Document:

Exhibit 10.7

 

FORM OF INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made and entered into as of
                      ,
2009, between IDEARC INC., a Delaware
corporation (the “Company”), and
[                                ]
(“Indemnitee”).

 

BACKGROUND

 

Individuals have become more reluctant to
serve corporations as directors or officers or in other capacities unless they
are provided with adequate protection through insurance or adequate
indemnification against risks of potential claims and actions against them
arising out of their service to and activities on behalf of the corporation.

 

The Board of Directors of the Company
(the “Board”) has determined that,
in order to attract and retain highly qualified individuals, the Company will,
unless certain conditions described below are met, maintain on an ongoing
basis, at its sole expense, liability insurance to protect certain persons
serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has
been a customary and widespread practice among United States-based corporations
and other business enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the future only
at higher premiums and with more exclusions. 
At the same time, directors, officers, and other persons in service to
corporations or business enterprises are being increasingly subjected to
expensive and time-consuming litigation relating to, among other things,
matters that traditionally would have been brought only against the Company or
business enterprise itself.  The Amended
and Restated Certificate of Incorporation (the “Certificate”)
and the Amended and Restated By-laws of the Company (the “By-laws”)
provide for the indemnification of the officers and directors of the Company to
the full extent permissible under applicable law.  Indemnitee may also be entitled to
indemnification pursuant to the General Corporation Law of the State of
Delaware (“DGCL”).  The Certificate, the By-laws, and the DGCL
expressly provide that the indemnification provisions set forth therein are not
exclusive, and thereby contemplate that contracts may be entered into between
the Company and members of the Board, officers, and other persons with respect
to indemnification.

 

The Board has determined that it is
reasonable, prudent, necessary, and in the best interests of the Company and
its stockholders, for the Company to provide contractual indemnification, and
to advance expenses on behalf of, such persons to the fullest extent permitted
by applicable law.

 

In recognition of Indemnitee’s need for
substantial protection against personal liability and in order to enhance the
Indemnitee’s continued service to the Company in an effective manner, the
Company and Indemnitee desire to enter into this Agreement to provide for the
indemnification of Indemnitee to the fullest extent permitted by applicable
law.

 

 

This Agreement is a supplement to and in
furtherance of the Certificate and By-laws and any resolutions adopted by the
Board, and will not be deemed a substitute therefor, nor to diminish or
abrogate any rights of Indemnitee thereunder.

 

Indemnitee does not regard the protection
available under the Company’s Certificate and By-laws and insurance as adequate
in the present circumstances; may not be willing to serve as an officer or
director without adequate protection; and the Company desires Indemnitee to
serve in such capacity.  Indemnitee is
willing to serve, continue to serve, and to take on additional service for or
on behalf of the Company on the condition that he or she be so indemnified.

 

THEREFORE, in consideration of the
foregoing and of Indemnitee’s agreement to serve as an officer or director or
both after the date of this Agreement, the parties to this Agreement agree as
follows:

 

1.                                       Indemnity
of Indemnitee.  The Company hereby agrees to defend, hold
harmless, and indemnify Indemnitee to the fullest extent permitted by law, as
such may be amended from time to time.  In furtherance of the foregoing
indemnification, and without limiting the generality thereof:

 

(a)                                  Proceedings
Other Than Proceedings by or in the Right of the Company.  Indemnitee will be entitled to the rights of
indemnification provided in this Section 1(a) if, by reason of
his or her Corporate Status, the Indemnitee is, or is threatened to be made, a
party to or participant in any Proceeding other than a Proceeding by or in the
right of the Company.  Pursuant to this Section 1(a),
Indemnitee will be indemnified, defended, and held harmless against all
Expenses, judgments, penalties, fines, and amounts paid in settlement actually
and reasonably incurred by him or her, or on his or her behalf, in connection
with such Proceeding or any claim, issue, or matter in any such Proceeding, if
the Indemnitee acted in good faith and in a manner Indemnitee reasonably
believed to be in or not opposed to the best interests of the Company, and with
respect to any criminal Proceeding, had no reasonable cause to believe the
Indemnitee’s conduct was unlawful.

 

(b)                                 Proceedings
by or in the Right of the Company.  Indemnitee will be entitled to the rights of
indemnification provided in this Section 1(b) if, by reason of
his or her Corporate Status, Indemnitee is, or is threatened to be made, a
party to or participant in any Proceeding brought by or in the right of the
Company.  Pursuant to this Section 1(b),
Indemnitee will be indemnified, defended, and held harmless against all
Expenses actually and reasonably incurred by the Indemnitee, or on the
Indemnitee’s behalf, in connection with such Proceeding if the Indemnitee acted
in good faith and in a manner the Indemnitee reasonably believed to be in or
not opposed to the best interests of the Company; provided, however, if applicable
law so provides, no indemnification against such Expenses will be made in
respect of any claim, issue or matter in such Proceeding as to which Indemnitee
has been finally adjudged to be liable to the Company unless and to the extent
that the Court of 

 

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Chancery
of the State of Delaware determines that such indemnification may be made.

 

(c)                                  Indemnification
for Expenses of a Party Who is Wholly or Partly Successful.  If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of the
Expenses, judgments, fines, penalties and amounts paid in settlement actually
and reasonably incurred by him or her or on his or her behalf in connection
with a Proceeding or any claim, issue, or matter in any such Proceeding but
not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee
is entitled.  Moreover, notwithstanding any
other provision of this Agreement, to the extent that Indemnitee has been
successful on the merits or otherwise in defense of any or all claims, issues
or matters relating in whole or in part to any Proceeding or in defense of any
issue or matter therein, Indemnitee shall be indemnified against all Expenses
incurred in connection therewith.  For
purposes of this Section 1(c) and without limitation, the termination
of any claim, issue or matter in such Proceeding by dismissal, with or without
prejudice, will be deemed to be a successful result as to such claim, issue or
matter.

 

2.                                       Additional
Indemnity.  In addition to, and without regard to any
limitations on, the indemnification provided for in Section 1 of
this Agreement, the Company will and hereby does indemnify, defend, and hold
harmless Indemnitee against all Expenses, judgments, penalties, fines, and
amounts paid in settlement actually and reasonably incurred by him or her or on
his or her behalf if, by reason of his or her Corporate Status, he or she is,
or is threatened to be made, a party to or participant in any Proceeding
(including a Proceeding by or in the right of the Company), including, without limitation, all liability arising out of the
negligence (whether sole or contributory) or active or passive wrongdoing of
Indemnitee.  The only
limitation that will exist upon the Company’s obligations pursuant to this
Agreement will be that the Company will not be obligated to make any payment to
Indemnitee that is finally adjudged (under the procedures, and subject to the
presumptions, set forth in Sections 6 and 7) to be unlawful.

 

3.                                       Contribution.

 

(a)                                  Whether
or not the indemnification provided in Sections 1 and 2 is
available, in respect of any threatened, pending, or completed Proceeding in
which the Company is jointly liable with Indemnitee (or would be if joined in
such Proceeding), the Company will pay, in the first instance, the entire
amount of any judgment or settlement of such Proceeding without requiring
Indemnitee to contribute to such payment, and the Company hereby waives,
releases, and relinquishes any right of contribution it may have against
Indemnitee.  The Company will not enter
into any settlement of any Proceeding in which the Company is jointly liable
with Indemnitee (or would be if joined in such Proceeding) unless such
settlement provides for a full and final release of all claims asserted against
Indemnitee.

 

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(b)                                 Without
diminishing or impairing the obligations of the Company set forth in Section 3(a),
if, for any reason, Indemnitee elects or is required to pay all or any portion
of any judgment or settlement in any Proceeding in which the Company is jointly
liable with Indemnitee (or would be if joined in such Proceeding), the Company
will contribute to the amount of Expenses, judgments, fines, and amounts paid
in settlement actually and reasonably incurred and paid or payable by
Indemnitee in proportion to the relative benefits received by the Company and
all officers, directors, or employees of the Company, other than Indemnitee,
who are jointly liable with Indemnitee (or would be if joined in such
Proceeding), on the one hand, and Indemnitee, on the other hand, from the
transaction from which such Proceeding arose; provided, however, that the
proportion determined on the basis of relative benefit may, to the extent
necessary to conform to law, be further adjusted by reference to the relative
fault of the Company and all officers, directors, or employees of the Company
other than Indemnitee who are jointly liable with Indemnitee (or would be if
joined in such Proceeding), on the one hand, and Indemnitee, on the other hand,
in connection with the events that resulted in such Expenses, judgments, fines,
or settlement amounts, as well as any other equitable considerations that
applicable law may require to be considered. 
The relative fault of the Company and all officers, directors, or
employees of the Company, other than Indemnitee, who are jointly liable with
Indemnitee (or would be if joined in such Proceeding), on the one hand, and
Indemnitee, on the other hand, will be determined by reference to, among other
things, the degree to which their actions were motivated by intent to gain
personal profit or advantage, the degree to which their liability is primary or
secondary, and the degree to which their conduct is active or passive.

 

(c)                                  The
Company hereby agrees to fully indemnify, defend, and hold harmless Indemnitee
from any claims of contribution that may be brought by officers, directors, or
employees of the Company, other than Indemnitee, who may be jointly liable with
Indemnitee.

 

(d)                                 To
the fullest extent permissible under applicable law, if the indemnification
provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of
indemnifying Indemnitee, will contribute to the amount incurred by Indemnitee,
whether for judgments, fines, penalties, excise taxes, and amounts paid or to
be paid in settlement or for Expenses, in connection with any claim relating to
an indemnifiable event under this Agreement, in such proportion as is deemed
fair and reasonable in light of all of the circumstances of such Proceeding in
order to reflect (i) the relative benefits received by the Company and Indemnitee
as a result of the event(s) or transaction(s) giving cause to such
Proceeding; and (ii) the relative fault of the Company (and its directors,
officers, employees, and agents) and Indemnitee in connection with such event(s) or
transaction(s).

 

4.                                       Indemnification
for Expenses of a Witness.  Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his or her Corporate
Status, a witness in any Proceeding to which Indemnitee is not a party, the 

 

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Company
will indemnify, defend, and hold harmless the Indemnitee against all Expenses
actually and reasonably incurred by him or her or on his or her behalf in
connection therewith.

 

5.                                       Advancement
of Expenses.  Notwithstanding any other provision of this
Agreement, the Company will advance all Expenses incurred by or on behalf of
Indemnitee in connection with any Proceeding by reason of Indemnitee’s
Corporate Status within 15 days after the receipt by the Company of a statement
or statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding.  Such statement or statements will reasonably
evidence the Expenses incurred by Indemnitee and will include or be preceded or
accompanied by an undertaking by or on behalf of Indemnitee to repay any
Expenses advanced if it is ultimately determined that Indemnitee is not
entitled to be indemnified against such Expenses.  Any advances and undertakings to repay
pursuant to this Section 5 will be unsecured and interest free.

 

6.                                       Procedures
and Presumptions for Determination of Entitlement to Indemnification.  It is the intent of this Agreement to secure
for Indemnitee rights of indemnity that are as favorable as may be permitted
under the DGCL and public policy of the State of Delaware.  Accordingly, the parties agree that the
following procedures and presumptions will apply in the event of any question
as to whether Indemnitee is entitled to indemnification under this Agreement:

 

(a)                                  To
obtain indemnification under this Agreement, Indemnitee must submit to the
secretary of the Company a written request, including such documentation and
information as is reasonably available to Indemnitee and is reasonably
necessary to determine whether and to what extent Indemnitee is entitled to
indemnification.  The Secretary of the
Company will, promptly upon receipt of such a request for indemnification,
advise the Board that Indemnitee has requested indemnification.

 

(b)                                 Upon
written request by Indemnitee for indemnification pursuant to the first
sentence of Section 6(a), a determination, if required by
applicable law, with respect to Indemnitee’s entitlement to indemnification
will be made in the specific case: (i) if a Change in Control shall have
occurred, by Independent Counsel in a written opinion to the Board, a copy of
which shall be delivered to Indemnitee; or (ii) if a Change in Control
shall not have occurred, (A) by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board, (B) by a committee
of Disinterested Directors designated by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board, (C) if there are
no such Disinterested Directors or, if such Disinterested Directors so direct,
by Independent Counsel in a written opinion to the Board, a copy of which shall
be delivered to Indemnitee or (D) if so directed by the Board, by the
stockholders of the Company.  Indemnitee
will reasonably cooperate with the Person making the determination with respect
to Indemnitee’s entitlement to indemnification, including providing to such
Person upon reasonable advance request any documentation or information that is
not privileged or otherwise 

 

5

 

protected
from disclosure and that is reasonably available to Indemnitee and reasonably
necessary to such determination.  Any
Expenses actually and reasonably incurred by Indemnitee in so cooperating with
the Person making such determination will be borne by the Company (irrespective
of the determination as to Indemnitee’s entitlement to indemnification) and the
Company hereby indemnifies, defends, and agrees to hold Indemnitee harmless
from any such costs and expenses.  If it
is determined that Indemnitee is entitled to indemnification requested by
Indemnitee in a written application submitted to the Company pursuant to Section 6,
payment to Indemnitee will be made within 15 days after such determination.

 

(c)                                  In
the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 6(b), the Independent
Counsel will be selected as provided in this Section 6(c).  If a Change in Control has not occurred, the
Independent Counsel will be selected by the Board, and the Company will give
written notice to Indemnitee advising him or her of the identity of the
Independent Counsel so selected.  If a
Change in Control has occurred, the Independent Counsel will be selected by
Indemnitee (unless Indemnitee requests that such selection be made by the
Board, in which event the preceding sentence will apply), and Indemnitee will
give written notice to the Company advising it of the identity of the
Independent Counsel so selected.  In either
event, Indemnitee or the Company, as the case may be, may, within ten days
after such written notice of selection has been received, deliver to the
Company or to Indemnitee, as the case may be, 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 meet the requirements
of Independent Counsel as defined in this Agreement, and the objection will set
forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the
person so selected will act as Independent Counsel.  If a written objection is made and
substantiated, the Independent Counsel so selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court of competent
jurisdiction has determined that such objection is without merit.  The Company agrees to pay the reasonable fees
and expenses of the Independent Counsel and to fully indemnify such Independent
Counsel against any and all Expenses, claims, liabilities, and damages arising
out of or relating to this Agreement or its engagement pursuant to this
Agreement.

 

(d)                                 In
making a determination with respect to entitlement to indemnification under
this Agreement, the Person making such determination will presume that
Indemnitee is entitled to indemnification under this Agreement.  Anyone seeking to overcome this presumption
will have the burden of proof and the burden of persuasion by clear and
convincing evidence.  Neither the failure
of the Company (including by its directors or Independent Counsel) to have made
a determination before to the commencement of any action pursuant to this
Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual 

 

6

 

determination
by the Company (including by its directors or Independent Counsel) that
Indemnitee has not met such applicable standard of conduct, will be a defense
to the action or create a presumption that Indemnitee has not met the
applicable standard of conduct.

 

(e)                                  Indemnitee
will be deemed to have acted in good faith if Indemnitee’s action is based on
the records or books of account of the Enterprise, including financial
statements, or on information supplied to Indemnitee by any one or more of the
officers, directors, or employees of the Enterprise in the course of their
duties, or on the advice of legal counsel for the Enterprise or on information
or records given or reports made to the Enterprise by an independent certified
public accountant or by an appraiser or other expert selected by the
Enterprise.  In addition, the knowledge
or actions, or failure to act, of any director, officer, agent, or employee of
the Enterprise will not be imputed to Indemnitee for purposes of determining
the right to indemnification under this Agreement.  Whether or not the foregoing provisions of
this Section 6(e) are satisfied, it will in any event be
presumed that Indemnitee has at all times acted in good faith and in a manner
he or she reasonably believed to be in or not opposed to the best interests of
the Company.  Anyone seeking to overcome
this presumption will have the burden of proof and the burden of persuasion by clear
and convincing evidence.

 

(f)                                    If
the Person empowered or selected under Section 6 to determine
whether Indemnitee is entitled to indemnification has not made a determination
within 60 days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification will be deemed to have been
made and Indemnitee will be entitled to such indemnification absent (i) a
misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in
connection with the request for indemnification or (ii) a prohibition of
such indemnification under applicable law; provided, however, that such 60-day
period may be extended for a reasonable time, not to exceed an additional 30
days, if the Person making such determination with respect to entitlement to
indemnification in good faith requires such additional time to obtain or
evaluate documentation information relating thereto.

 

(g)                                 Indemnitee
will cooperate with the Person making such determination with respect to
Indemnitee’s entitlement to indemnification, including providing to such Person
upon reasonable advance written request any documentation or information that
is not privileged or otherwise protected from disclosure and that is reasonably
available to Indemnitee and reasonably necessary to such determination.  Any Independent Counsel or member of the
Board will act reasonably and in good faith in making a determination regarding
the Indemnitee’s entitlement to indemnification under this Agreement.  Any Expenses actually and reasonably incurred
by Indemnitee in so cooperating with the Person making such determination will
be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement
to 

 

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indemnification)
and the Company hereby agrees to indemnify, defend, and hold Indemnitee
harmless therefrom.

 

(h)                                 The
Company acknowledges that a settlement or other disposition short of final
judgment may be successful if it permits a party to avoid expense, delay,
distraction, disruption, or uncertainty. 
In the event that any Proceeding to which Indemnitee is a party is
resolved in any manner other than by adverse judgment against Indemnitee
(including, without limitation, settlement of such Proceeding with or without
payment of money or other consideration) it will be conclusively presumed that
Indemnitee has been successful on the merits or otherwise in such Proceeding.

 

(i)                                     The
termination of any Proceeding or of any claim, issue, or matter therein, by
judgment, order, settlement, or conviction, or upon a plea of nolo  contendere or
its equivalent, will not (except as otherwise expressly provided in this
Agreement) of itself adversely affect the right of Indemnitee to
indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner that he or she reasonably believed to be in or not
opposed to the best interests of the Company or, with respect to any criminal
Proceeding, that Indemnitee had reasonable cause to believe that his or her
conduct was unlawful.

 

7.                                       Remedies
of Indemnitee.

 

(a)                                  In
the event that (i) a determination is made pursuant to Section 6
of this Agreement that Indemnitee is not entitled to indemnification under this
Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5
of this Agreement, (iii) no determination of entitlement to
indemnification is made pursuant to Section 6(b) of this
Agreement within 90 days after receipt by the Company of the request for
indemnification, (iv) payment of indemnification is not made pursuant to
this Agreement within 15 days after receipt by the Company of a written request
therefor; or (v) payment of indemnification is not made within 15 days
after a determination has been made that Indemnitee is entitled to
indemnification or such determination is deemed to have been made pursuant to Section 6
of this Agreement, Indemnitee will be entitled to an adjudication in an
appropriate court of the State of Delaware, or in any other court of competent
jurisdiction, of Indemnitee’s entitlement to such indemnification or
payment.  Indemnitee will commence such
proceeding seeking an adjudication within 180 days following the date on which
Indemnitee first has the right to commence such proceeding pursuant to this Section 7(a).  The Company will not oppose Indemnitee’s
right to seek any such adjudication.

 

(b)                                 In
the event that a determination has been made pursuant to Section 6(b) of
this Agreement that Indemnitee is not entitled to indemnification, any judicial
proceeding commenced pursuant to this Section 7 will be conducted
in all respects as a de novo trial
on the merits, and Indemnitee will not be prejudiced by reason of the adverse
determination under Section 6(b).

 

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(c)                                  If
a determination has been made pursuant to Section 6(b) of this
Agreement that Indemnitee is entitled to indemnification, the Company will be
bound by such determination in any judicial proceeding commenced pursuant to
this Section 7, absent (i) a misstatement by Indemnitee of a
material fact, or an omission of a material fact necessary to make Indemnitee’s
misstatement not materially misleading in connection with the application for
indemnification, or (ii) a prohibition of such indemnification under
applicable law.

 

(d)                                 In
the event that Indemnitee, pursuant to this Section 7, seeks a
judicial adjudication of his or her rights under, or to recover damages for
breach of, this Agreement, or to recover under any directors’ and officers’
liability insurance policies maintained by the Company, the Company will pay on
his or her behalf, in advance, any and all Expenses actually and reasonably
incurred by him or her in such judicial adjudication, regardless of whether
Indemnitee ultimately is determined to be entitled to such indemnification,
advancement of Expenses or insurance recovery.

 

(e)                                  The
Company will be precluded from asserting in any proceeding commenced pursuant
to this Section 7 that the procedures and presumptions of this
Agreement are not valid, binding, and enforceable and will stipulate in any
such court that the Company is bound by all the provisions of this
Agreement.  The Company will indemnify,
defend, and hold harmless Indemnitee against any and all Expenses and, if
requested by Indemnitee, will (within 15 days after receipt by the Company of a
written request therefore) advance, to the extent not prohibited by law, such
expenses to Indemnitee, that are incurred by Indemnitee in connection with any
action brought by Indemnitee for indemnification or advance of Expenses from
the Company under this Agreement or under any directors’ and officers’
liability insurance policies maintained by the Company, regardless of whether
Indemnitee ultimately is determined to be entitled to such indemnification,
advancement of Expenses, or insurance recovery, as the case may be.

 

(f)                                    Notwithstanding
anything in this Agreement to the contrary, no determination as to entitlement
to indemnification under this Agreement will be required to be made prior to
the final disposition of the Proceeding.

 

8.                                       Non-Exclusivity;
Survival of Rights; Insurance; Subrogation.

 

(a)                                  The
rights of indemnification as provided by this Agreement will not be deemed
exclusive of any other rights to which Indemnitee may at any time be entitled
under applicable law, the Certificate, the Bylaws, any agreement, a vote of
stockholders, a resolution of directors, or otherwise.  No amendment, alteration, or repeal of this Agreement
or of any provision of this Agreement will limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his or her Corporate Status prior to such amendment,
alteration, or repeal.  To the extent
that a change in the DGCL, whether by statute or judicial decision, permits
greater indemnification than would 

 

9

 

be
afforded currently under the Certificate, the Bylaws, or this Agreement, it is
the intent of the parties to this Agreement that Indemnitee will enjoy by this
Agreement the greater benefits so afforded by such change.  No right independently held by or in this
Agreement conferred upon, Indemnitee is intended to be exclusive of any other
right or remedy, and every other right and remedy will be cumulative and in
addition to every other right and remedy given under this Agreement or now or
hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or
remedy under this Agreement, or otherwise, will not prevent the concurrent
assertion or employment of any other right or remedy.

 

(b)                                 The
Company hereby covenants and agrees that, so long as Indemnitee serves in a
Corporate Status and thereafter so long as Indemnitee may be subject to any
possible Proceeding by reason of the fact that Indemnitee served in a Corporate
Status, the Company, subject to Section 8(d), will promptly obtain
and maintain in full force and effect liability insurance to protect Indemnitee
from personal liabilities incurred by reason of the fact that Indemnitee is or
was serving in such capacity (“Liability Insurance”)
in reasonable amounts from established and reputable insurers.

 

(c)                                  In
all applicable policies of Liability Insurance, Indemnitee will be named as an
insured and will be covered by such policies in accordance with their terms to
the maximum extent of the coverage available for any director, officer,
employee, agent, or fiduciary under such policy or policies.

 

(d)                                 Notwithstanding
the foregoing, the Company will have no obligation to obtain or maintain
Liability Insurance if the Company determines in good faith that such insurance
is not reasonably available, the premium costs for such insurance are
materially disproportionate to the amount of coverage provided, the coverage
provided by such insurance is limited by exclusions so as to provide a
materially insufficient benefit, or Indemnitee is covered by substantially
similar insurance maintained by a subsidiary of the Company or by another
Person pursuant to a contractual obligation owed to the Company.

 

(e)                                  Following
the receipt of a notice of a claim pursuant to the terms of this Agreement, the
Company will give prompt notice of the commencement of such Proceeding to the
insurers in accordance with the procedures set forth in the respective
policies.  The Company will thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such Proceeding in
accordance with the terms of such policies.

 

(f)                                    In
the event of any payment under this Agreement, the Company will be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who will execute all papers required and take, at the expense of the Company,
all action necessary to secure such rights, including execution of such

 

10

 

documents
as are necessary to enable the Company to bring suit to enforce such rights.

 

(g)                                 The
Company will not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable under this Agreement if and to the extent that
Indemnitee has otherwise actually received such payment under any insurance
policy, contract, agreement, or otherwise.

 

(h)                                 The
Company’s obligation to indemnify or advance Expenses under this Agreement to
Indemnitee who is or was serving another Person in Corporate Status will be
reduced by any amount Indemnitee has actually received as indemnification or
advancement of expenses from such other Person.

 

9.                                       Exception
to Right of Indemnification. Notwithstanding any
provision in this Agreement, the Company will not be obligated under this
Agreement to make any indemnity in connection with any claim made against
Indemnitee:

 

(a)                                  for
which payment has actually been made to or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any
excess beyond the amount paid under any insurance policy or other indemnity
provision;

 

(b)                                 for
an accounting of profits made from the purchase and sale (or sale and purchase)
by Indemnitee of securities of the Company within the meaning of Section 16(b) of
the Exchange Act or similar provisions of state law; or

 

(c)                                  except
as otherwise provided in Section 7 of this Agreement, in connection with
any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by
Indemnitee against the Company or its directors, officers, employees, or other
indemnitees, unless (i) the Board authorized the Proceeding (or such part
of any Proceeding) prior to its initiation, (ii) such indemnification is
expressly required to be made by applicable law, or (iii) the Company
provides the indemnification, in its sole discretion, pursuant to the powers
vested in the Company under applicable law.

 

10.                                 Duration
of Agreement.  All agreements and obligations of the Company
contained in this Agreement will continue during the period Indemnitee is an
officer, director, or employee of the Company (or is or was serving at the
request of the Company as a director, officer or employee) and will continue
thereafter so long as Indemnitee is, or may be made, the subject to any
Proceeding (or any proceeding commenced under Section 7) by reason
of his or her Corporate Status, whether or not he or she is acting or serving
in any such capacity at the time any liability or Expense is incurred for which
indemnification can be provided under this Agreement.  This Agreement will be binding upon and inure
to the benefit of and be enforceable by the parties and their respective successors
(including any direct or indirect successor by 

 

11

 

purchase, merger,
consolidation or otherwise to all or a majority of the business or assets or
income or revenue generating capacity of the Company), assigns, spouses, heirs,
executors, and personal and legal representatives.

 

11.                                 Security.  To the extent requested by Indemnitee and
approved by the Board, the Company may at any time, and from time to time,
provide security to Indemnitee for the Company’s obligations under this
Agreement through an irrevocable bank line of credit, funded trust or other
collateral.  Any such security, once
provided to Indemnitee, may not be revoked or released without the prior
written consent of the Indemnitee.

 

12.                                 Enforcement.

 

(a)                                  The
Company expressly confirms and agrees that it has entered into this Agreement
and assumes the obligations imposed on it by this Agreement in order to induce
Indemnitee to serve as an officer or director of the Company, and the Company
acknowledges that Indemnitee is relying upon this Agreement in serving as an
officer or director of the Company.

 

(b)                                 Subject
to Section 8(a) hereof, this Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior written and oral, and contemporaneous oral,
agreements, negotiations, and understandings, express or implied, between the
parties with respect to the subject matter hereof.  This Section 12(b) will not
be construed to limit any other rights Indemnitee may have under the
Certificate, the Bylaws, applicable law or otherwise.

 

13.                                 Period
of Limitations.  No legal action may be brought and no cause
of action may be asserted by or in the right of the Company against Indemnitee,
Indemnitee’s estate, spouse, heirs, executors, or personal or legal
representatives after the expiration of two years from the date of accrual of
such cause of action, and any claim or cause of action of the Company will be
extinguished and deemed released, unless asserted by the timely filing of a
legal action within such two year period; provided, however, that if any
shorter period of limitations is otherwise applicable to any such cause of
action, such shorter period will govern.

 

14.                                 Definitions.  For purposes of this Agreement:

 

(a)                                  “Corporate Status” describes the status of a
person who is or was a director, officer, manager, partner, trustee, employee,
agent, or fiduciary of the Enterprise that such person is or was serving at the
express request of the Company and includes, without limitation, the status of
such person as an advisor to the Enterprise prior to the commencement of
service in any other Corporate Status.

 

(b)                                 “Change in Control” will be deemed to occur upon the earliest
to occur after the date of this Agreement of any of the following events:

 

12

 

(i)                                     Any
Acquiring Person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing 20% or more of the combined voting power
of the Company’s then outstanding securities;

 

(ii)                                  During
any period of two consecutive years (not including any period prior to the
execution of this Agreement), individuals who at the beginning of such period
constitute the Board, and any new director (other than a director designated by
a Person who has entered into an agreement with the Company to effect a
transaction described in paragraphs (i), (iii) or (iv) of
this definition) whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two-thirds of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was previously so
approved, cease for any reason to constitute a least a majority of the members
of the Board;

 

(iii)                               The
effective date of a merger or consolidation of the Company with any other
Person, other than a merger or consolidation that would result in the voting
securities of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) at least 51% of
the combined voting power of the voting securities of the surviving Person
outstanding immediately after such merger or consolidation and with the power
to elect at least a majority of the board of directors or other governing body
of such surviving Person;

 

(iv)                              The
approval by the stockholders of the Company of a complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or a
majority of the Company’s assets or income or revenue generating capacity; or

 

(v)                                 There
occurs any other event of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to
any similar item on any similar schedule or form) promulgated under the
Exchange Act, whether or not the Company is then subject to such reporting
requirement.

 

For purposes of the foregoing, the following
terms will have the following meanings:

 

(A)                              “Acquiring Person”
will mean a “person” or “group” within the meaning of Sections 13(d) and
14(d) of the Exchange Act; provided, however, that Acquiring Person will
exclude (i) the Company, (ii) any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, (iii) any Person
owned, 

 

13

 

directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of stock
of the Company, and (iv) any “Grandfathered Person” as such term is
defined in the rights agreement with the Company’s transfer agent.

 

(B)                                “Beneficial Owner”
will have the meaning given to such term in Rule 13d-3 under the Exchange
Act; provided, however, that Beneficial Owner will exclude any Person otherwise
becoming a Beneficial Owner by reason of the stockholders of the Company
approving a merger of the Company with another Person.

 

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

 

(d)                                 “Enterprise” will mean the Company and any
other Person that Indemnitee is or was serving at the express request of the
Company.

 

(e)                                  “Exchange Act” will mean the Securities Exchange Act of 1934,
as amended from time to time.

 

(f)                                    “Expenses” will include all reasonable
attorneys’ fees, retainers, court costs, transcript costs, fees of experts,
witness fees, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees, and all other disbursements
or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, participating in,
or being or preparing to be a witness, in a Proceeding.  Expenses also will include Expenses incurred
in connection with any appeal resulting from any Proceeding, including without
limitation the premium, security for, and other costs relating to any cost
bond, supersedeas bond, or other appeal bond or its equivalent.  Expenses, however, will not include amounts
paid in settlement by Indemnitee or the amount of judgments or fines against
Indemnitee.

 

(g)                                 “Independent Counsel” means a law firm, or a
member of a law firm, that is experienced in matters of corporation law and
neither presently is, nor in the past five years has been, retained to
represent:  (i) the Company or
Indemnitee in any matter material to either such party (other than with respect
to matters concerning Indemnitee under this Agreement, or of other indemnitees
under similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification under this Agreement.  Notwithstanding the foregoing, the term “Independent
Counsel” will 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.

 

14

 

(h)                                 “Person” means any individual, corporation,
partnership, limited liability company, trust, benefit plan, governmental or
quasi-governmental agency, and any other entity, public or private.

 

(i)                                     “Proceeding” includes any threatened,
pending, or completed action, claim, suit, arbitration, alternate dispute
resolution mechanism, investigation, inquiry, administrative hearing, or any
other actual, threatened, or completed proceeding, whether brought by or in the
right of the Company or otherwise and whether civil, criminal, administrative,
or investigative, in which Indemnitee was, is or will be involved as a party or
otherwise, by reason of the fact that Indemnitee is or was acting in his or her
Corporate Status, by reason of any action taken by him or her or of any
inaction on his or her part while acting in his or her Corporate Status; in
each case whether or not he or she is acting or serving in any such capacity at
the time any liability or expense is incurred for which indemnification can be
provided under this Agreement; including any Proceeding pending on or before
the date of this Agreement, but excluding any Proceeding initiated by an
Indemnitee pursuant to Section 7 of this Agreement to enforce his
or her rights under this Agreement.

 

15.                                 Severability.  The invalidity of unenforceability of any
provision of this Agreement will in no way affect the validity or
enforceability of any other provision. 
Without limiting the generality of the foregoing, this Agreement is
intended to confer upon Indemnitee indemnification rights to the fullest extent
permitted by applicable law.  In the
event any provision of this Agreement conflicts with any applicable law, such
provision will be deemed modified, consistent with the aforementioned intent,
to the extent necessary to resolve such conflict.

 

16.                                 Modification
and Waiver.  No supplement, modification, termination, or
amendment of this Agreement will be binding unless executed in writing by each
of the parties.  No waiver of any of the
provisions of this Agreement will be deemed or will constitute a waiver of any
other provision of this Agreement (whether or not similar) nor will such waiver
constitute a continuing waiver.  This
Agreement cannot be modified or amended, or any provision of this Agreement
waived, by course of conduct.

 

17.                                 Notice
By Indemnitee.  Indemnitee agrees promptly to notify the
Company in writing upon being served with or otherwise receiving any summons,
citation, subpoena, complaint, indictment, information, or other document
relating to any Proceeding or matter that may be subject to indemnification
covered under this Agreement.  The
failure to so notify the Company will not relieve the Company of any obligation
that it may have to Indemnitee under this Agreement unless and only to the
extent that such failure or delay materially prejudices the Company.

 

18.                                 Notices.  All notices and other communications given or
made pursuant to this Agreement will be in writing and will be deemed
effectively given:  (a) upon
personal delivery to the party to be notified, (b) when sent by confirmed
electronic mail or facsimile if sent during normal business hours of the
recipient, and if not so confirmed, then on the next business day, (c) five
days after having been sent by registered or 

 

15

 

certified mail, return
receipt requested, postage prepaid, or (d) one day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written
verification of receipt.  All
communications will be sent:

 

(a)                                  To
Indemnitee at the address set forth below Indemnitee signature hereto.

 

(b)                                 To
the Company at:

 

Idearc
Inc.

2200
West Airfield Drive

DFW
Airport, TX 75261-9810

Attention:
Corporate Secretary

 

or
to such other address as may have been furnished to Indemnitee by the Company
or to the Company by Indemnitee, as the case may be.

 

19.                                 Counterparts.  This Agreement may be executed in two or more
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same Agreement.  This Agreement may also be executed and
delivered by facsimile signature and in two or more counterparts, each of which
will be deemed an original, but all of which together will constitute one and
the same instrument.

 

20.                                 Rules of
Construction.

 

(a)                                  The
headings of the paragraphs of this Agreement are inserted for convenience only
and will not be deemed to constitute part of this Agreement or to affect the
construction of this Agreement.

 

(b)                                 Time
is of the essence with respect to this Agreement.

 

(c)                                  Unless
the context otherwise requires, references to “Sections” are to Sections of
this Agreement.

 

(d)                                 This
Agreement will be liberally construed in favor of Indemnitee.

 

(e)                                  Use
of the word “or” will not be exclusive.

 

(f)                                    Use
of defined terms in the singular will include the plural, and vice versa.

 

21.                                 Governing
Law and Consent to Jurisdiction.  This Agreement and the legal relations among
the parties will be governed by, and construed and enforced in accordance with
the laws of the State of Delaware, without regard to its conflict of laws rules or
any other principle that could result in the application of the laws of any
other jurisdiction. The Company and Indemnitee hereby irrevocably and
unconditionally (i) agree that any action or proceeding arising out of or
in connection with this Agreement 

 

16

 

will be brought only in
the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other state or Federal court
in the United States of America or any court in any other country, (ii) consent
to submit to the exclusive jurisdiction of the Delaware Court for purposes of
any action or proceeding arising out of or in connection with this Agreement, (iii) appoint,
to the extent such party is not otherwise subject to service of process in the
State of Delaware, The Corporation Trust Company, 1209 Orange Street,
Wilmington, New Castle County, Delaware 19801, as such party’s agent in the
State of Delaware for acceptance of legal process in connection with any such
action or proceeding against such party with the same legal force and validity
as if served upon such party personally within the State of Delaware, (iv) waive
any objection to the laying of venue of any such action or proceeding in the
Delaware Court, and (v) waive, and agree not to plead or to make, any
claim that any such action or proceeding brought in the Delaware Court has been
brought in an improper or inconvenient forum.

 

SIGNATURE PAGE TO FOLLOW

 

17

 

IN WITNESS WHEREOF, the parties hereto
have executed this Agreement on and as of the day and year first above written.

 

	
   

  	
  IDEARC INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INDEMNITEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:
  [                                ]

  
	
   

  	
   

  
	
   

  	
  Address:EXHIBIT
10.1

    

    30
December 2009

    

    Apollo
Gold Corporation

    5655 S.
Yosemite Street, Suite 200

    Greenwood
Village

    Colorado  80111-3220

    UNITED
STATES OF AMERICA

    

    Attention:  R.
David Russell

    

    Dear
Sirs

    

    Deferral
of Scheduled Repayments due 30 Sept 2009, 31 Dec 2009 and funding of the Debt
Service Reserve Account – Consent

     

    We refer
to our Deferral Consent dated 28 September 2009, recent discussions with APG
management and continued Technical Review of the Project.  Unless
otherwise defined in this letter, capitalized terms used but not defined herein
shall have the meanings assigned to them in the Project Facility Agreement dated
20 February 2009 between Apollo Gold Corporation (“APG”), RMB
Australia Holdings Limited, Macquarie Bank Limited (“Financiers”)
and RMB Resources Inc. (“Agent”),
as amended, modified or restated (“Project Facility
Agreement”).

     

    The
Financiers and APG agree to:

     

    
      	
               
      

            	
              (i)

            	
              Complete
      the Technical Review of the Project to the Financiers satisfaction
      including:  a) finalization of the new resource model; b)
      determination of appropriate cut-off grades for the open pit and
      underground resources; c) optimization of Phase 1 open pit and underground
      mine planning; and d) a new life-of-mine-plan and cash flow model;
      and

            

    

    
      	
               
      

            	
              (ii)

            	
              Defer
      the 30 September 2009 and 31 December 2009 Repayment Date and the
      requirement to fund the Debt Service Reserve Account until the earlier of
      (i) the completion of the Technical Review and (ii) 28 February
      2010.

            

    

     

    This
letter is a Transaction Document for the purpose of the Project Facility
Agreement.  The terms of the consent can be accepted on or before 5pm
(Sydney time) 31 December 2009 by APG returning a signed copy of this letter to
the Agent.  Except as expressly set out in this letter, nothing in
this letter constitutes a waiver of the Financiers’ rights under the terms of
the Transaction Documents and the Financier’s otherwise reserve all of their
rights under the Transaction Documents.

     

    Yours
faithfully

    RMB
Resources Inc.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Signed
for

    RMB
Resources Inc.

    by its
authorized officer

    

    
      
        
          
            	
                    sign
      here

                  	
                    /s/ Richard A. Winters

                  
	 
      	
                    Authorized
      Officer

                  
	 
      	 
      
	
                    Print
      name

                  	
                    Richard A. Winters

                  
	 
      	 
      
	
                    Print
      Title

                  	
                    President

                  

          

        

      

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Consent
and instruction by the Financiers

     

    Each of
the Financiers, Being RMB Australia Holdings Limited and Macquarie Bank Limited,
gives its consent to, and instructs, RMB Resources Inc. (as Agent) to execute
this letter.

    

    Signed
by

    RMB
Australia Holdings Limited

    by:

    

    
      
        
          
            
              
                	
                        sign
      here

                      	
                        /s/ M L Schonfeld

                      	 
      
	 
      	
                        Authorized
      Officer

                      	 
      
	 
      	 
      	 
      
	
                        Print
      name

                      	
                        M L Schonfeld

                      	 
      
	 
      	 
      	 
      
	
                        Print
      Title

                      	
                        Director

                      	 
      

              

            

          

        

      

    

    

    Signed
for

    Macquarie
Bank Limited

    By its
Attorneys

    

    
      
        
          	
                  sign
      here

                	
                  /s/ Katie Choi

                	 
      	
                  sign
      here

                	
                  /s/ Julia Mathison

                
	 
      	 
      	 
      	 
      	 
      
	
                  print
      name

                	
                  Katie Choi

                	 
      	
                  print
      name

                	
                  Julia Mathison

                
	 
      	 
      	 
      	 
      	 
      
	 
      	
                  In
      the presence of

                	 
      	
                  In
      the presence of

                
	 
      	 
      	 
      	 
      	 
      
	
                  sign
      here

                	
                  /s/ James K.C. Leung

                	 
      	
                  sign
      here

                	
                  /s/ Nshaat Murgaie

                
	 
      	 
      	 
      	 
      	 
      
	
                  print
      name

                	
                  James K.C. Leung

                	 
      	
                  print
      name

                	
                  Nshaat
Murgaie

                

        

      

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    Acceptance
by the Borrower

    

    The
Borrower accepts the Agent’s consent for a deferral of the 30 September 2009 and
31 December 2009 Scheduled Repayments and funding of the Debt Service Reserve
Account on the terms and conditions specified in this letter and acknowledges
that each of the Agent and Financiers has executed this letter in reliance on
the Borrower agreeing the above.

    

    Signed
for

    Apollo
Gold Corporation

    By its
Authorized Signatory:

    

    
      
        
          
            
              
                	
                        sign
      here

                      	  
      
	 
      	 
      
	
                        Print
      name

                      	  
      
	 
      	 
      
	
                        Print
      title

                      	  
      

              

            

          

        

      

    

     

    
      
         

      

      
        4

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