Document:

exv10w29

EXHIBIT 10.29

[LETTERHEAD OF ABITIBIBOWATER INC.]

February 7, 2011

John Lafave

Re: Employment agreement between John Lafave and AbitibiBowater Inc.

Dear John,

This letter will serve to confirm your new position of Senior Vice President, Pulp and Paper Sales
and Marketing in the post-emergence AbitibiBowater Inc.

The terms and conditions of your employment are as follows:

	 	 	 
	Location:

	 	Montreal, Quebec, Canada
	 
	 	 
	Effective date:

	 	January 17, 2011
	 
	 	 
	Compensation:

	 	Your annual base salary will be US$300,000.
	 
	 	 
	Short-Term Incentive Plan (STIP):

	 	You will be eligible to participate in a
short-term incentive plan for the year
2011, with a target level of 100% of
base salary. Please refer to the
documentation enclosed.
	 
	 	 
	Long-Term Incentive Plan (LTIP):

	 	You will be eligible to participate in
the Company’s long-term incentive plan
and to receive grants under such plan,
as determined by the Board of Directors
from time to time, at its discretion.
For 2011, you will be eligible to an
annual grant equivalent to 125% of your
annual base salary. The LTIP plan will
be available shortly.

Other benefits:

As per policy, you will maintain participation in various benefit plans such as group insurance.
You will be entitled to 5 weeks of vacation per year as of the 2011 calendar year.

 

 

Defined Contributions (DC) retirement program for executive employees:

As regards pension benefits, you will continue to participate in the new Company’s defined
contributions (DC) retirement program for executive employees at the following levels of
contribution:

	 	 	 
	Employee	 	 
	Contributions	 	Company Contributions
	5% of eligible earnings*
	 	20.5% of eligible earnings

 

			
	*	 	Up to the US compensation limit

Please refer to the documentation enclosed.

			
	Perquisite allowance:	 	You will be eligible for a perquisite allowance of US$12,000 per year as well
as a complete annual medical examination.

Severance:

You will be covered by the Company’s severance policy for the Chief Executive Officer and his
direct reports. Pursuant to this policy, you will be entitled to six weeks of eligible pay per
year of continuous service, with a minimum of 52 weeks and up to a maximum of 104 weeks. For a
period of 12 months following a “change in control”, the severance pay is available in the event of
involuntary termination or voluntary termination for a “good reason”. The emergence of the Company
from creditor protection and all related transactions will not constitute a change in control for
the purpose of this policy. Please refer to the documentation enclosed.

Prior agreements:

As previously communicated, all your pre-emergence management agreements with the Company have been
repudiated as of the date of emergence.

 

 

We are excited about the outlook of the newly emerged company and look forward to your continued
leadership.

/s/ Richard Garneau

Richard Garneau

President and Chief Executive Officer

To indicate your acceptance of this employment offer, please sign in the space provided below and
return an original to Julie McMahon by February 14, 2011.

I have read the present employment agreement and hereby accept the terms and conditions of my
employment contract with AbitibiBowater Inc. as described herein.

	 	 	 

	/s/ John Lafave
	 	February 14, 2011
	 

John Lafave
	 	 

Enclosuresexv10w31

EXHIBIT
10.31

FORM OF INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made as of ______, 2010 by and
between ABITIBIBOWATER INC., a Delaware corporation (the
“Corporation”), and ______ (“Indemnitee”).

RECITALS

     WHEREAS, Indemnitee performs a valuable service for the Corporation;

     WHEREAS, the Third Amended and Certificate of Incorporation of the Corporation, effective as
of ______, 2010, as the same has been or may be amended from time to time (the “Certificate of
Incorporation”) provides that the Corporation shall indemnify the officers and directors of the
Corporation to the fullest extent permitted by Section 145 of the Delaware General Corporation Law
(“DGCL”);

     WHEREAS, the Certificate of Incorporation and the DGCL expressly provide that the
indemnification provisions set forth therein are not exclusive, and thereby contemplate that
agreements may be entered into between the Corporation and members of the Board of Directors of the
Corporation (the “Board”) and officers with respect to indemnification;

     WHEREAS, it is reasonable and prudent for the Corporation contractually to obligate itself to
indemnify, hold harmless and exonerate, and to advance expenses on behalf of, the Indemnitee to the
fullest extent permitted by law so that the Indemnitee will serve or continue to serve the
Corporation free from undue concern that the Indemnitee will not be indemnified, held harmless or
exonerated; and

     WHEREAS, this Agreement is separate and independent of the Certificate of Incorporation and
any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder, nor shall the existence of any rights
under the Certificate of Incorporation, the Corporation’s By-Laws (the “By-Laws”) (as
either may be amended from time to time) or any other agreement be deemed a substitute therefor,
nor to diminish or abrogate any rights of Indemnitee under this Agreement.

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

     1. Services to the Corporation. Indemnitee will serve or continue to serve, at the
will of the Corporation or under separate contract, if such exists, as an officer and/or director
of the Corporation for so long as Indemnitee is duly elected or appointed and qualified in
accordance with the Certificate of Incorporation and By-Laws or until Indemnitee tenders his or her
resignation. If Indemnitee is an employee at will of the Corporation, nothing herein shall change
such employee’s status as an employee at will.

     2. Definitions. As used in this Agreement:

 

 

          (a) The terms “Beneficial Owner” and “Beneficial Ownership” shall have the
meaning set forth in Rule 13d-3 promulgated under the Exchange Act (as defined below) as in effect
on the date hereof.

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

               (i) Acquisition of Stock by Third Party. Any Person (as defined below) is or becomes
the Beneficial Owner, directly or indirectly, of securities of the Corporation representing 20% or
more of the combined voting power of the Corporation’s then outstanding securities entitled to vote
generally in the election of directors, unless (1) the change in the relative Beneficial Ownership
of the Corporation’s securities by any Person results solely from a reduction in the aggregate
number of outstanding shares of securities entitled to vote generally in the election of directors
or (2) such acquisition was approved in advance by the Continuing Directors and such acquisition
would not constitute a Change in Control under part (iii) of this definition;

               (ii) Change in Board of Directors. Individuals who, as of the date hereof, constitute
the Board, and any new director (other than a director designated by a person who has entered into
an agreement with the Corporation to effect a Change in Control) whose election by the Board or
nomination for election by the Corporation’s stockholders was approved by a vote of a majority 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 (collectively, the
“Continuing Directors”), cease for any reason to constitute at least a majority of the
members of the Board;

               (iii) Corporate Transactions. The effective date of any reorganization, merger or
consolidation involving the Corporation (a “Business Combination”), in each case, unless,
immediately following such Business Combination: (1) all or substantially all of the individuals
and entities who were the Beneficial Owners of securities entitled to vote generally in the
election of directors immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 51% of the combined voting power of the then outstanding securities of the
Corporation entitled to vote generally in the election of directors resulting from such Business
Combination (including, without limitation, a corporation which as a result of such transaction
owns the Corporation or all or substantially all of the Corporation’s assets either directly or
through one or more Subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the securities entitled to vote generally in the
election of directors; (2) no Person (excluding any corporation resulting from such Business
Combination) is the Beneficial Owner, directly or indirectly, of 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 (3) at least a majority of the Board of Directors of the corporation resulting
from such Business Combination were Continuing Directors at the time of the execution of the
initial agreement, or of the action of the Board of Directors, providing for such Business
Combination;

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               (iv) Liquidation. The approval by the stockholders of the Corporation of a complete
liquidation of the Corporation, or an agreement or series of agreements for the sale or disposition
by the Corporation of all or substantially all of the Corporation’s assets, other than factoring
the Corporation’s current receivables or escrows due (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); or

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

          (c) “Covered Capacity” means present or former status as a director, officer, trustee,
general partner, managing member or fiduciary of the Corporation, any Subsidiary or any other
corporation, partnership, limited liability company, joint venture, trust or other enterprise at
the request of, for the convenience of or to represent the interests of the Corporation or any
Subsidiary.

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

          (e) “Disinterested Director” shall mean a director of the Corporation who is not and
was not a party to the Proceeding for which indemnification or hold harmless or exoneration rights
is sought by Indemnitee.

          (f) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

          (g) “Expenses” shall include all direct and indirect costs, fees and expenses of any
type or nature whatsoever, including, without limitation, all attorneys’ fees and costs, retainers,
court costs, transcript costs, fees of experts, witness fees, travel expenses, fees of private
investigators and professional advisors, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, fax transmission charges, secretarial services and all
other disbursements, obligations or expenses in connection with prosecuting, defending, preparing
to prosecute or defend, investigating, being or preparing to be a witness in, settlement or appeal
of, or otherwise participating in, a Proceeding, including reasonable compensation for time spent
by the Indemnitee for which he or she is not otherwise compensated by the Corporation or any third
party. Expenses also shall include Expenses incurred in connection with any appeal resulting from
any Proceeding, including without limitation the principal, premium, security for and other costs
relating to any cost bond, supersedeas bond or other appeal bond or its equivalent and any federal,
state, local or foreign taxes imposed on the Indemnitee as a result of the actual or deemed receipt
of any payments under this Agreement. Expenses, however, shall not include amounts paid in
settlement by Indemnitee or the amount of judgments, penalties or fines against Indemnitee, other
than excise taxes and penalties paid under the Employee Retirement Income Security Act of 1974, as
amended.

          (h) “Independent Counsel” shall mean a law firm, or a member of a law firm, with
significant experience in matters of corporation law and neither presently is, nor in the past

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five years has been, retained to represent: (i) the Corporation or Indemnitee in any matter
material to either such party (other than with respect to matters concerning Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification or to be held harmless or
exonerated 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 Corporation or Indemnitee in an action
to determine Indemnitee’s rights under this Agreement.

          (i) A person who acted in good faith and in a manner he or she reasonably believed to be in
the best interests of the participants and beneficiaries of an employee benefit plan shall be
deemed to have acted in a manner “not opposed to the best interests of the Corporation” as
referred to in this Agreement.

          (j) The term “Person” shall have the meaning set forth in Sections 13(d) and 14(d) of
the Exchange Act as in effect on the date hereof; provided, however, that “Person”
shall exclude: (i) the Corporation; (ii) any Subsidiary of the Corporation; (iii) any employment
benefit plan of the Corporation or of a Subsidiary of the Corporation or of any corporation owned,
directly or indirectly, by the stockholders of the Corporation in substantially the same
proportions as their ownership of stock of the Corporation; and (iv) any trustee or other fiduciary
holding securities under an employee benefit plan of the Corporation or of a Subsidiary of the
Corporation or of a corporation owned directly or indirectly by the stockholders of the Corporation
in substantially the same proportions as their ownership of stock of the Corporation.

          (k) A “Potential Change in Control” shall be deemed to have occurred if: (i) the
Corporation enters into an agreement or arrangement, the consummation of which would result in the
occurrence of a Change in Control; (ii) any Person or the Corporation publicly announces an
intention to take or consider taking actions which if consummated would constitute a Change in
Control; (iii) any Person who is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Corporation representing 5% or more of the combined voting power of the
Corporation’s then outstanding securities entitled to vote generally in the election of directors
increases his or her Beneficial Ownership of such securities by 5% or more over the percentage so
owned by such Person on the date hereof unless such acquisition was approved in advance by the
Board; or (iv) the Board adopts a resolution to the effect that, for purposes of this Agreement, a
Potential Change in Control has occurred.

          (l) The term “Proceeding” shall include any threatened, pending or completed action,
suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry,
administrative hearing or any other actual, threatened or completed proceeding, whether brought by
or in the right of the Corporation, another Person or otherwise and whether of a civil, criminal,
administrative or investigative nature, in which Indemnitee was, is, will or might be involved as a
party or otherwise by reason of the fact that Indemnitee is or was serving in a Covered Capacity,
by reason of any action taken (or failure to act) by him or her or of any action (or failure to
act) on his or her part while serving in a Covered Capacity, in each case whether or not serving in
such capacity at the time any liability or expense is incurred for which indemnification or a right
to be held harmless or exonerated or for reimbursement or

4

 

advancement of expenses can be provided under this Agreement, including any such proceedings
or matters pending on or before the date of this Agreement.

          (m) References to “serving at the request of the Corporation” shall include any
service as a director, officer, employee, agent or fiduciary of the Corporation which imposes
duties on or involves services by, such director, officer, employee, agent or fiduciary with
respect to an employee benefit plan, its participants or beneficiaries.

          (n) In connection with any merger or consolidation, references to “the Corporation”
shall include not only the resulting or surviving corporation but also any constituent corporation
or any constituent of a constituent corporation, which, if its separate existence had continued,
would have had power and authority to indemnify, hold harmless or exonerate its directors or
officers and employees or agents. The intent of this provision is that a person who is or was a
director of such constituent corporation after the date hereof or is or was serving at the request
of such constituent corporation as a director, officer, employee, trustee or agent of another
corporation, partnership, joint venture, trust, employee benefit plan or other enterprise after the
date hereof, shall stand in the same position under this Agreement with respect to the resulting or
surviving corporation as the person would have under this Agreement with respect to such
constituent corporation if its separate existence had continued.

          (o) The term “Subsidiary” shall mean any corporation or other entity of which a
majority of the voting power of the voting equity securities or equity interest is owned, directly
or indirectly, by that corporation or entity.

          (p) The meaning of the phrase “to the fullest extent permitted by law” shall include,
but not be limited to:

               (i) to the fullest extent permitted by the provision of the DGCL that authorizes or
contemplates additional indemnification or rights to be held harmless or exonerated by agreement or
the corresponding provision or provisions of any amendment to or replacement of the DGCL; and

               (ii) to the fullest extent authorized or permitted by any amendments to or replacements of the
DGCL adopted after the date of this Agreement that increase the extent to which a corporation may
indemnify, hold harmless or exonerate its officers, directors and/or key employees.

          (q) The following terms shall have the meanings given them in the Sections indicated below:

	 	 	 
	Term	 	Section
	Agreement

	 	Preamble
	Board

	 	Recitals
	By-Laws

	 	Recitals
	Certificate of Incorporation

	 	Recitals
	Continuing Directors

	 	Section 2(b)(ii)
	Corporation

	 	Preamble

5

 

	 	 	 
	Term	 	Section
	DGCL

	 	Recitals
	Indemnitee

	 	Preamble
	Section 409A

	 	Section 15

     3. Indemnification.

          (a) The Corporation shall indemnify, hold harmless and exonerate Indemnitee in accordance with
the provisions of this Section 3(a) when Indemnitee was, is or is threatened to be made, a party to
or is otherwise involved in any Proceeding (other than a Proceeding by or in the right of the
Corporation to procure a judgment in its favor). Pursuant to this Section 3(a), Indemnitee shall
be indemnified, held harmless and exonerated against all Expenses, judgments, liabilities, losses,
fines, penalties and amounts paid in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such Expenses, judgments, fines,
penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his
or her behalf in connection with such Proceeding or any claim, issue or matter therein, if, and
only if, Indemnitee 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 Corporation, and, in the case of any criminal Proceeding,
he or she had no reasonable cause to believe his or her conduct was unlawful.

          (b) The Corporation shall indemnify, hold harmless and exonerate Indemnitee in accordance with
the provisions of this Section 3(b) when Indemnitee was, is or is threatened to be made, a party to
or is otherwise involved in any Proceeding by or in the right of the Corporation to procure a
judgment in its favor. Pursuant to this Section 3(b), Indemnitee shall be indemnified, held
harmless and exonerated against all Expenses actually and reasonably incurred by Indemnitee or on
his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if, and
only if, Indemnitee 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 Corporation. No indemnification for or rights to be held
harmless or exonerated from Expenses shall be made under this Section 3(b) in respect of any claim,
issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to
the Corporation, unless and only to the extent that the court in which the Proceeding was brought
or the Delaware Court shall determine upon application that, despite the adjudication of liability
but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnification or to be held harmless or exonerated.

          (c) Any indemnification under this Section 3 (unless otherwise ordered by a court) shall be
made by the Corporation in accordance with the procedures set forth in Sections 7, 8 and 9 hereof.

          (d) Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a
party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or
with respect to any claim, issue or matter therein, in whole or in part, the Corporation shall
indemnify for and hold harmless and exonerate Indemnitee against all Expenses actually and
reasonably incurred by him or her in connection therewith. If Indemnitee is not wholly successful
in such Proceeding but is successful, on the merits or otherwise, as to

6

 

one or more but less than all claims, issues or matters in such Proceeding, the Corporation
shall indemnify for and hold harmless and exonerate Indemnitee against all Expenses actually and
reasonably incurred by him or her or on his or her behalf in connection with each successfully
resolved claim, issue or matter. For purposes of this Section 3(d) and without limitation, the
termination of any claim, issue or matter in such a Proceeding by dismissal, with or without
prejudice, or the settlement of any claim, issue or matter in such a Proceeding without admission
of liability, shall be deemed to be a successful result as to such claim, issue or matter. If the
Indemnitee is not wholly successful in such Proceeding but is partially successful, the Corporation
also shall indemnify for and hold harmless and exonerate Indemnitee against all Expenses reasonably
incurred in connection with a claim, issue or matter related to any claim, issue or matter on which
the Indemnitee was successful.

          (e) Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is,
by reason of his Covered Capacity, a witness in any Proceeding to which Indemnitee is not a party,
he or she shall be indemnified for and held harmless and exonerated against all Expenses actually
and reasonably incurred by him or her or on his or her behalf in connection therewith.

     4. Additional Indemnification Rights.

          (a) Notwithstanding any limitation in Section 3 of this Agreement, the Corporation shall
indemnify, hold harmless and exonerate Indemnitee to the fullest extent permitted by law if
Indemnitee was, is or is threatened to be made, a party to or is otherwise involved in any
Proceeding (including a Proceeding by or in the right of the Corporation to procure a judgment in
its favor) against all Expenses, judgments, fines, penalties and amounts paid in settlement
(including all interest, assessments and other charges paid or payable in connection with or in
respect of such Expenses, judgments, fines, penalties and amounts paid in settlement) actually and
reasonably incurred by Indemnitee in connection with the Proceeding. No indemnification shall be
made, and the Indemnitee shall not be held harmless or exonerated, under this Section 4(a) on
account of Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty to the
Corporation or its stockholders or is an act or omission not in good faith or which involves
intentional misconduct or a knowing violation of the law.

     5. Contribution in the Event of Joint Liability.

          (a) To the fullest extent permitted by law, if the indemnification or rights to be held
harmless or exonerated provided for in this Agreement are unavailable to Indemnitee in whole or in
part for any reason whatsoever, then in any Proceeding in which the Corporation is jointly liable
with Indemnitee (or would be if joined in such Proceeding) the Corporation shall pay, in the first
instance, the entire amount incurred by Indemnitee, whether for judgments, liabilities, fines,
penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in
connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the
Corporation hereby waives and relinquishes any right of contribution it may have at any time
against Indemnitee.

          (b) The Corporation shall not enter into any settlement with respect to any claim for which
Indemnitee may be entitled to indemnification or hold harmless or exoneration

7

 

rights hereunder without the prior written consent of Indemnitee unless such settlement
provides for a full and final release of all claims asserted against Indemnitee. The Corporation
shall not be liable to Indemnitee under this Agreement for amounts paid in settlement of any
Proceeding effected without the Corporation’s prior written consent. Neither the Corporation nor
Indemnitee shall unreasonably withhold consent to any proposed settlement; provided,
however, that Indemnitee may withhold consent to any settlement that does not provide full,
final, complete and unconditional release.

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

     6. Exclusions. Notwithstanding any other provision in this Agreement, the Corporation
shall not be obligated under this Agreement to make any indemnification or to hold harmless or
exonerate the Indemnitee in connection with any claim made against Indemnitee:

          (a) for which payment has actually been received by or on behalf of Indemnitee under any
insurance policy or other indemnity provision or agreement (other than this Agreement), either by
the Corporation or otherwise, except with respect to any excess beyond the amount actually received
under any insurance policy, contract, agreement, other indemnity provision or otherwise;

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

          (c) except as otherwise provided in Sections 11(e) and (f) hereof, prior to a Change in
Control, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
and not brought by way of defense, including any Proceeding (or any part of any Proceeding)
initiated by Indemnitee against the Corporation or its directors, officers, employees or other
indemnitees, unless (i) the Board of Directors of the Corporation authorized the Proceeding (or any
part of any Proceeding) prior to its initiation; (ii) such payment arises in connection with any
mandatory counterclaim or cross-claim that the Indemnitee asserts against the Corporation or its
directors, officers, employees or other indemnitees or any affirmative defense Indemnitee raises or
(iii) the Corporation otherwise provides such indemnification or holds harmless or exonerates the
Indemnitee in its sole discretion, pursuant to the powers vested in the Corporation under
applicable law;

          (d) for the payment of amounts required to be reimbursed to the Corporation pursuant to
Section 304 of the Sarbanes-Oxley Act of 2002, as amended, Section 10D of the Exchange Act or any
similar successor statute; or

          (e) for any payment to Indemnitee that is finally determined to be unlawful under the
procedures and subject to the presumptions of this Agreement.

8

 

     7. Advances of Expenses; Defense of Claim.

          (a) Notwithstanding any provision of this Agreement to the contrary, and to the fullest extent
permitted by law, the Corporation shall advance to Indemnitee the Expenses incurred by Indemnitee
in connection with any Proceeding. The Corporation will advance such Expenses within 30 days after
the receipt by the Corporation from Indemnitee of a statement or statements requesting such
advances from time to time, whether prior to or after final disposition of any Proceeding. The
statement(s) shall be in a form reasonably acceptable to the Corporation and shall set forth in
reasonable detail the Expenses to be advanced. All advances shall be unsecured and interest free.
Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without
regard to Indemnitee’s ultimate entitlement to be indemnified, held harmless or exonerated under
the other provisions of this Agreement. Advances shall include any and all reasonable Expenses
incurred pursuing a Proceeding to enforce this right of advancement, including Expenses incurred
preparing and forwarding statement(s) to the Corporation to support the advances claimed. The
Indemnitee shall qualify for advances, to the fullest extent permitted by law, solely upon the
execution and delivery to the Corporation of an Undertaking in the form of Exhibit A
hereto, providing that Indemnitee undertakes to repay the advance to the extent that it is
ultimately determined that Indemnitee is not entitled to be indemnified, held harmless or
exonerated by the Corporation under the provisions of this Agreement, the Certificate of
Incorporation, the By-Laws, applicable law or otherwise. This Section 7(a) shall not apply to any
claim made by Indemnitee for which indemnification or the right to be held harmless or exonerated
is excluded pursuant to Section 6 hereof.

          (b) If the Corporation disputes a portion of the Expenses for which advancement is requested,
the undisputed portion shall be advanced and only the disputed portion withheld pending resolution
of the dispute.

          (c) The Corporation shall be entitled to conduct at its own expense the defense of any
Proceeding for which indemnification or the right to be held harmless or exonerated is sought
hereunder (other than a Proceeding by or in the right of the Corporation to procure a judgment in
its favor); provided, that the Indemnitee may retain separate co-counsel at its sole cost
and expense and participate in the defense of the Proceeding. Notwithstanding the foregoing, the
Corporation shall not have the right to assume control of the defense of any Proceeding and shall
pay the reasonable fees and out-of-pocket expenses of counsel retained by the Indemnitee with
respect to such Proceeding if: (i) the Corporation does not conduct the defense of the Proceeding
with reasonable diligence; or (ii) the Proceeding (1) seeks non-monetary, equitable or injunctive
relief, (2) alleges violations of criminal law or (3) includes as the named parties in any such
Proceeding both the Indemnitee and the Corporation and the Indemnitee reasonably determines that
representation by both parties by the same counsel would be prohibited by applicable codes of
professional conduct. If the Corporation has assumed such defense as provided in this Section
7(c), the Corporation will not be liable for any legal expenses subsequently incurred by any
Indemnitee in connection with the defense of such Proceeding (other than a Proceeding by or in the
right of the Corporation to procure a judgment in its favor). If the Corporation does not assume
the defense of any Proceeding in accordance with this Section 7(c), the Indemnitee may continue to
defend such claim at the reasonable cost of the Corporation and the Corporation may still
participate in, but not control, the defense of such Proceeding at the Corporation’s sole cost and
expense.

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     8. Procedure for Notification and Application for Indemnification.

          (a) Indemnitee agrees to notify promptly the Corporation in writing upon being served with any
summons, citation, subpoena, complaint, indictment or document relating to any Proceeding or matter
which may be subject to indemnification or a right to be held harmless or exonerated or for
advancement of Expenses covered hereunder. The failure of Indemnitee to so notify or keep the
Corporation generally informed shall not relieve the Corporation of any obligation which it may
have to the Indemnitee under this Agreement or otherwise, unless, and then only to the extent that,
such delay is materially prejudicial to the defense of or against such Proceeding or matter.

          (b) Indemnitee may deliver to the Corporation a written application to indemnify, or to be
held harmless or exonerated in accordance with this Agreement. The Chief Legal Officer of the
Corporation (or in the absence of the Chief Legal Officer, the Corporate Secretary of the
Corporation) shall, promptly upon receipt of such a request for indemnification held harmless or
exoneration, advise the Board in writing that Indemnitee has requested indemnification. Such
application(s) may be delivered from time to time and at such time(s) as Indemnitee deems
appropriate in his or her sole discretion. Following such a written application for indemnification
by Indemnitee, the Indemnitee’s entitlement to indemnification or rights to be held harmless or
exonerated shall be determined in accordance with Section 9(a) of this Agreement.

     9. Procedure upon Application for Indemnification.

          (a) Upon delivery of the written application by Indemnitee for indemnification pursuant to
Section 8(b) of this Agreement, a determination, if required by applicable law, with respect to
Indemnitee’s entitlement thereto shall be made in the specific case by one of the following
methods: (i) if a Change in Control shall have occurred, by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in
Control shall not have occurred, (1) by a majority vote of the Disinterested Directors (provided
there is a minimum of three Disinterested Directors), even though less than a quorum of the Board,
(2) by a committee of Disinterested Directors designated by a majority vote of the Disinterested
Directors (provided there is a minimum of three Disinterested Directors), even though less than a
quorum of the Board or (3) if there are fewer than three Disinterested Directors or, if such
Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy
of which shall be delivered to Indemnitee. The Corporation will promptly advise Indemnitee in
writing with respect to any determination that Indemnitee is or is not entitled to indemnification
or to be held harmless or exonerated, including a description of any reason or basis for which
indemnification or the right to be held harmless or exonerated has been denied. If it is so
determined that Indemnitee is entitled to indemnification or to be held harmless or exonerated,
payment to Indemnitee shall be made within 30 days after such determination. Indemnitee shall
reasonably cooperate with the person, persons or entity making such determination with respect to
Indemnitee’s entitlement to indemnification or to be held harmless or exonerated, including
providing to such person, persons or entity upon reasonable advance request any documentation or
information which is not privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination. Any Expenses (including
attorneys’ fees and

10

 

disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity
making such determination shall be borne by the Corporation (irrespective of the determination as
to Indemnitee’s entitlement to indemnification or to be held harmless or be exonerated) and the
Corporation hereby indemnifies, holds harmless and exonerates Indemnitee therefrom.

          (b) If the determination of entitlement to indemnification or to be held harmless or to be
exonerated is to be made by Independent Counsel pursuant to Section 9(a) hereof, the Independent
Counsel shall be selected as provided in this Section 9(b). If a Change in Control shall not have
occurred, the Independent Counsel shall be selected by Indemnitee, and Indemnitee shall give
written notice to the Corporation advising it of the identity of the Independent Counsel so
selected. The Corporation may, within ten business days after such written notice of selection
shall have been given, deliver to Indemnitee a written objection to such selection;
provided, however, that such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined
in Section 2 of this Agreement, and the objection shall set forth with particularity the factual
basis of such assertion. Absent a proper and timely objection, the person so selected shall act as
Independent Counsel. If such written objection is so made and substantiated, the Independent
Counsel so selected may not serve as Independent Counsel unless and until such objection is
withdrawn or a court of competent jurisdiction has determined that such objection is without merit.
If, within 20 days after submission by Indemnitee of a written request for indemnification or to
be held harmless or exonerated pursuant to Section 8(b) hereof, no Independent Counsel shall have
been selected and not objected to, either the Corporation or Indemnitee may petition the Delaware
Court for resolution of any objection which shall have been made by the Indemnitee to the
Corporation’s selection of Independent Counsel and/or for the appointment as Independent Counsel of
a person selected by the Delaware Court or by such other person as the Delaware Court shall
designate, and the person with respect to whom all objections are so resolved or the person so
appointed shall act as Independent Counsel under Section 9(a) hereof. Upon the due commencement of
any judicial proceeding or arbitration pursuant to Section 11(a) of this Agreement, Independent
Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to
the applicable standards of professional conduct then prevailing).

          (c) The Corporation agrees to pay the reasonable fees and expenses of Independent Counsel and
to fully indemnify such Independent Counsel against any and all Expenses, claims, liabilities and
damages arising out of or relating to this Agreement or its engagement pursuant hereto, other than
for such Independent Counsel’s gross negligence or willful misconduct.

          (d) If the Corporation disputes a portion of the amounts for which indemnification or hold
harmless or exoneration rights are requested, the undisputed portion shall be paid and only the
disputed portion withheld pending resolution of the disputes.

     10. Presumptions and Effect of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification or to be held
harmless or exonerated hereunder, any person or entity making such determination shall presume that
Indemnitee is entitled to indemnification or to be held harmless or exonerated

11

 

under this Agreement if Indemnitee has submitted a request for indemnification or to be held
harmless or exonerated in accordance with Section 8(b) of this Agreement, and the Corporation shall
have the burden of proof to overcome that presumption in connection with the making by any person,
persons or entity of any determination contrary to that presumption. Neither the failure of the
Corporation (including by its directors or Independent Counsel) to have made a determination prior
to the commencement of any action pursuant to this Agreement that indemnification or the right to
be held harmless or exonerated is proper in the circumstances because Indemnitee has met the
applicable standard of conduct, nor an actual determination by the Corporation (including its
directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct,
shall be a defense to the action or create a presumption that Indemnitee has not met the applicable
standard of conduct.

          (b) If the person, persons or entity empowered or selected under Section 9(a) of this
Agreement to determine whether Indemnitee is entitled to indemnification or to be held harmless or
exonerated shall not have made a determination within 30 days after receipt by the Corporation of
the request therefor (or, if such determination is to be made by an Independent Counsel, and if
later, 20 days after the appointment of the Independent Counsel), the requisite determination of
entitlement to indemnification or to be held harmless or exonerated shall be deemed to have been
made and Indemnitee shall be entitled to such indemnification or to be held harmless or exonerated,
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 to be held harmless or exonerated rights; or (ii) a final judicial
determination that any or all such indemnification or the right to be held harmless or exonerated
is expressly prohibited under applicable law; provided, however, that such 30-day
period shall be extended for a reasonable time, not to exceed an additional 30 days, if the person,
persons or entity making the determination with respect to entitlement to indemnification or the
right to be held harmless or exonerated rights in good faith requires such additional time for the
obtaining or evaluating of documentation and/or information relating thereto.

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

          (d) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted
in good faith if Indemnitee’s action is based on the records or books of account of the Corporation
or a Subsidiary, including financial statements, or on information supplied to Indemnitee by the
directors or officers of the Corporation or a Subsidiary in the course of their duties, or on the
advice of legal counsel for the Corporation or a Subsidiary, its Board, any committee of the Board
or any director, or on information or records given or reports made to the Corporation or a
Subsidiary, its Board, any committee of the Board or any director, by an independent certified
public accountant or by an appraiser or other expert selected by the

12

 

Corporation or a Subsidiary, its Board, any committee of the Board or any director. The
provisions of this Section 10(d) shall not be deemed to be exclusive or to limit in any way the
other circumstances in which the Indemnitee may be deemed or found to have met the applicable
standard of conduct set forth in this Agreement.

          (e) The knowledge and/or actions, or failure to act, of any other director, trustee, partner,
managing member, fiduciary, officer, agent or employee of the Corporation or a Subsidiary shall not
be imputed to Indemnitee for purposes of determining the right to indemnification or to be held
harmless or exonerated under this Agreement.

          (f) The Corporation acknowledges that a settlement or other disposition short of final
judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption
and uncertainty. If any Proceeding to which Indemnitee is a party is resolved in any manner other
than by adverse judgment against Indemnitee (including, without limitation, settlement of such
Proceeding with or without payment of money or other consideration) it shall be presumed that
Indemnitee has been successful on the merits or otherwise in such Proceeding. Anyone seeking to
overcome this presumption shall have the burden of proof and the burden of persuasion by clear and
convincing evidence.

     11. Remedies of Indemnitee.

          (a) If (i) a determination is made pursuant to Section 9(a) of this Agreement that Indemnitee
is not entitled to indemnification or to be held harmless or exonerated under this Agreement, (ii)
advancement of Expenses, to the fullest extent permitted by law, is not timely made pursuant to
Section 7 of this Agreement, (iii) no determination of entitlement to indemnification or to be held
harmless or exonerated shall have been made pursuant to Section 9(a) of this Agreement within the
time period specified in Section 10(b) of this Agreement, (iv) payment of Expenses is not made
pursuant to Sections 3(d) or 3(e), 4(a) or the last sentence of Section 9(a) of this Agreement
within 30 days after receipt by the Corporation of a written request therefor, (v) a contribution
payment is not made in a timely manner pursuant to Section 5 of this Agreement or (vi) payment of
indemnification pursuant to Section 3(a), Section 3(b) or Section 4 of this Agreement is not made
within 30 days after a determination has been made that Indemnitee is entitled to indemnification
or to be held harmless or exonerated, Indemnitee shall be entitled to an adjudication by the
Delaware Court of his or her entitlement to such indemnification, the right to be held harmless or
exonerated, contribution or advancement. Alternatively, Indemnitee, in his or her sole discretion,
may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial
Arbitration Rules of the American Arbitration Association. Except as set forth herein, the
provisions of Delaware law (without regard to its conflict of laws rules) shall apply to any such
arbitration. The Corporation shall not oppose Indemnitee’s right to seek any such adjudication or
award in arbitration. The award rendered by such arbitration shall be final and binding upon the
parties hereto, and final judgment on the arbitration award may be entered in any court of
competent jurisdiction.

          (b) Upon the occurrence or non-occurrence of any of the events set forth in Section 11(a) of
this Agreement, any judicial proceeding or arbitration commenced pursuant to this Section 11 shall
be conducted in all respects as a de novo trial, or arbitration, on the merits and
Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial

13

 

proceeding or arbitration commenced pursuant to this Section 11, Indemnitee shall be presumed
to be entitled to be indemnified, held harmless, exonerated and to receive contribution and
advances of Expenses under this Agreement and the Corporation shall have the burden of proving
Indemnitee is not entitled to be indemnified, held harmless or exonerated and to receive advances
of Expenses, as the case may be, and the Corporation may not refer to or introduce into evidence
any determination pursuant to Section 9(a) of this Agreement adverse to Indemnitee for any purpose.
If Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 11,
Indemnitee shall not be required to reimburse the Corporation for any advances pursuant to Section
7 until a final determination is made with respect to Indemnitee’s entitlement to indemnification
or to be held harmless or exonerated (as to which all rights of appeal have been exhausted or
lapsed).

          (c) If a determination shall have been made pursuant to Section 9(a) of this Agreement that
Indemnitee is entitled to indemnification or to be held harmless or exonerated, the Corporation
shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant
to this Section 11, 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 to be held harmless or exonerated; or (ii) a prohibition of
such indemnification or against being held harmless or exonerated under applicable law.

          (d) The Corporation shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 11 that the procedures and presumptions of this
Agreement are not valid, binding and enforceable and shall stipulate in any such court or before
any such arbitrator that the Corporation is bound by all the provisions of this Agreement.

          (e) Pursuant to this Agreement, Corporation shall indemnify, hold harmless and exonerate
Indemnitee to the fullest extent permitted by law, and, if requested by Indemnitee, advance
Expenses which are incurred by Indemnitee in connection with any judicial proceeding or arbitration
brought by Indemnitee (i) to enforce his or her rights under, or to recover damages for breach of,
this Agreement or any other indemnification, advancement or contribution agreement or provision of
the Certificate of Incorporation or the By-Laws now or hereafter in effect; or (ii) for recovery or
advances under any insurance policy maintained by any person for the benefit of Indemnitee.
Expenses subject to Section 11(e) of this Agreement shall be paid by the Corporation regardless of
the outcome of the judicial proceeding or arbitration and regardless of whether Indemnitee
ultimately is determined to be entitled to indemnification, advancement, contribution or insurance
recovery, as the case may be (unless such judicial proceeding or arbitration was not brought by
Indemnitee in good faith).

          (f) Interest shall be paid by the Corporation to Indemnitee at the legal rate under Delaware
law, compounded monthly, commencing with the date on which Indemnitee requests indemnification,
contribution or advancement of any Expenses and ending with the date on which such payment is made
to Indemnitee by the Corporation.

     12. Establishment of Trust. In the event of a Potential Change in Control, the
Corporation shall, upon written request by Indemnitee, create a “Trust” for the benefit of

14

 

Indemnitee and from time to time upon written request of Indemnitee shall fund such Trust in
an amount sufficient to satisfy any and all Expenses reasonably anticipated at the time of each
such request to be incurred in connection with investigating, preparing for, participating in or
defending any Proceedings, and any and all judgments, fines, penalties and amounts paid in
settlement (including all interest, assessments and other charges paid or payable in connection
with or in respect of such judgments, fines penalties and amounts paid in settlement) in connection
with any and all Proceedings from time to time actually paid or claimed, reasonably anticipated or
proposed to be paid. The trustee of the Trust (the “Trustee”) shall be a bank or trust
company or other individual or entity chosen by the Indemnitee and reasonably acceptable to the
Corporation. Nothing in this Section 12 shall relieve the Corporation of any of its obligations
under this Agreement. The amount or amounts to be deposited in the Trust pursuant to the foregoing
funding obligation shall be determined by mutual agreement of the Indemnitee and the Corporation
or, if the Corporation and the Indemnitee are unable to reach such an agreement, by Independent
Counsel selected in accordance with Section 9(b) of this Agreement. The terms of the Trust shall
provide that, except upon the consent of both the Indemnitee and the Corporation, upon a Change in
Control: (a) the Trust shall not be revoked or the principal thereof invaded, without the written
consent of the Indemnitee; (b) the Trustee shall advance, to the fullest extent permitted by law,
within two business days of a request by the Indemnitee and upon the execution and delivery to the
Corporation of an undertaking providing that the Indemnitee undertakes to repay the advance to the
extent that it is ultimately determined that Indemnitee is not entitled to be indemnified, held
harmless or exonerated by the Corporation; (c) the Trust shall continue to be funded by the
Corporation in accordance with the funding obligations set forth above; (d) the Trustee shall
promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to
indemnification or to be held harmless or exonerated pursuant to this Agreement or otherwise; and
(e) all unexpended funds in such Trust shall revert to the Corporation upon mutual agreement by the
Indemnitee and the Corporation or, if the Indemnitee and the Corporation are unable to reach such
an agreement, by Independent Counsel selected in accordance with Section 9(b) of this Agreement,
that the Indemnitee has been fully indemnified, held harmless and exonerated under the terms of
this Agreement. The Trust shall be governed by Delaware law (without regard to its conflicts of
laws rules) and the Trustee shall consent to the exclusive jurisdiction of the Delaware Court in
accordance with Section 21 of this Agreement.

     13. Security. Notwithstanding anything herein to the contrary, to the extent
requested by the Indemnitee and approved by the Board, the Corporation may at any time and from
time to time provide security to the Indemnitee for the Corporation’s obligations hereunder through
an irrevocable bank line of credit, funded trust or other collateral. Any such security, once
provided to the Indemnitee, may not be revoked or released without the prior written consent of the
Indemnitee.

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

          (a) The rights of Indemnitee as provided by this Agreement (i) shall not be deemed exclusive
of any other rights to which Indemnitee may at any time be entitled under applicable law, the
Certificate of Incorporation or the By-Laws, any agreement, a vote of stockholders, a resolution of
directors or otherwise and (ii) shall be enforced and this Agreement shall be interpreted
independently of and without reference to or limitation or constraint (whether

15

 

procedural, substantive or otherwise) by any other such rights to which Indemnitee may at any
time be entitled. No amendment, alteration or repeal of this Agreement or of any provision hereof
shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken
or omitted by such Indemnitee in his or her Covered Capacity prior to such amendment, alteration or
repeal. To the extent that a change in applicable law, whether by statute or judicial decision,
permits greater indemnification or greater rights to be held harmless or exonerated or greater
advancement rights than would be afforded currently under the Certificate of Incorporation, the
By-Laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by
this Agreement the greater benefits so afforded by such change. To the extent that a change in
Delaware law, whether by statute or judicial decision, narrows or limits indemnification, rights to
be held harmless or exonerated or advancement of Expenses than are afforded currently under the
Certificate of Incorporation, the By-Laws and this Agreement, it is the intent of the parties
hereto that such change, except to the extent required by applicable law, shall have no effect on
this Agreement or the parties’ rights and obligations hereunder. No right or remedy herein
conferred is intended to be exclusive of any other right or remedy, and every other right and
remedy shall be cumulative and in addition to every other right and remedy given hereunder or now
or hereafter existing at law, in equity or otherwise. The assertion or employment of any right or
remedy hereunder or otherwise, shall not prevent the concurrent assertion or employment of any
other right or remedy.

          (b) The purchasing or maintaining of insurance or the furnishing of similar protection or the
making of other arrangements including, but not limited to, providing a trust fund, letter of
credit or surety bond on behalf of Indemnitee against any liability in a Covered Capacity whether
or not the Corporation would have the power to indemnify the Indemnitee or to hold harmless or
exonerate the Indemnitee against such liability under the provisions of this Agreement, shall not
in any way limit or affect the rights and obligations of the Corporation or of the Indemnitee under
this Agreement except as expressly provided herein, and the execution and delivery of this
Agreement by the Corporation and the Indemnitee shall not in any way limit or affect the rights and
obligations of the Corporation or the other party or parties thereto under any such arrangement.

          (c) To the extent that the Corporation maintains an insurance policy or policies providing
liability insurance for directors, officers, trustees, partners, managing members, fiduciaries,
employees or agents of the Corporation, any Subsidiary or any other enterprise which such person
serves at the request of the Corporation, Indemnitee shall be covered by such policy or policies in
accordance with its or their terms to the maximum extent of the coverage available for any such
director, trustee, partner, managing member, fiduciary, officer, employee or agent under such
policy or policies. The Corporation shall maintain directors’ and officers’ insurance programs
providing coverage to Indemnitee during the time period Indemnitee serves the Corporation in a
Covered Capacity, and for a period of no less than six years following the conclusion of such
service. If, at the time the Corporation receives notice from any source of a Proceeding as to
which Indemnitee is a party or a participant (as a witness or otherwise), the Corporation has
director and officer liability insurance in effect, the Corporation shall give prompt notice of
such Proceeding to the insurers in accordance with the procedures set forth in the respective
policies. The Corporation shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in
accordance with the terms of such policies.

16

 

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

          (e) The Corporation’s obligation to indemnify, hold harmless, exonerate or advance Expenses
hereunder to Indemnitee who is or was serving at the request of the Corporation as a director,
officer, trustee, partner, managing member, fiduciary, employee or agent of any Subsidiary shall be
reduced by any amount Indemnitee has actually received as payments in respect of indemnification,
the right to be held harmless or exonerated or in respect of advancement of expenses from such
Subsidiary or other enterprise. Notwithstanding any other provision of this Agreement to the
contrary, (i) Indemnitee shall have no obligation to reduce, offset, allocate, pursue or apportion
amounts in respect of any indemnification, rights to be held harmless or exonerated, advancement,
contribution or insurance coverage among multiple parties possessing such duties to Indemnitee
prior to the Corporation’s satisfaction and performance of all its obligations under this
Agreement, and (ii) the Corporation shall perform fully its obligations under this Agreement
without regard to whether Indemnitee holds, may pursue or has pursued any indemnification, rights
to be held harmless or exonerated or advancement, contribution or insurance coverage rights against
any person or entity other than the Corporation.

     15. Section 409A. It is intended that any indemnification, hold harmless or
exoneration payment or advancement of Expenses made hereunder shall be exempt from Section 409A of
the Internal Revenue Code of 1986, as amended, and the guidance issued thereunder (“Section
409A”) pursuant to Treasury Regulation Section 1.409A-1(b)(10). Notwithstanding the foregoing,
if any payments in respect of indemnification or rights to be held harmless or exonerated or
advancement of Expenses made hereunder shall be determined to be “nonqualified deferred
compensation” within the meaning of Section 409A, then (a) the amount of the indemnification, hold
harmless or exoneration payment or advancement of Expenses during one taxable year shall not affect
the amount of such payments or advancement of Expenses during any other taxable year, (b) payments
in respect of indemnification or rights to be held harmless or exonerated or advancement of
Expenses must be made on or before the last day of the Indemnitee’s taxable year following the year
in which the expense was incurred and (c) the right to indemnification, to be held harmless or
exonerated or advancement of Expenses hereunder is not subject to liquidation or exchange for
another benefit.

     16. Duration of Agreement. All agreements and obligations of the Corporation
contained herein shall continue during the period Indemnitee serves in a Covered Capacity and
continue and survive thereafter, regardless of the termination of Indemnitee’s service in a Covered
Capacity, so long as Indemnitee shall be subject to any possible Proceeding (including any rights
of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 11 of this
Agreement) by reason of serving in a Covered Capacity, whether or not he or she is acting in any
Covered Capacity at the time any liability or expense is incurred for which other rights exist
under this Agreement.

17

 

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

     18. Enforcement and Binding Effect.

          (a) The Corporation expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to encourage Indemnitee to continue to serve
in a Covered Capacity, and the Corporation acknowledges that Indemnitee is relying upon this
Agreement in serving.

          (b) Subject to Section 14(a), and without limiting the rights of Indemnitee under the
Certificate of Incorporation or By-Laws, 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) The rights to be indemnified, held harmless and exonerated and to receive contribution and
advancement of Expenses provided by or granted Indemnitee pursuant to this Agreement shall apply to
Indemnitee’s service in a Covered Capacity prior to the date of this Agreement.

          (d) The rights to indemnification, to be held harmless or exonerated, contribution and
advancement of Expenses provided by or granted pursuant to this Agreement (i) shall be binding
upon, be enforceable by, and inure to the benefit of the parties hereto and their respective
successors and assigns, including any direct or indirect successor by purchase, merger,
consolidation, reorganization or otherwise to all or substantially all of the business or assets of
the Corporation (and such successor will thereafter be deemed the “Corporation” for purposes of
this Agreement); (ii) shall continue as to an Indemnitee who has ceased to serve in a Covered
Capacity; and (iii) shall be enforceable by and inure to the benefit of Indemnitee and his or her
spouse, assigns, estate, heirs, devisees, executors and administrators and other legal
representatives.

          (e) The Corporation shall require and cause any successor (whether direct or indirect, by
purchase, merger, consolidation, reorganization or otherwise) to all, substantially all or a
substantial part, of the business and/or assets of the Corporation, by written agreement in the
form and substance reasonably satisfactory to Indemnitee and his or her counsel, expressly to

18

 

assume and agree to perform this Agreement in the same manner and to the same extent the
Corporation would be required to perform if no such succession had taken place.

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

     19. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions of this Agreement nor shall any waiver constitute a continuing waiver.

     20. Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (a) if delivered by hand
and receipted for by the party to whom said notice or other communication shall have been directed;
or (b) mailed by certified or registered mail with postage prepaid, on the third business day after
the date on which it is so mailed:

          (a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or
such other address as Indemnitee shall provide in writing to the Corporation.

          (b) If to the Corporation to:

AbitibiBowater Inc.

1155 Metcalfe Street, Suite 800

Montreal, Quebec

Canada H3B 5H2

Attn.: Chief Legal Officer

or to any other address as may have been furnished to Indemnitee in writing by the Corporation.

     21. Applicable Law and Consent to Jurisdiction. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 11(a) of this Agreement, the
Corporation 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

19

 

States of America or any court in 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; (c) appoint irrevocably, to the extent such party is not a resident
of the State of Delaware, [Name and address of Delaware counsel] as its agent in the State of
Delaware as such party’s agent for acceptance of legal process in connection with any such action
or proceeding against such party with the same legal force and validity as if served upon such
party personally within the State of Delaware; (d) waive any objection to the laying of venue of
any such action or proceeding in the Delaware Court; and (e) waive, and agree not to plead or to
make, any claim that any such action or proceeding brought in the Delaware Court has been brought
in an improper or inconvenient forum, or is subject (in whole or in
part) to a jury trial.

     22. Identical 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. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence the existence of this
Agreement.

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

     24. Additional Acts. If for the validation of any of the provisions in this Agreement
any act, resolution, approval or other procedure is required, the Corporation undertakes to cause
such act, resolution, approval or other procedure to be affected or adopted in a manner that will
enable the Corporation to fulfill its obligations under this Agreement.

     25. 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 thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

20

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 	 	 

	 	 	ABITIBIBOWATER INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	 

[Name]
	 	 

	 	 	 	 	 	 	 

	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 

21

 

Exhibit A

UNDERTAKING

     Reference is made to that certain Indemnification Agreement between AbitibiBowater Inc., a
Delaware corporation (the “Corporation”), and the Indemnitee dated as of ______, 2010 (the
“Indemnification Agreement”).

     In regard to any advancements made by the Corporation to the Indemnitee pursuant to the terms
of the Indemnification Agreement, the Indemnitee hereby undertakes and agrees to repay to the
Corporation any and all amounts so paid promptly and in any event within 30 days after the
disposition, including exhaustion of all appeals therefrom, of any litigation or threatened
litigation on account of which advancements were made if it is determined that the Indemnitee is
not entitled to indemnification pursuant to the Indemnification Agreement.

	 	 	 	 	 	 	 

	 

	 	INDEMNITEE	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:
	 	[Name]	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 

A-1

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