Document:

Exhibit 4.5

 

COMMUNITY
BANKERS TRUST CORPORATION

 

2019
STOCK INCENTIVE PLAN

 

1.       Purpose;
Eligibility.

 

(a)       General
Purpose. The purpose of the Community Bankers Trust Corporation 2019 Stock Incentive Plan is to further the long-term stability
and financial success of the Company by attracting and retaining personnel, including employees, directors and Consultants, through
the use of stock and stock-based incentives. The Company believes that ownership of Company Stock will stimulate the efforts of
those persons upon whose judgment, interest and efforts the Company and its Affiliates depend for the successful conduct of their
businesses and will further the alignment of those persons’ interests with the interests of the Company’s shareholders.

 

(b)       Eligible
Award Recipients. Any employee, director or Consultant of the Company or an Affiliate who, in the judgment of the Committee,
has contributed or can be expected to contribute to the profits or growth of the Company or the Affiliate is eligible to become
a Participant. The Committee shall have the power and complete discretion, as provided in Section 16, to select eligible Participants
and to determine for each Participant the terms, conditions and nature of an Award and the number of shares to be allocated as
part of the Award; provided, however, that any Award made to a member of the Committee must be approved by the Board.

 

(c)       Available
Awards. Awards of Options, Restricted Stock, Restricted Stock Units, and Stock Awards may be granted under the Plan. Options
granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options.

 

(d)       Date
of Adoption, Effective Date. The Plan was adopted by the Board of Directors of the Company on March 15, 2019, and will become
effective on May 17, 2019, if approved by the shareholders of the Company on that date in accordance with applicable law and listing
requirements (such approval date, the “Effective Date”).

 

(e)       No
Additional Grants Under the 2009 Stock Incentive Plan. No additional awards will be made under the Community Bankers Trust
Corporation 2009 Stock Incentive Plan on or after the Effective Date of the Plan.

 

2.       Certain
Definitions. The following terms have the meanings indicated:

 

(a)       Act.
The Securities Exchange Act of 1934, as amended.

 

(b)       Affiliate.
A corporation or other entity that, directly or through one or more intermediaries, controls, is controlled by or is under common
control with, the Company.

 

(c)       Applicable
Withholding Taxes. The aggregate amount of federal, state and local income and payroll taxes that the Company or an Affiliate
is required to withhold (not in excess of the maximum applicable statutory withholding rate) in connection with any exercise of
an Option, or the award, lapse of restrictions or payment with respect to any Award.

 

(d)       Award.
The award of an Option, Restricted Stock, Restricted Stock Unit, or Stock Award under the Plan.

 

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(e)       Award
Agreement. Any agreement, contract, certificate or other written instrument or document (which may be in electronic form) evidencing
the terms and conditions of an Award granted under the Plan. Each Award Agreement shall be subject to the terms and conditions
of the Plan.

 

(f)       Board.
The Board of Directors of the Company.

 

(g)       Cause.
With respect to any employee or Consultant: (1) if the employee or Consultant is a party to an employment agreement, change in
control employment agreement, or other services agreement with the Company or its Affiliates and such agreement provides for a
definition of Cause, the definition contained therein; or (2) if no such agreement exists, or if such agreement does not define
Cause, the definition of Cause contained in the Award Agreement. 

 

In all other cases, Cause shall mean:

 

(i)       Continual
or deliberate neglect by the Participant in the performance of his material duties and responsibilities as established from time
to time by the Company, or the Participant’s repeated failure or refusal to follow reasonable instructions or policies of
the Company after being advised in writing of such failure or refusal and being given a reasonable opportunity and period (as determined
by the Company) to remedy such failure or refusal;

 

(ii)       Conviction
of, indictment for (or its procedural equivalent), entering of a guilty plea or plea of no contest with respect to a felony, a
crime of moral turpitude or any other crime with respect to which imprisonment is a possible punishment, or the commission of an
act of embezzlement or fraud against the Company or an Affiliate;

 

(iii)       Violation
in any material respect of any code or standard of conduct generally applicable to employees of the Company or an Affiliate after
being advised in writing of such violation and being given a reasonable opportunity and period (as determined by the Company) to
remedy such violation;

 

(iv)       Dishonesty
of the Participant with respect to the Company, or breach of a fiduciary duty owed to the Company; or

 

(v)       The
willful engaging by the Participant in conduct that is reasonably likely to result, in the good faith judgment of the Company,
in material injury to the Company, monetarily, reputationally or otherwise.

 

The Committee, in its absolute
discretion, shall determine the effect of all matters and questions relating to whether a Participant has been discharged for Cause.
Notwithstanding the foregoing, with respect to any director, a determination that the director has engaged in conduct that is covered
by the definition of Cause shall be made by a majority of the disinterested Board members.

 

(h)       Change
in Control. A Change in Control shall be deemed to have occurred if any one of the conditions in paragraphs (i) - (iv) have
been satisfied at any time after the Award is granted:

 

(i)       The
acquisition by any Person (as defined below) of beneficial ownership of more than 25% of the then outstanding shares of Company
Stock;

 

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(ii)       Individuals
who constitute the Board on the date this Plan is adopted (the “Incumbent Board”) cease to constitute a majority of
the Board, provided that any director whose nomination was approved by a vote of at least two-thirds of the directors then comprising
the Incumbent Board will be considered a member of the Incumbent Board, but excluding any such individual whose initial assumption
of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company;

 

(iii)       Consummation
by the Company of a reorganization, merger, share exchange or consolidation (a “Reorganization”), provided that a Reorganization
will not constitute a Change in Control if, upon consummation of the Reorganization, each of the following conditions is satisfied:

 

(1)       more
than 50% of the then outstanding shares of common stock of the corporation resulting from the Reorganization is beneficially owned
by all or substantially all of the former shareholders of the Company in substantially the same proportions as their ownership
existed in the Company immediately prior to the Reorganization; and

 

(2)       at
least a majority of the members of the board of directors of the corporation resulting from the Reorganization were members of
the Incumbent Board at the time of the execution of the initial agreement providing for the Reorganization; or

 

(iv)       The
sale, transfer or assignment of all or substantially all of the assets of the Company and its Affiliates to a third party.

 

For purposes of this Section 2(h),
“Person” means any individual, entity or group (within the meaning of Section 13(d)(3) of the Act), other than any
employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliate, and “beneficial ownership”
has the meaning given the term in Rule 13d-3 under the Act.

 

(i)       Code.
The Internal Revenue Code of 1986, as amended. Any reference to a section of the Code shall be deemed to include a reference to
any regulations promulgated thereunder.

 

(j)       Committee.
The Committee appointed by the Board of Directors to administer the Plan pursuant to Section 16 of the Plan, or if no such Committee
has been appointed, the Board.

 

(k)       Company.
Community Bankers Trust Corporation, a Virginia corporation.

 

(l)       Company
Stock. Common stock of the Company. If the par value of the Company Stock is changed, or in the event of a change in the capital
structure of the Company (as provided in Section 13) the shares resulting from such a change shall be deemed to be Company Stock
within the meaning of the Plan.

 

(m)       Consultant.
A person or entity rendering services to the Company or an Affiliate who is not an “employee” for purposes of employment
tax withholding under the Code or a director of the Company or an Affiliate.

 

(n)       Date
of Grant. The effective date of an Award granted by the Committee.

 

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(o)       Disability
or Disabled. As to an Incentive Stock Option, a Disability within the meaning of Section 22(e)(3) of the Code. As to all other
Awards, the Committee shall determine whether a Disability exists and such determination shall be conclusive.

 

(p)       Fair
Market Value.

 

(i)       If
the Company Stock is listed on any established stock exchange or quoted on any established stock market system, its Fair Market
Value shall be the closing price for such stock on the date as of which Fair Market Value is determined for any purpose under this
Plan, as reported by such stock exchange or stock market system, or, if there are no trades on such date, the value shall be determined
as of the last preceding day on which the Company Stock was traded.

 

(ii)       If
the Company Stock is not publicly traded, the Fair Market Value shall be determined by the Committee using any reasonable application
of a reasonable method in good faith, provided that the Fair Market Value of Company Stock subject to an Incentive Stock Option
shall be determined in good faith within the meaning of Treasury Regulation § 1.422-2(e)(2).

 

(q)       Good
Reason. If the Participant is a party to an employment agreement, change in control employment agreement, or other services
agreement with the Company or an Affiliate and such agreement provides for a definition of Good Reason, the definition contained
in the agreement. If no such agreement exists or if such agreement does not define Good Reason, the definition of Good Reason contained
in the Award Agreement. In all other cases, Good Reason shall mean the occurrence of one or more of the following without the Participant’s
express written consent, which circumstances are not remedied by the Company within thirty (30) days of its receipt of a written
notice from the Participant describing the applicable circumstances (which notice must be provided by the Participant within ninety
(90) days of the Participant’s knowledge of the applicable circumstances): (i) any material, adverse change in the Participant’s
duties, responsibilities, authority, title, status or reporting structure; (ii) a material reduction in the Participant’s
base salary or bonus opportunity unless any such base salary or bonus opportunity reduction is proportionate to reductions in base
salaries or bonus opportunities of other similarly situated officers of the Company; or (iii) a geographical relocation of the
Participant’s principal office location by more than thirty-five (35) miles.

 

(r)       Incentive
Stock Option. An Option intended to meet the requirements of, and that qualifies for favorable federal income tax treatment
under, Section 422 of the Code.

 

(s)       Nonstatutory
Stock Option. An Option that does not meet the requirements of Section 422 of the Code, or that is otherwise not intended to
be an Incentive Stock Option and is so designated.

 

(t)       Option.
A right to purchase Company Stock granted under the Plan, at a price determined in accordance with the Plan.

 

(u)       Participant.
Any individual who is granted an Award under the Plan.

 

(v)       Performance
Award. An Award for which exercise, full enjoyment or receipt thereof by the Participant is contingent on satisfaction or achievement
of a performance objective. The terms and conditions of each Performance Award, including the performance objective and performance
period, shall be set forth in the applicable Award Agreement with the Participant or in a subplan of the Plan which is incorporated
by reference into the Award Agreement.

 

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(w)      Plan.
The Community Bankers Trust Corporation 2019 Stock Incentive Plan.

 

(x)       Restricted
Stock. Company Stock awarded upon the terms and subject to the restrictions set forth in Section 6.

 

(y)       Restricted
Stock Unit. An Award, designated as a Restricted Stock Unit under the Plan, that represents the right to receive Company Stock
and/or cash in lieu thereof upon the terms and subject to the restrictions set forth in Section 7 and which, unless otherwise expressly
provided, is valued by reference to the Fair Market Value of a share of Company Stock.

 

(z)       Rule
16b-3. Rule 16b-3 promulgated under the Act, including any corresponding subsequent rule or any amendments to Rule 16b-3 enacted
after the effective date of the Plan.

 

(aa)    Stock Award. Company Stock
awarded upon the terms and subject to the restrictions set forth in Section 9.

 

(bb)    10% Shareholder. A person who
owns, directly or indirectly and within the meaning of Section 422 or 424 of the Code, stock possessing more than 10% of the total
combined voting power of all classes of stock of the Company or any parent or subsidiary of the Company. Indirect ownership of
stock shall be determined in accordance with Section 424(d) of the Code.

 

3.       Shares
Subject to the Plan.

 

(a)       Subject
to adjustment as provided in Section 12 of the Plan, a total of 2,500,000 shares of Company Stock may be issued pursuant to Awards
under the Plan. Subject to adjustment as provided in Section 12, no more than an aggregate of 2,500,000 shares of Company Stock
may be issued pursuant to the exercise of Incentive Stock Options granted under the Plan (including shares issued pursuant to the
exercise of Incentive Stock Options that are the subject to disqualifying dispositions within in the meaning of Sections 421 and
422 of the Code).

 

(b)       Any
shares of Company Stock subject to an Award that is canceled, forfeited or expires prior to exercise, vesting or settlement, either
in full or in part, shall again become available for issuance under the Plan; provided that shares subject to an Award shall not
again be made available for issuance or delivery under the Plan if such shares are tendered or withheld in payment of an Option
exercise price or to satisfy any amount of tax withholding with respect to the Award.

 

(c)       The
maximum number of shares of Company Stock with respect to which Awards may be granted in any calendar year to any Participant shall
not exceed 200,000 shares in the aggregate. If an Award is to be settled in cash, the number of shares of Company Stock on which
the Award is based shall count toward the individual share limit set forth in this Section 3(c).

 

(d)       Notwithstanding
anything in this Plan to the contrary, the maximum number of shares of Company Stock with respect to which Awards may be granted
in any calendar year to any non-employee director of the Company or an Affiliate shall not exceed 20,000 shares.

 

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4.       Stock
Options.

 

(a)       Option
Grant. Whenever the Committee deems it appropriate to grant Options, an Award Agreement shall be given to the Participant
stating the number of shares for which Options are granted, the exercise price per share, whether the options are Incentive Stock
Options or Nonstatutory Stock Options, and the conditions to which the grant and exercise of the Options are subject. The Award
Agreement shall set forth all restrictions on disposition and transfer applicable to the Option shares. Incentive Stock Options
may be granted to employees of the Company or an Affiliate. Non-employee directors and Consultants shall not be eligible to receive
Incentive Stock Options. No Option (or portion thereof) that is intended to be an Incentive Stock Option shall be invalid for failure
to so qualify, but instead such Option (or portion thereof) shall constitute a Nonstatutory Stock Option.

 

(b)       Exercise
Price. The Committee shall establish the exercise price of Options. The exercise price of an Option shall be not less
than 100% of the Fair Market Value of such shares on the Date of Grant, provided that if the Participant is a 10% Shareholder,
the exercise price of an Incentive Stock Option shall not be less than 110% of the Fair Market Value of such shares on the Date
of Grant.

 

(c)       Term.
The Committee shall establish the term of each Option in the Participant’s Award Agreement. The term of an Option shall not
be longer than ten (10) years from the Date of Grant, except that an Incentive Stock Option granted to a 10% Shareholder shall
not have a term in excess of five (5) years. No Option may be exercised after the expiration of its term or, except as set forth
in the Participant’s Award Agreement, after the termination of the Participant’s employment with the Company and/or
its Affiliates.

 

(d)       Time
of Exercise.

 

(i)       During
Participant’s Employment or Service. Options may be exercised during their terms in whole or in part at such times as
may be specified by the Committee in the Participant’s Award Agreement. The Committee may impose such vesting conditions
and other requirements as the Committee deems appropriate.

 

(ii)       After
Participant’s Termination of Employment or Service. The Committee shall set forth in the Participant’s Award Agreement
when, and under what circumstances, an Option may be exercised after termination of the Participant’s employment or period
of service; provided that no Incentive Stock Option may be exercised after the earlier of (a) (i) three (3) months from the
Participant’s termination of employment with the Company for reasons other than Disability or death, or (ii) one (1) year
from the Participant’s termination of employment on account of Disability or death; or (b) the expiration of the Option’s
term. The Award Agreement may provide for various conditions with respect to the exercise of the Option after termination of employment,
including, but not limited to, compliance with noncompetition and confidentiality covenants.

 

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(iii)       After
Participant’s Death. If a Participant dies and if the Participant’s Award Agreement provides that part or all of
the Option may be exercised after the Participant’s death, then such portion may be exercised by the executor or administrator
of the Participant’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the Option upon the Participant’s death during the time period specified in the Award Agreement,
but not later than the expiration of the Option’s term.

 

The Committee may, in its sole
discretion, amend a previously granted Incentive Stock Option to provide for more liberal exercise provisions, provided, however,
that if the Incentive Stock Option as amended no longer meets the requirements of Section 422 of the Code, and, as a result the
Option no longer qualifies for favorable federal income tax treatment under Section 422 of the Code, the amendment shall not become
effective without the written consent of the Participant.

 

(e)       Limit
on Exercise of Incentive Stock Options. An Incentive Stock Option, by its terms, shall be exercisable in any calendar
year only to the extent that the aggregate Fair Market Value (determined at the Date of Grant) of the Company Stock with respect
to which Incentive Stock Options are exercisable by the Participant for the first time during the calendar year does not exceed
$100,000 (the “Limitation Amount”). Incentive Stock Options granted under the Plan and all other plans of the Company
and its Affiliates shall be aggregated for purposes of determining whether the Limitation Amount has been exceeded. The Board may
impose such conditions as it deems appropriate on an Incentive Stock Option to ensure that the foregoing requirement is met. If
Incentive Stock Options that first become exercisable in a calendar year exceed the Limitation Amount, the excess Options will
be treated as Nonstatutory Stock Options to the extent permitted by law.

 

5.       Method
of Exercise of Options.

 

(a)       Exercise.
Options may be exercised by giving written notice of the exercise to the Company, stating the Option being exercised and the number
of shares the Participant has elected to purchase under the Option.

 

(b)       Payment.
In no event shall any shares be issued pursuant to the exercise of an Option until the Participant has made full payment for the
shares of Company Stock (including payment of the exercise price and any Applicable Withholding Taxes). Company Stock purchased
upon the exercise of an Option granted under the Plan shall be paid for as follows, provided that the Committee may impose such
limitations and restrictions on payments with shares of Company Stock (including without limitation by “net share exercise”)
as the Committee, in its discretion, deems advisable:

 

(i)       in
cash or by check, payable to the order of the Company;

 

(ii)       by
delivery of Company Stock that the Participant has previously acquired and owned (valued at Fair Market Value on the date of exercise),
provided that such method of payment is then permitted under applicable law and the Company Stock was owned by the Participant
for such period of time, if any, required to avoid a charge to earnings for financial accounting purposes;

 

(iii)       if
provided in an Award Agreement, by withholding and retention by the Company of sufficient shares of Company Stock issuable in connection
with the exercise to cover the exercise price (a “net share exercise”) for an option not intended to be an Incentive
Stock Option and, if required by the Committee, Applicable Withholding Taxes;

 

(iv)       by
delivery of a properly executed exercise notice together with irrevocable instructions to a creditworthy broker to deliver promptly
to the Company, from the sale or loan proceeds with respect to the sale of Company Stock or a loan secured by Company Stock, the
amount necessary to pay the exercise price and, if required by the Committee, Applicable Withholding Taxes; or

 

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(v)       by
any combination of the above permitted forms of payment.

 

(c)       Delivery
of Shares. The Company may place on any certificate representing Company Stock issued upon the exercise of an Option
(or equivalent book-entry share) any legend deemed desirable by the Company’s counsel to comply with federal or state securities
laws. The Company may require of the Participant a customary indication of his or her investment intent. A Participant shall not
possess shareholder rights with respect to shares acquired upon the exercise of an Option until the Participant has made any required
payment, including payment of Applicable Withholding Taxes, and the Company has issued a certificate (or made an equivalent book-entry
notation in the records of the Company’s stock transfer agent) for the shares of Company Stock acquired.

 

(d)       Disqualifying
Disposition. If a Participant disposes of shares acquired upon exercise of an Incentive Stock Option within two (2)
years from the date the Option is granted or within one (1) year after the issuance of such shares to the Participant, the Participant
shall notify the Company of such disposition and provide information regarding the date of disposition, sale price, number of shares
disposed of, and any other information relating thereto that the Company may reasonably request.

 

6.       Restricted
Stock Awards.

 

(a)       Grant.
Whenever the Committee deems it appropriate to grant a Restricted Stock Award, an Award Agreement shall be given to the Participant
stating the number of shares of Restricted Stock for which the Award is granted, the Date of Grant, and the terms and conditions
to which the Award is subject. Certificates representing the shares shall be issued (or an equivalent book-entry notation shall
be made in the records of the Company’s transfer agent) in the name of the Participant, subject to the restrictions imposed
by the Plan and the Committee. Alternatively, the Committee may determine that the Restricted Stock shall be held by the Company
rather than delivered to the Participant pending the release of the applicable restrictions. A Restricted Stock Award may be made
by the Committee in its discretion without cash consideration.

 

(b)       Restrictions
on Transferability and Vesting. The Committee may place such restrictions on the transferability and vesting of Restricted
Stock as the Committee deems appropriate, including restrictions relating to continued service and/or achievement of performance
objectives. Without limiting the foregoing, the Committee may provide performance or Change in Control acceleration parameters
under which all, or a portion, of the Restricted Stock will or may vest. Restricted Stock may not be sold, assigned, transferred,
disposed of, pledged, hypothecated or otherwise encumbered until the restrictions on such shares shall have lapsed or shall have
been removed pursuant to subsection (c) below.

 

(c)       Lapse
of Restrictions on Transferability. The Committee shall establish as to each Restricted Stock Award the terms and conditions
upon which the restrictions on transferability set forth in paragraph (b) above shall lapse. Such terms and conditions may include,
without limitation, the passage of time, the meeting of performance objectives, the lapsing of such restrictions as a result of
the Disability or death of the Participant, the occurrence of a Change in Control, or certain terminations of employment in connection
with a Change in Control or otherwise.

 

(d)       Rights
of the Participant and Restrictions. A Participant shall hold shares of Restricted Stock subject to the restrictions
set forth in the Award Agreement and in the Plan. In other respects, unless otherwise provided in the Award Agreement, the Participant
shall have all the rights of a shareholder with respect to the shares of Restricted Stock, including, but not limited to, the right
to vote such shares and the right to receive all cash dividends and other distributions paid thereon; provided that the Award Agreement
shall provide that any cash dividends and stock dividends with respect to Restricted Stock shall be withheld by the Company for
the Participant’s account unless and until the underlying shares of Restricted Stock vest. The cash dividends or stock dividends
so withheld by the Committee and attributable to any particular share of Restricted Stock shall be distributed to the Participant
in cash or, at the discretion of the Committee, in shares of Company Stock having a Fair Market Value equal to the amount of such
dividends, if applicable, upon the release of restrictions on such share and, if such share is forfeited, the Participant shall
have no right to such dividends. To the extent stock certificates are delivered to the Participant, the certificates representing
Restricted Stock shall bear a legend referring to the restrictions set forth in the Plan and the Participant’s Award Agreement.

 

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7.       Restricted
Stock Unit Awards.

 

(a)       Grant.
Whenever the Committee deems it appropriate to grant a Restricted Stock Unit Award, an Award Agreement shall be given to the Participant
stating the number of Restricted Stock Units in the Award, the Date of Grant, and the terms and conditions to which the Award is
subject. No shares of Company Stock shall be issued at the time a Restricted Stock Unit is granted, and the Company will not be
required to set aside a fund for the payment of any such award. A Restricted Stock Unit Award may be made by the Committee in its
discretion without cash consideration.

 

(b)       Restrictions
on Vesting. The Committee may place such restrictions on the vesting and settlement of Restricted Stock Units as the Committee
deems appropriate, including restrictions relating to continued employment or service and/or achievement of performance objectives.
Without limiting the foregoing, the Committee may provide performance or Change in Control acceleration parameters under which
all, or a portion, of the Restricted Stock Unit will or may vest. Restricted Stock Units may not be sold, assigned, transferred,
disposed of, pledged, hypothecated or otherwise encumbered.

 

(c)       Rights
of the Participant. A Participant shall have no voting rights with respect to Restricted Stock Units. At the discretion of
the Committee, to the extent set forth in the Award Agreement each Restricted Stock Unit (representing one share of Company Stock)
may be credited with cash and stock dividends paid by the Company in respect of one share of Company Stock. Dividends credited
to a Participant’s account and attributable to any particular Restricted Stock Unit shall be distributed in cash or, at the
discretion of the Committee, in shares of Company Stock having a Fair Market Value equal to the amount of such accumulated dividends
to the Participant upon settlement of such Restricted Stock Unit. If such Restricted Stock Unit is forfeited, the Participant shall
have no right to such accumulated dividends.

 

(d)       Settlement.
Unless otherwise provided in the Award Agreement, a Participant’s Restricted Stock Units which vest shall be immediately
settled by the issuance and delivery to the Participant of one share of Company Stock for each vested Restricted Stock Unit or
the payment of cash in an amount equal to the number of shares for which the Restricted Stock Unit vested multiplied by the Fair
Market Value of a share of Company Stock on the vesting date, or a combination thereof as determined by the Committee.

 

8.       Stock
Awards. Whenever the Committee deems it appropriate to grant a Stock Award, such Stock Award may be granted and, if desired
by the Committee, an Award Agreement shall be given to the Participant stating the number of shares of unrestricted Company Stock
for which the Award is granted, the Date of Grant, and the terms and conditions to which the Award is subject, if any. Certificates
representing the shares shall be issued (or an equivalent book-entry notation shall be made in the records of the Company’s
transfer agent) in the name of the Participant, subject to any terms imposed by the Plan and the Committee, as soon as practicable
after the Date of Grant. A Stock Award may be made by the Committee in its discretion without cash consideration and may be granted
as settlement of a Performance Award.

 

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9.       Applicable
Withholding Taxes. Each Participant shall agree, as a condition of receiving an Award, to pay to the Company or the Affiliate,
or make arrangements satisfactory to the Company or the Affiliate regarding the payment of, all Applicable Withholding Taxes with
respect to the Award. Until the Applicable Withholding Taxes have been paid or arrangements satisfactory to the Company or the
Affiliate have been made, no stock certificates or book-entry shares (or, in the case of Restricted Stock, Restricted Stock Units
and Stock Awards, no stock certificates or book-entry shares free of a restrictive legend) shall be issued to the Participant.
As an alternative to making a cash payment to the Company or the Affiliate to satisfy Applicable Withholding Tax obligations, the
Committee may establish procedures permitting the Participant to elect to (a) deliver shares of already owned Company Stock
or (b) have the Company retain that number of shares of Company Stock from the shares otherwise deliverable under the Award,
in either case with respect to which the Company has a statutory obligation to withhold taxes, up to the maximum tax rate applicable
to the Participant, as determined by the Committee. Any such election shall be made only in accordance with procedures established
by the Committee to avoid a charge to earnings for financial accounting purposes and in accordance with Rule 16b-3.

 

10.       Nontransferability
of Awards.

 

(a)       General
Rule. In general, Awards, by their terms, shall not be transferable by the Participant except by will or by the laws of descent
and distribution or except as described below. Incentive Stock Options shall be exercisable, during the Participant’s lifetime,
only by the Participant.

 

(b)       Limited
Transferability. Notwithstanding the provisions of Section 10(a) and subject to federal and state securities laws, the Committee
may on a case-by-case basis grant or amend Nonstatutory Stock Options that permit a Participant to transfer the Options to one
or more immediate family members, to a trust for the benefit of immediate family members, or to a partnership, limited liability
company, or other entity the only partners, members, or interest-holders of which are among the Participant’s immediate family
members. Consideration may not be paid for the transfer of Options. The transferee of an Option shall be subject to all conditions
applicable to the Option prior to its transfer. The agreement granting the Option shall set forth the transfer conditions and restrictions.
The Committee may impose on any transferable Option and on stock issued upon the exercise of an Option such limitations and conditions
as the Committee deems appropriate in its sole discretion.

 

11.       Duration,
Amendment or Modification of the Plan. 

 

(a)       Duration.
If not sooner terminated by the Board, this Plan shall terminate at the close of business on May 16, 2029. Awards outstanding on
the date of such termination shall remain valid in accordance with their terms.

 

(b)       Amendment
and Modification. The Board may at any time terminate, suspend, amend or modify the Plan. Any such amendment or modification
may be without shareholder approval, except to the extent that such shareholder approval is required by the Code, pursuant to the
rules under Section 16 of the Act, by any national securities exchange or system on which shares of Company Stock is then listed
or reported, by any regulatory body having jurisdiction with respect thereto, or under any other applicable laws, rules or regulations.
Awards outstanding on the date of such action shall remain valid in accordance with their terms.

 

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(c)       Amendments
to Awards. Subject to the terms and provisions and within the limitations of the Plan, the Committee may waive any conditions
or rights under, amend any terms of or alter, suspend, discontinue, cancel or terminate, any outstanding Award on either a prospective
or retroactive basis; provided that any such waiver, amendment, alteration, suspension, discontinuance, cancellation or termination
that would adversely affect the rights of any Participant or other holder of an outstanding Award shall not be effective without
the consent of the affected Participant or holder.

 

12.       Change
in Capital Structure.

 

(a)       Effect
of Change in Capital Structure. In the event of changes in the outstanding shares of Company Stock or in the capital structure
of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate
transaction such as any recapitalization, reorganization, merger, spin-off of a subsidiary, or other relevant change in capitalization
occurring after the Date of Grant of any Award, the number and kind of shares of stock or securities of the Company to be issued
under the Plan (under outstanding Awards and Awards to be granted in the future), the per Participant maximums provided for in
Section 3, the exercise price of Options, and other relevant provisions shall be equitably adjusted by the Committee, whose determination
shall be binding on all persons, as to the number, price or kind of consideration subject to such Awards to the extent necessary
to preserve the economic intent of such Award. If the adjustment would produce fractional shares with respect to any Award, the
Committee may adjust appropriately the number of shares covered by the Award so as to eliminate the fractional shares.

 

(b)       Authority.
Notwithstanding anything in the Plan to the contrary, the Committee may take the foregoing actions without the consent of any Participant,
and the Committee’s determination shall be conclusive and binding on all persons for all purposes. The Committee shall make
its determinations consistent with Rule 16b-3 and the applicable provisions of the Code.

 

13.       Termination
of Employment. The Committee shall have the full power and authority to determine the terms and conditions that shall apply
to any Award upon the termination of employment of a Participant, and may provide such terms and conditions in the Award Agreement
or in such rules and policies as it may prescribe. If the terms of an Award provide that the Award will be exercisable, or become
vested, or that payment will be made thereunder only if the Participant completes a stated period of employment or service, the
Committee may decide to what extent leaves of absence for governmental or military service, illness, temporary disability or other
reasons shall not be deemed interruptions of continuous employment or service.

 

14.       Change
in Control.

 

(a)       Effect
of a Change in Control of the Company. In the event of a Change in Control of the Company, the Committee, as constituted before
such Change in Control, may take such actions with respect to any outstanding Award, either at the time the Award is made or any
time thereafter, as the Committee deems appropriate. These actions may include, but shall not be limited to, the following:

 

(i)       Providing
for the purchase or settlement of any such Award by the Company for an amount of cash equal to the amount which could have been
obtained upon the exercise of such Award or realization of a Participant’s rights had such Award been currently exercisable
or payable;

 

(ii)       Making adjustments to Awards then outstanding as the Committee deems appropriate to reflect such Change in
Control and to retain the economic value of the Award; or

 

    	 	11	 

     

    

 

(iii)       Causing
any such Award then outstanding to be assumed, or new rights substituted therefore, by the acquiring or surviving corporation in
such Change in Control.

 

(b)       Successors.
The obligations of the Company under the Plan and any Award Agreements shall be binding upon any successor corporation or organization
resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization
succeeding to all or substantially all of the assets and business of the Company and its Affiliates, taken as a whole.

 

15.       Administration
of the Plan.

 

(a)       The
Committee. The Plan shall be administered by the Committee, which shall be appointed by the Board. The Committee shall consist
of “independent” directors for purposes of any relevant stock exchange listing standards. To the extent required by
Rule 16b-3, all Awards shall be made by members of the Committee who are “Non-Employee Directors” as that term is defined
in Rule 16b-3, or by the Board. In the event the Board determines that a member of the Committee (or any applicable subcommittee)
was not an “independent director” under applicable stock exchange listing standards, and/or was not a “non-employee
director” as defined in Rule 16b-3, as applicable, on the Date of Grant, such determination shall not invalidate the Award
and the Award shall remain valid in accordance with its terms. Any authority granted to the Committee may also be exercised by
the full Board.

 

(b)       Authority
of the Committee. Subject to the express provisions of the Plan, the Committee shall have full and final authority to impose
such limitations or conditions upon an Award as the Committee deems appropriate to achieve the objectives of the Award and the
Plan. Without limiting the foregoing and in addition to the powers set forth elsewhere in the Plan, the Committee shall have the
power and complete discretion to determine: (i) which eligible persons shall receive an Award and the nature of the Award; (ii)
the number of shares of Company Stock to be covered by each Award; (iii) whether Options shall be Incentive Stock Options or Nonstatutory
Stock Options; (iv) the Fair Market Value of Company Stock; (v) the time or times when an Award shall be granted; (vi) whether
an Award shall become vested over a period of time, according to a performance-based vesting schedule or otherwise, and when it
shall be fully vested; (vii) the terms and conditions under which restrictions imposed upon an Award shall lapse; (viii) whether
a Change in Control has occurred; (ix) factors relevant to the lapse of restrictions, vesting, exercise and settlement of Awards;
(x) when Options may be exercised; (xi) whether to approve a Participant’s election with respect to Applicable Withholding
Taxes; (xii) conditions relating to the length of time before disposition of Company Stock received in connection with an Award
is permitted; (xiii) notice provisions relating to the sale of Company Stock acquired under the Plan; (xiv) the manner in which
Section 24 of the Plan shall be implemented; and (xiv) any additional requirements relating to Awards that the Committee deems
appropriate.

 

(c)       Action
by the Committee. The Committee may adopt rules and regulations for carrying out the Plan. The Committee shall have the express
discretionary authority to construe and interpret the Plan and the Award Agreements, to resolve any ambiguities, to define any
terms, and to make any other determinations required by the Plan or an Award Agreement. The interpretation and construction of
any provisions of the Plan or an Award Agreement by the Committee shall be final and conclusive. The Committee may consult with
counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in good faith in reliance upon
the advice of counsel.

 

    	 	12	 

     

    

 

(d)       Delegation.
The Committee, in its discretion, may delegate to one or more officers of the Company all or part of the Committee’s authority
and duties with respect to grants and awards to individuals who are not subject to the reporting and other provisions of Section 16
of the Act. The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior
actions of the Committee’s delegate or delegates that were consistent with the terms of the Plan.

 

16.       Notice.
All notices and other communications required or permitted to be given under this Plan shall be in writing and shall be deemed
to have been duly given if delivered personally, electronically, or mailed first class, postage prepaid, as follows: (a) if to
the Company - at its principal business address to the attention of the Secretary; (b) if to any Participant - at the last
address of the Participant known to the sender at the time the notice or other communication is sent.

 

17.       Section
409A. This Plan is intended to provide compensation that is exempt from or that complies with Code Section 409A and Treasury
Regulations thereunder (“Section 409A”), and the Plan’s terms and the terms of any Award Agreement shall be administered
and construed in a manner that is compliant with or exempt from the application of Section 409A, as appropriate. For purposes of
Section 409A, each payment under this Plan shall be deemed to be a separate payment.

 

Notwithstanding any provision of this Plan
or an Award Agreement to the contrary, to the extent that any payment is subject to Section 409A, if the Participant is a “specified
employee” within the meaning of Section 409A as of the date of the Participant’s termination of employment and the
Company determines, in good faith, that immediate payment of any amounts or benefits under this Plan would cause a violation of
Section 409A, then any amounts or benefits payable under this Plan upon the Participant’s “separation from service”
within the meaning of Section 409A which (i) are subject to the provisions of Section 409A; (ii) are not otherwise exempt from
Section 409A; and (iii) would otherwise be payable during the first six-month period following such separation from service, shall
be paid on the first business day next following the earlier of (1) the date that is six (6) months and one day following the Participant’s
separation from service or (2) the date of the Participant’s death.

 

18.       Tax
Consequences. Nothing in this Plan or an Award Agreement shall constitute a representation by the Company to a Participant
regarding the tax consequences of any Award received by a Participant under this Plan. Although the Company may endeavor to (i)
qualify an Award for favorable federal tax treatment or (ii) avoid adverse tax treatment (e.g., under Section 409A), the
Company makes no representation to that effect and expressly disavows any covenant to maintain favorable tax treatment. The Company
shall be unconstrained in its corporate activities without regard to the potential negative tax impact on holders of Awards under
this Plan.

 

19.       Clawback.
Notwithstanding any other provisions in this Plan, any Award which is subject to recovery under any law, government regulation
or stock exchange listing requirement (including but not limited to Section 954 of the Dodd-Frank Act), will be subject to such
deductions and clawback as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement
(or any policy adopted by the Company or any Affiliate pursuant to any such law, government regulation or stock exchange listing
requirement). This Section 19 shall not limit the Company’s right to revoke or cancel an Award or take other action against
a Participant for any other reason, including, but not limited to, misconduct.

 

20.       Interpretation
and Governing Law. The terms of this Plan and Awards granted pursuant to the Plan shall be governed, construed and administered
in accordance with the laws of the Commonwealth of Virginia, excluding any choice of law rules or principles that might otherwise
refer construction or interpretation of any provision of the Plan or an Agreement to the substantive law of another jurisdiction.
The Plan and Awards are subject to all present and future applicable provisions of the Code and, to the extent applicable, they
are subject to all present and future rulings of the Securities and Exchange Commission with respect to Rule 16b-3. If any provision
of the Plan or an Award conflicts with any such Code provision or ruling, the Committee shall cause the Plan to be amended, and
shall modify the Award, so as to comply, or if for any reason amendments cannot be made, that provision of the Plan or the Award
shall be void and of no effect.

 

    	 	13	 

     

    

 

21.       Banking,
Statutory and Regulatory Provisions. The Plan and all Awards granted under the Plan shall be subject to any condition, limitation,
or prohibition under any Virginia or federal statutory or regulatory policy or rule to which the Company or an Affiliate is subject.

 

22.       No
Employment or Other Service Rights. Nothing in the Plan or any instrument executed or Award granted under the Plan shall confer
upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Award
was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an employee with or without
notice and with or without Cause, (ii) the service of a director pursuant to the bylaws of the Company or an Affiliate, and any
applicable provisions of the corporate law of Virginia in the case of the Company or the corporate law of the jurisdiction in which
an Affiliate is incorporated, as the case may be, or (iii) the service of a Consultant for any reason at any time. Further, the
grant of an Award shall not obligate the Company or any Affiliate to pay an employee any particular amount of remuneration or to
make further grants to the employee at any time thereafter.

 

23.       Forfeiture
Events. The Committee may specify in an Award Agreement that the Participant’s rights, payments and benefits with respect
to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain events, in addition
to applicable vesting conditions of an Award. Such events may include, without limitation, breach of non-competition, non-solicitation,
confidentiality or other restrictive covenants that are contained in the Award Agreement or otherwise applicable to the Participant,
termination of the Participant’s employment or service for Cause, or other conduct by the Participant that is detrimental
to the business or reputation of the Company and/or its Affiliates. In addition, if a Participant’s employment or service
is terminated for Cause, then as of the date of the misconduct, any Option held by the Participant shall terminate, and any unvested
Restricted Stock and Restricted Stock Units held by the Participant shall be forfeited.

 

24.       Minimum
Vesting for 95% of Shares Authorized. Notwithstanding any other provision of this Plan, Awards shall have a minimum vesting/exercise
schedule of at least one year, except that a shorter vesting/exercise schedule may apply to not more than 5% of the shares of Common
Stock authorized for issuance under the Plan.

 

25.       Deferral
of Awards. The Committee may establish one or more programs under the Plan to permit selected Participants the opportunity
to elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that
absent the election would entitle the Participant to payment or receipt of shares of Common Stock or other consideration under
an Award. The Committee may establish the election procedures, the timing of such elections, the mechanisms for payments of, and
accrual of interest or other earnings, if any, on amounts, shares or other consideration so deferred, and such other terms, conditions,
rules and procedures that the Committee deems advisable for the administration of any such deferral program.

 

26.       Non-Uniform
Treatment. The Committee shall be entitled to make non-uniform and selective determinations, amendments and adjustments, and
to enter into non-uniform and selective Award Agreements.

 

    	 	14	 

     

    

 

27.       Beneficiary
Designation. A Participant may designate a beneficiary to receive any Options that may be exercised after death or to receive
any other Award that may be paid after his death, as provided for in the Award Agreement. Such designation and any change or revocation
of such designation shall be made in writing in the form and manner prescribed by the Committee (or its delegee). In the event
that the designated beneficiary dies prior to the Participant, or in the event that no beneficiary has been designated, any Awards
that may be exercised or paid following the Participant’s death shall be transferred or paid in accordance with the Participant’s
will or the laws of descent and distribution.

 

28.       Creditors.
The interests of any Participant under the Plan or any Award Agreement are not subject to the claims of creditors and may not,
in any way, be assigned, alienated or encumbered.

 

29.       Unfunded
Status of the Plan. The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation.
With respect to any payments as to which a Participant has a fixed and vested interest but which are not yet made to a Participant
by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general unsecured
creditor of the Company.

 

 

 

 

 

 

 

    	 	15eprt-ex101_7.htm

Exhibit 10.1

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made and entered into as of the 3rd day of September, 2019, by and between Essential Properties Realty Trust, Inc., a Maryland corporation (the “Company”), and Anthony K. Dobkin (“Indemnitee”).

WHEREAS, at the request of the Company, Indemnitee currently serves as a director of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of such service; 

WHEREAS, as an inducement to Indemnitee to serve or continue to serve in such capacity, the Company has agreed to indemnify Indemnitee and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings, to the maximum extent permitted by law; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1.Definitions.  For purposes of this Agreement:

(a)“Change in Control” means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the Effective Date (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of all of the Company’s then-outstanding securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person’s attaining such percentage interest; (ii) the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) at any time, a majority of the members of the Board of Directors are not individuals (A) who were directors as of the Effective Date or (B) whose election by the Board of Directors or nomination for election by the Company’s stockholders was approved by the affirmative vote of at least two-thirds of the directors then in office who were directors as of the Effective Date or whose election or nomination for election was previously so approved.

 

 

(b)“Corporate Status” means the status of a person as a present or former director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company.  As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company, service by Indemnitee shall be deemed to be at the request of the Company:  (i) if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership, limited liability company, joint venture, trust or other enterprise (1) of which a majority of the voting power or equity interest is or was owned directly or indirectly by the Company or (2) the management of which is controlled directly or indirectly by the Company and (ii) if, as a result of Indemnitee’s service to the Company or any of its affiliated entities, Indemnitee is subject to duties by, or required to perform services for, an employee benefit plan or its participants or beneficiaries, including as deemed fiduciary thereof.

(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 and/or advance of Expenses is sought by Indemnitee.

(d)“Effective Date” means the date set forth in the first paragraph of this Agreement.

(e)“Expenses” means any and all reasonable and out-of-pocket attorneys’ fees and costs, retainers, court costs, arbitration and mediation costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in or otherwise participating in a Proceeding.  Expenses shall also 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.  

(f)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither 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 or participant or witness in the Proceeding giving rise to a claim for indemnification or advance of Expenses 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.  

(g)“Proceeding” means any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, claim, demand, discovery request or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee.  If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

Section 2.Services by Indemnitee.  Indemnitee will serve in the capacity or capacities set forth in the first WHEREAS clause above.  However, this Agreement shall not impose any independent obligation on Indemnitee or the Company to continue Indemnitee’s service to the Company.  This Agreement shall not be deemed an employment contract between the Company (or any other entity) and Indemnitee.

Section 3.General.  The Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in this Agreement and (b) otherwise to the maximum extent permitted by Maryland law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Maryland law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Maryland law as in effect on the Effective Date.  The rights of Indemnitee provided in this Section 3 shall include, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification permitted by the Maryland General Corporation Law (the “MGCL”), including, without limitation, Section 2-418 of the MGCL.

Section 4.Standard for Indemnification.  If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with any such Proceeding unless it is established that (a) the act or omission of Indemnitee was material to the matter giving rise to the Proceeding and (i) was committed in bad faith or (ii) was the result of active and deliberate dishonesty, (b) Indemnitee actually received an improper personal benefit in money, property or services or (c) in the case of any criminal Proceeding, Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

Section 5.Certain Limits on Indemnification.  Notwithstanding any other provision of this Agreement (other than Section 6), Indemnitee shall not be entitled to:

(a)indemnification hereunder if the Proceeding was one by or in the right of the Company and Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable to the Company; 

 

 

 

(b)indemnification hereunder if Indemnitee is adjudged, in a final adjudication of the Proceeding not subject to further appeal, to be liable on the basis that personal benefit was improperly received in any Proceeding charging improper personal benefit to Indemnitee, whether or not involving action in the Indemnitee’s Corporate Status; or

(c)indemnification or advance of Expenses hereunder if the Proceeding was brought by Indemnitee, unless: (i) the Proceeding was brought to enforce indemnification under this Agreement, and then only to the extent in accordance with and as authorized by Section 12 of this Agreement, or (ii) the Company’s charter or Bylaws, a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors or an agreement approved by the Board of Directors to which the Company is a party expressly provide otherwise.

Section 6.Court-Ordered Indemnification.  Notwithstanding any other provision of this Agreement, a court of appropriate jurisdiction, upon application of Indemnitee and such notice as the court shall require, may order indemnification of Indemnitee by the Company in the following circumstances:

(a)if such court determines that Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of the MGCL, the court shall order indemnification, in which case Indemnitee shall be entitled to recover the Expenses of securing such reimbursement; or

(b)if such court determines that Indemnitee is fairly and reasonably entitled to indemnification in view of all the relevant circumstances, whether or not Indemnitee (i) has met the standards of conduct set forth in Section 2-418(b) of the MGCL or (ii) has been adjudged liable for receipt of an improper personal benefit under Section 2-418(c) of the MGCL, the court may order such indemnification as the court shall deem proper without regard to any limitation on such court-ordered indemnification contemplated by Section 2-418(d)(2)(ii) of the MGCL.  

Section 7.Indemnification for Expenses of an Indemnitee Who is Wholly or Partially Successful.  Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that Indemnitee was or is, by reason of Indemnitee’s Corporate Status, made a party to (or otherwise becomes a participant in) any Proceeding and is successful, on the merits or otherwise, in the defense of such Proceeding, the Company shall indemnify Indemnitee for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee under this Section 7 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate basis.  For purposes of this Section 7 and, without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 8.Advance of Expenses for Indemnitee.  If, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be, made a party to any Proceeding, the Company shall, 

 

 

 

without requiring a preliminary determination of Indemnitee’s ultimate entitlement to indemnification hereunder, advance all Expenses incurred by or on behalf of Indemnitee in connection with such Proceeding.  The Company shall make such advance within ten days after the receipt by the Company of a statement or statements requesting such advance from time to time, whether prior to or after final disposition of such Proceeding and may be in the form of, in the reasonable discretion of the Indemnitee (but without duplication) (a) payment of such Expenses directly to third parties on behalf of Indemnitee, (b) advance of funds to Indemnitee in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee’s payment of such Expenses.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as Exhibit A or in such form as may be required under applicable law as in effect at the time of the execution thereof.  To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis.  The undertaking required by this Section 8 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee’s financial ability to repay such advanced Expenses and without any requirement to post security therefor.

Section 9.Indemnification and Advance of Expenses as a Witness or Other Participant.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is or may be, by reason of Indemnitee’s Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Company or any other person, and to which Indemnitee is not a party, Indemnitee shall be advanced and indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith within ten days after the receipt by the Company of a statement or statements requesting any such advance or indemnification from time to time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee.  In connection with any such advance of Expenses, the Company may require Indemnitee to provide an undertaking and affirmation substantially in the form attached hereto as Exhibit A. 

Section 10.   Procedure for Determination of Entitlement to Indemnification.

(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary or appropriate to determine whether and to what extent Indemnitee is entitled to indemnification.  Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion.  The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

(b)Upon written request by Indemnitee for indemnification pursuant to Section 10(a) above, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall promptly be made in the specific case: (i) if a Change in Control has occurred, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be 

 

 

 

delivered to Indemnitee, which Independent Counsel shall be selected by the Indemnitee and approved by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL, which approval shall not be unreasonably withheld; or (ii) if a Change in Control has not occurred, (A) by a majority vote of the Disinterested Directors or, by the majority vote of a  group of Disinterested Directors designated by the Disinterested Directors to make the determination, (B) if Independent Counsel has been selected by the Board of Directors in accordance with Section 2-418(e)(2)(ii) of the MGCL and approved by the Indemnitee, which approval shall not be unreasonably withheld or delayed, by Independent Counsel, in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee or (C) if so directed by the Board of Directors, by the stockholders of the Company, other than directors or officers who are parties to the Proceeding.  If it is so determined that Indemnitee is entitled to indemnification, the Company shall make payment to Indemnitee within ten days after such determination.  Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary or appropriate to such determination in the discretion of the Board of Directors or Independent Counsel if retained pursuant to clause (ii)(B) of this Section 10(b).  Any Expenses incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

(c)The Company shall pay the reasonable fees and expenses of Independent Counsel, if one is appointed.

Section 11.   Presumptions and Effect of Certain Proceedings.

(a)In making any determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of overcoming that presumption in connection with the making of any determination contrary to that presumption.  

(b)The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of nolo contendere or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

(c)The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

 

 

 

Section 12.   Remedies of Indemnitee.

(a)If (i) a determination is made pursuant to Section 10(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Sections 8 or 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Sections 7 or 9 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the charter or Bylaws of the Company is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Maryland, or in any other court of competent jurisdiction, or in an arbitration conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association, of Indemnitee’s entitlement to indemnification or advance of Expenses.  Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce Indemnitee’s rights under Section 7 of this Agreement.  Except as set forth herein, the provisions of Maryland law (without regard to its conflicts of laws rules) shall apply to any such arbitration.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.  

(b)In any judicial proceeding or arbitration commenced pursuant to this Section 12, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be.  If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 12, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 8 of this Agreement until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).  The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement.

(c)If a determination shall have been made pursuant to Section 10(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent 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 that was not disclosed in connection with the determination. 

(d)In the event that Indemnitee is successful in seeking, pursuant to this Section 12, a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the 

 

 

 

Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by Indemnitee in such judicial adjudication or arbitration.  If it shall be determined in such judicial adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated.  

(e)Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under the Courts and Judicial Proceedings Article of the Annotated Code of Maryland for amounts which the Company pays or is obligated to pay for the period (i) commencing with either the tenth day after the date on which the Company was requested to advance Expenses in accordance with Sections 8 or 9 of this Agreement or the 60th day after the date on which the Company was requested to make the determination of entitlement to indemnification under Section 10(b) of this Agreement, as applicable, and (ii) ending on the date such payment is made to Indemnitee by the Company.

Section 13.   Defense of the Underlying Proceeding.

(a)Indemnitee shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding.  The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company’s ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

(b)Subject to the provisions of the last sentence of this Section 13(b) and of Section 13(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 calendar days following receipt of notice of any such Proceeding under Section 13(a) above.  The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (i) includes an admission of fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee.  This Section 13(b) shall not apply to a Proceeding brought by Indemnitee under Section 12 of this Agreement.

(c)Notwithstanding the provisions of Section 13(b) above, if in a Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld or delayed, that Indemnitee may have separate 

 

 

 

defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld or delayed, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld or delayed, at the expense of the Company.  In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld or delayed, at the expense of the Company (subject to Section 12(d) of this Agreement), to represent Indemnitee in connection with any such matter.

Section 14.   Non-Exclusivity; Survival of Rights; Subrogation.

(a)The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the charter or Bylaws of the Company, any agreement or a resolution of the stockholders entitled to vote generally in the election of directors or of the Board of Directors, or otherwise.  Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of the charter or Bylaws of the Company, this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

(b)The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement of expenses and/or insurance provided by Eldridge Industries, LLC and certain of its affiliates (collectively, the “Eldridge Indemnitors”). The Company hereby agrees (i) that, as between the Company and the Eldridge Indemnitors, the Company is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Eldridge Indemnitors to advance Expenses or to provide indemnification for the same Expenses or liabilities incurred by Indemnitee are secondary), (ii) that the Company shall be required to advance the full amount of expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses, judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the terms of this Agreement and the charter or Bylaws of the Company (or any other agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Eldridge Indemnitors, and, (iii) that the Company irrevocably waives, relinquishes and releases the Eldridge Indemnitors from any and all claims 

 

 

 

against the Eldridge Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof.  The Company further agrees that no advancement or payment by the Eldridge Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Eldridge Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company.  The Company and Indemnitee agree that the Eldridge Indemnitors are express third party beneficiaries of the terms of this Section 14.

(c)In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

Section 15.   Insurance.  

(a)The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of Indemnitee’s Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of Indemnitee’s Corporate Status.  In the event of a Change in Control, the Company shall maintain in force any and all directors and officers liability insurance policies that were maintained by the Company immediately prior to the Change in Control for a period of six years with the insurance carrier or carriers and through the insurance broker in place at the time of the Change in Control; provided, however, (i) if the carriers will not offer the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained and (ii) if any replacement insurance carrier is necessary to obtain a policy substantially comparable in scope and amount, such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of the existing insurance carrier; provided, further, however, in no event shall the Company be required to expend in the aggregate in excess of 250% of the annual premium or premiums paid by the Company for directors and officers liability insurance in effect on the date of the Change in Control.  In the event that 250% of the annual premium paid by the Company for such existing directors and officers liability insurance is insufficient for such coverage, the Company shall spend up to that amount to purchase such lesser coverage as may be obtained with such amount.

(b)Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee which would otherwise be indemnifiable hereunder arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in Section 15(a).  The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and the Indemnitee shall not in any way limit or affect the rights or 

 

 

 

obligations of the Company under any such insurance policies.  If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise) the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.

(c)The Indemnitee shall cooperate with the Company or any insurance carrier of the Company with respect to any Proceeding. 

Section 16.     Coordination of Payments.  The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 17.Contribution.  If the indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4 or due to the provisions of Section 5, then, in respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), to the fullest extent permissible under applicable law, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, penalties, and/or amounts paid or to be paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

Section 18.Reports to Stockholders.  To the extent required by the MGCL, the Company shall report in writing to its stockholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the notice of the meeting of stockholders of the Company next following the date of the payment of any such indemnification or advance of Expenses or prior to such meeting.

Section 19.Duration of Agreement; Binding Effect.

(a)This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, officer, employee or agent of the Company or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement).  

(b)The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect 

 

 

 

successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

(c)The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

(d)The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm.  Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled.  Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith.  The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

Section 20.Severability.  If any provision or provisions of this Agreement shall be held to be invalid, void, illegal or otherwise unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

 

 

Section 21.Counterparts.  This Agreement may be executed in one or more counterparts, (delivery of which may be by facsimile, or via e-mail as a portable document format (.pdf) or other electronic format), each of which will be deemed to be an original and it will not be necessary in making proof of this agreement or the terms of this Agreement to produce or account for more than one such counterpart.  One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

Section 22.Headings.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 23.Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor, unless otherwise expressly stated, shall such waiver constitute a continuing waiver.

Section 24.Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

(a)If to Indemnitee, to the address set forth on the signature page hereto.

(b)If to the Company, to:

Essential Properties Realty Trust, Inc.

902 Carnegie Center Boulevard, Suite 520

Princeton, New Jersey 08540

 

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

 

Section 25.Governing Law.  This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Maryland, without regard to its conflicts of laws rules.

[SIGNATURE PAGE FOLLOWS]

 

 

 

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

 

	
 
	
COMPANY:

	
 
	
 
	
 

	
 
	
Essential Properties Realty Trust, Inc.

	
 
	
 
	
 

	
 
	
By:
	
/s/ Hillary P. Hai

	
 
	
Name:
	
Hillary P. Hai

	
 
	
Title:
	
Chief Financial Officer

	
 
	
 
	
 

	
 
	
INDEMNITEE

	
 
	
 
	
 

	
 
	
/s/ Anthony K. Dobkin

	
 
	
Name:
	
Anthony K. Dobkin

	
 
	
Address:
	
195 Bowery, 6th Floor

	
 
	
 
	
New York, New York 10002

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

 

 

 

EXHIBIT A

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To:  The Board of Directors of Essential Properties Realty Trust, Inc.

 

Re:  Affirmation and Undertaking 

 

Ladies and Gentlemen:

 

This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement dated the _____ day of ______________, 20____, by and between Essential Properties Realty Trust, Inc., a Maryland corporation (the “Company”), and the undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I am entitled to advance of Expenses in connection with [Description of Proceeding] (the “Proceeding”).

Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of my Corporate Status or by reason of alleged actions or omissions by me in such capacity.  I hereby affirm my good faith belief that at all times, insofar as I was involved as [a director] [and] [an officer] of the Company, in any of the facts or events giving rise to the Proceeding, I (1) did not act with bad faith or active or deliberate dishonesty, (2) did not receive any improper personal benefit in money, property or services and (3) in the case of any criminal proceeding, had no reasonable cause to believe that any act or omission by me was unlawful.

In consideration of the advance by the Company for Expenses incurred by me in connection with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in connection with the Proceeding, it is established that (1) an act or omission by me was material to the matter giving rise to the Proceeding and (a) was committed in bad faith or (b) was the result of active and deliberate dishonesty or (2) I actually received an improper personal benefit in money, property or services or (3) in the case of any criminal proceeding, I had reasonable cause to believe that the act or omission was unlawful, then I shall promptly reimburse the portion of the Advanced Expenses relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.  

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this ___ day of ____________________, 20____.

 

 

Name: _____________________________

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