The
      validity, interpretation, construction and performance of this Agreement shall
      be governed by the laws of the United States where applicable and otherwise
      by
      the substantive laws of the State of Connecticut.

    

        14.
      Headings.
      The
      section headings contained in this Agreement are for reference purposes only
      and
      shall not affect in any way the meaning or interpretation of this
      Agreement.

    

        15.
      Validity.
      The
      invalidity or unenforceability of any provision of this Agreement shall not
      affect the validity or enforceability of any other provisions of this Agreement,
      which shall remain in full force and effect.

    

        16.
      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 will constitute one and
      the
      same instrument.

    

        17.
      Regulatory Provisions.

    

        (a)
      The
      Employer may terminate the Executive's employment at any time, but any
      termination by the Employers, other than termination for Cause, shall not
      prejudice the Executive's right to compensation or other benefits under this
      Agreement. The Executive shall not have the right to receive compensation or
      other benefits for any period after termination for Cause as defined in Section
      1(b) hereof. 

    

        (b)
      Notwithstanding any other provision of this Agreement to the contrary, any
      payments made to the Executive pursuant to this Agreement, or otherwise, are
      subject to and conditioned upon their compliance with Section 18(k) of the
      Federal Deposit Insurance Act (12 U.S.C. §1828(k)) and the regulations
      promulgated thereunder, including 12 C.F.R. Part 359.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

        18.
      Solicitation.

    

        The
      Executive
      hereby covenants and agrees that, for a period of one year following his
      termination of employment with the Employer for any reason, he shall not,
      without the written consent of the Employer, either directly or
      indirectly:

    

        (a)
      solicit,
      offer employment to, or take any other action intended, or that a reasonable
      person acting in like circumstances would expect, to have the effect of causing
      any officer or employee of the Employer or any of its subsidiaries or affiliates
      to terminate his or her employment and accept employment or become affiliated
      with, or provide services for compensation in any capacity whatsoever to, any
      savings bank, savings and loan association, bank, bank holding company, savings
      and loan holding company, or other institution engaged in the business of
      accepting deposits, making loans or doing business within any county in which
      the Company or the Bank maintains an office as of the date of termination of
      the
      Executive's employment;

    

        (b)
      provide
      any information, advice or recommendation with respect to any such officer
      or
      employee to any savings bank, savings and loan association, bank, bank holding
      company, savings and loan holding company, or other institution engaged in
      the
      business of accepting deposits, making loans or doing business within any county
      in which the Company or the Bank maintains an office as of the date of
      termination of the Executive's employment, that is intended, or that a
      reasonable person acting in like circumstances would expect, to have the effect
      of causing any officer or employee of the Employer or any of its subsidiaries
      or
      affiliates to terminate his or her employment and accept employment or become
      affiliated with, or provide services for compensation in any capacity whatsoever
      to, any savings bank, savings and loan association, bank, bank holding company,
      savings and loan holding company, or other institution engaged in the business
      of accepting deposits, making loans or doing business within any county in
      which
      the Company or the Bank maintains an office as of the date of termination of
      the
      Executive's employment; or

    

        (c)
      solicit,
      provide any information, advice or recommendation or take any other action
      intended, or that a reasonable person acting in like circumstances would expect,
      to have the effect of causing any customer of the Company or the Bank to
      terminate an existing business or commercial relationship with the Company
      or
      the Bank.

    

        19.
      Arbitration.
      Any
      dispute, controversy or claim arising out of or relating to this Agreement
      or
      the breach thereof, shall be submitted to and finally settled by arbitration
      in
      accordance with the Commercial Arbitration Rules (the “Rules”) of the American
      Arbitration Association (the “AAA”) then in effect before a panel of three
      arbitrators selected by the Bank. Arbitration shall occur in New Haven,
      Connecticut or such other location as may be mutually agreed to by the
      parties.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

        The
      award
      made by all or a majority of the panel of arbitrators shall be final and
      binding, and judgment may be entered based upon such award in any court of
      law
      having competent jurisdiction. The award is subject to confirmation,
      modification, correction or vacation only as explicitly provided in Title 9
      of
      the United States Code. The prevailing party shall be entitled to receive any
      award of pre- and post-award interest as well as attorney’s fees incurred in
      connection with the arbitration and any judicial proceedings related thereto.
      The parties acknowledge that this Agreement evidences a transaction involving
      interstate commerce. The United States Arbitration Act and the Rules shall
      govern the interpretation, enforcement, and proceedings pursuant to this
      Section. Any provisional remedy which would be available from a court of law
      shall be available from the arbitrators to the parties to this Agreement pending
      arbitration. Either party may make an application to the arbitrators seeking
      injunctive relief to maintain the status quo, or may seek from a court of
      competent jurisdiction any interim or provisional relief that may be necessary
      to protect the rights and property of that party, until such times as the
      arbitration award is rendered or the controversy otherwise
      resolved.

    

        20.
      Payment
      of Costs and Legal Fees.
      All
      reasonable costs and legal fees paid or incurred by the Executive pursuant
      to
      any dispute or question of interpretation relating to this Agreement shall
      be
      paid or reimbursed by the Bank if the Executive is successful on the merits
      pursuant to a legal judgment, arbitration or settlement.

    

        21.
      Entire
      Agreement.
      This
      Agreement embodies the entire agreement between the Employer and the Executive
      with respect to the matters agreed to herein. All prior agreements between
      the
      Employer and the Executive, if any, with respect to the matters agreed to herein
      are hereby superseded and shall have no force or effect, except that this
      Agreement shall not affect or operate to reduce any benefit or compensation
      inuring to Executive of a kind elsewhere provided. No provision of this
      Agreement shall be interpreted to mean that Executive is subject to receiving
      fewer benefits than those available to him without reference to this
      Agreement.

    

        IN
      WITNESS
      WHEREOF, the Bank has caused this Agreement to be executed by its duly
      authorized officers and the Executive has hereunto set his hand, all as of
      the
      date of the restatement of this Agreement.

    

        THIS
      AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY
      THE
      PARTIES.

    

    
      	
              Attest:

            	 	
              NEWALLIANCE
                BANK

            
	 	 	 
	 	 	 
	
               

            	 	
              By:                                                                      

            
	 	 	
              Peyton
                R. Patterson, Chairman, President and

            
	 	 	
              Chief
                Executive Officer

            
	 	 	 
	
              Attest:

            	 	
              EXECUTIVE

            
	 	 	 
	 	 	 
	
               

            	 	
              By:                                                                        
                

            
	 	 	
               

            

    

    

    
      
        
        

      

      
        9Exhibit 10.1

 

[FORM OF INDEMNIFICATION AGREEMENT]

HEALTH BENEFITS DIRECT CORPORATION

DIRECTOR AND OFFICER INDEMNIFICATION AGREEMENT

This Director and Officer Indemnification Agreement, dated as of December 30, 2005 (this “Agreement”), is made by and between Health Benefits Direct Corporation, a Delaware corporation (the “Company”), and Paul Soltoff (the “Indemnitee”).

RECITALS:

A.         Section 141 of the Delaware General Corporation Law provides that the business and affairs of a corporation shall be managed by or under the direction of its board of directors.

B.         By virtue of the managerial prerogatives vested in the directors and officers of a Delaware corporation, directors and officers act as fiduciaries of the corporation and its stockholders.

C.         Thus, it is critically important to the Company and its stockholders that the Company be able to attract and retain the most capable persons reasonably available to serve as directors and officers of the Company.

D.         In recognition of the need for corporations to be able to induce capable and responsible persons to accept positions in corporate management, Delaware law authorizes (and in some instances requires) corporations to indemnify their directors and officers, and further authorizes corporations to purchase and maintain insurance for the benefit of their directors and officers.

E.         The Delaware courts have recognized that indemnification by a corporation serves the dual policies of (1) allowing corporate officials to resist unjustified lawsuits, secure in the knowledge that, if vindicated, the corporation will bear the expense of litigation, and (2) encouraging capable women and men to serve as corporate directors and officers, secure in the knowledge that the corporation will absorb the costs of defending their honesty and integrity.

F.        The number of lawsuits challenging the judgment and actions of directors and officers of Delaware corporations, the costs of defending those lawsuits and the threat to personal assets have all materially increased over the past several years, chilling the willingness of capable women and men to undertake the responsibilities imposed on corporate directors and officers.

G.         Recent federal legislation and rules adopted by the Securities and Exchange Commission and the national securities exchanges have exposed such directors and officers to new and substantially broadened civil liabilities.

H.         Under Delaware law, a director’s or officer’s right to be reimbursed for the costs of defense of criminal actions, whether such claims are asserted under state or federal law, does not depend upon the merits of the claims asserted against the director or officer and is separate and distinct from any right to indemnification the director may be able to establish.

 

 

 

 

 

I.              Indemnitee is, or will be, a director and/or officer of the Company and his or her willingness to serve in such capacity is predicated, in substantial part, upon the Company’s willingness to indemnify him or her in accordance with the principles reflected above, to the fullest extent permitted by the laws of the State of Delaware, and upon the other undertakings set forth in this Agreement.

J.              Therefore, in recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee’s continued service as a director and/or officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment to the Company’s certificate of incorporation or bylaws (collectively, the “Constituent Documents”), any change in the composition of the Company’s Board of Directors (the “Board”) or any
change-in-control or business combination transaction relating to the Company), the Company wishes to provide in this Agreement for the indemnification and advancement of Expenses to Indemnitee on the terms, and subject to the conditions, set forth in this Agreement.

K.            In light of the considerations referred to in the preceding recitals, it is the Company’s intention and desire that the provisions of this Agreement be construed liberally, subject to their express terms, to maximize the protections to be provided to Indemnitee hereunder.

AGREEMENT:

NOW, THEREFORE, the parties hereby agree as follows:

1.                 Certain Definitions. In addition to terms defined elsewhere herein, the following terms have the following meanings when used in this Agreement with initial capital letters:

(a)               “Change in Control” shall have occurred at such time, if any, as Incumbent Directors cease for any reason to constitute a majority of Directors. For purposes of this Section 1(a), “Incumbent Directors” means the individuals who, as of the date hereof, are Directors of the Company and any individual becoming a Director subsequent to the date hereof whose election, nomination for election by the Company’s stockholders, or appointment, was approved by a vote of at least a majority of the then Incumbent Directors (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection
to such nomination); provided, however, that an individual shall not be an Incumbent Director if such individual’s election or appointment to the Board occurs as a result of an actual or threatened election contest (as described in Rule 14a-12(c) of the Securities Exchange Act of 1934, as amended) 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.

 

(b)               “Claim” means (i) any threatened, asserted, pending or completed claim, demand, action, suit or proceeding, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; and (ii) any 

 

 

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inquiry or investigation, whether made, instituted or conducted by the Company or any other Person, including, without limitation, any federal, state or other governmental entity, that Indemnitee reasonably determines might lead to the institution of any such claim, demand, action, suit or proceeding. For the avoidance of doubt, the Company intends indemnity to be provided hereunder in respect of acts or failure to act prior to, on or after the date hereof. 

(c)               “Controlled Affiliate” means any corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise, whether or not for profit, that is directly or indirectly controlled by the Company. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity or enterprise, whether through the ownership of voting securities, through other voting rights, by contract or otherwise; provided that direct or indirect beneficial ownership of capital stock or other interests in an entity or
enterprise entitling the holder to cast 15% or more of the total number of votes generally entitled to be cast in the election of directors (or persons performing comparable functions) of such entity or enterprise shall be deemed to constitute control for purposes of this definition. 

(d)               “Disinterested Director” means a director of the Company who is not and was not a party to the Claim in respect of which indemnification is sought by Indemnitee. 

(e)               “Expenses” means attorneys’ and experts’ fees and expenses and all other costs and expenses paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to investigate, defend, be a witness in or participate in (including on appeal), any Claim. 

(f)                “Indemnifiable Claim” means any Claim based upon, arising out of or resulting from (i) any actual, alleged or suspected act or failure to act by Indemnitee in his or her capacity as a director, officer, employee or agent of the Company or as a director, officer, employee, member, manager, trustee or agent of any other corporation, limited liability company, partnership, joint venture, trust or other entity or enterprise, whether or not for profit, as to which Indemnitee is or was serving at the request of the Company, (ii) any actual, alleged or suspected act or failure to act by Indemnitee in respect of any business, transaction, communication, filing, disclosure or other activity of the Company or any other entity or
enterprise referred to in clause (i) of this sentence, or (iii) Indemnitee’s status as a current or former director, officer, employee or agent of the Company or as a current or former director, officer, employee, member, manager, trustee or agent of the Company or any other entity or enterprise referred to in clause (i) of this sentence or any actual, alleged or suspected act or failure to act by Indemnitee in connection with any obligation or restriction imposed upon Indemnitee by reason of such status. In addition to any service at the actual request of the Company, for purposes of this Agreement, Indemnitee shall be deemed to be serving or to have served at the request of the Company as a director, officer, employee, member, manager, trustee or agent of another entity or enterprise if Indemnitee is or was serving as a director, officer, employee, member, manager, agent, trustee or other fiduciary of such entity or enterprise and (i) such entity or enterprise is or at the time of such service
was a Controlled Affiliate, (ii) such entity or enterprise is or at the time of such service was an employee benefit plan (or related trust) sponsored or maintained by the Company or a Controlled Affiliate, or (iii) the Company or a Controlled Affiliate (by action of the Board, any committee thereof or the Company’s Chief 

 

 

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Executive Officer (“CEO”) (other than as the CEO him or herself)) caused or authorized Indemnitee to be nominated, elected, appointed, designated, employed, engaged or selected to serve in such capacity.

(g)               “Indemnifiable Losses” means any and all Losses relating to, arising out of or resulting from any Indemnifiable Claim; provided, however, that Indemnifiable Losses shall not include Losses incurred by Indemnitee in respect of any Indemnifiable Claim (or any matter or issue therein) as to which Indemnitee shall have been adjudged liable to the Company, unless and only to the extent that the Delaware Court of Chancery or the court in which such Indemnifiable Claim was brought shall have determined upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such
Expenses as the court shall deem proper. 

(h)               “Independent Counsel” means a nationally recognized law firm, or a member of a nationally recognized law firm, that is experienced in matters of Delaware corporate law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company (or any subsidiary) or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements) or (ii) any other named (or, as to a threatened matter, reasonably likely to be named) party to the Indemnifiable Claim giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “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 Indemnitee in an action to determine Indemnitee’s rights under this Agreement. 

(i)                “Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other) and amounts paid or payable in settlement, including, without limitation, all interest, assessments and other charges paid or payable in connection with or in respect of any of the foregoing. 

(j)                “Person” means any individual, entity or group, within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended. 

(k)               “Standard of Conduct” means the standard for conduct by Indemnitee that is a condition precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses relating to, arising out of or resulting from an Indemnifiable Claim. The Standard of Conduct is (i) good faith and a reasonable belief by Indemnitee that his action was in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, that Indemnitee had no reasonable cause to believe that his conduct was unlawful, or (ii) any other applicable standard of conduct that may hereafter be substituted under Section 145(a) or (b) of the Delaware General Corporation Law or any successor to such provision(s).

 

2.                 Indemnification Obligation. Subject only to Section 7 and to the proviso in this Section, the Company shall indemnify, defend and hold harmless Indemnitee, to the fullest extent permitted or required by the laws of the State of Delaware in effect on the date hereof or as such laws may from time to time hereafter be amended to increase the scope of such permitted indemnification, against any and all Indemnifiable Claims and Indemnifiable Losses; provided, 

 

 

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however, that, except as provided in Section 5, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with (i) any Claim initiated by Indemnitee against the Company or any director or officer of the Company unless the Company has joined in or consented to the initiation of such Claim, or (ii) the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended. The Company acknowledges that the foregoing obligation may be broader than that now provided by applicable law and the Company’s Constituent Documents and intends that it be interpreted consistently with this Section and the recitals to this Agreement. 

3.                 Advancement of Expenses. Indemnitee shall have the right to advancement by the Company prior to the final disposition of any Indemnifiable Claim of any and all actual and reasonable Expenses relating to, arising out of or resulting from any Indemnifiable Claim paid or incurred by Indemnitee. Without limiting the generality or effect of any other provision hereof, Indemnitee’s right to such advancement is not subject to the satisfaction of any Standard of Conduct. Without limiting the generality or effect of the foregoing, within five business days after any request by Indemnitee that is accompanied by supporting documentation for specific reasonable Expenses to be reimbursed or advanced, the Company shall, in accordance with
such request (but without duplication), (a) pay such Expenses on behalf of Indemnitee, (b) advance to Indemnitee funds in an amount sufficient to pay such Expenses, or (c) reimburse Indemnitee for such Expenses; provided that Indemnitee shall repay, without interest, any amounts actually advanced to Indemnitee that, at the final disposition of the Indemnifiable Claim to which the advance related, were in excess of amounts paid or payable by Indemnitee in respect of Expenses relating to, arising out of or resulting from such Indemnifiable Claim. In connection with any such payment, advancement or reimbursement, at the request of the Company, Indemnitee shall execute and deliver to the Company an undertaking, which need not be secured and shall be accepted without reference to Indemnitee’s ability to repay the Expenses, by or on behalf of the Indemnitee, to repay any amounts paid, advanced or reimbursed by the Company in respect of Expenses relating
to, arising out of or resulting from any Indemnifiable Claim in respect of which it shall have been determined, following the final disposition of such Indemnifiable Claim and in accordance with Section 7, that Indemnitee is not entitled to indemnification hereunder.

4.                  Indemnification for Additional Expenses. Without limiting the generality or effect of the foregoing, the Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within five business days of such request accompanied by supporting documentation for specific Expenses to be reimbursed or advanced, any and all actual and reasonable Expenses paid or incurred by Indemnitee in connection with any Claim made, instituted or conducted by Indemnitee for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or under any other agreement or provision of the
Constituent Documents now or hereafter in effect relating to Indemnifiable Claims, and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by the Company; provided, however, if it is ultimately determined that the Indemnitee is not entitled to such indemnification, reimbursement, advance or insurance recovery, as the case may be, then the Indemnitee shall be obligated to repay any such Expenses to the Company; provided further, that, regardless in each case of whether Indemnitee ultimately is determined to be entitled to such indemnification, reimbursement, advance or insurance recovery, as the case may be, Indemnitee shall return, 

 

 

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without interest, any such advance of Expenses (or portion thereof) which remains unspent at the final disposition of the Claim to which the advance related.

5.                 Partial Indemnity. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Indemnifiable Loss but not for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

6.                 Procedure for Notification. To obtain indemnification under this Agreement in respect of an Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the Company a written request therefore, including a brief description (based upon information then available to Indemnitee) of such Indemnifiable Claim or Indemnifiable Loss. If, at the time of the receipt of such request, the Company has directors’ and officers’ liability insurance in effect under which coverage for such Indemnifiable Claim or Indemnifiable Loss is potentially available, the Company shall give prompt written notice of such Indemnifiable Claim or Indemnifiable Loss to the applicable insurers in accordance with the procedures set forth in the
applicable policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all Indemnifiable Claims and Indemnifiable Losses in accordance with the terms of such policies. The Company shall provide to Indemnitee a copy of such notice delivered to the applicable insurers, substantially concurrently with the delivery thereof by the Company. The failure by Indemnitee to timely notify the Company of any Indemnifiable Claim or Indemnifiable Loss shall not relieve the Company from any liability hereunder unless, and only to the extent that, the Company did not otherwise learn of such Indemnifiable Claim or Indemnifiable Loss and to the extent that such failure results in forfeiture by the Company of substantial defenses, rights or insurance coverage.

	
7.

	
Determination of Right to Indemnification. 

(a)               To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Indemnifiable Claim or any portion thereof or in defense of any issue or matter therein, including, without limitation, dismissal without prejudice, Indemnitee shall be indemnified against all Indemnifiable Losses relating to, arising out of or resulting from such Indemnifiable Claim in accordance with Section 2 and no Standard of Conduct Determination (as defined in Section 7(b)) shall be required.

(b)               To the extent that the provisions of Section 7(a) are inapplicable to an Indemnifiable Claim that shall have been finally disposed of, any determination of whether Indemnitee has satisfied the applicable Standard of Conduct (a “Standard of Conduct Determination”) shall be made as follows: (i) if a Change in Control shall not have occurred, or if a Change in Control shall have occurred but Indemnitee shall have requested that the Standard of Conduct Determination be made pursuant to this clause (i), (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board, (B) if such Disinterested Directors so direct, by a majority vote of a committee of Disinterested Directors designated
by a majority vote of all Disinterested Directors, or (C) if there are no such Disinterested Directors, or if a majority of the Disinterested Directors so direct, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee; and (ii) if a Change in Control shall have occurred and Indemnitee shall not have requested that the Standard of 

 

 

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Conduct Determination be made pursuant to clause (i) above, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee.

(c)               If (i) Indemnitee shall be entitled to indemnification hereunder against any Indemnifiable Losses pursuant to Section 7(a), (ii) no determination of whether Indemnitee has satisfied any applicable standard of conduct under Delaware law is a legally required condition precedent to indemnification of Indemnitee hereunder against any Indemnifiable Losses, or (iii) Indemnitee has been determined or deemed pursuant to Section 7(b) to have satisfied the applicable Standard of Conduct, then the Company shall pay to Indemnitee, within five business days after the later of (x) the Notification Date in respect of the Indemnifiable Claim or portion thereof to which such Indemnifiable Losses are related, out of which such Indemnifiable Losses arose or from which such Indemnifiable
Losses resulted, and (y) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) above shall have been satisfied, an amount equal to the amount of such Indemnifiable Losses. Nothing herein is intended to mean or imply that the Company is intending to use Section 145(f) of the Delaware General Corporation Law to dispense with a requirement that Indemnitee meet the applicable Standard of Conduct where it is otherwise required by such statute.

(d)               If a Standard of Conduct Determination is required to be, but has not been, made by Independent Counsel pursuant to Section 7(b)(i), the Independent Counsel shall be selected by the Board or a committee of the Board, and the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. If a Standard of Conduct Determination is required to be, or to have been, made by Independent Counsel pursuant to Section 7(b)(ii), the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either case, Indemnitee or the Company, as applicable, may, within five business days after receiving written notice
of selection from the other, deliver to the other a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not satisfy the criteria set forth in the definition of “Independent Counsel” in Section 1(h), 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 Independent Counsel. If such written objection is properly and timely made and substantiated, (i) the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit and (ii) the non-objecting party may, at its option, select an alternative Independent Counsel and give written notice to the other party advising such other party of the identity of the alternative Independent
Counsel so selected, in which case the provisions of the two immediately preceding sentences and clause (i) of this sentence shall apply to such subsequent selection and notice. If applicable, the provisions of clause (ii) of the immediately preceding sentence shall apply to successive alternative selections. If no Independent Counsel that is permitted under the foregoing provisions of this Section 7(d) to make the Standard of Conduct Determination shall have been selected within 30 calendar days after the Company gives its initial notice pursuant to the first sentence of this Section 7(d) or Indemnitee gives its initial notice pursuant to the second sentence of this Section 7(d), as the case may be, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as 

 

 

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Independent Counsel of a person or firm selected by the Court or by such other person as the Court shall designate, and the person or firm with respect to whom all objections are so resolved or the person or firm so appointed will act as Independent Counsel. In all events, the Company shall pay all of the actual and reasonable fees and expenses of the Independent Counsel incurred in connection with the Independent Counsel’s determination pursuant to Section 7(b).

8.                 Cooperation. Indemnitee shall cooperate with reasonable requests of the Company in connection with any Indemnifiable Claim and any individual or firm making such Standard of Conduct Determination, including providing to such Person documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to defend the Indemnifiable Claim or make any Standard of Conduct Determination without incurring any unreimbursed cost in connection therewith. The Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within five business days of such request
accompanied by supporting documentation for specific costs and expenses to be reimbursed or advanced, any and all costs and expenses (including attorneys’ and experts’ fees and expenses) actually and reasonably incurred by Indemnitee in so cooperating with the Person defending the Indemnifiable Claim or making such Standard of Conduct Determination. 

9.                 Presumption of Entitlement. Notwithstanding any other provision hereof, in making any Standard of Conduct Determination, the Person making such determination shall presume that Indemnitee has satisfied the applicable Standard of Conduct.

10.              No Other Presumption. For purposes of this Agreement, the termination of any Claim by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not meet any applicable Standard of Conduct or that indemnification hereunder is otherwise not permitted.

11.              Non-Exclusivity. The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Constituent Documents, or the substantive laws of the Company’s jurisdiction of incorporation, any other contract or otherwise (collectively, “Other Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will without further action be deemed to have such greater right hereunder, and (b) to the extent that any change is made to any Other Indemnity Provision which permits any greater
right to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right hereunder. The Company may not, without the consent of Indemnitee, adopt any amendment to any of the Constituent Documents the effect of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under this Agreement.

12.               Liability Insurance and Funding. For the duration of Indemnitee’s service as a director and/or officer of the Company and for a reasonable period of time thereafter, which such period shall be determined by the Company in its sole discretion, the Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to cause to be maintained in effect policies of directors’ and officers’ 

 

 

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liability insurance providing coverage for directors and/or officers of the Company, and, if applicable, that is substantially comparable in scope and amount to that provided by the Company’s current policies of directors’ and officers’ liability insurance. Upon reasonable request, the Company shall provide Indemnitee or his or her counsel with a copy of all directors’ and officers’ liability insurance applications, binders, policies, declarations, endorsements and other related materials. In all policies of directors’ and officers’ liability insurance obtained by the Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits, subject to the same limitations, as are accorded to the Company’s directors and officers most favorably insured by such policy. Notwithstanding the foregoing, (i) the Company may, but shall not be
required to, create a trust fund, grant a security interest or use other means, including, without limitation, a letter of credit, to ensure the payment of such amounts as may be necessary to satisfy its obligations to indemnify and advance expenses pursuant to this Agreement and (ii) in renewing or seeking to renew any insurance hereunder, the Company will not be required to expend more than 2.0 times the premium amount of the immediately preceding policy period (equitably adjusted if necessary to reflect differences in policy periods).

13.              Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee against other Persons (other than Indemnitee’s successors), including any entity or enterprise referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(f). Indemnitee shall execute all papers reasonably required to evidence such rights (all of Indemnitee’s reasonable Expenses, including attorneys’ fees and charges, related thereto to be reimbursed by or, at the option of Indemnitee, advanced by the Company).

14.              No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment to Indemnitee in respect of any Indemnifiable Losses to the extent Indemnitee has otherwise already actually received payment (net of Expenses incurred in connection therewith) under any insurance policy, the Constituent Documents and Other Indemnity Provisions or otherwise (including from any entity or enterprise referred to in clause (i) of the definition of “Indemnifiable Claim” in Section 1(f)) in respect of such Indemnifiable Losses otherwise indemnifiable hereunder.

15.               Defense of Claims. Subject to the provisions of applicable policies of directors’ and officers’ liability insurance, if any, the Company shall be entitled to participate in the defense of any Indemnifiable Claim or to assume or lead the defense thereof with counsel reasonably satisfactory to the Indemnitee; provided that if Indemnitee determines, after consultation with counsel selected by Indemnitee, that (a) the use of counsel chosen by the Company to represent Indemnitee would present such counsel with an actual or potential conflict, (b) the named parties in any such Indemnifiable Claim (including any impleaded parties) include both the Company and Indemnitee and
Indemnitee shall conclude that there may be one or more legal defenses available to him or her that are different from or in addition to those available to the Company, (c) any such representation by such counsel would be precluded under the applicable standards of professional conduct then prevailing, or (d) Indemnitee has interests in the claim or underlying subject matter that are different from or in addition to those of other Persons against whom the Claim has been made or might reasonably be expected to be made, then Indemnitee shall be entitled to retain separate counsel (but not more than one law 

 

 

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firm plus, if applicable, local counsel in respect of any particular Indemnifiable Claim for all indemnitees in Indemnitee’s circumstances) at the Company’s expense. The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Indemnifiable Claim effected without the Company’s prior written consent. The Company shall not, without the prior written consent of the Indemnitee, effect any settlement of any threatened or pending Indemnifiable Claim which the Indemnitee is or could have been a party unless such settlement solely involves the payment of money and includes a complete and unconditional release of the Indemnitee from all liability on any claims that are the subject matter of such Indemnifiable Claim. Neither the Company nor Indemnitee shall unreasonably withhold its consent to any proposed settlement; provided that Indemnitee may withhold consent to any settlement that does not provide a complete and unconditional release of Indemnitee.

16.              Mutual Acknowledgment. Both the Company and the Indemnitee acknowledge that in certain instances, Federal law or applicable public policy may prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee understands and acknowledges that the Company may be required in the future to undertake to the Securities and Exchange Commission to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee and, in that event, the Indemnitee’s rights and the Company’s obligations hereunder shall be subject to that determination.

	
17.

	
Successors and Binding Agreement.

(a)               This Agreement shall be binding upon and inure to the benefit of the Company and any successor to the Company, including, without limitation, any Person acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed the “Company” for purposes of this Agreement), but shall not otherwise be assignable or delegatable by the Company.

(b)               This Agreement shall inure to the benefit of and be enforceable by the Indemnitee’s personal or legal representatives, executors, administrators, heirs, distributees, legatees and other successors. 

(c)               This Agreement is personal in nature and neither of the parties hereto shall, without the consent of the other, assign or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 17(a) and 17(b). Without limiting the generality or effect of the foregoing, Indemnitee’s right to receive payments hereunder shall not be assignable, whether by pledge, creation of a security interest or otherwise, other than by a transfer by the Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted assignment or transfer contrary to this Section 17(c), the Company shall have no liability to pay any amount so attempted to be assigned or transferred.

18.              Notices. For all purposes of this Agreement, all communications, including without limitation notices, consents, requests or approvals, required or permitted to be given hereunder must be in writing and shall be deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or one 

 

 

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business day after having been sent for next-day delivery by a nationally recognized overnight courier service, addressed to the Company (to the attention of the Secretary of the Company) and to Indemnitee at the applicable address shown on the signature page hereto, or to such other address as any party may have furnished to the other in writing and in accordance herewith, except that notices of changes of address will be effective only upon receipt.

19.              Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by and construed in accordance with the substantive laws of the State of Delaware, without giving effect to the principles of conflict of laws of such State. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the Chancery Court of the State of Delaware for all purposes in connection with any action or proceeding which arises out of or relates to this Agreement, waive all procedural objections to suit in that jurisdiction, including, without limitation, objections as to venue or inconvenience, agree that service in any such action may be made by notice given in accordance with Section 18 and also agree that any
action instituted under this Agreement shall be brought only in the Chancery Court of the State of Delaware.

20.               Validity. If any provision of this Agreement or the application of any provision hereof to any Person or circumstance is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other Person or circumstance shall not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal shall be reformed to the extent, and only to the extent, necessary to make it enforceable, valid or legal. In the event that any court or other adjudicative body shall decline to reform any provision of this Agreement held to be invalid, unenforceable or otherwise illegal as contemplated by the immediately preceding sentence, the parties thereto shall take all
such action as may be necessary or appropriate to replace the provision so held to be invalid, unenforceable or otherwise illegal with one or more alternative provisions that effectuate the purpose and intent of the original provisions of this Agreement as fully as possible without being invalid, unenforceable or otherwise illegal.

21.              Miscellaneous. No provision of this Agreement may be waived, modified or discharged unless such waiver, modification or discharge is agreed to in writing signed by Indemnitee and the Company. No waiver by either party hereto at any time of any breach by the other party hereto or 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 or at any prior or subsequent time. No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement.

22.              Certain Interpretive Matters. Unless the context of this Agreement otherwise requires, (1) “it” or “its” or words of any gender include each other gender, (2) words using the singular or plural number also include the plural or singular number, respectively, (3) the terms “hereof,” “herein,” “hereby” and derivative or similar words refer to this entire Agreement, (4) the terms “Article,” “Section,” “Annex” or “Exhibit” refer to the specified Article, Section, Annex or Exhibit of or to this Agreement, (5) the terms “include,” “includes” and “including” will be deemed to be followed by the words “without limitation” (whether
or not so expressed), and (6) the word “or” is disjunctive but not exclusive. Whenever this Agreement refers to a 

 

 

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number of days, such number will refer to calendar days unless business days are specified and whenever action must be taken (including the giving of notice or the delivery of documents) under this Agreement during a certain period of time or by a particular date that ends or occurs on a non-business day, then such period or date will be extended until the immediately following business day. As used herein, “business day” means any day other than Saturday, Sunday or a United States federal holiday.

23.              Entire Agreement. This Agreement constitutes the entire agreement and supersedes all prior agreements and understandings, both written and oral, between the parties hereto with respect to the subject matter of this Agreement. Any prior agreements or understandings between the parties hereto with respect to indemnification are hereby terminated and of no further force or effect. This Agreement is not the exclusive means of securing indemnification rights of Indemnitee and is in addition to any rights Indemnitee may have under any Constituent Documents.

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

 

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IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized representative to execute this Agreement as of the date first above written.

	
HEALTH BENEFITS DIRECT CORPORATION

	
 

	
 

	
 

	
 

	
By:

	
/s/ Scott Frohman

	
 

	
Name: Scott Frohman

	
 

	
Title: Chief Executive Officer

	
 

	
 

	
 

	
INDEMNITEE:

	
 

	
 

	
 

	
 

	
 

	
/s/ Paul Soltoff

	
Name: Paul Soltoff

	
 

	
 

	
 

	
Address: 

	
820 Sand Pine Dr. NE

	
                                   Saint Petersburg, FL 33703

	
 

	
 

	
 

				

 

 

 

Signature Page to Director and Officer Indemnification Agreement

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