Document:

EX-10.3

 Exhibit 10.3 

THIRD AMENDED AND RESTATED PLEDGE AGREEMENT 

This THIRD AMENDED AND RESTATED PLEDGE AGREEMENT (“Agreement”), entered into as of October 29, 2015, among THE
GREENBRIER COMPANIES, INC., an Oregon corporation (the “Company” or the “Borrower”), the other parties identified as “Debtors” on the signature pages hereto and such other parties that may become Debtors
hereunder after the date hereof (together with the Company, the “Debtors” and individually a “Debtor”) in favor of BANK OF AMERICA, N.A., as administrative agent for its benefit and for the benefit of the other
holders of the Secured Obligations (as defined below) (in such capacity, and together with its successors and permitted assigns, the “Administrative Agent”). 

RECITALS 
 A. Pursuant to
that certain Second Amended and Restated Credit Agreement dated as of June 30, 2011 (as amended, modified, extended, renewed or replaced from time to time, the “Existing Credit Agreement”) among the Borrower, the lenders party
thereto (the “Existing Lenders”) and the Administrative Agent, the Existing Lenders required, as a condition precedent to their entering into the Existing Credit Agreement and making extensions of credit to or for the account of the
Borrower thereunder, the Borrower and certain subsidiaries of the Borrower to execute that certain second amended and restated pledge agreement dated as of June 30, 2011 (the “Existing Pledge Agreement”). 

B. The Lenders have agreed to amend and restate the Existing Credit Agreement pursuant to the Third Amended and Restated Credit Agreement
dated as of the date hereof (as amended, restated, modified, extended, increased, renewed or replaced from time to time, the “Credit Agreement”) among the Company, as borrower, the lenders party thereto (the
“Lenders”) and the Administrative Agent. 
 C. It is a condition precedent to each Lender’s obligation to make its
initial Credit Extension under the Credit Agreement that the Debtors agree to amend and restate the Existing Pledge Agreement in accordance with this Agreement. 

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration receipt of which is hereby acknowledged, the
Debtors and the Administrative Agent, on behalf of itself and each Lender, hereby agree as follows: 
 1. Definitions;
Interpretations. 
 (a) Terms Defined in Credit Agreement. All capitalized terms used in this Agreement and not otherwise defined
herein have the meanings specified in the Credit Agreement. 
 (b) Certain Defined Terms. As used in this Agreement, the following
terms have the following meanings: 
 “Pledge Agreement Supplement” has the meaning specified in Section 3(a).

 “Pledged Collateral” has the meaning specified in Section 2. 

“Pledged Shares” means, (i) with respect to each Debtor, 100% of the issued and outstanding Equity Interests (other than
Excluded Property) of each direct Domestic Subsidiary of such Debtor and (ii) such Equity Interests of direct Foreign Subsidiaries that a Debtor may elect to pledge, including the Equity Interests of the Subsidiaries owned by such Debtor as set
forth on Schedule 1 hereto, in each case together with the certificates (or other agreements or instruments), if any, representing such shares, and all options and other rights, contractual or otherwise, with respect thereto. 

  
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 “Pledged Subsidiaries” means, collectively, the Subsidiaries of the Debtors
listed on Schedule 1 hereto and such other parties that may become Pledged Subsidiaries hereunder after the Closing Date pursuant to a Pledge Agreement Supplement. 

“Secured Obligations” means, without duplication, all Obligations. 

“UCC” means the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York;
provided, however, in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in
a jurisdiction other than the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such attachment, perfection or priority
and for purposes of definitions related to such provisions. 
 (c) Terms Defined in UCC. Where applicable and except as otherwise
defined herein, terms used in this Agreement that are defined in the UCC shall have the meanings assigned to them in the UCC. 
 (d)
Interpretation. The rules of interpretation and other definitional provisions set forth in Sections 1.02 and 1.07 of the Credit Agreement shall be applicable to this Agreement and are incorporated herein by this reference. 

2. Pledge. 
 As security
for the payment, in full in cash when due, whether at stated maturity, by acceleration or otherwise, and performance of the Secured Obligations, each Debtor hereby pledges, collaterally assigns, transfers, hypothecates, sets over and grants to the
Administrative Agent for its benefit and the benefit of the other holders of the Secured Obligations a security interest in all of such Debtor’s right, title and interest in, to and under the following, whether now existing or owned or
hereafter acquired or arising (collectively, the “Pledged Collateral”): 
 (a) all Pledged Shares; 

(b) all certificates, instruments or other writings representing or evidencing the Pledged Shares; 

(c) all warrants, options and other rights entitling such Debtor to acquire any interest in any Pledged Shares; and 

(d) all cash and non-cash proceeds of the foregoing; 

provided, however, that the Pledged Collateral (and any reference to any portion of the Pledged Collateral) shall not include the Excluded
Property. 
 3. Delivery Or Transfer Of Pledged Collateral. 

(a) Subject to Section 6.15 of the Credit Agreement, each Debtor shall deliver to the Administrative Agent (i) promptly following
the Closing Date (and in any event within 5 Business Days of the Closing Date or such long period as may be agreed to by the Administrative Agent in its sole 

  
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discretion) or prior to the execution and delivery of this Agreement, all certificates or instruments representing or evidencing Pledged Shares existing as of the Closing Date and
(ii) pursuant to Section 6.14(d) of the Credit Agreement, promptly (but in any event within thirty (30) days or such longer period as may be agreed to by the Administrative Agent in its sole discretion) following the receipt thereof
by or on behalf of such Debtor, all certificates, instruments or other writings representing or evidencing any Pledged Shares that Debtor shall acquire, obtain, receive or become entitled to receive after the Closing Date, together with a duly
executed instrument in substantially the form of Schedule 2 hereto (a “Pledge Agreement Supplement”) identifying such additional Pledged Shares; provided that the failure to deliver any such Pledge Agreement
Supplement shall not affect the validity of such pledge of such Pledged Shares. Prior to delivery to the Administrative Agent, all such certificates and instruments constituting Pledged Collateral shall be held in trust by the Debtors for the
benefit of the Administrative Agent and the holders of the Secured Obligations pursuant hereto. All such certificates shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or
assignment reasonably satisfactory to the Administrative Agent. Each Debtor hereby authorizes the Administrative Agent to attach each Pledge Agreement Supplement to this Agreement and agrees that all shares listed thereon shall for all purposes
hereunder constitute Pledged Collateral. 
 (b) Except to the extent constituting Excluded Property, if any Debtor shall receive by virtue
of its being or having been the owner of any Pledged Collateral, any (i) certificate, including any certificate representing a dividend or distribution in connection with any increase or reduction of capital, reclassification, merger,
consolidation, sale of assets, combination of shares or membership or equity interests, stock splits, spin-off or split-off, promissory notes or other instrument;
(ii) warrant, option or other right, whether as an addition to, substitution for, or an exchange for, any Pledged Collateral or otherwise; (iii) dividends payable in securities; or (iv) distributions of securities or other equity
interests in connection with a partial or total liquidation, dissolution or reduction of capital, capital surplus or paid-in surplus, then to the extent consisting of Pledged Collateral, such Debtor shall
promptly (but in any event within thirty (30) days or such longer period as may be agreed to by the Administrative Agent in its sole discretion) following the receipt thereof by or on behalf of such Debtor deliver all of the foregoing to the
Administrative Agent to hold as Pledged Collateral and shall, if received by such Debtor, be received in trust for the benefit of the Administrative Agent and the holders of the Secured Obligations, be segregated from the other property or funds of
such Debtor, and be promptly (but in any event within thirty (30) days or such longer period as may be agreed to by the Administrative Agent in its sole discretion) following the receipt thereof by or on behalf of such Debtor delivered to the
Administrative Agent as Pledged Collateral in the same form as so received, together with duly executed instruments of transfer or assignment satisfactory to the Administrative Agent, as further collateral security for the Secured Obligations. 

(c) Each Debtor hereby irrevocably authorizes the Administrative Agent at any time and from time to time to file in any relevant jurisdiction
any initial financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable jurisdiction for the filing of any financing statement or amendment in order to perfect and protect the
security interest of the Administrative Agent in the Pledged Collateral. 
 (d) During the continuation of an Event of Default, the
Administrative Agent shall have the right, at any time in its discretion during such period, to transfer to or to register in its name or the name of any of its nominees any or all of the Pledged Shares, subject to the provisions of
Section 7(a), including, without limitation, the notice requirements specified therein. In addition, the Administrative Agent shall have the right at any time to exchange certificates, instruments or other writings representing or
evidencing Pledged Shares for certificates, instruments or other writings of smaller or larger denominations. 

  
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 (e) Each Debtor acknowledges and agrees that the security interest of the Administrative Agent in
the Pledged Collateral constitutes continuing collateral security for all of the Secured Obligations which shall remain in effect until terminated in accordance with Section 22. 

4. Representations and Warranties. 

In addition to the representations and warranties of the Debtors set forth in the Credit Agreement, which are incorporated herein by this
reference, each Debtor represents and warrants to the Administrative Agent and the holders of the Secured Obligations that: 
 (a) The
applicable Debtor is the record legal and beneficial owner of the Pledged Collateral. No other Person, except the Administrative Agent pursuant to this Agreement, has any right, title, claim, or interest (by way of Lien, purchase option or
otherwise), other than Permitted Liens of the type described in Sections 7.01(c) and 7.01(h) of the Credit Agreement, in or against or to the Pledged Collateral. 

(b) The pledge of the Pledged Collateral pursuant to this Agreement creates in favor of the Administrative Agent, for its benefit and the
benefit of the other holders of the Secured Obligations, a legally valid, binding and enforceable (except as enforcement thereof may be limited by applicable Debtor Relief Laws and by general principles of equity), first priority perfected, security
interest in the Pledged Collateral, securing the payment of the Secured Obligations, subject only to Permitted Liens of the type described in Sections 7.01(c) and 7.01(h) of the Credit Agreement. 

(c) All Pledged Shares have been duly authorized, validly issued and fully paid and are non-assessable
(to the extent such concepts are applicable to such Pledged Shares). 
 (d) Except for (i) the filing or recording of UCC financing
statements and amendments thereto, (ii) as may be required in connection with the disposition of Pledged Collateral by laws affecting the offering and sale of securities generally or (iii) those that may have been obtained and remain in
full force and effect, no approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection with the enforcement against such Debtor of this Agreement,
the exercise by the Administrative Agent of the voting or other rights provided for in this Agreement, or the remedies in respect of the Pledged Collateral pursuant to this Agreement, except as may be required in connection with the disposition of
the Pledged Shares by laws affecting the offering and sale of securities generally. 
 (e) Such Debtor has full power, authority and legal
right to pledge the Pledged Collateral pursuant to this Agreement. There are and, to such Debtor’s knowledge, will be, no restrictions on the transferability of any Pledged Collateral transferred or delivered, or previously transferred or
delivered, by the Debtor hereunder, to the Administrative Agent or with respect to the foreclosure, transfer or disposition thereof by any Administrative Agent, except (i) as may be required in connection with the disposition of the Pledged
Shares by Debtor Relief Laws or laws affecting the offering and sale of securities generally and (ii) notices and filings required by law, the Loan Documents and the Administrative Agent and the Lenders generally in connection with the exercise
of remedies pursuant to the Loan Documents. 
 (f) Such Debtor is in compliance with Sections 3(a) or 3(b), as applicable,
with respect to the delivery of all certificates or instruments representing, evidencing or constituting Pledged Collateral. The Pledged Collateral is not and shall not be represented or evidenced by any certificates or instruments other than those
delivered hereunder, or if not delivered, as permitted to not yet be delivered hereunder. 

  
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 (g) Except as previously disclosed to the Administrative Agent, none of the Pledged Shares
(i) are dealt in or traded on a securities exchange or in a securities market, (ii) by their terms expressly provides that they are a Security governed by Article 8 of the UCC, (iii) are an investment company security, (iv) are
held in a Securities Account or (v) constitutes a Security or a Financial Asset. 
 (h) None of the Pledged Shares constitutes
“margin stock” (within the meaning of Regulation U issued by the Federal Reserve Bank). 
 The foregoing representations and
warranties shall survive the execution and delivery of this Agreement and shall be deemed remade only as specified by the Credit Agreement. 

5. Covenants. 
 In
addition to the covenants of each Debtor set forth in the Credit Agreement, which are incorporated herein by this reference, so long as any Lender shall have any Commitment under the Credit Agreement or any of the Secured Obligations (other than
contingent indemnification obligations and all Letters of Credit that remain outstanding that have been Cash Collateralized or with respect to which other arrangements satisfactory to the L/C Issuer have been made) shall remain unpaid or
unsatisfied, each Debtor shall: 
 (a) To the extent permitted by applicable law, such Debtor, for itself and its successors
and assigns, does hereby irrevocably waive and release all preemptive, first-refusal and other similar rights of such Debtor to purchase any or all of the Pledged Shares upon any sale thereof by the
Administrative Agent hereunder, whether such right to purchase arises under any of such Debtor’s Organization Documents, by agreement, by operation of law or otherwise. 

(b) Such Debtor warrants and covenants to defend the Administrative Agent’s security interest in and to the Pledged
Collateral against the claims and demands of all other Persons (other than Persons holding Permitted Liens described in Sections 7.01(c) and 7.01(h) of the Credit Agreement), and to appear in and defend any action, suit or proceeding which may
affect its title to, or the Administrative Agent’s security interest in, the Pledged Collateral. 
 (c) Except to the
extent permitted by the Credit Agreement, such Debtor agrees that it will not (i) sell, assign, transfer, surrender or otherwise dispose of, or grant any option, warrant or other right or interest with respect to, any of the Pledged Collateral,
(ii) create or permit to exist any Lien upon or with respect to any of the Pledged Collateral, except for the Lien created by this Agreement and Permitted Liens described in Sections 7.01(c) and 7.01(h) of the Credit Agreement, or
(iii) enter into any shareholder agreement, voting agreement, voting trust, irrevocable proxies or any other similar agreement or instrument with respect to any Pledged Collateral. 

(d) Such Debtor will deliver to the Administrative Agent, in its capacity as shareholder in respect of any Pledged Collateral,
all reports and notices received by such Debtor that are deemed material in such Debtor’s reasonable discretion. 
 6. Further
Assurances. Each Debtor agrees that at any time and from time to time, at its own cost and expense, it will promptly procure, execute and deliver all further instruments, documents and agreements, and take all further action, that the
Administrative Agent may reasonably request, in order to establish, maintain, preserve, protect and perfect in the Pledged Collateral, any security interest granted or purported to be granted hereby and the priority of such security interest, or to
enable the Administrative Agent to exercise and enforce its rights and remedies hereunder with respect to any 

  
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Pledged Collateral. Each Debtor hereby authorizes Administrative Agent to file any financing statements consistent with the terms and conditions of this Agreement together with such additions and
supplements thereto as Administrative Agent reasonably deems necessary and which must be executed or filed to perfect or continue perfected, maintain the priority of or provide notice of the Administrative Agent’s security interest in the
Pledged Collateral and file any such financing statements by electronic means as authorized or required by applicable law or filing procedures. Without limiting the generality of the foregoing, each Debtor further agrees that it shall, concurrently
with the execution of this Agreement and at any time and from time to time thereafter (a) procure, execute and deliver to the Administrative Agent all stock powers, endorsements, assignments and other instruments of transfer reasonably
requested by Administrative Agent, (b) in accordance with the requirements of Section 3, deliver to the Administrative Agent the originals of all Pledged Shares and all certificates or instruments evidencing the Pledged Collateral, and
(c) cause the Lien of the Administrative Agent to be recorded or registered in the books of any Clearing Corporation as may be reasonably requested by the Administrative Agent. 

7. Voting Rights; Dividends. 

(a) So long as no Event of Default shall then exist or result therefrom (and so long as written notice revoking the applicable Debtor’s
rights described in this Section 7 has not been given by the Administrative Agent to the Debtors after and during the continuance of such Event of Default, which written notice shall be given one (1) day before such notice shall be in
effect): 
 (i) Each Debtor shall be entitled to exercise any and all voting and other consensual rights pertaining to the
Pledged Shares or any part thereof for any purpose not inconsistent with the terms of this Agreement or the Credit Agreement. 

(ii) Each Debtor shall be entitled to receive and retain any and all dividends or distributions paid in respect of its Pledged
Shares, in compliance with the terms of the Credit Agreement, except dividends paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any
Pledged Shares, all of which shall be, and all of which shall be forthwith delivered to the Administrative Agent to hold as, Pledged Collateral and shall, if received by any Debtor, be received in trust for the benefit of the Administrative Agent,
be segregated from the other property of such Debtor, and be forthwith delivered to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary endorsement and indemnity). 

(iii) The Administrative Agent shall execute and deliver (or cause to be executed and delivered) to the applicable Debtor all
such proxies and other instruments as such Debtor may request for the purpose of enabling such Debtor to exercise the voting and other rights which it is entitled to exercise pursuant to clause (i) above and to receive the dividends or
distributions which it is authorized to receive and retain pursuant to clause (ii) above. 
 notwithstanding anything to the contrary
contained herein, the Debtor shall be entitled and permitted to retain any tax distributions at any time. 
 (b) Upon the occurrence and
during the continuance of an Event of Default: 
 (i) All rights of each Debtor to exercise the voting and other consensual
rights which it would otherwise be entitled to exercise pursuant to Section 7(a)(i) above shall cease upon one day’s written notice from the Administrative Agent, and all such rights shall thereupon become vested in the
Administrative Agent, for its benefit and the ratable benefit of the holders of the Secured Obligations, who shall thereupon have the sole right to exercise such voting and other consensual rights. 

  
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 (ii) All rights of each Debtor to receive the dividends or distributions which it
would otherwise be authorized to receive and retain pursuant to Section 7(a)(ii) above shall cease upon one day’s written notice from the Administrative Agent, and all such rights shall thereupon become vested in the Administrative
Agent, for its benefit and the ratable benefit of the holders of the Secured Obligations, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends. 

(iii) All dividends or distributions which are received by any Debtor contrary to the provisions of paragraph (ii) of this
Section 7(b) shall be received in trust for the benefit of the Administrative Agent, for its benefit and the ratable benefit of the holders of the Secured Obligations, shall be segregated from other funds of such Debtor and shall be
forthwith paid over to the Administrative Agent as Pledged Collateral in the same form as so received (with any necessary endorsement or indemnity). 

(iv) In order to permit the Administrative Agent to exercise the voting and other rights which it may be entitled to exercise
pursuant to Section 7(b)(i) above, and to receive all dividends and distributions which it may be entitled to receive under Section 7(b)(ii) above, each Debtor shall, if necessary, upon one day’s written notice given by
the Administrative Agent, from time to time execute and deliver to the Administrative Agent appropriate proxies, dividend payment orders and other instruments as the Administrative Agent may request. 

notwithstanding anything to the contrary contained herein, the Debtor shall be entitled and permitted to retain any tax distributions at any
time. 
 Anything in the foregoing to the contrary notwithstanding, it is the intention of the parties hereto that record and beneficial
ownership of the Pledged Collateral, including all voting, consensual, dividend, and distribution rights, shall remain in the applicable Debtor until (i) the occurrence and continuance of an Event of Default and (ii) Administrative Agent
has given one day’s prior written notice to the applicable Debtor of Administrative Agent’s election to exercise such rights with respect to the Pledged Collateral. 

8. Authorization; Administrative Agent Appointed
Attorney-in-Fact. Upon the occurrence and during the continuance of an Event of Default (and, in the case of any exercise of rights under Section 7, after
written notice revoking the applicable Debtor’s rights described in Section 7(a) has been given by the Administrative Agent to the Debtors, which written notice shall be given at least one (1) day before such notice shall be in
effect), the Administrative Agent shall have the right to, in the name of any Debtor, or in the name of the Administrative Agent, or otherwise, without notice to or assent by any Debtor, and each Debtor hereby constitutes and appoints the
Administrative Agent (and any of the Administrative Agent’s officers, employees or agents designated by the Administrative Agent) as such Debtor’s true and lawful
attorney-in-fact, with full power and authority to take any action and execute any and all endorsements, assignments, documents, instruments or UCC financing statements
which the Administrative Agent may deem necessary or desirable to accomplish the purposes of this Agreement, including, without limitation, (a) to receive, endorse and collect all instruments made payable to such Debtor representing any
dividend, interest payment or other distribution in respect of the Pledged Collateral or any part thereof and to give full discharge for the same, (b) to perfect or continue perfected, maintain the priority of or provide notice of the
Administrative Agent’s security interest in the Pledged Collateral or (c) to maintain, protect, sell, assign, convey or otherwise transfer title in or dispose of the Pledged Collateral. The foregoing power of attorney is coupled with an
interest and irrevocable so long 

  
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as any Lender shall have any Commitment under the Credit Agreement or any of the Secured Obligations (other than contingent indemnification obligations and all Letters of Credit that remain
outstanding have been Cash Collateralized or with respect to which other arrangements satisfactory to the L/C Issuer have been made) shall remain unpaid or unsatisfied. Each Debtor hereby ratifies, to the fullest extent permitted by applicable law,
all that the Administrative Agent shall lawfully and in good faith do or cause to be done by virtue of and in compliance with this Section 8. Notwithstanding anything to the contrary contained herein, the Debtor shall be entitled and
permitted to retain any tax distributions at any time. 
 9. Administrative Agent Performance of Debtor’s Obligations. The
Administrative Agent may perform or pay any obligation which any Debtor has agreed to perform or pay under or in connection with this Agreement, and each Debtor shall, jointly and severally, reimburse the Administrative Agent in accordance with the
Credit Agreement for any amounts paid by the Administrative Agent pursuant to Section 14. Except in cases where prompt action is required to minimize risk of loss, Administrative Agent will give each Debtor two (2) Business Days
notice before performing or paying a Debtor obligation. 
 10. No Responsibility for Certain Actions. Notwithstanding any provision
contained in this Agreement, and other than as set forth in Section 9-207 of the UCC, neither the Administrative Agent nor any holder of the Secured Obligations shall have responsibility for
(a) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Pledged Collateral, whether or not the Administrative Agent or any holder of the Secured Obligations has or is
deemed to have knowledge of such matters, or (b) taking any necessary steps to preserve any rights against any parties with respect to any Pledged Collateral. The Administrative Agent shall have no duty with respect to the custody, safekeeping
and physical preservation of the Pledged Collateral in its possession other than as set forth in Section 9-207 of the UCC. 

11. Remedies In General. Upon the occurrence and during the continuance of an Event of Default (and, in the case of any exercise of
rights or remedies under Section 7, after written notice revoking the applicable Debtor’s rights described in Section 7(a) has been given by the Administrative Agent to the Debtors, which written notice shall be given at least one
(1) day before such notice shall be in effect): 
 (a) The Administrative Agent may exercise in respect of the Pledged Collateral, in
addition to other rights and remedies provided for herein or otherwise available to it under the Credit Agreement or any other Loan Document, all the rights and remedies of a secured party under the UCC and other applicable laws, and the
Administrative Agent may also, without notice except as specified below, sell the Pledged Shares or any part thereof in one or more parcels at public or private sale, at any exchange, broker’s board or at any of the Administrative Agent’s
offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Administrative Agent may deem commercially reasonable. Each Debtor agrees that, to the extent notice of sale shall be required by law, at least ten
(10) days’ notice to the Debtors of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Administrative Agent shall not be obligated to make any sale of
Pledged Shares regardless of notice of sale having been given. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made
at the time and place to which it was so adjourned. To the extent permitted by applicable law, each Debtor hereby waives any claims against the Administrative Agent arising by reason of the fact that the price at which any Pledged Shares may have
been sold at such a private sale was less than the price which might have been obtained at a public sale, even if the Administrative Agent accepts the first offer received and does not offer such Pledged Shares to more than one offeree. 

  
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 (b) Each Debtor recognizes that, by reason of the aforementioned requirements and certain
prohibitions contained in the Securities Act of 1933 and applicable state securities laws, the Administrative Agent may, at its option, elect not to require the Debtors to register the offering or sale of all or any part of the Pledged Shares under
the provisions of the Securities Act of 1933 and may therefore be compelled, with respect to any sale of all or any part of the Pledged Shares, to limit purchasers to those who will agree, among other things, to acquire such securities for their own
account, for investment, and not with a view to the distribution or resale thereof. Each Debtor acknowledges and agrees that any such sale may result in prices and other terms less favorable to the seller than if such sale were a public sale without
such restrictions and notwithstanding such circumstances, agrees that any such sale shall be deemed to have been made in a commercially reasonable manner. The Administrative Agent shall be under no obligation to delay the sale of any of the Pledged
Shares for the period of time necessary to permit the Debtors to register such securities for public sale under the Securities Act of 1933, or under applicable state securities laws, even if the Debtors would agree to do so. 

(c) If the Administrative Agent determines to exercise its right to sell any or all of the Pledged Shares, upon written request, each Debtor
shall and shall cause, each of its Subsidiaries to, from time to time, furnish to the Administrative Agent all such information as the Administrative Agent may request in order to determine the number of shares and other instruments included in the
Pledged Shares which may be sold by the Administrative Agent as exempt transactions under the Securities Act of 1933 and rules of the commission thereunder, as the same are from time to time in effect. 

(d) In connection with any disposition of the Pledged Shares, if the Administrative Agent elects to obtain the advice of an investment banking
firm, such firm shall be selected by the Debtors from among three nationally known investment banking firms which are member firms of the New York Stock Exchange, which three firms shall be proposed by the Administrative Agent to the Debtors. Such
selection by the Debtors shall be made within five (5) Business Days after receipt by the Debtors of the names of the firms proposed by the Administrative Agent. In the absence of such selection by the Debtors within such period, the
Administrative Agent may select any one of such firms. The Debtors agree that the sale or other disposition of all or any part of the Pledged Shares in reliance on the advice of the investment banking firm so selected shall be deemed to be
commercially reasonable under the UCC and otherwise proper. 
 (e) The Debtors shall, jointly and severally, indemnify and hold harmless the
Administrative Agent, the Lenders and any underwriter or financial advisor to the Administrative Agent or the Lenders (and the officers, directors, shareholders, employees, attorneys, and agents of each of them), from and against any and all loss,
liability, claim, damage and expense (including, without limitation, attorney costs) under the Securities Act of 1933, any “Blue Sky” law or otherwise insofar as such loss, liability, claim, damage or expense arises out of or is based upon
any untrue statement or alleged untrue statements of a material fact contained in a registration statement or prospectus or on any preliminary prospectus or any amendment or supplement thereto, or arises out of or is based upon any omission or
alleged omission to state therein a material fact required to be stated or necessary to make the statements therein not misleading, such indemnification to remain operative regardless of any investigation made by or on behalf of the Administrative
Agent, the Lenders or any underwriter or financial advisor or any other person or entity indemnified hereunder. This indemnification does not apply to losses, claims, damages, liabilities or expenses that are caused by any such untrue statement or
omission or alleged untrue statement or omission based upon information furnished in writing to the issuer of such Pledged Shares by the Administrative Agent or on the Administrative Agent’s behalf expressly for use therein. 

(f) Any and all expenses which may be charged to or for the account of Administrative Agent or the Lenders hereunder, including brokers’
or underwriters’ commissions or discounts, financial advisory fees, accounting fees, attorney costs, costs of printing and other expenses of offering, sale, or transfer shall be reimbursed by or charged to the Debtors pursuant to the terms of
Section 14. 

  
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 (g) Any cash held by the Administrative Agent as Pledged Collateral and all cash proceeds
received by the Administrative Agent in respect of any sale of, collection from, or other realization upon all or any part of the Pledged Shares shall be applied by the Administrative Agent as specified in the Credit Agreement. 

(i) Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in
writing and given as provided in Section 10.02 of the Credit Agreement. 
 (ii) Amendments, Etc. No amendment or
waiver of any provision of this Agreement, and no consent to any departure by any Debtor therefrom, shall be effective unless in writing signed by the Administrative Agent and the Debtors, subject to any consent required in accordance with
Section 10.01 of the Credit Agreement, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit under the Credit Agreement shall not be construed as a waiver of any Default under the Credit Agreement. 

12. Cumulative Remedies. The rights, powers and remedies of the Administrative Agent under this Agreement are cumulative and shall be
in addition to all rights, powers and remedies available to the Administrative Agent and the holders of the Secured Obligations pursuant to the Credit Agreement, the other Loan Documents and at law or in equity, all of which rights, powers and
remedies shall be cumulative and may be exercised successively or concurrently without impairing the Administrative Agent’s rights hereunder. 

13. Certain Waivers. Each Debtor waives, to the fullest extent permitted by law, any right to require the Administrative Agent or the
holders of the Secured Obligations (i) to proceed against any Person, (ii) to exhaust any other collateral or security for any of the Secured Obligations, (iii) to pursue any remedy in the Administrative Agent’s or any of the
holders’ of the Secured Obligations power, or (iv) to make or give any presentments, demands for performance, notices of nonperformance, protests, notices of protests or notices of dishonor in connection with any of the Pledged Collateral.

 14. Costs and Expenses; Indemnification; Other Charges. The terms of Section 10.04 of the Credit Agreement with respect to
costs and expenses and indemnification are incorporated herein by reference, mutatis mutandis, and the parties hereto agree to such terms. 

15. Binding Effect; Transferability; No Third-Party Beneficiaries. The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and assigns, except that, other than with respect to any assignment or transfer made pursuant to Section 7.04 of the Credit
Agreement, no Debtor may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and the Required Lenders (and any attempted assignment or transfer by any Debtor without
such consent shall be null and void). Each Debtor acknowledges that upon any assignment or other transfer by the Administrative Agent or any other holder of the Secured Obligations of any of the Secured Obligations, the Administrative Agent or such
holder of the Secured Obligations may transfer its interest herein, or any part thereof, to the assignee or transferee, who shall thereupon become vested with all the rights, remedies, powers, security interests and liens herein granted to the
Administrative Agent or such holder of the Secured Obligations, or the transferred part thereof, subject, however, to the restrictions contained 

  
 10 

 
in the Credit Agreement. No Persons other than the Debtors, the holder of the Secured Obligations, the Administrative Agent and the respective assignees of the holder of the Secured Obligations
and the Administrative Agent are intended to be benefited hereby or shall have any rights hereunder, as third-party beneficiaries or otherwise. 

16. Governing Law; Jurisdiction; Etc. 

(a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, EXCEPT TO
THE EXTENT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS HEREUNDER, OR THE REMEDIES HEREUNDER, IN RESPECT OF ANY PLEDGED COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN NEW YORK; PROVIDED THAT THE ADMINISTRATIVE AGENT
AND THE HOLDERS OF SECURED OBLIGATIONS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 
 (b) SUBMISSION TO JURISDICTION. EACH
DEBTOR AND THE ADMINISTRATIVE AGENT IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE
PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.
EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN
ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY DEBTOR OR ITS
PROPERTIES IN THE COURTS OF ANY JURISDICTION. 
 (c) WAIVER OF VENUE. EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT
REFERRED TO IN PARAGRAPH (B) OF THIS SECTION 16. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT. 
 17. Integration. This Agreement, together with the other Loan Documents, comprises the complete,
final and integrated agreement of the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter. 

18. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or 

  
 11 

 
unenforceability without invalidating the remaining provisions thereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such
provision in any other jurisdiction. 
 19. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 20. Incorporation of Provisions
of the Credit Agreement. To the extent the Credit Agreement contains provisions of general applicability to the Loan Documents, including any such provisions contained in Article X thereof, such provisions are incorporated herein by this
reference. 
 21. No Inconsistent Requirements. Each Debtor acknowledges that this Agreement and the other Loan Documents may contain
covenants and other terms and provisions variously stated regarding the same or similar matters, and agrees that all such covenants, terms and provisions are cumulative and all shall be performed and satisfied in accordance with their respective
terms. 
 22. Continuing Security Interest; Termination. This Agreement shall create a continuing security interest in the Pledged
Collateral and shall apply to all past, present and future Secured Obligations, including Secured Obligations that arise under transactions that continue any Secured Obligation, increase or decrease any Secured Obligation, or from time to time
create new Secured Obligations after all or any prior Secured Obligations have been satisfied. This Agreement and the security interest shall terminate when all of the Obligations (as defined in the Credit Agreement) shall have been paid in full
(other than contingent indemnification obligations) in accordance with the terms of the Credit Agreement, the Aggregate Commitments have been terminated and all Letters of Credit that remain outstanding have been Cash Collateralized or with respect
to which other arrangements satisfactory to the L/C Issuer have been made; provided, however, that the obligations of the Debtors under Sections 11(f) and 14 shall survive such termination. In addition, (x) in the event that
any Subsidiary ceases to be a Subsidiary of a Debtor (including another Debtor) as a result of a transaction permitted by the Credit Agreement, then such Subsidiary shall automatically be fully and finally released from its obligations hereunder
without any further action of the Administrative Agent, the Lenders, or the L/C Issuer, and (y) the security interest and Liens granted herein shall be deemed to be released automatically without any further action of the Administrative Agent,
the Lenders, or the L/C Issuer as to any Pledged Collateral upon the sale, transfer or other disposition of such Pledged Collateral to a Person that is not a Debtor pursuant to a Disposition permitted by the Credit Agreement or any other Loan
Document, and in each instance, the Administrative Agent shall promptly upon written request from (and at the expense of) the Borrower take all necessary action to document the full and final release of such Debtor or Pledged Collateral, as
applicable, under this Agreement. 
 23. Joinder. At any time after the date of this Agreement, one or more additional Persons may
become party hereto by executing and delivering to Administrative Agent a joinder agreement, in form and substance reasonably satisfactory to Administrative Agent. Immediately upon such execution and delivery of such joinder agreement (and without
any further action), each such additional Person will become a party to this Agreement as a “Debtor” and have all of the rights and obligations of a Debtor hereunder and this Agreement shall be deemed amended by such joinder agreement.

 24. Rights of Required Lenders. All rights of the Administrative Agent hereunder, if not exercised by the Administrative Agent,
may be exercised by the Required Lenders. 
 25. Consent of Issuers of Pledged Shares. Each issuer of Pledged Shares party to this
Agreement hereby acknowledges, consents and agrees to the grant of the security interests in such Pledged Shares by the applicable Debtors pursuant to this Agreement, together with all rights 

  
 12 

 
accompanying such security interest as provided by this Agreement and applicable law, notwithstanding any anti-assignment provisions in any operating agreement, limited partnership agreement or
similar organizational or governance documents of such issuer. 
 26. Effect of Amendment and Restatement. Upon the effectiveness
hereof, this Agreement amends and restates in its entirety as of the Closing Date the Existing Pledge Agreement. The security interests granted by each Debtor to Administrative Agent in the Pledged Collateral under the Existing Pledge Agreement
continue (as modified hereby) without interruption under this Agreement to secure the Secured Obligations. 
 27. Keepwell. Each
Debtor that is a Qualified ECP Guarantor at the time any Guarantee of the Obligations by any Debtor that is not then an “eligible contract participant” under the Commodity Exchange Act (a “Specified Loan Party”) or the
grant of a security interest under the Loan Documents by any such Specified Loan Party, in either case, becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to
provide such funds or other support to each Specified Loan Party with respect to such Swap Obligation as may be needed by such Specified Loan Party from time to time to honor all of its obligations under the Loan Documents in respect of such Swap
Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s obligations and undertakings under such Guarantee voidable under applicable Debtor
Relief Laws, and not for any greater amount). The obligations and undertakings of each Qualified ECP Guarantor under this Section 27 shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in
full. Each Debtor intends this Section 27 to constitute, and this Section 27 shall be deemed to constitute, a “keepwell, support, or other agreement” for the benefit of each Specified Loan Party for all purposes of
the Commodity Exchange Act. 
 28. Intercreditor Agreements. This Agreement (and the security interest in the Common Collateral (as
defined in the applicable Intercreditor Agreement) granted hereunder) is subject to any Intercreditor Agreement from time to time in effect. In the event of any conflict between the terms of this Agreement and the any Intercreditor Agreement with
respect to any Common Collateral, the terms of such Intercreditor Agreement shall control. So long as any Person is acting as bailee and as agent for perfection on behalf of the Administrative Agent pursuant to the terms of any Intercreditor
Agreement, any obligation of any Debtor in this Agreement that requires delivery of Common Collateral to, or the possession or control of Common Collateral with, the Administrative Agent shall be deemed complied with and satisfied if such delivery
of Common Collateral is made to, or such possession or control of Common Collateral is with, such Person on same terms this Agreement would have otherwise required rendering of performance to the Administrative Agent. 

29. Term Debt Priority. Notwithstanding anything in this Agreement or any other Loan Document to the contrary notwithstanding, any
reference made to a first priority perfected Lien or security interest in any Loan Document (excluding any Intercreditor Agreement) shall be deemed to include any Pledged Collateral that is subject to security interests in favor of both the holders
of the Obligations and the holders of the Term Debt and, pursuant to an Intercreditor Agreement, such creditors have agreed that their respective security interests in such common Pledged Collateral shall have equal priority. 

[SIGNATURES SET FORTH ON THE FOLLOWING PAGE] 

  
 13 

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

			
	GREENBRIER-CONCARRIL, LLC
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	GREENBRIER LEASING COMPANY LLC
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	GREENBRIER MANAGEMENT SERVICES, LLC
	
	By: GREENBRIER LEASING COMPANY LLC
	Its: Sole Member
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	GREENBRIER RAIL SERVICES HOLDINGS, LLC
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	GREENBRIER RAILCAR LEASING, INC.
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	GUNDERSON LLC
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer

  
 14 

 
			
	GUNDERSON MARINE LLC
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	GUNDERSON RAIL SERVICES LLC
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	GUNDERSON SPECIALTY PRODUCTS, LLC
	
	By: GUNDERSON LLC
	Its: Sole Member
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	MERIDIAN RAIL ACQUISITION CORP.
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer
	
	MERIDIAN RAIL HOLDINGS CORP.
		
	By:	 	 /s Lorie L. Tekorius

	Name:	 	Lorie L. Tekorius
	Title:	 	Senior Vice President and Treasurer

  

			
	Agreed and Accepted:
	
	 BANK OF AMERICA, N.A.,
 as
Administrative Agent

		
	By:	 	 /s/ Joan Mok

	Name:	 	Joan Mok
	Title:	 	Vice President

  
 15ffwm-ex1099_6.htm

 

 

Exhibit 10.99

FORM OF

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this “Agreement”), dated as of ________ __, 201_, by and between First Foundation, Inc., a Delaware corporation (the “Company”), and ________________________ (“Indemnitee”).

R E C I T A L S

A.Indemnitee is a director or an officer of the Company or of one of its subsidiaries.

B.In recognition of the need to provide Indemnitee with substantial protection against personal liability, in order to procure Indemnitee’s continued service as a director or officer of the Company and to enhance Indemnitee’s ability to serve the Company in an effective manner, and in order to provide such protection pursuant to express contract rights (intended to be enforceable irrespective of, among other things, any amendment to the Company’s certificate of incorporation or bylaws (collectively, the “Constituent Documents”), any change in the composition of the Board or any change in control or business combination transaction relating to the Company), the Company desires to provide in this Agreement for the indemnification of, and the advancement of Expenses (as defined in Section 2 below) to, Indemnitee as set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing and the Indemnitee’s agreement to continue to provide services to the Company, the parties hereby agree as follows:

1.Services to the Company.  Indemnitee agrees to continue to serve as a director or officer of the Company or any of its subsidiaries for so long as Indemnitee is duly elected or appointed, until Indemnitee tenders Indemnitee’s resignation or until Indemnitee service is terminated by the Company or any such subsidiary or other Enterprise (as defined in Section 2 below), as applicable.  This Agreement shall not be deemed an employment agreement between Indemnitee and the Company (or any of its subsidiaries or any other Enterprise).  Indemnitee specifically acknowledges that Indemnitee’s service to the Company or any of its subsidiaries or another Enterprise is at will and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment agreement between Indemnitee and the Company (or any of its subsidiaries or another Enterprise), other applicable formal severance policies duly adopted by the Board or, with respect to service as a director or officer of the Company, by the Company’s Constituent Documents or Delaware law.  This Agreement shall continue in force after Indemnitee has ceased to serve as a director or officer of the Company or of any of its subsidiaries or Enterprise, as applicable.

2.Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

(a)“Agreement” shall have the meaning ascribed to it in the prefatory language above.

(b)“Beneficial Owner” has the meaning given to the term “beneficial owner” in Rule 13d-3 under the Exchange Act.

(c)“Board” shall have the meaning ascribed to it in the Recitals above.

(d)“Business Combination” means a reorganization, a merger or a consolidation

(e)“Change in Control” means the occurrence after the date hereof of any of the following events:

(i)Acquisition of Stock by Third Party.  Any Person (as defined below) who, or any Group (as defined below) which, is not a current stockholder of the Company becomes hereafter the Beneficial Owner, directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the Company’s 

 

 

Voting Securities, unless the change in the relative Beneficial Ownership of the Company’s securities by any Person or Group results solely from a reduction in the aggregate number of outstanding Voting Securities; 

(ii)Corporate Transactions.  The consummation of a Business Combination, unless immediately following such Business Combination, (a) the Beneficial Owners of the Voting Securities of the Company immediately prior to such transaction beneficially own, directly or indirectly, more than fifty percent (50%) of the combined voting power of the outstanding Voting Securities of the entity resulting from such transaction, (b) no Person (excluding any corporation resulting from such Business Combination) is the Beneficial Owner, directly or indirectly, of twenty percent (20%) or more of the combined voting power of the then outstanding securities entitled to vote generally in the election of directors of such corporation except to the extent that such ownership existed prior to the Business Combination, and (c) at least a majority of the members of the Board of Directors of the corporation resulting from such Business Combination were Continuing Directors (as defined below), at the time of the execution of the initial agreement or of the action of the Board, providing for such Business Combination;

(iii)Change in Board of Directors.  The Continuing Directors cease for any reason to constitute at least a majority of the members of the Board; or

(iv)Liquidation.  The stockholders of the Company approve a plan of complete liquidation or dissolution of the Company or an agreement or series of agreements for the sale or disposition by the Company of all or substantially all of the Company’s assets, (or, if such approval is not required, the decision by the Board to proceed with such a liquidation, sale, or disposition in one transaction or a series of related transactions).

(f)“Claim” means:

(i)any threatened, pending or completed action, suit, demand, proceeding or alternative dispute resolution mechanism, whether civil, criminal, administrative, arbitrative, investigative or other, and whether made pursuant to federal, state or other law; or

(ii)any inquiry, hearing or investigation that the Indemnitee determines might lead to the institution of any such action, suit, proceeding or alternative dispute resolution mechanism.

(g)“Company” shall have the meaning ascribed to it in the prefatory language above.

(h)“Constituent Documents” shall have the meaning ascribed to it in the Recitals above.

(i)“Continuing Directors” means, during a period of two consecutive years, not including any period prior to the execution of this Agreement, the individuals collectively who at the beginning of such period constituted the Board (including for this purpose any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (2/3) 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).

(j)“Delaware Court” means the Court of Chancery of the State of Delaware.

(k)“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.

(l)“Enterprise” means, any corporation, limited liability company, partnership, joint venture, trust or other entity.

(m)“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(n)“Expense Advance” means any payment of Expense advanced to Indemnitee by the Company pursuant to Section 4 or Section 5 hereof.

2

 

 

(o)“Expenses” means any and all expenses, including attorneys’ and experts’ fees, court costs, transcript costs, travel expenses, duplicating, printing and binding costs, telephone charges, and all other costs and expenses incurred in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Claim. Expenses also shall include (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, supersedes bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 5 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. 

(p)“Group” shall have the meaning given to such term in Section 13d-1 under the Exchange Act.

(q)“Indemnifiable Event” means any event or occurrence, whether occurring before, on or after the date of this Agreement, related to or arising out of the fact that Indemnitee is or was a director, officer, employee or agent of the Company or any subsidiary of the Company, or is or was serving at the request of the Company as a director, officer, employee, member, manager, trustee or agent of another Enterprise or by reason of an action or inaction by Indemnitee in any such capacity (whether or not serving in such capacity at the time any Loss (as defined below) is incurred for which indemnification can be provided under this Agreement).

(r)“Indemnitee” shall have the meaning ascribed to it in the prefatory language above.

(s)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporate law and neither presently performs, nor in the past five (5) years has performed, services for either: (i) the Company or Indemnitee (other than in connection with matters concerning Indemnitee under this Agreement or other indemnitees under similar agreements) or (ii) any other party to the Claim giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

(t)“Losses” means any and all Expenses, damages, losses, liabilities, judgments, fines, penalties (whether civil, criminal or other), ERISA excise taxes, amounts paid or payable in settlement, including any interest, assessments, any federal, state, local or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement and all other charges paid or payable in connection with investigating, defending, being a witness in or participating in (including on appeal), or preparing to defend, be a witness or participate in, any Claim. 

(u)“Notification Date” shall have the meaning ascribed to it in Section 10(c) below.

(v)“Other Indemnity Provisions” shall have the meaning ascribed to it in Section 14 below.

(w)“Person” means any individual, corporation, firm, partnership, joint venture, limited liability company, estate, trust, business association, organization, governmental entity or other entity and includes the meaning set forth in Sections 13(d) and 14(d) of the Exchange Act. 

(x)“Standard of Conduct Determination” shall have the meaning ascribed to it in Section 10(b) below.

(y)“Voting Securities” means any securities of the Company that vote generally in the election of directors.

3.Indemnification.  On the terms of this Agreement, the Company shall indemnify Indemnitee, to the fullest extent permitted 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 Losses if Indemnitee was or is or becomes a party to or participant in, or is threatened to be made a party to or participant in, any Claim by reason of or arising, whether in part or in whole, out of an Indemnifiable Event, 

3

 

 

including, without limitation, Claims brought by or in the right of the Company, Claims brought by third parties, and Claims in which the Indemnitee is solely a witness. 

4.Advancement of Expenses.  Indemnitee shall have the right to advancement by the Company, prior to the final disposition of any Claim by final adjudication to which there are no further rights of appeal, of any and all Expenses actually and reasonably paid or incurred by Indemnitee in connection with any Claim arising out of an Indemnifiable Event.  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 twenty (20) calendar days after any request by Indemnitee, the Company shall, in accordance with such request, (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.  In connection with any request for Expense Advances, Indemnitee shall not be required to provide any documentation or information to the extent that the provision thereof would undermine or otherwise jeopardize attorney-client privilege. Execution and delivery to the Company of this Agreement by Indemnitee constitutes an undertaking by the Indemnitee, and Indemnitee hereby agrees, to repay any amounts paid, advanced or reimbursed by the Company pursuant to this Section 4 in respect of Expenses relating to, arising out of or resulting from any Claim in respect of which it is determined, pursuant to Section 10, following the final disposition of such Claim, that Indemnitee is not entitled to indemnification either pursuant to this Agreement or applicable law.  No other form of undertaking shall be required other than the execution of this Agreement.  Indemnitee’s obligation to reimburse the Company for Expense Advances shall be unsecured and no interest shall accrue or be charged thereon.

5.Indemnification for Expenses in Enforcing Rights.  To the fullest extent allowable under applicable law, the Company shall also indemnify against, and, if requested by Indemnitee, shall advance to Indemnitee subject to and in accordance with Section 4, any Expenses actually and reasonably paid or incurred by Indemnitee in connection with any action or proceeding by Indemnitee for (a) indemnification or reimbursement or advance payment of Expenses by the Company under any provision of this Agreement, or under any other agreement or provision of the Constituent Documents now or hereafter in effect relating to Claims relating to Indemnifiable Events, and/or (b) recovery under any directors’ and officers’ liability insurance policies maintained by the Company.  However, in the event that Indemnitee is ultimately determined not to be entitled to such indemnification or insurance recovery, as the case may be, then all amounts advanced under this Section 5 shall be repaid.  Indemnitee shall be required to reimburse the Company in the event that a final judicial determination is made that such action brought by Indemnitee was frivolous or not made in good faith.

6.Partial Indemnity.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for a portion of any Losses in respect of a Claim related to an Indemnifiable Event but not for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. 

7.Contribution in the Event of Joint Liability.  To the fullest extent permissible under applicable law, if the indemnification and hold harmless rights provided for in this Agreement are unavailable to Indemnitee in whole or in part for any reason whatsoever, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities, fines, penalties, amounts paid or to be paid in settlement and/or for Expenses, in connection with any Indemnifiable Event, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Indemnifiable Event in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees, trustees, fiduciaries and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

8.Notification and Defense of Claims.

(a)Notification of Claims.  Indemnitee shall notify the Company in writing as soon as practicable of any Claim which could constitute or relate to an Indemnifiable Event or for which Indemnitee could seek Expense Advances, including a brief description (based upon information then available to Indemnitee) of the nature of, and the facts underlying, such Claim.  The failure by Indemnitee to timely notify the Company hereunder 

4

 

 

shall not relieve the Company from any liability hereunder other than to the extent the Company’s ability to participate in the defense of such claim was materially and adversely prejudiced by such failure. 

(b)Defense of Claims.  The Company shall be entitled to participate in the defense of any Claim relating to an Indemnifiable Event at its own expense and, except as otherwise provided below, to the extent the Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory to Indemnitee.  After notice from the Company to Indemnitee of its election to assume the defense of any such Claim, the Company shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently directly incurred by Indemnitee in connection with Indemnitee’s defense of such Claim other than reasonable costs of investigation or as otherwise provided below.  Indemnitee shall have the right to employ its own legal counsel in such Claim, but all Expenses related to such counsel incurred after notice from the Company of its assumption of the defense shall be at Indemnitee’s own expense; provided, however, that if (i) Indemnitee’s employment of its own legal counsel has been authorized by the Company, (ii) Indemnitee’s counsel has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of such Claim, (iii) after a Change in Control, Indemnitee’s employment of its own counsel has been approved by the Independent Counsel or (iv) the Company shall not in fact have employed counsel to assume or ceases the defense of such Claim, then Indemnitee shall be entitled to retain its own separate counsel (but not more than one law firm plus, if applicable, local counsel in respect of any such Claim) and all Expenses related to such separate counsel shall be borne and paid by the Company within not more than twenty (20) calendar days after any request therefor by Indemnitee.

9.Procedure Upon Application for Indemnification.  In order to obtain indemnification pursuant to this Agreement, Indemnitee shall submit to the Company a written request therefor, including in such request such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Claim.  Indemnification shall be made insofar as the Company determines, in accordance with Section 10 below, that Indemnitee is entitled to indemnification hereunder.

10.Determination of Right to Indemnification.

(a)Mandatory Indemnification; Indemnification as a Witness.

(i)Mandatory Indemnification.  To the extent that Indemnitee shall have been successful on the merits or otherwise in defense of any Claim constituting or relating to an Indemnifiable Event or any portion thereof or in defense of any issue or matter therein, including without limitation dismissal without prejudice or settlement of the Claim (subject to the terms of Section 12 below), Indemnitee shall be indemnified against all Losses relating to such Claim in accordance with Section 3 to the fullest extent allowable by law.

(ii)Indemnification as a Witness.  To the extent that Indemnitee’s involvement in a Claim relating to an Indemnifiable Event is to prepare to serve and serve as a witness, and not as a party, the Indemnitee shall be indemnified against all Losses and Expenses incurred in connection therewith to the fullest extent allowable by law.

(b)Standard of Conduct.  To the extent that the provisions of Section 10(a) are inapplicable to a Claim related to an Indemnifiable Event 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 to indemnification of Indemnitee hereunder against Losses relating to or arising out of or in connection with such Claim and any determination that Expense Advances must be repaid to the Company (a “Standard of Conduct Determination”) shall be made as follows:

(i)if no Change in Control has occurred, (A) by a majority vote of the Disinterested Directors, even if less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum 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

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(ii)if a Change in Control shall have occurred, (A) if the Indemnitee so requests in writing, by a majority vote of the Disinterested Directors, even if less than a quorum of the Board or (B) otherwise, by Independent Counsel in a written opinion addressed to the Board, a copy of which shall be delivered to Indemnitee. 

The Company shall indemnify and hold harmless Indemnitee against and, if requested by Indemnitee, shall reimburse Indemnitee for, or advance to Indemnitee, within twenty (20) calendar days of such request, any and all Expenses incurred by Indemnitee in cooperating with the Person or Persons making such Standard of Conduct Determination.  

(c)Making the Standard of Conduct Determination.  The Company shall use its reasonable best efforts to cause any Standard of Conduct Determination required under Section 10(b) to be made as promptly as practicable.  If the Person or Persons designated to make the Standard of Conduct Determination under Section 10(b) shall not have made a determination within thirty (30) calendar days after the later of (A) receipt by the Company of a written request from Indemnitee for indemnification pursuant to Section 9 (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, then Indemnitee shall be deemed to have satisfied the applicable standard of conduct, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a final judicial determination that any or all such indemnification is expressly prohibited under applicable law; provided, however, that such thirty (30) calendar day period may be extended for a reasonable time, not to exceed an additional fifteen (15) calendar days, if the Person or Persons making such determination in good faith requires such additional time to obtain or evaluate information relating thereto.  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 Claim.

(d)Payment of Indemnification.  If, in regard to any Losses:

(i)Indemnitee shall be entitled to indemnification pursuant to Section 10(a);

(ii)no Standard of Conduct Determination is legally required as a condition to indemnification of Indemnitee hereunder; or

(iii)Indemnitee has been determined or deemed, pursuant to Section 10(b) or Section 10(c), to have satisfied the Standard of Conduct Determination;

Then, the Company shall pay to Indemnitee, within twenty (20) calendar days after the later of (A) the Notification Date or (B) the earliest date on which the applicable criterion specified in clause (i), (ii) or (iii) is satisfied, an amount equal to such Losses.

(e)Selection of Independent Counsel for Standard of Conduct Determination.  If a Standard of Conduct Determination is to be made by Independent Counsel pursuant to Section 10(b)(i), the Independent Counsel shall be selected by the Board of Directors, and the Company shall give written notice to Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected.  If a Standard of Conduct Determination is to be made by the Independent Counsel pursuant to Section 10(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 ten (10) calendar 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 2 above, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the individual 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, the introductory clause of this sentence and 

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numbered 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 10(e) to make the Standard of Conduct Determination shall have been selected within twenty (20) calendar days after the Company gives its initial notice pursuant to the first sentence of this Section 10(e) or Indemnitee gives its initial notice pursuant to the second sentence of this Section 10(e), as the case may be, either the Company or Indemnitee may petition the Delaware Court to resolve any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or to appoint as Independent Counsel an individual or firm to be selected by the Court or such other person as the Court shall designate, and the individual or firm with respect to whom all objections are so resolved or the individual 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 10(b) and shall fully indemnify and hold harmless such Independent Counsel against any and all expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.   

(f)Presumptions and Defenses.

(i)Indemnitee’s Entitlement to Indemnification.  In making any Standard of Conduct Determination, the Person or Persons making such determination shall presume that Indemnitee has satisfied the applicable standard of conduct and is entitled to indemnification, and the Company shall have the burden of proof to overcome that presumption and establish that Indemnitee is not so entitled.  Any Standard of Conduct Determination that is adverse to Indemnitee may be challenged by the Indemnitee in the Delaware Court.  No determination by the Company (including by its directors or any Independent Counsel) that Indemnitee has not satisfied any applicable standard of conduct or failure by the Company to reach such a determination may be used as a defense to any legal proceedings brought by Indemnitee to secure 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.

(ii)Reliance as a Safe Harbor.  For purposes of this Agreement, and without creating any presumption as to a lack of good faith if the following circumstances do not exist, Indemnitee shall be deemed to have acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company, if Indemnitee’s actions or omissions to act are taken in good faith reliance upon the records of the Company, including its financial statements, or upon information, opinions, reports or statements furnished to Indemnitee by the officers or employees of the Company or any of its subsidiaries in the course of their duties, or by committees of the Board or by any other Person (including legal counsel, accountants and financial advisors) as to matters Indemnitee reasonably believes are within such other Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company.  In addition, the knowledge and/or actions, or failures to act, of any director, officer, agent or employee of the Company shall not be imputed to Indemnitee for purposes of determining the right to indemnity hereunder.

(iii)No Other Presumptions.  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 have any particular belief, or that indemnification hereunder is otherwise not permitted.

(iv)Defense to Indemnification and Burden of Proof.  It shall be a defense to any action brought by Indemnitee against the Company to enforce this Agreement (other than an action brought to enforce a claim for Losses incurred in defending against a Claim related to an Indemnifiable Event in advance of its final disposition) that it is not permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed.  In connection with any such action or any related Standard of Conduct Determination, the burden of proving such a defense or that the Indemnitee did not satisfy the applicable standard of conduct shall be on the Company.

(v)Resolution of Claims.  The Company acknowledges that a settlement or other disposition short of final judgment may be successful on the merits or otherwise for purposes of Section 10(a)(i) if it permits a party to avoid expense, delay, distraction, disruption and uncertainty.  In the event that any Claim relating to an Indemnifiable Event to which Indemnitee is a party is resolved in any manner other than by adverse judgment 

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against Indemnitee (including, without limitation, settlement of such Claim, action or proceeding, with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise for purposes of Section 10(a)(i) above.  The Company shall have the burden of proof to overcome this presumption. 

11.Exclusions from Indemnification.  Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated to:

(a)indemnify or advance funds to Indemnitee for Expenses or Losses with respect to proceedings initiated by Indemnitee, including any proceedings against the Company or its directors, officers, employees or other indemnitees and not by way of defense, except:

(i)proceedings referenced in Section 5 above (unless a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous); or

(ii)where the Company has joined in or the Board has consented to the initiation of such proceedings.

(b)indemnify Indemnitee if a final decision by a court of competent jurisdiction determines that such indemnification is prohibited by applicable law.

(c)indemnify Indemnitee for the disgorgement of profits arising from the purchase or sale by Indemnitee of securities of the Company in violation of Section 16(b) of the Exchange Act, or any similar successor statute, or state or other law.

(d)indemnify or advance funds to Indemnitee for Indemnitee’s reimbursement to the Company of any bonus or other incentive-based or equity-based compensation previously received by Indemnitee or payment of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements under Section 304 of the Sarbanes-Oxley Act of 2002 in connection with an accounting restatement of the Company or the payment to the Company of profits arising from the purchase or sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act).

12.Settlement of Claims.  The Company shall not be liable to Indemnitee under this Agreement for any amounts paid in settlement of any threatened or pending Claim related to an Indemnifiable Event effectuated without the Company’s prior written consent, which written consent shall not be unreasonably withheld or delayed by the Company.  The Company shall not settle any Claim related to an Indemnifiable Event in any manner that would impose any Losses on the Indemnitee without the Indemnitee’s prior written consent.  The Company shall not, without the prior written consent of Indemnitee, effect any settlement of any Claim relating to an Indemnifiable Event 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 all claims and allegations that are the subject matter of such Claim.

13.Duration.  All agreements and obligations of the Company contained herein shall continue during the period that Indemnitee is a director, officer, employee or agent of the Company or any subsidiary of the Company (or is serving at the request of the Company as a director, officer, employee, member, trustee or agent of another Enterprise) and shall continue thereafter (i) so long as Indemnitee may be subject to any possible Claim relating to an Indemnifiable Event (including any rights of appeal thereto), and (ii) throughout the pendency of any proceeding (including any rights of appeal thereto) commenced by Indemnitee to enforce or interpret his or her rights under this Agreement, even if, in either case, he or she may have ceased to serve in such capacity at the time of any such Claim or proceeding.

14.Non-Exclusivity.  The rights of Indemnitee hereunder will be in addition to any other rights Indemnitee may have under the Constituent Documents, the laws of the State of Delaware, any other contract or otherwise (collectively, “Other Indemnity Provisions”); provided, however, that (a) to the extent that Indemnitee otherwise would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee will be deemed to have such greater right hereunder and (b) to the extent that any change is made to any Other Indemnity 

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Provision which permits any greater right or rights to indemnification than that provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater right or rights hereunder.  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. 

15.Liability Insurance.  For the duration of Indemnitee’s service as a director or officer of the Company, and thereafter for so long as Indemnitee shall be subject to any pending Claim relating to an Indemnifiable Event, the Company shall use commercially reasonable efforts (taking into account the scope and amount of coverage available relative to the cost thereof) to continue to maintain in effect policies of directors’ and officers’ liability insurance providing coverage 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.  The insurance provided pursuant to this Section 15 shall be primary insurance to the Indemnitee for any Indemnifiable Event and/or Expense to which such insurance applies.  In all policies of directors’ and officers’ liability insurance maintained by the Company, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are provided to the most favorably insured of the Company’s directors, if Indemnitee is a director, or of the Company’s officers, if Indemnitee is an officer by such policy.  Upon request, the Company will provide to Indemnitee copies of all directors’ and officers’ liability insurance applications, binders, policies, declarations, endorsements and other related materials.

16.No Duplication of Payments.  The Company shall not be liable under this Agreement to make any payment to Indemnitee in respect of any Losses to the extent Indemnitee has otherwise received payment under any insurance policy, the Constituent Documents, Other Indemnity Provisions or otherwise of the amounts otherwise (including from another Enterprise) indemnifiable by the Company hereunder.

17.Subrogation.  In the event of payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee.  Indemnitee shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 

18.Amendments; Waivers.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.  No waiver of any of the provisions of this Agreement shall be binding unless in the form of a writing signed by the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.  Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver thereof.

19.Enforcement and Binding Effect.  

(a)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 as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

(b)Without limiting any of the rights of Indemnitee under any Other Indemnity Provisions as they may be amended from time to time, 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.

(c)This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company), assigns, spouses, heirs and personal and legal representatives.  The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part of the business and/or assets of the Company, by written agreement in form and substances satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

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20.Severability.  The provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any portion thereof) are held by a court of competent jurisdiction to be invalid, illegal, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to the fullest extent permitted by law.  Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 

21.Notices.  All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand, against receipt, or mailed, by postage prepaid, certified or registered mail:

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

(b)if to the Company, to:

First Foundation, Inc.

Attn:  Chief Financial Officer 

18101 Von Karman Avenue, Suite 700,

Irvine, CA 92612

Notice of change of address shall be effective only when given in accordance with this Section.  All notices complying with this Section shall be deemed to have been received on the date of hand delivery or on the third business day after mailing.

22.Governing Law and Forum.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in such state without giving effect to its principles of conflicts of laws.  The Company and Indemnitee hereby irrevocably and unconditionally: (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States or any other country, (b) 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 and (c) waive, and agree not to plead or make, any claim that the Delaware Court lacks venue or that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

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

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

(Remainder of Page Intentionally Left Blank;
Signatures of Parties Follow on Next Page.)

 

 

 

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

COMPANY:

FIRST FOUNDATION INC., A Delaware corporation

By:

Name: 

Its:

INDEMNITEE:

 

 

 

(Signature)

 

(Print Name)

Address:

 

 

(Signature Page of Indemnification Agreement)

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