Document:

Exhibit 10.23

 

OFFICER
INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (“Agreement”) is made as of this       
day of                   ,
2005, between Mattress Holding Corp., a Delaware corporation (the “Company”),
and                                     
(“Officer”).

 

WHEREAS, Officer is an executive officer of the Company and in such
capacity is performing a valuable service for the Company; and

 

WHEREAS, the by-laws of the Company (the “By-laws”) provide for the
indemnification of its directors and executive officers to the maximum extent
authorized by law; and

 

WHEREAS, Section 145 of the Delaware General Corporation Law (the “DGCL”)
specifically provides that it shall not be deemed exclusive of any other rights
to indemnification or advancement of expenses to which directors or officers
may be entitled under any by-law, agreement, vote of stockholders or
disinterested directors or otherwise; and

 

WHEREAS, the number of lawsuits and shareholders’ derivative lawsuits
against corporations, their directors and officers has increased in recent
years, such lawsuits frequently are without merit and seek damages in amounts
having no reasonable relationship to the amount of compensation received by the
directors and officers from the corporation, and such lawsuits whether or not
meritorious are expensive and time-consuming to defend; and

 

WHEREAS, recent developments with respect to the application and
interpretation of the business judgment rule and statutory and by-law
indemnification provisions have created uncertainty regarding the adequacy and
reliability of the protections afforded to directors and officers thereby; and

 

WHEREAS, adequate directors and officers liability insurance may not be
available at a reasonable cost; and

 

WHEREAS, the Company wishes to have Officer continue to serve as an
executive officer of the Company free from undue concern for unpredictable or
unreasonable claims for damages by reason of Officer’s status as an executive
officer of the Company, by reason of Officer’s decisions or actions on its
behalf or by reason of Officer’s decisions or actions in another capacity while
serving as an executive officer of the Company; and

 

WHEREAS, Officer has expressed reluctance to continue to serve as an
executive officer of the Company without assurances that adequate insurance and
indemnification is and will continue to be provided; and

 

WHEREAS, in order to induce Officer to continue to serve as an
executive officer of the Company, the Company has determined and agreed to
enter into this Agreement with Officer;

 

 

NOW, THEREFORE, in consideration of Officer’s continued service as an
executive officer of the Company, the parties agree as follows:

 

1.                                       Directors
and Officers Liability Insurance.

 

(a)                                  Except as provided in (b) below,
the Company hereby agrees to use its best efforts to obtain and maintain
directors and officers liability insurance for Officer for so long as Officer
shall continue to serve as an executive officer of the Company and thereafter
so long as Officer shall be subject to any possible claim or threatened,
pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of the fact that Officer was an
executive officer of the Company.

 

(b)                                 The Company shall have no obligation
hereunder to obtain or maintain directors and officers liability insurance if,
in the reasonable business judgment of the Board of Directors of the Company,
such insurance is not reasonably available, the premium costs for such
insurance are disproportionate to the amount of coverage provided, or the
coverage provided by such insurance is limited, by exclusions or otherwise, so
as to provide an insufficient benefit.

 

(c)                                  In all policies of directors and
officers liability insurance, Officer shall be covered as an insured party in
such a manner as to provide Officer the same rights and benefits, subject to
the same limitations, as are accorded to the Company’s executive officer most
favorably insured by such policies.

 

(d)                                 The Company shall give prompt
written notice to Officer of any amendment or other change or modification, or
any proposed amendment, change or modification, to any policy of directors and
officers liability insurance maintained by the Company and covering Officer.

 

2.                                       Indemnification. Subject
only to the exclusions set forth in this Agreement, the Company hereby agrees
to hold harmless and indemnify Officer to the full extent authorized or
permitted by Section 145 of the DGCL, including any amendment thereof, or
any other statutory provisions authorizing or permitting such indemnification
which are adopted after the date hereof. Notwithstanding the foregoing, the
Company shall not be required to indemnify Officer for any losses to the extent
that such losses are covered by directors and officers liability insurance as
described in Section 1 above. Without limiting the generality of the
foregoing:

 

(a)                                  Third Party Actions. The Company shall indemnify
Officer if Officer was or is a party or is threatened to be made a party to any
action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Company) by
reason of the fact that Officer is or was or had agreed to serve (so long as
Officer actually is serving or did so serve) as an executive officer of the
Company, or is or was serving or had agreed to serve (so long as Officer
actually is serving or did so serve) at the request of the Company as an
executive officer, employee or agent of another corporation, limited liability
company, partnership, joint venture, trust or other enterprise, against any and
all expenses (including attorneys’ fees), liabilities, judgments, penalties,
fines and amounts paid in settlement actually and reasonably incurred by
Officer or on Officer’s behalf in connection with such action, suit or
proceeding, and any appeal therefrom, if Officer acted in good faith and in a
manner Officer reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Officer’s 

 

2

 

conduct was unlawful. The termination of any
action, suit or proceeding by judgment, order, settlement, conviction or upon a
plea of nolo contendere or its equivalent shall not, of itself, create a
presumption that Officer did not satisfy the foregoing standard of conduct to
the extent applicable thereto.

 

(b)                                 Suits By or in the Right of the
Company. The
Company shall indemnify Officer if Officer is or was a party or is threatened
to be made a party to any action or suit by or in the right of the Company by
reason of the fact that Officer is or was or had agreed to be (so long as
Officer actually is or did become) an executive officer of the Company, or is
or was serving or had agreed to serve (so long as Officer actually is or did so
serve) at the request of the Company as an executive officer, officer, employee
or agent of another corporation, limited liability company, partnership, joint
venture, trust or other enterprise, against any and all expenses (including
attorneys’ fees) and, to the extent permitted by law, amounts paid in
settlement actually and reasonably incurred by Officer or on Officer’s behalf
in connection with the defense or settlement of such action or suit or any
appeal therefrom provided that Officer acted in good faith and in a manner
Officer reasonably believed to be in or not opposed to the best interests of
the Company and except that no indemnification shall be made in respect of any
claim, issue or matter as to which Officer shall have been adjudged to be
liable to the Company unless and only to the extent that the court in which
such action or suit was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
Officer is fairly and reasonably entitled to indemnity for such expenses which
the court shall deem proper.

 

(c)                                  Successful Defense. To the extent that Officer has
been successful on the merits or otherwise in the defense of any action, suit
or proceeding referred to in subsections (a) or (b) of this Section 2,
or in the defense of any claim, issue or matter therein, the Company shall
indemnify Officer against any and all expenses (including attorneys’ fees)
actually and reasonably incurred by Officer or on Officer’s behalf in
connection therewith. Dismissal of any action with prejudice, or a settlement
not involving any payment or assumption of liability, shall be deemed a successful
defense.

 

(d)                                 Partial Indemnification. If Officer is entitled to
indemnification under any provision of this Agreement for a portion of the
expenses (including attorneys’ fees), liabilities, judgments, penalties, fines
and amounts paid in settlement actually and reasonably incurred by Officer or
on Officer’s behalf in the investigation, defense, appeal or settlement of such
suit, action or proceeding, but not, however, for the total amount thereof, the
Company shall nevertheless indemnify Officer for the portion thereof to which
Officer is entitled.

 

(e)                                  Advancement of Expenses. All expenses (including
attorney and other expert and professional fees and expenses) incurred by
Officer or on Officer’s behalf in defending a civil or criminal action, suit or
proceeding, or in enforcing Officer’s rights under any provisions of this
Agreement, shall be paid by the Company in advance of the final disposition of
such action, suit or proceeding in the manner prescribed by Section 4
hereof.

 

(f)                                    Amendments to Indemnification
Rights. The
Company shall not adopt any amendment to its Restated Certificate of
Incorporation, as amended (the “Certificate”) or By-Laws the effect of which
would be to deny, diminish or encumber Officer’s rights to indemnity 

 

3

 

pursuant to the Certificate, By-Laws, the
DGCL or any other applicable law as applied to any act or failure to act
occurring in whole or in part prior to the date (the “Effective Date”) upon
which the amendment was approved by the Company’s Board of Directors or
stockholders, as the case may be. In the event that the Company shall adopt any
amendment to the Certificate or By-Laws the effect of which is to change
Officer’s rights to indemnity under such instruments, such amendment shall
apply only to acts or failures to act occurring entirely after the Effective
Date thereof. The Company shall give written notice to Officer of any proposal
with respect to any such amendment no later than the date such amendment is
first presented to the Board of Directors (or any committee thereof) for
consideration, and shall provide a copy of any such amendment to Officer
promptly after its adoption.

 

(g)                                 Indemnification for Expenses as
a Witness. To
the extent Officer is, by reason of Officer’s status as an executive officer of
the Company, a witness in any proceeding, the Company shall indemnify Officer
against all expenses in connection therewith.

 

3.                                       Limitations
on Indemnification. No indemnity pursuant to Section 2 hereof shall be
paid by the Company:

 

(a)                                  on account of Officer’s conduct
which is finally adjudged in a non-appealable decision to have been fraudulent,
dishonest or willful misconduct, or a knowing violation of law;

 

(b)                                 on account of any suit in which
judgment in a final, non-appealable decision is rendered against Officer for an
accounting of profits made from the purchase or sale by Officer of securities
of the Company within the meaning of Section 16(b) of the Securities
Exchange Act of 1934, as amended, or similar provisions of federal or state
law;

 

(c)                                  on account of the receipt by
Officer of any personal profit or advantage to which Officer is adjudged in a
final, non-appealable decision not to be entitled;

 

(d)                                 for expenses incurred by
Officer, as a plaintiff, in suits against the Company or against directors or
other officers of the Company (other than suits brought by Officer to enforce
Officer’s rights under any provisions of this Agreement), unless such suit is
authorized by the Board of Directors or such indemnification is required by
law;

 

(e)                                  if a final, non-appealable
decision by a court having jurisdiction in the matter shall determine that such
indemnification is not lawful; or

 

(f)                                    for amounts paid by Officer in
settlement of any action or proceeding without the Company’s written consent.

 

4.                                       Indemnification
Procedures.

 

(a)                                  Notice to the Company. Promptly
after receipt by Officer of notice of the commencement of any action, suit or
proceeding, Officer shall, if a claim in respect thereof is to be made against
the Company under this Agreement, notify the Company of the commencement
thereof. Such notice shall set forth in reasonable detail the events giving
rise to such claim and the amount requested, if known. Failure of Officer to
provide such notice shall not relieve the 

 

4

 

Company of its obligations under this
Agreement except to the extent such failure has a material and adverse effect
on the ability of the Company to meet such obligations.

 

(b)                                 Notice to Insurers. If, at the time of receipt of
such notice, the Company has directors and officers liability insurance in
effect, the Company shall give prompt notice of the commencement of such
action, suit or proceeding to the insurers in accordance with the procedures
set forth in the respective policies in favor of Officer. the Company shall
thereafter take all necessary or desirable action to cause such insurers to
pay, on behalf of Officer, all losses and expenses payable as a result of such
action, suit or proceeding in accordance with the terms of such policies.

 

(c)                                  Advancement of Expenses. Subject to subsections (d) and
(e) below, the costs and expenses reasonably incurred by Officer or on
Officer’s behalf in investigating, defending or appealing any action, suit or
proceeding, whether civil, criminal, administrative or investigative, or in
enforcing Officer’s rights under any provisions of this Agreement, covered by Section 2
above shall be paid by the Company within 20 days of Officer’s written request
therefor even if there has been no final disposition of such action, suit or
proceeding. Officer’s written request shall state the amount requested and
shall be accompanied by copies of the invoices or other relevant documentation.

 

(d)                                 Undertaking to Repay Advances. Officer agrees that Officer
will reimburse the Company for all advances paid by the Company to Officer
under this Agreement in the event and only to the extent that it shall
ultimately be determined that Officer was not entitled to be indemnified under
this Agreement.

 

(e)                                  Assumption of Defense by the
Company. Except
as otherwise provided below, the Company, jointly with any other indemnifying
party similarly notified, will be entitled to assume the defense of any action,
suit or proceeding of which it has been notified by Officer pursuant to subsection (a) above,
with counsel reasonably satisfactory to Officer. After notice from the Company
to Officer of its election to assume the defense thereof, the Company will not
be liable to Officer under this Agreement for any legal or other expenses
subsequently incurred by Officer; provided, however, that Officer shall have
the right to employ Officer’s own counsel in such action, suit or proceeding at
the expense of the Company if, at any time after such notice from the Company, (i) the
employment of counsel by Officer has been authorized by the Company, (ii) Officer
shall have reasonably concluded that there may be a conflict of interest
between the Company and Officer in the conduct of such defense, or (iii) the
Company shall not in fact have employed counsel to assume the defense of such
action, in each of which cases the fees and expenses of Officer’s counsel shall
be subject to reimbursement in accordance with the terms of this Agreement. The
Company shall not be entitled to assume Officer’s defense of any action, suit
or proceeding brought by the Company or as to which Officer shall have made the
conclusion provided for in clause (ii) above.

 

(f)                                    Determination of Right to
Entitlement.

 

(i)                                     In the event that Officer incurs
liability for any fines, judgments, liabilities, penalties or amounts paid in
settlement, and indemnification is sought under this Agreement, the Company
shall pay (or provide for payment if so required by the terms of any 

 

5

 

judgment or settlement) such amounts within
30 business days of Officer’s written request therefor unless a determination
is made within such 30 business days that the claims giving rise to such
request are excluded or indemnification is otherwise not due under this
Agreement. Such determination, and any determination required by applicable law
as to whether Officer has met the standard of conduct required to qualify and
entitle Officer, partially or fully, to indemnification under Section 2 of
this Agreement, shall be made, at the Company’s discretion, (1) by the
Board of Directors of the Company by a majority vote of the directors who were
not parties to such action, suit or proceeding even though less than a quorum,
or (2) if such a majority is not obtainable, or even if obtainable a
majority of the disinterested directors so directs, by written opinion of
independent legal counsel selected by the Company and reasonably satisfactory
to Officer, or (3) by the Company’s stockholders; provided, however, that
if a change of control has occurred such determination shall be made by written
opinion of independent legal counsel selected by Officer or, if requested by
Officer, by the Company. The term “independent legal counsel” shall mean for
this purpose an attorney or firm of attorneys experienced in matters of
corporation law that is not now nor has within the previous three years been
retained to represent Officer, the Company or any other party to the proceeding
giving rise to the claim for indemnification hereunder; provided that “independent
legal counsel” shall not include any person who under applicable standards of
professional conduct would have a conflict of interest in representing Officer
or the Company in an action to determine Officer’s rights under this Agreement.
The term “change of control” shall mean: (1) the consummation of any
transaction after which any “person” or “group” (as such terms are used in
Sections 3(a)(9), 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934 (the “Exchange Act”)) is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities, or possesses the power to vote or control the vote of securities,
of the Company representing 30% or more of the combined voting power of either
the Common Stock or all outstanding securities of the Company; or (2) the
stockholders of the Company approve a merger or consolidation of the Company
with any other corporation or entity, other than a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) at least 66-2/3% of the combined voting power of the voting securities
of the Company or such surviving entity outstanding immediately after such
merger or consolidation, or the stockholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets.

 

(ii)                                  Notwithstanding the foregoing,
Officer may within 60 days after a determination adverse to Officer has been
made as provided above, or if no determination has been made within 30 business
days of Officer’s written request for payment, petition the Court of Chancery
of the State of Delaware or any other court of competent jurisdiction, or may
seek an award in arbitration to be conducted by a single arbitrator pursuant to
the rules of the American Arbitration Association, which award shall be
deemed final, unappealable and binding, to determine whether Officer is
entitled to indemnification under this Agreement, and such court or arbitrator,
as the case may be, shall thereupon have the exclusive authority to make such
determination unless and until such court or arbitrator dismisses or otherwise
terminates such action without having made a determination. The court or
arbitrator, as the case may be, shall make an independent determination of
entitlement irrespective of any prior determination made by the Board of
Directors, independent legal counsel or stockholders. In any such action before

 

6

 

the court or arbitrator, Officer shall be
presumed to be entitled to indemnification and the Company shall have the
burden of proving that indemnification is not required under this Agreement.
All fees and expenses of any arbitrator pursuant to this provision shall be
paid by the Company.

 

(g)                                 Enforcement Expenses. In the event that Officer
brings suit or takes any other action to enforce Officer’s rights or to collect
monies due under this Agreement, and if Officer is successful therein, the
Company shall reimburse (to the extent not previously advanced) Officer for all
of Officer’s reasonable expenses, including attorneys’ fees, in any such suit
or action.

 

5.                                       Continuation
of Indemnification. The Company’s obligations to indemnify Officer
hereunder shall continue throughout the period Officer is an executive officer
of the Company (or is serving at the Company’s request in the capacities
described in subsections 2(a) and 2(b) above) and thereafter so long
as Officer shall be subject to any possible claim, action, suit or proceeding
by reason of the fact that Officer was an executive officer of the Company (or
was serving in such other capacities).

 

6.                                       Successors
and Assigns. This Agreement shall be binding upon the Company, its
successors and assigns (including any transferee of all or substantially all of
its assets and any successor by merger or otherwise by operation of law), and
shall inure to the benefit of Officer and Officer’s heirs, personal
representatives, executors and administrators and shall be binding upon Officer
and Officer’s successors in interest under this Agreement.

 

7.                                       Rights Not
Exclusive. The rights provided hereunder shall not be deemed
exclusive of any other rights to which Officer may be entitled under any
provision of law, Certificate of Incorporation, By-law, other agreement, vote
of stockholders or of disinterested directors or otherwise, both as to action
in Officer’s official capacity and as to action in any other capacity while
occupying any of the positions referred to in Section 2 of this Agreement.

 

8.                                       Subrogation. Upon
payment of any amount under this Agreement, the Company shall be subrogated to
the extent of such payment to all of Officer’s rights of recovery therefor and
Officer shall take all reasonable actions requested by the Company to secure
such rights, including, without limitation, execution of all documents
necessary to enable the Company to enforce such rights.

 

9.                                       Severability. In the
event that any provision of this Agreement shall be held to be invalid, illegal
or unenforceable for any reason, such provision shall be limited or modified in
its application to the minimum extent necessary to avoid a violation of law,
and, as so limited or modified, such provision and the balance of this
Agreement shall be enforceable in accordance with their terms.

 

10.                                 Integration. This
Agreement embodies the entire agreement and understanding between the parties
hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings relating to the subject matter hereof.

 

11.                                 Modification. No
amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both parties hereto.

 

7

 

12.                                 Notices. All
notices given under this Agreement shall be in writing and delivered either (i) personally,
(ii) by registered or certified mail (postage prepaid, return receipt
requested), (iii) by recognized overnight courier service or (iv) by
telecopy (if promptly followed by a copy delivered as provided in clauses (i), (ii) or
(iii) above), as follows:

 

If to Officer:                                                                                [NAME]

 [ADDRESS]

 

If to the Company:                                             5815
Gulf Freeway

 Houston,
Texas 77023

 

Notices hereunder given as provided above shall be deemed to be duly
given upon delivery if delivered personally, three business days after mailing
if by registered or certified mail, one business day after mailing if by
overnight courier service and upon confirmation of transmission if by telecopy.

 

13.                                 Governing
Law. This Agreement shall be interpreted and enforced in accordance with the
laws of the State of Delaware.

 

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

 

	
   

  	
  MATTRESS
  HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NAME
  OFFICER]

  

 

8Exhibit 10.24

 

DIRECTOR INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION
AGREEMENT (“Agreement”) is made as of this             day
of                  ,
2005, between Mattress Holding Corp., a Delaware corporation (the “Company”),
and                        
(“Director”).

 

WHEREAS, Director is a
member of the Board of Directors of the Company and in such capacity is
performing a valuable service for the Company; and

 

WHEREAS, the by-laws of
The Company (the “By-laws”) provide for the indemnification of its directors
and executive officers to the maximum extent authorized by law; and

 

WHEREAS, Section 145
of the Delaware General Corporation Law (the “DGCL”) specifically provides that
it shall not be deemed exclusive of any other rights to indemnification or advancement
of expenses to which directors or officers may be entitled under any by-law,
agreement, vote of stockholders or disinterested directors or otherwise; and

 

WHEREAS, the number of
lawsuits and shareholders’ derivative lawsuits against corporations, their
directors and officers has increased in recent years, such lawsuits frequently
are without merit and seek damages in amounts having no reasonable relationship
to the amount of compensation received by the directors and officers from the
corporation, and such lawsuits whether or not meritorious are expensive and
time-consuming to defend; and

 

WHEREAS, recent
developments with respect to the application and interpretation of the business
judgment rule and statutory and by-law indemnification provisions have
created uncertainty regarding the adequacy and reliability of the protections
afforded to directors and officers thereby; and

 

WHEREAS, adequate
directors and officers liability insurance may not be available at a reasonable
cost; and

 

WHEREAS, the Company
wishes to have Director continue to serve as a member of the Company’s Board of
Directors free from undue concern for unpredictable or unreasonable claims for
damages by reason of Director’s status as a director of the Company, by reason
of Director’s decisions or actions on its behalf or by reason of Director’s
decisions or actions in another capacity while serving as a director of the
Company; and

 

WHEREAS, Director has
expressed reluctance to continue to serve as a member of the Company’s Board of
Directors without assurances that adequate insurance and indemnification is and
will continue to be provided; and

 

WHEREAS, in order to
induce Director to continue to serve as a member of the Board of Directors of
the Company, the Company has determined and agreed to enter into this Agreement
with Director;

 

 

NOW, THEREFORE, in
consideration of Director’s continued service as a member of the Board of
Directors of the Company, the parties agree as follows:

 

1.                                       Directors
and Officers Liability Insurance.

 

(a)                                  Except as provided in (b) below,
the Company hereby agrees to use its best efforts to obtain and maintain
directors and officers liability insurance for Director for so long as Director
shall continue to serve as a director of the Company and thereafter so long as
Director shall be subject to any possible claim or threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative, by reason of the fact that Director was a director of the
Company.

 

(b)                                 The Company shall have no
obligation hereunder to obtain or maintain directors and officers liability
insurance if, in the reasonable business judgment of the Board of Directors of
the Company, such insurance is not reasonably available, the premium costs for
such insurance are disproportionate to the amount of coverage provided, or the
coverage provided by such insurance is limited, by exclusions or otherwise, so
as to provide an insufficient benefit.

 

(c)                                  In all policies of directors and
officers liability insurance, Director shall be covered as an insured party in
such a manner as to provide Director the same rights and benefits, subject to
the same limitations, as are accorded to the Company’s director most favorably
insured by such policies.

 

(d)                                 The Company shall give prompt
written notice to Director of any amendment or other change or modification, or
any proposed amendment, change or modification, to any policy of directors and
officers liability insurance maintained by the Company and covering Director.

 

2.                                       Indemnification
of Director. Subject only to the exclusions set forth in this
Agreement, the Company hereby agrees to hold harmless and indemnify Director to
the full extent authorized or permitted by Section 145 of the DGCL,
including any amendment thereof, or any other statutory provisions authorizing
or permitting such indemnification which are adopted after the date hereof.
Notwithstanding the foregoing, the Company shall not be required to indemnify
Director for any losses to the extent that such losses are covered by directors
and officers liability insurance as described in Section 1 above. Without
limiting the generality of the foregoing:

 

(a)                                  Third Party Actions. The Company shall indemnify
Director if Director was or is a party or is threatened to be made a party to
any action, suit or proceeding, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Company) by
reason of the fact that Director is or was or had agreed to serve as (so long as
Director actually is serving or did so serve) a director of the Company, or is
or was serving or had agreed to serve as a director (so long as Director
actually is serving or did so serve) at the request of the Company as a
director, officer, employee or agent of another corporation, limited liability
company, partnership, joint venture, trust or other enterprise, against any and
all expenses (including attorneys’ fees), liabilities, judgments, penalties,
fines and amounts paid in

 

2

 

settlement actually
and reasonably incurred by Director or on Director’s behalf in connection with
such action, suit or proceeding, and any appeal therefrom, if Director acted in
good faith and in a manner Director reasonably believed to be in or not opposed
to the best interests of the Company, and, with respect to any criminal action
or proceeding, had no reasonable cause to believe Director’s conduct was
unlawful. The termination of any action, suit or proceeding by judgment, order,
settlement, conviction or upon a plea of nolo contendere or its equivalent
shall not, of itself, create a presumption that Director did not satisfy the
foregoing standard of conduct to the extent applicable thereto.

 

(b)                                 Suits By or in the Right of the
Company. The
Company shall indemnify Director if Director is or was a party or is threatened
to be made a party to any action or suit by or in the right of the Company by
reason of the fact that Director is or was or had agreed to be (so long as Director
actually is or did become) a director of the Company, or is or was serving or
had agreed to serve (so long as Director actually is or did so serve) at the
request of the Company as a director, officer, employee or agent of another
corporation, limited liability company, partnership, joint venture, trust or
other enterprise, against any and all expenses (including attorneys’ fees) and,
to the extent permitted by law, amounts paid in settlement actually and
reasonably incurred by Director or on Director’s behalf in connection with the
defense or settlement of such action or suit or any appeal therefrom provided
that Director acted in good faith and in a manner Director reasonably believed
to be in or not opposed to the best interests of the Company and except that no
indemnification shall be made in respect of any claim, issue or matter as to
which Director shall have been adjudged to be liable to the Company unless and
only to the extent that the court in which such action or suit was brought
shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, Director is fairly and
reasonably entitled to indemnity for such expenses which the court shall deem
proper.

 

(c)                                  Successful Defense. To the extent that Director
has been successful on the merits or otherwise in the defense of any action,
suit or proceeding referred to in subsections (a) or (b) of this Section 2,
or in the defense of any claim, issue or matter therein, the Company shall
indemnify Director against any and all expenses (including attorneys’ fees)
actually and reasonably incurred by Director or on Director’s behalf in
connection therewith. Dismissal of any action with prejudice, or a settlement
not involving any payment or assumption of liability, shall be deemed a
successful defense.

 

(d)                                 Partial Indemnification. If Director is entitled to
indemnification under any provision of this Agreement for a portion of the
expenses (including attorneys’ fees), liabilities, judgments, penalties, fines
and amounts paid in settlement actually and reasonably incurred by Director or
on Director’s behalf in the investigation, defense, appeal or settlement of
such suit, action or proceeding, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify Director for the portion
thereof to which Director is entitled.

 

(e)                                  Advancement of Expenses. All expenses (including
attorney and other expert and professional fees and expenses) incurred by
Director or on Director’s behalf in defending a civil or criminal action, suit
or proceeding, or in enforcing Director’s rights under any provisions of this
Agreement, shall be paid by the Company in advance of the final disposition of
such action, suit or proceeding in the manner prescribed by Section 4
hereof.

 

3

 

(f)                                    Amendments to Indemnification
Rights. The
Company shall not adopt any amendment to its Restated Certificate of
Incorporation, as amended (the “Certificate”) or By-Laws the effect of which
would be to deny, diminish or encumber Director’s rights to indemnity pursuant
to the Certificate, By-Laws, the DGCL or any other applicable law as applied to
any act or failure to act occurring in whole or in part prior to the date (the “Effective
Date”) upon which the amendment was approved by the Company’s Board of
Directors or stockholders, as the case may be. In the event that the Company
shall adopt any amendment to the Certificate or By-Laws the effect of which is
to change Director’s rights to indemnity under such instruments, such amendment
shall apply only to acts or failures to act occurring entirely after the
Effective Date thereof. The Company shall give written notice to Director of
any proposal with respect to any such amendment no later than the date such
amendment is first presented to the Board of Directors (or any committee
thereof) for consideration, and shall provide a copy of any such amendment to
Director promptly after its adoption.

 

(g)                                 Indemnification for Expenses as
a Witness. To
the extent Director is, by reason of Director’s status as a director of the
Company, a witness in any proceeding, the Company shall indemnify Director
against all expenses in connection therewith.

 

3.                                       Limitations
on Indemnification. No indemnity pursuant to Section 2 hereof shall be
paid by the Company:

 

(a)                                  on account of Director’s conduct
which is finally adjudged in a non-appealable decision to have been fraudulent,
dishonest or willful misconduct, or a knowing violation of law;

 

(b)                                 on account of any suit in which
judgment in a final, non-appealable decision is rendered against Director for
an accounting of profits made from the purchase or sale by Director of
securities of the Company within the meaning of Section 16(b) of the
Securities Exchange Act of 1934, as amended, or similar provisions of federal
or state law;

 

(c)                                  on account of the receipt by
Director of any personal profit or advantage to which Director is adjudged in a
final, non-appealable decision not to be entitled;

 

(d)                                 for expenses incurred by
Director, as a plaintiff, in suits against the Company or against other
directors of the Company (other than suits brought by Director to enforce
Director’s rights under any provisions of this Agreement), unless such suit is
authorized by the Board of Directors or such indemnification is required by
law;

 

(e)                                  if a final, non-appealable
decision by a court having jurisdiction in the matter shall determine that such
indemnification is not lawful; or

 

(f)                                    for amounts paid by Director in
settlement of any action or proceeding without the Company’s written consent.

 

4.                                       Indemnification
Procedures.

 

(a)                                  Notice to the Company. Promptly after receipt by
Director of notice of the commencement of any action, suit or proceeding,
Director shall, if a claim in respect thereof is to

 

4

 

be made against the
Company under this Agreement, notify the Company of the commencement thereof.
Such notice shall set forth in reasonable detail the events giving rise to such
claim and the amount requested, if known. Failure of Director to provide such
notice shall not relieve the Company of its obligations under this Agreement
except to the extent such failure has a material and adverse effect on the
ability of the Company to meet such obligations.

 

(b)                                 Notice to Insurers. If, at the time of receipt of
such notice, the Company has directors and officers liability insurance in
effect, the Company shall give prompt notice of the commencement of such
action, suit or proceeding to the insurers in accordance with the procedures
set forth in the respective policies in favor of Director. The Company shall
thereafter take all necessary or desirable action to cause such insurers to
pay, on behalf of Director, all losses and expenses payable as a result of such
action, suit or proceeding in accordance with the terms of such policies.

 

(c)                                  Advancement of Expenses. Subject to subsections (d) and
(e) below, the costs and expenses reasonably incurred by Director or on
Director’s behalf in investigating, defending or appealing any action, suit or
proceeding, whether civil, criminal, administrative or investigative, or in
enforcing Director’s rights under any provisions of this Agreement, covered by Section 2
above shall be paid by the Company within 20 days of Director’s written request
therefor even if there has been no final disposition of such action, suit or
proceeding. Director’s written request shall state the amount requested and
shall be accompanied by copies of the invoices or other relevant documentation.

 

(d)                                 Undertaking to Repay Advances. Director agrees that Director
will reimburse the Company for all advances paid by the Company to Director
under this Agreement in the event and only to the extent that it shall
ultimately be determined that Director was not entitled to be indemnified under
this Agreement.

 

(e)                                  Assumption of Defense by the
Company. Except
as otherwise provided below, the Company, jointly with any other indemnifying
party similarly notified, will be entitled to assume the defense of any action,
suit or proceeding of which it has been notified by Director pursuant to subsection (a) above,
with counsel reasonably satisfactory to Director. After notice from the Company
to Director of its election to assume the defense thereof, the Company will not
be liable to Director under this Agreement for any legal or other expenses
subsequently incurred by Director; provided, however, that Director shall have
the right to employ Director’s own counsel in such action, suit or proceeding
at the expense of the Company if, at any time after such notice from the
Company, (i) the employment of counsel by Director has been authorized by
the Company, (ii) Director shall have reasonably concluded that there may
be a conflict of interest between the Company and Director in the conduct of
such defense, or (iii) the Company shall not in fact have employed counsel
to assume the defense of such action, in each of which cases the fees and
expenses of Director’s counsel shall be subject to reimbursement in accordance
with the terms of this Agreement. The Company shall not be entitled to assume
Director’s defense of any action, suit or proceeding brought by the Company or
as to which Director shall have made the conclusion provided for in clause (ii) above.

 

5

 

(f)                                    Determination of Right to
Entitlement.

 

(i)                                     In the event that Director
incurs liability for any fines, judgments, liabilities, penalties or amounts
paid in settlement, and indemnification is sought under this Agreement, the
Company shall pay (or provide for payment if so required by the terms of any
judgment or settlement) such amounts within 30 business days of Director’s
written request therefor unless a determination is made within such 30 business
days that the claims giving rise to such request are excluded or
indemnification is otherwise not due under this Agreement. Such determination,
and any determination required by applicable law as to whether Director has met
the standard of conduct required to qualify and entitle Director, partially or
fully, to indemnification under Section 2 of this Agreement, shall be
made, at the Company’s discretion, (1) by the Board of Directors of the
Company by a majority vote of the directors who were not parties to such
action, suit or proceeding even though less than a quorum, or (2) if such
a majority is not obtainable, or even if obtainable a majority of the
disinterested directors so directs, by written opinion of independent legal
counsel selected by the Company and reasonably satisfactory to Director, or (3) by
the Company’s stockholders; provided, however, that if a change of control has
occurred such determination shall be made by written opinion of independent
legal counsel selected by Director or, if requested by Director, by the
Company. The term “independent legal counsel” shall mean for this purpose an
attorney or firm of attorneys experienced in matters of corporation law that is
not now nor has within the previous three years been retained to represent
Director, the Company or any other party to the proceeding giving rise to the
claim for indemnification hereunder; provided that “independent legal counsel”
shall not include any person who under applicable standards of professional
conduct would have a conflict of interest in representing Director or the
Company in an action to determine Director’s rights under this Agreement. The
term “change of control” shall mean: (1) the consummation of any
transaction after which any “person” or “group” (as such terms are used in
Sections 3(a)(9), 13(d)(3) or 14(d)(2) of the Securities Exchange Act
of 1934 (the “Exchange Act”)) is or becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities, or possesses the power to vote or control the vote of securities,
of the Company representing 30% or more of the combined voting power of either
the Common Stock or all outstanding securities of the Company; or (2) the
stockholders of the Company approve a merger or consolidation of the Company
with any other corporation or entity, other than a merger or consolidation
which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity) at least 66-2/3% of the combined voting power of the voting securities
of the Company or such surviving entity outstanding immediately after such
merger or consolidation, or the stockholders of the Company approve a plan of
complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all of the Company’s assets.

 

(ii)                                  Notwithstanding the foregoing,
Director may within 60 days after a determination adverse to Director has been
made as provided above, or if no determination has been made within 30 business
days of Director’s written request for payment, petition the Court of Chancery
of the State of Delaware or any other court of competent jurisdiction, or may
seek an award in arbitration to be conducted by a single arbitrator pursuant to
the rules of the American Arbitration Association, which award shall be
deemed final, unappealable and binding, to determine whether Director is entitled
to indemnification under this Agreement, and such court or arbitrator, as the
case may be, shall thereupon have the exclusive authority to make such
determination unless and until such court or arbitrator dismisses or otherwise
terminates

 

6

 

such action without having made a
determination. The court or arbitrator, as the case may be, shall make an
independent determination of entitlement irrespective of any prior
determination made by the Board of Directors, independent legal counsel or
stockholders. In any such action before the court or arbitrator, Director shall
be presumed to be entitled to indemnification and the Company shall have the
burden of proving that indemnification is not required under this Agreement.
All fees and expenses of any arbitrator pursuant to this provision shall be
paid by the Company.

 

(g)                                 Enforcement Expenses. In the event that Director
brings suit or takes any other action to enforce Director’s rights or to
collect monies due under this Agreement, and if Director is successful therein,
the Company shall reimburse (to the extent not previously advanced) Director
for all of Director’s reasonable expenses, including attorneys’ fees, in any
such suit or action.

 

5.                                       Continuation
of Indemnification. The Company’s obligations to indemnify Director
hereunder shall continue throughout the period Director is a director of the
Company (or is serving at the Company’s request in the capacities described in
sub sections 2(a) and 2(b) above) and thereafter so long as Director
shall be subject to any possible claim, action, suit or proceeding by reason of
the fact that Director was a director of the Company (or was serving in such
other capacities).

 

6.                                       Successors
and Assigns. This Agreement shall be binding upon the Company, its
successors and assigns (including any transferee of all or substantially all of
its assets and any successor by merger or otherwise by operation of law), and
shall inure to the benefit of Director and Director’s heirs, personal
representatives, executors and administrators and shall be binding upon
Director and Director’s successors in interest under this Agreement.

 

7.                                       Rights Not
Exclusive. The rights provided hereunder shall not be deemed
exclusive of any other rights to which Director may be entitled under any
provision of law, Certificate of Incorporation, By-law, other agreement, vote
of stockholders or of disinterested directors or otherwise, both as to action
in Director’s official capacity and as to action in any other capacity while
occupying any of the positions referred to in Section 2 of this Agreement.

 

8.                                       Subrogation. Upon
payment of any amount under this Agreement, the Company shall be subrogated to
the extent of such payment to all of Director’s rights of recovery therefor and
Director shall take all reasonable actions requested by the Company to secure
such rights, including, without limitation, execution of all documents
necessary to enable the Company to enforce such rights.

 

9.                                       Severability. In the
event that any provision of this Agreement shall be held to be invalid, illegal
or unenforceable for any reason, such provision shall be limited or modified in
its application to the minimum extent necessary to avoid a violation of law,
and, as so limited or modified, such provision and the balance of this
Agreement shall be enforceable in accordance with their terms.

 

7

 

10.                                 Integration. This
Agreement embodies the entire agreement and understanding between the parties
hereto with respect to the subject matter hereof and supersedes all prior
agreements and understandings relating to the subject matter hereof.

 

11.                                 Modification. No
amendment, modification, termination or cancellation of this Agreement shall be
effective unless in writing signed by both parties hereto.

 

12.                                 Notices. All
notices given under this Agreement shall be in writing and delivered either (i) personally,
(ii) by registered or certified mail (postage prepaid, return receipt
requested), (iii) by recognized overnight courier service or (iv) by
telecopy (if promptly followed by a copy delivered as provided in clauses (i), (ii) or
(iii) above), as follows:

 

	
  If to Director:

  	
  [NAME]

  
	
   

  	
  [ADDRESS]

  
	
   

  	
   

  
	
  If to the Company:

  	
  5815 Gulf Freeway

  
	
   

  	
  Houston, Texas 77023

  

 

Notices
hereunder given as provided above shall be deemed to be duly given upon
delivery if delivered personally, three business days after mailing if by
registered or certified mail, one business day after mailing if by overnight
courier service and upon confirmation of transmission if by telecopy.

 

13.                                 Governing
Law. This Agreement shall be interpreted and enforced in accordance with the
laws of the State of Delaware.

 

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

 

 

	
   

  	
  MATTRESS
  HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [NAME
  DIRECTOR]

  

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]