Document:

Exhibit 10.1

 

DIRECTOR/OFFICER
INDEMNIFICATION AGREEMENT

 

This Indemnification
Agreement, dated as of
                   ,
      (this “Agreement”),
is made by and between GEORGIA GULF CORPORATION, a Delaware
corporation (the “Company”), and
                                              
(“Indemnitee”).

 

RECITALS:

 

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

 

B.            [Pursuant to Sections 141 and 142 of
the Delaware General Corporation Law, significant authority with respect to the
management of the Company has been delegated to the officers of the
Company.  (clause only applicable in the officer’s
form)]

 

C.            By virtue of the [managerial]/[management]
prerogatives vested in the [directors]/[officers] of a Delaware corporation,
[directors]/[officers] act as fiduciaries of the corporation and its
stockholders.

 

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

 

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

 

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

 

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

 

H.            Recent federal legislation and rules adopted
by the Securities and Exchange Commission and the national securities exchanges
have imposed additional disclosure and corporate governance obligations on
[directors]/[officers] of public companies and have exposed such
[directors]/[officers]  to new and
substantially broadened civil liabilities.

 

 

I.              These legislative and regulatory
initiatives have also exposed [directors]/[officers]  of public companies to a significantly
greater risk of criminal proceedings, with attendant defense costs and
potential criminal fines and penalties.

 

J.             Under Delaware law, a/an [director’s]/[officer’s]
right to be reimbursed for the costs of defense of criminal actions, whether
such claims are asserted under state or federal law, does not depend upon the
merits of the claims asserted against the [director]/[officer] and is separate
and distinct from any right to indemnification the [director]/[officer] may be
able to establish; and indemnification of the [director]/[officer] against
criminal fines and penalties is permitted if the [director]/[officer] satisfies
the applicable standard of conduct.

 

K.            Indemnitee is a/an
[director]/[officer] of the Company and Indemnitee does not regard the
protection available under the Company’s Certificate of Incorporation, By-laws
and insurance as adequate in the present circumstances, and may not be willing
to serve or continue to serve as a/an [director]/[officer] without adequate
protection; and the Company desires Indemnitee to serve in such capacity.  Indemnitee’s willingness to serve in such
capacity is predicated, in substantial part, upon the Company’s willingness to
indemnify him/her in accordance with the principles reflected above, to the
fullest extent permitted by the laws of the state of Delaware, and upon the
other undertakings set forth in this Agreement.

 

L.             The Board (as defined below) has
determined that the increased difficulty in attracting and retaining such
persons is detrimental to the best interests of the Company and its
stockholders and that the Company should act to assure such persons that there
will be increased certainty of such protection in the future.

 

M.           Therefore, in recognition of the need
to provide Indemnitee with substantial protection against personal liability,
in order to procure Indemnitee’s continued service as a/an [director]/[officer]
of the Company and to enhance Indemnitee’s ability to serve the Company in an
effective manner, and in order to provide such protection pursuant to express
contract rights (intended to be enforceable irrespective of, among other
things, any amendment to the Company’s certificate of incorporation or bylaws
(collectively, the “Constituent Documents”), any
change in the composition of the Company’s Board of Directors (the “Board”) or any change-in-control or
business combination transaction relating to the Company), the Company wishes
to provide in this Agreement for the indemnification of and the advancement of
Expenses (as defined in Section 1(f)) to Indemnitee as set forth in this
Agreement and for the continued coverage of Indemnitee under the Company’s
directors’ and officers’ liability insurance policies.

 

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

 

AGREEMENT:

 

NOW, THEREFORE, the parties
hereby agree as follows:

 

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

 

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

 

(i)            Acquisition of Stock by
Third Party.  Any Person (as defined below), other than a
Person who is the Beneficial Owner (as defined below), directly or indirectly,
of securities of the Company representing fifteen percent (15%) or more in the
combined Voting Power of the Company’s securities outstanding on the date of
this Agreement (each such Person so long as such Person maintains such
ownership position in respect of 15% or more of the Company’s voting
securities, an “Existing 15% Holder”) is or becomes the Beneficial Owner (as
defined below), directly or indirectly, of securities of the Company
representing fifteen percent (15%) or more of the combined voting power of the
Company’s then outstanding securities, or an Existing 15% Holder acquires,
directly or indirectly, securities of the Company representing an additional
one percent (1%) or more of the combined Voting Power of the Company’s then
outstanding securities;

 

(ii)           Change in Board of
Directors.  During any period of two (2) consecutive
years (not including any period prior to the execution of this Agreement),
individuals who at the beginning of such period constitute the Board, and any
new director (other than a director designated by a person who has entered into
an agreement with the Company to effect a transaction described in Sections 1(a)(i),
1(a)(iii) or 1(a)(iv)) whose election by the Board or nomination for
election by the Company’s stockholders was approved by a vote of at least
two-thirds of the directors then still in office who either were directors at
the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority
of the members of the Board;

 

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

 

(iv)          Liquidation. 
The approval by the stockholders of the Company of a complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets.

 

For purposes of this Section 1(a),
the following terms shall have the following meanings:

 

(A)          “Person” shall have the meaning as set
forth in Sections 13(d) and 14(d) of the Exchange Act; provided,
however, that Person shall exclude (i) the 

 

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Company, (ii) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, and (iii) any
corporation owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of stock of the
Company.

 

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

 

(b)           “Claim” means (i) any threatened, asserted, pending or completed
claim, demand, action, suit or proceeding, whether civil, criminal,
administrative, arbitrative, investigative or other, and whether made pursuant
to federal, state or other law; (ii) any threatened, pending or completed
inquiry or investigation, whether made, instituted or conducted by or in the
right of the Company or any other person, including without limitation any
federal, state or other governmental entity, that Indemnitee determines might
lead to the institution of any such claim, demand, action, suit or proceeding,
and (iii) any appeal from any of the foregoing.  A “Claim” also shall include any of the
foregoing in which Indemnitee is a party, a non-party witness, or in which
Indemnitee is or reasonably believes he/she may be a potential party or a
potential non-party witness.

 

(c)           “Controlled Affiliate” means any corporation, limited
liability company, partnership, joint venture, trust or other entity or
enterprise, whether or not for profit, that is directly or indirectly
controlled by the Company.  For purposes
of this definition, “control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of an
entity or enterprise, whether through the ownership of voting securities,
through other voting rights, by contract or otherwise; provided that without
limiting the generality of the foregoing, direct or indirect beneficial
ownership of capital stock or other interests in an entity or enterprise
entitling the holder to cast 20% or more of the total number of votes generally
entitled to be cast in the election of directors (or persons performing
comparable functions) of such entity or enterprise shall be deemed to
constitute control for purposes of this definition.

 

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

 

(e)           “Exchange Act” means the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder, as such
law, rules and regulations may be amended from time to time.

 

(f)            “Expenses” means all attorneys’ fees,
retainers, court costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees, any 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 all other
expenses paid or payable in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, being or 

 

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preparing to be a witness
in, or otherwise participating in, a Claim. 
Expenses also shall include without limitation (i) Expenses
incurred in connection with any appeal resulting from any Claim, including
without limitation the premium, security for, and other costs relating to any
cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for
purposes of Section 4 only, Expenses incurred by Indemnitee in connection
with the interpretation, enforcement or defense of Indemnitee’s rights under
this Agreement, by litigation or otherwise. 
Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against Indemnitee.

 

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

 

(h)           “Indemnifiable Losses”  means any and all Losses relating
to, arising out of or resulting from any Indemnifiable Claim.

 

(i)            “Independent
Counsel” means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the
past five years has been, retained to represent:  (i) the Company (or any Subsidiary) or
Indemnitee in any matter material to either such party (other than with respect
to matters concerning the Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any other
named (or, as to a threatened matter, reasonably likely to be named) party to
the Indemnifiable Claim giving rise to a claim for indemnification
hereunder.  Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in

 

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representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this
Agreement.

 

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

 

(k)           “Subsidiary” means a corporation, company or
other entity (i) more than fifty percent (50%) of whose outstanding
shares or securities (representing the right to vote for the election of
directors or other managing authority) are, or (ii) which does not have
outstanding shares or securities (as may be the case in a partnership, joint
venture, limited liability company, or unincorporated association), but more
than fifty percent (50%) of whose ownership interest representing the
right generally to make decisions for such other entity is, now or hereafter,
owned or controlled, directly or indirectly, by the Company.

 

(l)            “Voting Power” means at any time, the
combined voting power of the then-outstanding securities entitled to vote
generally in the election of the Board in the case of the Company, or members
of the board of directors or similar body in the case of another entity.

 

2.             Indemnification Obligation. 
Subject to Section 7, the Company shall indemnify, defend and hold
harmless Indemnitee, to the fullest extent permitted or required by the laws of
the State of Delaware in effect on the date hereof or as such laws may from
time to time hereafter be amended to increase the scope of such permitted
indemnification, against any and all Indemnifiable Claims and Indemnifiable
Losses; provided, however,
that, except as provided in Sections 4 and 22, Indemnitee shall not be
entitled to indemnification pursuant to this Agreement in connection with any
Claim initiated by Indemnitee against the Company or any director or officer of
the Company unless the Company has joined in or consented to the initiation of
such Claim.

 

3.             Advancement of Expenses. 
Indemnitee shall have the right to advancement by the Company prior to
the final disposition of any Indemnifiable Claim of any and all Expenses
relating to, arising out of or resulting from any Indemnifiable Claim paid or
incurred by Indemnitee or which Indemnitee determines are reasonably likely to
be paid or incurred by Indemnitee. 
Indemnitee’s right to such advancement is not subject to the
satisfaction of any standard of conduct. 
Without limiting the generality or effect of the foregoing, within five
business days after any request by Indemnitee, the Company shall, in accordance
with such request (but without duplication), (a) pay such Expenses on
behalf of Indemnitee, (b) advance to Indemnitee funds in an amount
sufficient to pay such Expenses, or (c) reimburse Indemnitee for such
Expenses; provided that Indemnitee shall repay,
without interest any amounts actually advanced to Indemnitee that, at the final
disposition of the Indemnifiable Claim to which the advance related, were in
excess of amounts paid or payable by Indemnitee in respect of Expenses relating
to, arising out of or resulting from such Indemnifiable Claim.  In connection with any such payment,
advancement or reimbursement, Indemnitee shall execute and deliver to the
Company an undertaking in the form attached hereto as Exhibit A
(subject to Indemnitee filling in the blanks therein and selecting from among
the bracketed alternatives therein), which need not be secured and shall be accepted
without reference to Indemnitee’s ability to repay the 

 

6

 

Expenses and without
regard to Indemnitee’s ultimate entitlement to indemnification under the other
provisions of this Agreement.  In no event
shall Indemnitee’s right to the payment, advancement or reimbursement of
Expenses pursuant to this Section 3 be conditioned upon any undertaking
that is less favorable to Indemnitee than, or that is in addition to, the
undertaking set forth in Exhibit A.

 

4.             Indemnification for Additional
Expenses.  Without limiting the generality or effect of
the foregoing, the Company shall indemnify and hold harmless Indemnitee against
and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to
Indemnitee, within five business days of such request, any and all Expenses
paid or incurred by Indemnitee or which Indemnitee determines are reasonably
likely to be paid or incurred by Indemnitee in connection with any Claim made,
instituted or conducted by Indemnitee for (a) indemnification or payment,
advancement or reimbursement of Expenses by the Company under any provision of
this Agreement, or under any other agreement or provision of the Constituent
Documents now or hereafter in effect relating to Indemnifiable Claims, and/or (b) recovery
under any directors’ and officers’ liability insurance policies maintained by
the Company, regardless in each case of whether Indemnitee ultimately is
determined to be entitled to such indemnification, reimbursement, advance or
insurance recovery, as the case may be; provided, however, that Indemnitee shall return, without interest, any
such advance of Expenses (or portion thereof) which remains unspent at the
final disposition of the Claim to which the advance related.

 

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

 

6.             Procedure for Notification. 
To obtain indemnification under this Agreement in respect of an
Indemnifiable Claim or Indemnifiable Loss, Indemnitee shall submit to the
Company a written request therefor, including a brief description (based upon
information then available to Indemnitee) of such Indemnifiable Claim or
Indemnifiable Loss.  If, at the time of
the receipt of such request, the Company has directors’ and officers’ liability
insurance in effect under which coverage for such Indemnifiable Claim or
Indemnifiable Loss is potentially available, the Company shall give prompt
written notice of such Indemnifiable Claim or Indemnifiable Loss to the
applicable insurers in accordance with the procedures set forth in the
applicable policies.  The Company shall
provide to Indemnitee a copy of such notice delivered to the applicable
insurers, and copies of all subsequent correspondence between the Company and
such insurers regarding the Indemnifiable Claim or Indemnifiable Loss, in each
case substantially concurrently with the delivery or receipt thereof by the
Company.  The failure by Indemnitee to
timely notify the Company of any Indemnifiable Claim or Indemnifiable Loss
shall not relieve the Company from any liability hereunder unless, and only to
the extent that, (i) the Indemnitee failed to notify the Company of such
Indemnifiable Claim or Indemnifiable Loss as soon as reasonably practicable
following the actual receipt by Indemnitee of written notice thereof, (ii) the
Company did not otherwise learn of such Indemnifiable Claim or Indemnifiable
Loss, and (iii) such failure results in forfeiture by the Company of
substantial defenses on which the Company was likely to prevail, substantial
rights or substantial insurance coverage.

 

7

 

7.             Determination of Right to
Indemnification.

 

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

 

(b)           To the extent that the provisions of Section 7(a) are
inapplicable to an Indemnifiable Claim that shall have been finally disposed
of, any determination of whether Indemnitee has satisfied any applicable
standard of conduct under Delaware law that is a legally required condition
precedent to indemnification of Indemnitee hereunder against Indemnifiable Losses
relating to, arising out of or resulting from such Indemnifiable Claim (a “Standard of Conduct Determination”)
shall be made as follows:  (i) if a
Change in Control shall not have occurred, or if a Change in Control shall have
occurred but Indemnitee shall have requested that the Standard of Conduct
Determination be made pursuant to this clause (i), (A) by a majority vote
of the Disinterested Directors, even if less than a quorum of the Board, (B) if
such Disinterested Directors so direct, by a majority vote of a committee of
Disinterested Directors designated by a majority vote of all Disinterested
Directors, or (C) if there are no such Disinterested Directors, by
Independent Counsel in a written opinion addressed to the Board, a copy of
which shall be delivered to Indemnitee; and (ii) if a Change in Control
shall have occurred and Indemnitee shall not have requested that the Standard
of Conduct Determination be made pursuant to clause (i), by Independent
Counsel in a written opinion addressed to the Board, a copy of which shall be
delivered to Indemnitee.  Indemnitee will
cooperate with the person or persons making such Standard of Conduct
Determination, including providing to such person or persons, 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 to such determination. 
The Company shall indemnify and hold harmless Indemnitee against and, if
requested by Indemnitee, shall reimburse Indemnitee for, or advance to
Indemnitee, within five business days of such request, any and all costs and
expenses (including attorneys’ and experts’ fees and expenses) incurred by
Indemnitee in so cooperating with the person or persons making such Standard of
Conduct Determination.

 

(c)           The Company shall use its reasonable
best efforts to cause any Standard of Conduct Determination required under Section 7(b) to
be made as promptly as practicable.  If (i) the
person or persons empowered or selected under Section 7 to make the
Standard of Conduct Determination shall not have made a determination within
30 days after the later of (A) receipt by the Company of written
notice from Indemnitee advising the Company of the final disposition of the
applicable Indemnifiable Claim (the date of such receipt being the “Notification Date”) and (B) the
selection of an Independent Counsel, if such determination is to be made by
Independent Counsel, that is permitted under the provisions of Section 7(e) to
make such determination and (ii) Indemnitee shall have fulfilled his/her
obligations set forth in the second sentence of Section 7(b), then
Indemnitee shall be deemed to have satisfied the applicable standard of
conduct; provided that such 30-day period may be
extended for a reasonable time, not to exceed an additional 30 days, if
the person or persons making such determination in good 

 

8

 

faith requires such
additional time for the obtaining or evaluation or documentation and/or
information relating thereto.

 

(d)           If (i) Indemnitee shall be
entitled to indemnification hereunder against any Indemnifiable Losses pursuant
to Section 7(a), (ii) no determination of whether Indemnitee has
satisfied any applicable standard of conduct under Delaware law is a legally
required condition precedent to indemnification of Indemnitee hereunder against
any Indemnifiable Losses, or (iii) Indemnitee has been determined or
deemed pursuant to Section 7(b) or (c) to have satisfied any
applicable standard of conduct under Delaware law which is a legally required
condition precedent to indemnification of Indemnitee hereunder against any
Indemnifiable Losses, then the Company shall pay to Indemnitee, within five
business days after the later of (x) the Notification Date in respect of
the Indemnifiable Claim or portion thereof to which such Indemnifiable Losses
are related, out of which such Indemnifiable Losses arose or from which such
Indemnifiable Losses resulted and (y) the earliest date on which the
applicable criterion specified in clause (i), (ii) or (iii) above
shall have been satisfied, an amount equal to the amount of such Indemnifiable
Losses.

 

(e)           If a Standard of Conduct
Determination is to be made by Independent Counsel pursuant to Section 7(b)(i),
the Independent Counsel shall be selected as soon as reasonably possible (but
in no event later than 25 days following the date that it becomes apparent that
a Standard of Conduct Determination is required) by the Board, and the Company
shall give written notice to Indemnitee advising him or her of the identity of
the Independent Counsel so selected.  If
a Standard of Conduct Determination is to be made by Independent Counsel
pursuant to Section 7(b)(ii), the Independent Counsel shall be selected by
Indemnitee, and Indemnitee shall give written notice to the Company advising it
of the identity of the Independent Counsel so selected.  In either case, Indemnitee or the Company, as
applicable, may, within five business days after receiving written notice of
selection from the other, deliver to the other a written objection to such
selection; provided, however,
that such objection may be asserted only on the ground that the Independent
Counsel so selected does not satisfy the criteria set forth in the definition
of “Independent Counsel” in Section 1(i), and the objection shall set
forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the
person or firm so selected shall act as Independent Counsel.  If such written objection is properly and
timely made and substantiated, (i) the Independent Counsel so selected may
not serve as Independent Counsel unless and until such objection is withdrawn
or a court has determined that such objection is without merit and (ii) the
non-objecting party may, at its option, select an alternative Independent
Counsel and give written notice to the other party advising such other party of
the identity of the alternative Independent Counsel so selected, in which case
the provisions of the two immediately preceding sentences and clause (i) of
this sentence shall apply to such subsequent selection and notice.  If applicable, the provisions of clause (ii) of
the immediately preceding sentence shall apply to successive alternative
selections.  If no Independent Counsel
that is permitted under the foregoing provisions of this Section 7(e) to
make the Standard of Conduct Determination shall have been selected within
30 days after the Company gives its initial notice pursuant to the first
sentence of this Section 7(e) or Indemnitee gives its initial notice
pursuant to the second sentence of this Section 7(e), as the case may be,
either the Company or Indemnitee may petition the Court of Chancery of the
State of Delaware for resolution of any objection which shall have been made by
the Company or Indemnitee to the other’s selection of Independent Counsel
and/or for the appointment as Independent Counsel of a 

 

9

 

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

 

8.             Presumption of Entitlement.  In making any Standard of Conduct Determination, the
person or persons making such determination shall, to the fullest extent
permitted by law, presume that (i) Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a request for
indemnification in accordance with Section 6 of this Agreement, and (ii) Indemnitee
has satisfied the applicable standard of conduct.  The Company shall, to the fullest extent not
prohibited by law, in any legal proceeding, including without limitation, under
Section 10, or otherwise, have the burden of proof to overcome such
presumptions in connection with the making by any person, persons or entity of
any determination (including any Standard of Conduct Determination ) contrary
to such presumptions.  The Company may
overcome such presumptions only by its adducing clear and convincing evidence
to the contrary.  Neither the failure of
the Company (including by its directors or independent legal counsel) to have
made a determination prior to the commencement of any action pursuant to this
Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including its directors or independent legal
counsel) that Indemnitee has not met such applicable standard of conduct, shall
be a defense to the action or create a presumption that Indemnitee has not met
the applicable standard of conduct.  Any
Standard of Conduct Determination that is adverse to Indemnitee may be challenged
by the Indemnitee in the Court of Chancery of the State of Delaware.  No determination by the Company (including by
its directors or any Independent Counsel) that Indemnitee has not satisfied any
applicable standard of conduct shall be a defense to any Claim by Indemnitee
for indemnification or reimbursement or advance payment of Expenses by the
Company hereunder or create a presumption that Indemnitee has not met any
applicable standard of conduct.

 

9.             No Other Presumption; Reliance as
Safe Harbor; Actions of Others.

 

(a)           For purposes of this Agreement, the
termination of any Claim by judgment, order, settlement (whether with or
without court approval) or conviction, or upon a plea of nolo
contendere or its equivalent, will not create a presumption that
Indemnitee did not meet any applicable standard of conduct or that
indemnification hereunder is otherwise not permitted, or (except as otherwise
expressly provided in this Agreement) otherwise of itself adversely affect the
right of Indemnitee to indemnification hereunder.

 

(b)           For purposes of any determination of
good faith, Indemnitee shall be deemed to have acted in good faith if
Indemnitee’s action is based on the records or books of account of the
Enterprise (as defined below), including financial statements, or on
information supplied to Indemnitee by the officers of the Enterprise in the
course of their duties, or on the advice of legal counsel for the Enterprise or
on information or records given or reports made to the Enterprise by an
independent certified public accountant or by an appraiser or other expert
selected with the reasonable care by the Enterprise.  The provisions of this Section 9(b) shall
not be deemed to be exclusive or to limit in any way the other circumstances in
which the 

 

10

 

Indemnitee may be deemed
to have met the applicable standard of conduct set forth in this
Agreement.  For purposes of this Section 9(b),
“Enterprise” shall mean the Company and any other corporation, limited
liability company, partnership, joint venture, trust, employee benefit plan or
other enterprise of which Indemnitee is or was serving at the request of the
Company as a director, officer, employee, agent or fiduciary.

 

(c)           The knowledge and/or actions, or
failure to act, of any director, officer, agent or employee of the Enterprise
shall not be imputed to Indemnitee for purposes of determining the right to
indemnification under this Agreement.

 

10.          Remedies of Indemnitee.

 

(a)           Subject to Section 10(d), in the
event that (i) a determination is made that Indemnitee is not entitled to
indemnification under this Agreement, (ii) advancement of Expenses is not
timely made pursuant to Section 3 of this Agreement, (iii) no
Standard of Conduct Determination shall have been made pursuant to Section 7
of this Agreement within ninety (90) days after receipt by the Company of the
request for indemnification, (iv) payment of indemnification is not made
pursuant to Section 3, 4 or 5 of this Agreement within ten (10) days
after receipt by the Company of a written request therefor, (v) payment of
indemnification is not made within ten (10) days after a determination has
been made that Indemnitee is entitled to indemnification, or (vi) in the
event that the Company or any other person takes or threatens to take any
action to declare this Agreement void or unenforceable, or institutes any
litigation or other action or proceeding designed to deny, or to recover from,
the Indemnitee the benefits provided or intended to be provided to the
Indemnitee hereunder, or (vii) the Company otherwise breaches any of the
terms of this Agreement or defaults in the performance thereof in any manner,
Indemnitee shall be entitled to an adjudication by a court of his or her
entitlement to such indemnification or advancement of Expenses.

 

(b)           In the event that a determination
shall have been made pursuant to Section 7(b) of this Agreement that
Indemnitee is not entitled to indemnification, any judicial proceeding
commenced pursuant to this Section 10 shall be conducted in all respects
as a de novo trial on the merits and Indemnitee shall not be prejudiced by
reason of that adverse determination.

 

(c)           The Company shall, to the fullest
extent not prohibited by law, be precluded from asserting in any judicial
proceeding commenced pursuant to this Section 10 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate if requested in any such court that the Company is bound by all the
provisions of this Agreement.

 

(d)           Notwithstanding anything in this
Agreement to the contrary, no determination as to entitlement of Indemnitee to
indemnification under this Agreement shall be required to be made prior to the
final disposition of any applicable judicial proceeding.

 

11.          Non-Exclusivity. 
The rights of Indemnitee hereunder will be in addition to any other
rights Indemnitee may have under the Constituent Documents, or the substantive
laws of the Company’s jurisdiction of incorporation, any other contract, any
vote of stockholders or resolution of directors, or otherwise (collectively, “Other Indemnity Provisions”); provided, 

 

11

 

however, that (a) to the extent that
Indemnitee otherwise would have any greater right to indemnification under any
Other Indemnity Provision, Indemnitee will be deemed to have such greater right
hereunder and (b) to the extent that any change is made to any Other
Indemnity Provision which permits any greater right to indemnification than
that provided under this Agreement as of the date hereof, Indemnitee will be
deemed to have such greater right hereunder. 
The Company will not adopt any amendment to any of the Constituent
Documents the effect of which would be to deny, diminish or encumber Indemnitee’s
right to indemnification under this Agreement or any Other Indemnity
Provision.  No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every
other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.

 

12.          Liability Insurance and Funding. 
For the duration of Indemnitee’s service as a director and/or officer of
the Company, and thereafter for so long as Indemnitee shall be subject to any
pending or possible Indemnifiable Claim, the Company shall use commercially
reasonable efforts (taking into account the scope and amount of coverage
available relative to the cost thereof) to cause to be maintained in effect
policies of directors’ and officers’ liability insurance providing coverage for
directors and/or officers of the Company that is at least substantially
comparable in scope and amount to that provided by the Company’s current
policies of directors’ and officers’ liability insurance.  If requested, the Company shall provide
Indemnitee with a copy of all directors’ and officers’ liability insurance
applications, binders, policies, declarations, endorsements and other related
materials, and shall provide Indemnitee with a reasonable opportunity to review
and comment on the same.  Without limiting
the generality or effect of the two immediately preceding sentences, the
Company shall not discontinue or significantly reduce the scope or amount of
coverage from one policy period to the next (i)  without the prior
approval thereof by a majority vote of the Incumbent Directors, even if less
than a quorum, or (ii) if at the time that any such discontinuation or
significant reduction in the scope or amount of coverage is proposed there are
no Incumbent Directors, without the prior written consent of Indemnitee (which
consent shall not be unreasonably withheld or delayed).  In all policies of directors’ and officers’
liability insurance obtained by the Company, Indemnitee shall be named as an
insured in such a manner as to provide Indemnitee the same rights and benefits,
subject to the same limitations, as are accorded to the Company’s directors and
officers most favorably insured by such policy. 
The Company may, but shall not be required to, create a trust fund,
grant a security interest or use other means, including without limitation a
letter of credit, to ensure the payment of such amounts as may be necessary to
satisfy its obligations to indemnify and advance expenses pursuant to this
Agreement.

 

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

 

12

 

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

 

15.                               Defense of Claims. 
The Company shall be entitled to participate in the defense of any
Indemnifiable Claim or to assume the defense thereof, with counsel reasonably
satisfactory to the Indemnitee; provided that
if Indemnitee believes, after consultation with counsel selected by Indemnitee,
that (a) the use of counsel chosen by the Company to represent Indemnitee
would present such counsel with an actual or potential conflict, (b) the
named parties in any such Indemnifiable Claim (including any impleaded parties)
include both the Company and Indemnitee and Indemnitee shall conclude that
there may be one or more legal defenses available to him or her that are
different from or in addition to those available to the Company, or (c) any
such representation by such counsel would be precluded under the applicable
standards of professional conduct then prevailing, then Indemnitee shall be
entitled to retain separate counsel (but not more than one law firm plus, if
applicable, local counsel in respect of any particular Indemnifiable Claim) at
the Company’s expense.  The Company shall
not be liable to Indemnitee under this Agreement for any amounts paid in
settlement of any threatened or pending Indemnifiable Claim effected without
the Company’s prior written consent.  The
Company shall not, without the prior written consent of the Indemnitee, effect
any settlement of any threatened or pending Indemnifiable Claim to which
the Indemnitee is, or could have been, a party unless such settlement solely
involves the payment of money and includes a complete and unconditional release
of the Indemnitee from all liability on any claims that are the subject matter
of such Indemnifiable Claim.  Neither the
Company nor Indemnitee shall unreasonably withhold or delay its consent to any
proposed settlement; provided that
Indemnitee may withhold consent to any settlement that does not provide a
complete and unconditional release of Indemnitee or which requires anything from
Indemnitee beyond the mere payment of money.

 

16.                               Successors and Binding Agreement;
Duration.  (a)  The Company shall require any
successor (whether direct or indirect, by purchase, merger, consolidation,
reorganization or otherwise) to all or substantially all of the business or
assets of the Company, by agreement in form and substance satisfactory to
Indemnitee and his or her counsel, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent the Company would be
required to perform if no such succession had taken place.  This Agreement shall be binding upon and
inure to the benefit of the Company and any successor to the Company, including
without limitation any person acquiring directly or indirectly all or substantially
all of the business or assets of the Company whether by purchase, merger,
consolidation, reorganization or otherwise (and such successor will thereafter
be deemed the “Company” for purposes of this
Agreement), but shall not otherwise be assignable or delegatable by the
Company.

 

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

 

13

 

(c)                                  This Agreement is personal in nature and
neither of the parties hereto shall, without the consent of the other, assign
or delegate this Agreement or any rights or obligations hereunder except as
expressly provided in Sections 16(a) and 16(b); and any such purported
assignment shall be void and of no force or effect.  Without limiting the generality or effect of
the foregoing, Indemnitee’s right to receive payments hereunder shall not be
assignable, whether by pledge, creation of a security interest or otherwise,
other than by a transfer by the Indemnitee’s will or by the laws of descent and
distribution, and any such purported transfer other than as so permitted shall
be void and of no force or effect, but shall have no adverse impact on the
Company’s obligation to pay to the Indemnitee or such permitted assigns any
amount so attempted to be improperly assigned or transferred.

 

17.                               Notices. 
For all purposes of this Agreement, all communications, including
without limitation notices, consents, requests or approvals, required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given when hand delivered or dispatched by electronic facsimile
transmission (with receipt thereof orally confirmed), or five business days
after having been mailed by United States registered or certified mail, return
receipt requested, postage prepaid or one business day after having been sent
for next-day delivery by a nationally recognized overnight courier service,
addressed to the Company (to the attention of the Secretary of the Company) and
to Indemnitee at the applicable address shown on the signature page hereto,
or to such other address as any party may have furnished to the other in
writing and in accordance herewith, except that notices of changes of address
will be effective only upon receipt.

 

18.                               Governing Law. 
The validity, interpretation, construction and performance of this
Agreement shall be governed by and construed in accordance with the substantive
laws of the State of Delaware, without giving effect to the principles of
conflict of laws of such State.  The
Company and Indemnitee hereby irrevocably and unconditionally (i) agree
that any action or proceeding arising out of or in connection with this
Agreement shall be brought only in the Chancery Court of the State of Delaware
(the “Delaware Court”), and not in any other state or federal court in the
United States of America or any court in any other country, (ii) consent to
submit to the exclusive jurisdiction of the Delaware Court for purposes of any
action or proceeding arising out of or in connection with this Agreement, (iii) waive
any objection to the laying of venue of any such action or proceeding in the
Delaware Court, and (iv) waive, and agree not to plead or to make, any
claim that any such  action or proceeding
brought in the Delaware Court has been brought in an improper or inconvenient
forum.

 

19.                               Severability. 
If any provision of this Agreement or the application of any provision
hereof to any person or circumstance is held invalid, unenforceable or
otherwise illegal, the remainder of this Agreement and the application of such
provision to any other person or circumstance shall not be affected, and the
provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent, and only to the extent, necessary to make it
enforceable, valid or legal.  In the
event that any court or other adjudicative body shall decline to reform any
provision of this Agreement held to be invalid, unenforceable or otherwise
illegal as contemplated by the immediately preceding sentence, the parties
thereto shall take all such action as may be necessary or appropriate to
replace the provision so held to be invalid, unenforceable or otherwise illegal
with one or more alternative provisions that effectuate the purpose and intent 

 

14

 

of the original
provisions of this Agreement as fully as possible without being invalid,
unenforceable or otherwise illegal.

 

20.                               Authorization, Enforcement,
Entire Agreement.

 

(a)                                  The Company represents and warrants to
the Indemnitee that: the Company has been duly organized, validly exists and is
in good standing in the State of Delaware; this Agreement has been duly
authorized by all necessary corporate action and has been executed and
delivered by an authorized officer on behalf of the Company; and that this
Agreement represents the legal, valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except (i) as
such enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, fraudulent conveyance, preferential transfer or similar laws
now or hereafter in effect relating to creditors’ rights or debtors’
obligations generally; and (ii) that the remedies of specific performance
and injunctive and other forms of relief are subject to general equitable
principles, whether enforcement is sought at law or in equity, and that such
enforcement may be subject to the discretion of the court before which any
proceedings therefore may be brought.

 

(b)                                 The Company expressly confirms and agrees
that it has entered into this Agreement and assumed the obligations imposed on
it hereby in order to induce Indemnitee to serve, or continue to serve, as a/an
[director]/[officer] of the Company, and the Company acknowledges that
Indemnitee is relying upon this Agreement in serving as a/an
[director]/[officer] of the Company.  It
is the intent of the parties hereto that this Agreement protect and indemnify
the Indemnitee for the entire duration of his/her service as a/an [member of
the Board]/[officer of the Company], including, without limitation, periods
prior to the date hereof.

 

(c)                                  This Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof;
provided, however, that this Agreement is a supplement to and in furtherance of
the Certificate of Incorporation of the Company, the By-laws of the Company and
applicable law, and shall not be deemed a substitute therefor, nor to diminish
or abrogate any rights of Indemnitee thereunder.

 

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

 

22.                               Legal Fees and Expenses. 
It is the intent of the Company that Indemnitee not be required to incur
legal fees and or other Expenses associated with the interpretation,
enforcement 

 

15

 

or defense of Indemnitee’s
rights under this Agreement by litigation or otherwise because the cost and
expense thereof would substantially detract from the benefits intended to be
extended to Indemnitee hereunder. 
Accordingly, without limiting the generality or effect of any other
provision hereof, if it should appear to Indemnitee that the Company has failed
to comply with any of its obligations under this Agreement (including its
obligations under Section 3) or in the event that the Company or any other
person takes or threatens to take any action to declare this Agreement void or
unenforceable, or institutes any litigation or other action or proceeding
designed to deny, or to recover from, Indemnitee the benefits provided or
intended to be provided to Indemnitee hereunder, the Company irrevocably
authorizes the Indemnitee from time to time to retain counsel of Indemnitee’s
choice, at the expense of the Company as hereafter provided, to advise and
represent Indemnitee in connection with any such interpretation, enforcement or
defense, including without limitation the initiation or defense of any
litigation or other legal action, whether by or against the Company or any
director, officer, stockholder or other person affiliated with the Company, in
any jurisdiction.  Notwithstanding any
existing or prior attorney-client relationship between the Company and such
counsel, the Company irrevocably consents to Indemnitee’s entering into an
attorney-client relationship with such counsel, and in that connection the
Company and Indemnitee agree that a confidential relationship shall exist
between Indemnitee and such counsel. 
Without respect to whether Indemnitee prevails, in whole or in part, in
connection with any of the foregoing, the Company will pay and be solely
financially responsible for any and all attorneys’ and related fees and
expenses incurred by Indemnitee in connection with any of the foregoing; it
being agreed that any and all such fees and expenses among those items referred
to herein as Expenses.

 

23.                               Certain Interpretive Matters. 
Unless the context of this Agreement otherwise requires, (a) “it”
or “its” or words of any gender include each other gender, (b) words using
the singular or plural number also include the plural or singular number,
respectively, (c) the terms “hereof,” “herein,” “hereby” and derivative or
similar words refer to this entire Agreement, (d) the terms “Article,” “Section,”
“Annex” or “Exhibit” refer to the specified Article, Section, Annex or Exhibit of
or to this Agreement, (e) the terms “include,” “includes” and “including”
will be deemed to be followed by the words “without limitation” (whether or not
so expressed), and (f) the word “or” is disjunctive but not
exclusive.  Whenever this Agreement
refers to a number of days, such number will refer to calendar days unless
business days are specified and whenever action must be taken (including the
giving of notice or the delivery of documents) under this Agreement during a
certain period of time or by a particular date that ends or occurs on a
non-business day, then such period or date will be extended until the
immediately following business day.  As
used herein, “business day” means any day other than Saturday, Sunday or a
United States federal holiday.  Titles of
Sections hereof are solely for ease of reference, and shall not be given any
substantive effect.

 

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

 

[Signatures Appear On Following Page]

 

16

 

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

 

 

	
   

  	
  GEORGIA GULF CORPORATION

  
	
   

  	
  115
  Perimeter Center Place

  
	
   

  	
  Suite 460

  
	
   

  	
  Atlanta,
  Georgia 30346

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [INDEMNITEE]

  
	
   

  	
  [Address]

  

 

17

 

EXHIBIT A

 

UNDERTAKING

 

This Undertaking is
submitted pursuant to the Indemnification Agreement, dated as of
                               ,
      (the “Indemnification Agreement”), between GEORGIA GULF CORPORATION, a Delaware corporation (the “Company”), and the
undersigned.  Capitalized terms used and
not otherwise defined herein have the meanings ascribed to such terms in the
Indemnification Agreement.

 

The undersigned hereby
requests [payment], [advancement],
[reimbursement] by the Company of Expenses which the undersigned [has incurred] [reasonably expects to incur]
in connection with
                                            
(the “Indemnifiable
Claim”).

 

The undersigned hereby
undertakes to repay the [payment],
[advancement], [reimbursement] of Expenses made by the Company to or
on behalf of the undersigned in response to the foregoing request if it is
determined, following the final disposition of the Indemnifiable Claim and in
accordance with Section 7 of the Indemnification Agreement, that the
undersigned is not entitled to indemnification by the Company under the
Indemnification Agreement with respect to the Indemnifiable Claim.

 

IN WITNESS WHEREOF, the
undersigned has executed this Undertaking as of this
           day of
                            ,
        .

 

 

	
   

  	
   

  
	
   

  	
  [Indemnitee]

  

 

A-1Exhibit 10.2

 

NON-EMPLOYEE DIRECTOR RESTRICTED SHARE UNIT AGREEMENT

 

This AGREEMENT (the “Agreement”) is made as of                  
(the “Date of Grant”) by and between GEORGIA GULF CORPORATION, a Delaware
corporation (together with any Subsidiaries, as applicable, the “Company”), and
                      
(the “Grantee”).

 

1.             Grant of Restricted Share Units.  Subject to and
upon the terms, conditions, and restrictions set forth in this Agreement and in
the Company’s 2009 Equity and Performance Incentive Plan, as amended (the “Plan”),
the Company hereby grants to the Grantee, as of the Date of Grant,        
Restricted Share Units.  Each Restricted
Share Unit shall represent the right to receive one share of Common Stock.

 

2.             Restrictions on Transfer of Restricted Share Units. 
The Restricted Share Units may not be transferred, sold, pledged,
exchanged, assigned or otherwise encumbered or disposed of by the Grantee,
except to the Company.  Any purported
transfer, encumbrance or other disposition of the Restricted Share Units that
is in violation of this Section 2 shall be null and void, and the other
party to any such purported transaction shall not obtain any rights to or
interest in the Restricted Share Units.

 

3.             Vesting of Restricted Share Units.

 

(a)           On each of the first three (3) anniversaries of
the Date of Grant, a number of Restricted Share Units equal to thirty-three and
one-third percent (331/3 %) multiplied by the number of Restricted
Share Units specified in Section 1 of this Agreement shall become
nonforfeitable on a cumulative basis until one hundred percent (100%) of such
Restricted Share Units have become nonforfeitable if the Grantee shall have
remained a member of the Board during the period ending on the applicable
anniversary of the Date of Grant.

 

(b)           Notwithstanding the provisions of Section 3(a),
but subject to earlier forfeiture as described below, all of the Restricted
Share Units subject to Section 3(a) shall immediately become nonforfeitable
in the event of death, disability or a Change in Control.

 

4.             Forfeiture of Restricted Share Units.  Except as the
Board may determine on a case-by-case basis, any Restricted Share Units that
have not theretofore become nonforfeitable shall be forfeited if the Grantee’s
service as a member of the Board is terminated for any reason (including
voluntary retirement) prior to the date on which such Restricted Share Units
become nonforfeitable pursuant to Section 3(a).

 

5.             Payment of Restricted Share Units.  At such time
as the Restricted Share Units shall become nonforfeitable as specified in this
Agreement, shares of Common Stock underlying such Restricted Share Units shall
be transferred to the Grantee no later than 15 days after the date on which the Restricted Share Units become
nonforfeitable, unless the Grantee has made an effective election to defer
receipt of the shares of Common Stock underlying the Restricted Share
Units.  If the Grantee has made an
effective election to defer receipt of the shares of Common

 

 

Stock underlying the
Restricted Share Units, shares of Common Stock underlying the Restricted Share
Units shall be transferred in accordance with the terms of such election.

 

6.             Dividend, Voting and Other Rights.  The Grantee
shall have no rights of ownership in the Restricted Share Units and shall have
no right to vote them until the date on which the shares of Common Stock are
transferred to the Grantee pursuant to Section 5 above.  From and after the Date of Grant and until
the earlier of (a) the time when the Grantee receives the shares of Common
Stock underlying the Restricted Share Units in accordance with Section 5
hereof or (b) the time when the Grantee’s right to receive the Restricted
Share Units is forfeited in accordance with Section 4 hereof, the Company
shall pay to the Grantee, whenever a normal cash dividend is paid on shares of
Common Stock, an amount of cash equal to the product of the per-share amount of
the dividend paid multiplied by the number of such Restricted Share Units.

 

7.             Retention of Restricted Share Units by the Company. 
The shares of Common Stock underlying the Restricted Share Units shall
be released to the Grantee by the Company’s transfer agent (currently
Computershare Inc.) at the direction of the Company.  At such time as the shares of Common Stock
underlying the Restricted Share Units become payable in accordance with Section 5
above, the Company shall direct the transfer agent to forward all such
nonforfeitable shares of Common Stock to the Grantee.

 

8.             Compliance with Law.  The Company
shall make reasonable efforts to comply with all applicable federal and state
securities laws; provided, however, notwithstanding any other provision of this
Agreement, the Company shall not be obligated to issue any Restricted Share
Units or shares of Common Stock or other securities pursuant to this Agreement
if the issuance thereof would, in the reasonable opinion of the Company, result
in a violation of any such law.

 

9.             Relation to Other Benefits.  Any economic
or other benefit to the Grantee under this Agreement shall not be taken into
account in determining any benefits to which the Grantee may be entitled.

 

10.           Amendments.  Any amendment
to the Plan shall be deemed to be an amendment to this Agreement to the extent
that the amendment is applicable hereto; provided, however, that no amendment
shall adversely affect the rights of the Grantee under this Agreement without
the Grantee’s consent.

 

11.           Severability.  In the event
that one or more of the provisions of this Agreement shall be invalidated for
any reason by a court of competent jurisdiction, any provision so invalidated
shall be deemed to be separable from the other provisions hereof, and the
remaining provisions hereof shall continue to be valid and fully enforceable.

 

12.           Relation to Plan.  This Agreement
is subject to the terms and conditions of the Plan.  In the event of any inconsistent provisions
between this Agreement and the Plan, the Plan shall govern.  Capitalized terms used herein without
definition shall have the meanings assigned to them in the Plan.  The Board, acting pursuant to the Plan shall,
except as expressly provided otherwise herein, have the right to determine any
questions which arise in connection with this grant.

 

2

 

13.           Successors and Assigns.  The provisions
of this Agreement shall inure to the benefit of, and be binding upon, the
successors, administrators, heirs, legal representatives and assigns of the
Grantee, and the successors and assigns of the Company.

 

14.           Governing Law.  The interpretation,
performance, and enforcement of this Agreement shall be governed by the laws of
the State of Georgia, without giving effect to the principles of conflict of
laws thereof.

 

15.           Notices.  Any notice to the Company provided for herein
shall be in writing to the Company, marked Attention: Vice President-General
Counsel and Secretary, and any notice to the Grantee shall be addressed to said
Grantee at his or her address currently on file with the Company.  Except as otherwise provided herein, any written
notice shall be deemed to be duly given if and when delivered personally or
deposited in the United States mail, first class registered mail, postage and
fees prepaid, and addressed as aforesaid. 
Any party may change the address to which notices are to be given
hereunder by written notice to the other party as herein specified (provided
that for this purpose any mailed notice shall be deemed given on the third
business day following deposit of the same in the United States mail).

 

16.           Compliance with Section 409A of
the Code.  To the extent applicable, it is intended that
this Agreement and the Plan comply with the provisions of Section 409A of
the Code, so that the income inclusion provisions of Section 409A(a)(1) do
not apply to you.  This Agreement and the
Plan shall be administered in a manner consistent with this intent.

 

17.           Counterparts. 
This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute the same
instrument.

 

18.           Data Protection. By your signature below, Grantee
consents that the Company may process Grantee’s personal data provided herein
(the “Data”) exclusively for the purpose of performing this Agreement,
in particular in connection with the exercise of Restricted Share Units awarded
herein.  For this purpose the Data may
also be disclosed to and processed by companies outside the Company, e.g.,
banks involved.

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed on its behalf by its duly authorized officer and
Grantee has also executed this Agreement in duplicate, as of the day and year
first above written.

 

	
   

  	
  GEORGIA GULF
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

	
  GRANTEE:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
			

 

3

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