Document:

EX-10.33

 

EXHIBIT 10.33

May 27, 2005

Mr. Shum Mukherjee

2566 Sunmor Avenue

Mountain View, California 94040

Dear Shum:

     I am pleased to offer you the position of Executive Vice President and Chief Financial
Officer, reporting directly to me in my capacity as Chief Executive Officer. You shall have the
rights, powers, duties and obligations relating to such office as are customarily associated with
such office and such other rights, powers, duties and obligations as we may agree upon from time to
time. Your principal place of work, subject to reasonable and customary travel, shall be at the
OpenTV offices located in San Francisco, California. We would expect your employment to commence
in mid-June if you determine to accept this offer, and that you would make yourself reasonably
available prior to that date to begin to familiarize yourself with your position and
responsibilities.

     During the course of your employment with OpenTV you shall devote your full business time and
efforts to OpenTV; provided, that, nothing herein shall prevent you from (i) participating
in industry, trade, professional, charitable and community activities, (ii) serving on corporate,
civic or charitable boards or committees, and (iii) managing your personal investments and affairs,
in each case so long as such activities do not conflict with OpenTV’s interests or interfere with
the performance of your responsibilities to OpenTV.

Base Salary and Annual Bonus

     Your annual salary will be $300,000, which shall be paid to you in regular intervals in
accordance with OpenTV’s customary payroll schedules for salaried employees, but in no event less
frequently than twice each month. For each of the calendar years in which you are employed by
OpenTV, you shall be eligible for annual discretionary bonus awards (the target amount of which
shall be established by the Chief Executive Officer of the Company, subject to approval by the
Compensation Committee (the “Committee”) of the Board of Directors of OpenTV (the
“Board”) prior to the commencement of any calendar year to which it relates), based on
financial and strategic objectives agreed to annually by the Committee and me. Your discretionary
bonus, if any, will be paid to you, at the option of the Committee, in a cash payment, in shares of
capital stock of OpenTV, or in a combination of cash and capital stock of OpenTV. Your target
bonus for 2005 is 35% of your annual salary (pro rated for the 2005 partial year of employment),
which may change in subsequent years, as described above, within the

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discretion of the Committee, but such targeted bonus percentage shall not be materially less
than the target bonus percentages of other senior executives of OpenTV at the same level. Such
annual discretionary bonus awards shall be payable or issuable, as applicable, as soon as
practicable after the Committee and I can determine whether, and the degree to which, such
financial and strategic objectives have been reached, but in no event later than any discretionary
performance bonuses are paid to other senior executives of OpenTV.

Stock Options

Upon your acceptance of this offer, and subject to approval by the Committee, the Company will
grant to you stock options under the applicable OpenTV Corp. Incentive Plan (the “Plan”) to
purchase One Hundred Fifty Thousand (150,000) Class A Ordinary Shares (the “Initial Option”), with
an exercise price equal to the fair market value of the Class A Ordinary Shares on the date of
grant (the “Grant Date”). The Initial Option shall vest in accordance with the following
schedule, subject to such other vesting terms in the event of death, disability or other
circumstances as may be more specifically described in the form of option agreement referred to
below: Twenty-five percent (25%) of the Initial Option shall vest and become exercisable on the
first anniversary of the Grant Date, and at the end of each month thereafter, the Initial Option
shall vest and become exercisable as to an additional 1/48th of the shares until the Initial Option
is vested with respect to one hundred percent (100%) of the shares. The Initial Option shall be
evidenced by a standard stock option agreement approved by the Committee for the grant of other
stock options under the Plan, a copy of which is attached hereto as Exhibit A and by this
reference incorporated herein, provided, that to the extent there are any inconsistencies
between the terms of this Agreement and the terms of such form of stock option agreement, the terms
of this Agreement shall govern, and, to the extent necessary, the form of option agreement entered
into by you and the Company will be revised to make it consistent herewith. The Grant Date for
your Initial Option shall be the date on which you commence full-time employment with the Company
as contemplated by this letter.

The Company would also expect to grant to you, in 2006, additional stock options to purchase an
aggregate of Fifty Thousand (50,000) Class A Ordinary Shares (the “Performance Based
Options”) at an exercise price equal to the fair market value of the Class A Ordinary Shares on
the date on which those Performance Based Options are actually issued to you. The Performance
Based Options shall vest in accordance with the following schedule, subject to such other vesting
terms in the event of death, disability or other circumstances as may be more specifically
described in your option agreement: Twenty-five percent (25%) of the Performance Based Options
shall vest and become exercisable on the first anniversary of the date on which they were granted,
and at the end of each month thereafter, the Performance Based Options shall vest and become
exercisable as to an additional 1/48th of the shares until the Performance Based Options are vested
with respect to one hundred percent (100%) of the shares. As with your Initial Option, the
Performance Based Options shall also be evidenced by the Company’s standard stock option agreement.
These Performance Based Options shall have the performance-based terms and conditions as set forth
in Exhibit B hereto, provided, that to the extent there are any inconsistencies
between the terms of this Agreement and the

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terms of such form of stock option agreement, the terms of this Agreement shall govern, and, to the
extent necessary, the form of option agreement entered into by you and the Company will be revised
to make it consistent herewith. You understand that any vesting under the Performance Based
Options will be contingent upon meeting the performance criteria set forth in Exhibit B.

Termination

If either: (i) OpenTV terminates your employment without Cause, as defined below, or (ii) you
resign your employment due to a material reduction of your duties
and/or responsibilities (which caused a significant amount of your duties to be inconsistent with the
duties and responsibilities normally assigned to a person serving in the capacity of Senior Vice
President and Chief Financial Officer) or a material reduction in your base salary, then, in each
such case, you will be entitled to the following:

• a lump sum payment in an amount equal to the sum of (a) your base salary
through the date of termination, (b) vacation time not used as of the date of termination
to the extent that such vacation time has been accrued during the calendar year of
termination, calculated based upon your base salary at the date of termination, and (c)
business expenses reimbursable under this letter, in each case to the extent not
theretofore paid;

• continuation of your base salary then effect, payable in accordance with
the normal payroll practices of OpenTV in effect on the date of termination, for a period
of six (6) months after the date of termination, unless the date of such termination is
within 12 months following the date of any “Approved Transaction”, “Board Change” or
“Control Purchase” (as such terms are defined in the Plan, and collectively referred to
herein as “Change in Control”), in which case the amount due to you pursuant to
this sub-paragraph shall be equal to 12 months of your then base salary, payable in
accordance with the normal payroll practices of OpenTV in effect on the date of
termination;

• continued vesting of all options granted to you under the Plan through
six (6) month anniversary of the date of your termination; provided,
however, that if a termination to which this paragraph applies occurs within 12
months after a Change in Control (and the vesting of such options have not otherwise been
accelerated pursuant to the terms of the Plan), then, in such event, vesting of all options
granted to you under the Plan shall continue until the 12 month anniversary of the date of
your termination; and

• all vested stock options held by you following the termination of your
employment with OpenTV pursuant to the first sentence of this paragraph (including any
stock options that vest following the date of termination pursuant to the immediately
preceding sub-paragraph above) shall remain exercisable for a period of 90 days following
the date on which the last options vest in accordance with the continued vesting provisions
of the immediately preceding sub-paragraph above (but not later than the scheduled
expiration of such stock option).

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     If you intend to resign your employment as a result of a material reduction of your duties or
your base salary, you must notify OpenTV in writing. If OpenTV fails to cure or remedy your reason
for resignation within thirty (30) days of its receipt of your notification your resignation shall
be effective on the earlier of (i) the date OpenTV notifies you in writing of its determination not
to cure or remedy your reason for resignation or (ii) the thirtieth (30th) day following OpenTV’s
receipt of your notification.

     OpenTV may terminate your employment for Cause at any time upon written notice of such
termination to you setting forth in reasonable detail the nature of such Cause. If OpenTV
terminates your employment for Cause, or you resign for a reason other than those stated in the
first paragraph under “Termination” above, then you will be entitled to a lump sum in an amount
equal to the sum of (i) your base salary through the date of termination, (ii) vacation time not
used as of the date of termination to the extent that such vacation time has been accrued during
the calendar year of termination, calculated based upon your base salary at the date of
termination, and (iii) business expenses reimbursable under this letter, in each case to the extent
not theretofore paid. In addition, upon termination of your employment by OpenTV for Cause, all
stock options granted to you, notwithstanding any prior vesting, shall immediately terminate.

     Solely for purposes of this letter, “Cause” shall be deemed to have occurred upon the
happening of any of the following: (A) the breach by you of any material provision of the Employee
Proprietary Information and Inventions Agreement, dated as of the date of your acceptance of this
letter (the “Employee Inventions Agreement”), a copy of which is attached hereto as
Exhibit C, (B) any breach by you of any of the provisions set forth under the heading
“Noncompetition” below, (C) your having been charged with a felony under the laws of the United
States or any state thereof (other than a traffic violation), (D) your act of fraud, theft,
embezzlement, other material act of dishonesty or any material breach of fiduciary duty owed to
OpenTV, (E) your willful failure to perform, or gross neglect in the performance of, your duties
and responsibilities to OpenTV (other than as a result of illness or incapacity), and (F) your
agreement to settle any charges brought against you by the Securities and Exchange Commission with
respect to any act or omission by you, which charges involve an allegation of fraud or, in the good
faith opinion of the Board, would reasonably likely to have resulted in a conviction had the matter
proceeded.

Benefits; Vacation; Expenses

     You will have the right to participate in and to receive benefits from all present and future
life, accident, disability, medical, pension and savings plans and all similar benefits made
available generally to executives of OpenTV. The amount and extent of benefits to which you are
entitled shall be governed by the specific benefit plan, as it may be amended from time to time.

     You will be entitled to four weeks of paid vacation per year or such longer period as may be
provided by OpenTV. Such vacation shall be taken at such times and intervals as shall be
determined by you, subject to the reasonable business needs of OpenTV. You

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shall not be permitted to accrue more than 1.75 times your annual vacation entitlement.

     OpenTV shall pay or reimburse you promptly for all reasonable expenses and other disbursements
incurred or paid by you in the performance of your duties and responsibilities to OpenTV, including
those incurred or paid in connection with business related travel, telecommunications and
entertainment, subject to reasonable substantiation by you in accordance with OpenTV’s policies.

Noncompetition

     Covenant Not to Compete. During the period of your employment with OpenTV and ending upon the
first anniversary of the date of termination of your employment with OpenTV (the “Restricted
Period”), you agree that you will not, directly or indirectly, engage in, participate in, or
acquire an equity interest in any person, firm, corporation or other entity (a “Person”),
which engages or participates in any business that operates any line of business, business activity
or operations that are competitive with any line of business, business activity or operations
conducted by OpenTV during the Restricted Period (the “Restricted Business”).

     Exceptions to Covenant Not to Compete. Notwithstanding the foregoing, the restrictions set
forth in the immediately preceding paragraph shall not be applicable to:

• any acquisition of an interest in a Person, which is engaged in a
Restricted Business so long as (x) you do not control (whether through the ownership of
voting securities, by contract or otherwise) such other Person and (y) the Restricted
Business conducted by such other Person does not constitute ten percent (10%) or more of
its business (as measured by its assets or revenues);

• the acquisition of beneficial ownership (as defined in Rule 13d-3
promulgated under the Securities Exchange Act of 1934, as amended) by you or any member of
your Immediate Family (as defined below) of an equity interest in any Person engaged in a
Restricted Business, so long as (i) such equity interest (A) is listed or traded on a
national securities exchange or the NASDAQ Stock Market and (B) constitutes less than five
percent (5%) of the outstanding equity interests of such Person and (ii) you are not
actively involved in the management of the business of such Person; the term “Immediate
Family” shall mean your spouse, parents, children, siblings, mothers and fathers-in-law,
sons and daughters-in-law, and brothers and sisters-in-law;

• your engaging in or participating in the Restricted Business in
connection with your employment with OpenTV at the direction of the Board or the Chairman
of the Board;

• situations where a termination of employment with OpenTV is (i)
terminated by you pursuant to clause (ii) of the first sentence under the paragraph
captioned “Termination,” or (ii) effected by OpenTV without Cause or for reasons unrelated
to performance, such as a result of a reduction in workforce; or

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• you being employed by or otherwise rendering services to Liberty Media
Corporation, any of its subsidiaries or controlled affiliates of any other person or entity
to which Liberty Media Corporation may consent.

     Territory for Covenant Not to Compete. You hereby acknowledge and agree that the Restricted
Businesses engaged in by OpenTV and its subsidiaries extends throughout the United States and in
other jurisdictions in which OpenTV conducts significant business activities (the “Restricted
Territory”) and that OpenTV and its subsidiaries may be harmed by competitive conduct anywhere
in the Restricted Territory. You therefore agree that the covenants contained in the provisions
under the heading “Noncompetition” shall be applicable in and throughout the Restricted Territory,
as well as throughout other areas of the world in which OpenTV and its subsidiaries may be (or have
prepared written plans to be) doing business from time to time. You further warrant and represent
that, because of your varied skill and abilities, you do not need to compete with OpenTV and its
subsidiaries in any Restricted Business, and that this letter will therefore not prevent you from
earning a livelihood. You acknowledge that the restrictions contained in the provisions under the
heading “Noncompetition” constitute reasonable protections for OpenTV and its subsidiaries in light
of the foregoing and in light of the consideration and promises to you contained in the letter.

Arbitration of Claims

     You hereby acknowledge and agree that, except as provided below, all disputes concerning your
employment with OpenTV, the termination thereof, the breach by either party of the terms of this
letter or any other matters relating to or arising from your employment with OpenTV shall be
resolved in binding arbitration in a proceeding in San Francisco, California, administered by and
under the rules and regulations of the American Arbitration Association. Both parties and the
arbitrator will treat the arbitration process and the activities that occur in the proceedings as
confidential. Nothing contained in this paragraph shall limit OpenTV’s right to seek equitable
relief in any court of competent jurisdiction in respect of the matters set forth in the
“Noncompetition” provisions above.

Employment At Will

     By signing this letter, you understand and agree that your employment with OpenTV is at-will.
Therefore, your employment can terminate, with or without Cause, and with or without notice, at any
time, at your option or OpenTV’s option, and OpenTV can terminate or change all other terms and
conditions of your employment, with or without Cause, and with or without notice, at any time, in
all cases subject to the other terms and conditions of this letter. This at-will relationship will
remain in effect throughout your employment with OpenTV Corp. or any of its subsidiaries or
affiliates. This letter, including the documents contained in Exhibit A, and any stock option
agreement between you and OpenTV, constitute the entire agreement, arrangement and understanding
between you and OpenTV on the nature and terms of your employment with OpenTV. This letter
supersedes any prior or contemporaneous agreement, arrangement or understanding on this subject
matter, except, subject to the third

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succeeding sentence, for any stock option agreement between you and OpenTV. By executing this
letter as provided below, you expressly acknowledge the termination of any such prior agreement,
arrangement or understanding. Also, by your execution of this letter, you affirm that no one has
made any written or verbal statement that contradicts the provisions of this letter. In the event
of any inconsistency between the terms contained in this letter and the terms contained in any
stock option agreement between you and OpenTV, the terms contained in this letter shall control,
such that the provisions regarding vesting or termination contained in your stock option agreements
shall be superseded by the provisions of this letter to the extent of any conflict and the
non-competition covenant contained in this letter shall also be supersede the provisions of any
other similar covenant contained in your stock option agreement to the extent of any conflict. The
at-will nature of your employment, as set forth in this paragraph, can be modified only by a
written agreement signed by both OpenTV’s Chief Executive Officer and you which expressly alters
it. This at-will relationship may not be modified by any oral or implied agreement, or by any
policies of OpenTV, practices or patterns of conduct.

     We are enthusiastic about your potential employment with us and the contributions you can make
to our executive management team and OpenTV. Please retain the original offer letter for your
records and return the signed copy and required documents to me.

	 	 	 	 	 
	 	Sincerely,

OPENTV, INC.

 	 
	 	By:  	/s/ Jim Chiddix
 	 
	 	Name: 	  	Jim Chiddix 	 
	 	Title: 	  	Chairman and Chief Executive Officer 	 
	 

Signature of Acceptance:

/s/ Shum Mukherjee

Shum Mukherjee

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EXHIBIT A

Stock Option Plan

8

 

 EXHIBIT B

Performance Based Criteria

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EXHIBIT C

Employee Inventions Agreement

10exv10w1

 

Exhibit 10.1

INDEMNITY AGREEMENT

     This Indemnity Agreement (“Agreement”) is made as of March 17, 2005 by and between Quanta
Services, Inc., a Delaware corporation (the “Company”), and _______
(“Indemnitee”).

RECITALS

     WHEREAS, highly competent persons have become more reluctant to serve publicly-held
corporations as directors or in other capacities unless they are provided with adequate protection
through insurance or adequate indemnification against inordinate risks of claims and actions
against them arising out of their service to and activities on behalf of the corporation.

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to
attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis,
at its sole expense, liability insurance to protect persons serving the Company and its
subsidiaries from certain liabilities. Although the furnishing of such insurance has been a
customary and widespread practice among United States-based corporations and other business
enterprises, the Company believes that, given current market conditions and trends, such insurance
may be available to it in the future only at higher premiums and with more exclusions. At the same
time, directors, officers and other persons in service to corporations or business enterprises are
being increasingly subjected to expensive and time-consuming litigation relating to, among other
things, matters that traditionally would have been brought only against the Company or business
enterprise itself. The Bylaws of the Company require indemnification of the officers and directors
of the Company. Indemnitee may also be entitled to indemnification pursuant to applicable
provisions of the Delaware General Corporation Law (“DGCL”). The Bylaws and the DGCL expressly
provide that the indemnification provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company and members of the board of
directors, officers and other persons with respect to indemnification, hold harmless, exoneration,
advancement and reimbursement rights.

     WHEREAS, the statutes and judicial decisions regarding the duties of directors and officers
are often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such
directors and officers with adequate, reliable knowledge of legal risks to which they are exposed
or information regarding the proper course of action to take.

     WHEREAS, Plaintiffs often seek damages in such large amounts and the costs of litigation may
be so great (whether or not the case is meritorious), that the defense and/or settlement of such
litigation is usually beyond the personal resources of directors and officers.

     WHEREAS, the uncertainties relating to such insurance and to indemnification have increased
the difficulty of attracting and retaining such persons.

     WHEREAS, the Board has determined that the increased difficulty in attracting and retaining
such persons is detrimental to the best interests of the Company’s stockholders and that the
Company should act to assure such persons that there will be increased certainty of such protection
in the future.

 

 

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, hold harmless, exonerate and to advance expenses on behalf of, such persons to
the fullest extent permitted by applicable law so that they will serve or continue to serve the
Company free from undue concern that they will not be so protected against liabilities.

     WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws of the Company and
any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to
diminish or abrogate any rights of Indemnitee thereunder.

     WHEREAS, Indemnitee does not regard the protection available under the Company’s Certificate
of Incorporation (the “Charter”), Bylaws and insurance as adequate in the present circumstances,
and may not be willing to serve as an officer or director without adequate protection, and the
Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to
serve and to take on additional service for or on behalf of the Company on the condition that he be
so indemnified.

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

     1. Services To The Company. Indemnitee will serve or continue to serve as an officer,
director or key employee of the Company for so long as Indemnitee is duly elected or appointed or
until Indemnitee tenders his resignation.

     2. Definitions. As used in this Agreement:

          (a) References to “agent” shall mean any person who is or was (i) a director, officer, or
employee of the Company or a subsidiary of the Company, (ii) another person authorized by the
Company to act for the Company or is serving at the request of or for the convenience of the
Company, to include such person serving in such capacity as a director, officer, employee,
fiduciary or other official of another 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 Company or a subsidiary of the Company (iii) is or was serving in any capacity
with respect to any employee benefits plans of the Company or any subsidiary.

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

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

               (i) Acquisition of Stock by Third Party. Any Acquiring Person (as defined in the
Amended and Restated Rights Agreement dated as of March 8, 2000, and Amended and Restated as of
October 24, 2002, and as thereafter amended from time to time, between the Company and American
Stock Transfer & Trust Company, as Rights Agent (the
“Rights Agreement”) shall be the Beneficial Owner, or any Person (as defined below) who is or
becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing

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fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding
securities entitled to vote generally in the election of directors, unless (1) the change in the
relative Beneficial Ownership of the Company’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 (as defined below) 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 whose election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least two thirds of the directors then still in
office who were directors on the date hereof or whose election for 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 a reorganization, merger or
consolidation of the Company (a “Business Combination”), in each case, unless, 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 Company 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 Company or all or
substantially all of the Company’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 15% 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;

               (iv) Liquidation. The approval by the stockholders of the Company of a complete
liquidation 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, other than factoring the Company’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. There occurs 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 (as defined below), whether or not the Company is then subject to such reporting requirement.

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          (d) “Corporate Status” describes the status of a person who is or was a director, officer,
trustee, general partner, managing member, fiduciary, employee or agent of the Company or of any
other Enterprise (as defined below) which such person is or was serving at the request of the
Company.

          (e) “Delaware Court” shall mean the Court of Chancery of the State of Delaware.

          (f) “Disinterested Director” shall mean a director of the Company who is not and was not a
party to the Proceeding (as defined below) in respect of which indemnification is sought by
Indemnitee.

          (g) “Enterprise” shall mean the Company and any other corporation, constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or merger to which the
Company (or any of its wholly owned subsidiaries) is a party, limited liability company,
partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is
or was serving at the request of the Company as a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent.

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

          (i) “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 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 (as defined below), including reasonable compensation for
time spent by the Indemnitee for which he is not otherwise compensated by the Company or any third
party). Expenses also shall include Expenses incurred in connection with any appeal resulting from
any Proceeding (as defined below), including without limitation the premium, security for, and
other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent.
Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of
judgments or fines against Indemnitee.

          (j) “Independent Counsel” shall mean a law firm or a member of a law firm that is experienced
in matters of corporation law and neither presently is, nor in the past five years has been,
retained to represent: (i) the Company or Indemnitee in any matter material to either such party
(other than with respect to matters concerning the Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements); or (ii) any other party to the Proceeding
(as defined below) 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.

          (k) References to “fines” shall include any excise tax assessed on Indemnitee with

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respect to
any employee benefit plan; references to “serving at the request of the Company” shall include any
service as a director, officer, employee, agent or fiduciary of the Company 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; and if Indemnitee acted in good faith
and in a manner Indemnitee reasonably believed to be in the best interests of the participants and
beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner
“not opposed to the best interests of the Company” as referred to in this Agreement.

          (l) The term “Person” shall have the meaning as 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 Company; (ii) any Subsidiaries (as defined below) of the Company; (iii) any
employment benefit plan of the Company or of a Subsidiary (as defined below) of the Company or of
any corporation owned, directly or indirectly, by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company; and (iv) any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or of a Subsidiary (as
defined below) of the Company or of a corporation owned directly or indirectly by the stockholders
of the Company in substantially the same proportions as their ownership of stock of the Company.

          (m) A “Potential Change in Control” shall be deemed to have occurred if: (i) the Company
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 Company 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 Company
representing 5% or more of the combined voting power of the Company’s then outstanding securities
entitled to vote generally in the election of directors increases his 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.

          (n) The term “Proceeding” shall include any threatened, pending or completed action, suit,
arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing, appeal or any other actual, threatened or completed proceeding, whether brought in the
right of the Company or otherwise and whether of a civil (including intentional or unintentional
tort claims), criminal, administrative or investigative nature, in which Indemnitee was, is or will
be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director or
officer of the Company, by reason of any action (or failure to act) taken by him or of
any action (or failure to act) on his part while acting as a director or officer of the
Company, or by reason of the fact that he is or was serving at the request of the Company as a
director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any
other Enterprise, in each case whether or not serving in such capacity at the time any liability or
expense is incurred for which indemnification, reimbursement, or advancement of expenses can be
provided under this Agreement.

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          (o) The term “Subsidiary,” with respect to any Person, 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 Person.

     3. Indemnity In Third-Party Proceedings. The Company shall indemnify and hold harmless
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee was, is, or is
threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding,
other than a Proceeding by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments,
liabilities, 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 behalf in connection with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company and, in the case of a criminal Proceeding, had no reasonable
cause to believe that his conduct was unlawful.

     4. Indemnity In Proceedings By Or In The Right Of The Company. The Company shall indemnify
and hold harmless Indemnitee in accordance with the provisions of this Section 4 if Indemnitee
was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in
any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to
this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter
therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Company. No indemnification, hold harmless or exoneration
for Expenses shall be made under this Section 4 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 Company, unless
and only to the extent that any 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, to
be held harmless or to exoneration.

     5. Indemnification For Expenses Of A Party Who Is Wholly Or Partly Successful.
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 in
defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify
and hold harmless Indemnitee against all Expenses actually and reasonably incurred by him in
connection therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify and hold harmless Indemnitee against all
Expenses actually and reasonably incurred by him or on his behalf in connection with each
successfully resolved claim, issue or matter. If the Indemnitee is not wholly successful in such
Proceeding, the Company also shall indemnify and hold harmless 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. For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a

- 6 -

 

Proceeding by dismissal, with
or without prejudice, by reason of settlement, judgment, order or otherwise, shall be deemed to be
a successful result as to such Proceedings, claim, issue or matter, so long as there has been no
finding that Indemnitee (i) did not act in good faith, or (ii) did not act in a manner reasonably
believed to be in or not opposed to the best interests of the Company, or (iii) with respect to
any criminal proceeding, had reasonable grounds to believe that his conduct was not unlawful.

     6. Indemnification For Expenses Of A Witness. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any
Proceeding to which Indemnitee is not a party, he shall be indemnified and held harmless against
all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

     7. Additional Indemnification, Hold Harmless And Exoneration Rights.

          (a) Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify and
hold harmless Indemnitee if Indemnitee is a party to or threatened to be made a party to any
Proceeding (including a Proceeding by or in the right of the Company 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, hold harmless or
exoneration rights shall be available under this Section 7(a) on account of Indemnitee’s conduct
which constitutes a breach of Indemnitee’s duty of loyalty to the Company 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.

          (b) Notwithstanding any limitation in Sections 3, 4, 5 or 7(a), the Company shall indemnify
and hold harmless Indemnitee if Indemnitee is a party to or threatened to be made a party to any
Proceeding (including a Proceeding by or in the right of the Company 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.

- 7 -

 

     8. Contribution In The Event Of Joint Liability.

          (a) 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 Proceeding without requiring Indemnitee to contribute to such payment, and the
Company hereby waives and relinquishes any right of contribution it may have at any time against
Indemnitee.

          (b) The Company shall not enter into any settlement of any Proceeding in which the Company is
jointly liable with Indemnitee (or would be if joined in such Proceeding) unless such settlement
provides for a full and final release of all claims asserted against Indemnitee.

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

     9. Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be
obligated under this Agreement to make any indemnification, hold harmless or exoneration payment
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, 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 of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or
similar provisions of state statutory law or common law; or

          (c) except as otherwise provided in Sections 14(e)-(f) hereof, prior to a Change in Control,
in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the
Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized
the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides
the indemnification, hold harmless or exoneration payment, in its sole discretion, pursuant to the
powers vested in the Company under applicable law.

     10. Advances Of Expenses; Defense Of Claim.

          (a) Notwithstanding any provision of this Agreement to the contrary, and to the
fullest extent permitted by applicable law, the Company shall advance the Expenses incurred by
Indemnitee (or reasonably expected by Indemnitee to be incurred by Indemnitee within three months)
in connection with any Proceeding as soon as practicable but in any event not more than

- 8 -

 

ten (10)
days after the receipt by the Company of a statement or statements requesting such advances from
time to time, whether prior to or after final disposition of any Proceeding. 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 statements to the Company to support the
advances claimed. The Indemnitee shall qualify for advances, to the fullest extent permitted by
applicable law, solely upon the execution and delivery to the Company 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 by the Company under the provisions of this
Agreement, the Charter, the Bylaws of the Company, applicable law or otherwise. This Section 10(a)
shall not apply to any claim made by Indemnitee for which an indemnification, hold harmless or
exoneration payment is excluded pursuant to Section 9.

          (b) The Company will be entitled to participate in the Proceeding at its own expense.

          (c) The Company shall not settle any action, claim or Proceeding (in whole or in part) which
would impose any Expense, judgment, fine, penalty or limitation on the Indemnitee without the
Indemnitee’s prior written consent.

     11. Procedure For Notification And Application For Indemnification.

          (a) Indemnitee agrees to notify promptly the Company in writing upon being served with any
summons, citation, subpoena, complaint, indictment, inquiry, information or other document relating
to any Proceeding or matter which may be subject to indemnification, hold harmless or exoneration
rights, or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the
Company shall not relieve the Company of any obligation which it may have to the Indemnitee under
this Agreement, or otherwise.

          (b) Indemnitee may deliver to the Company a written application to indemnify and hold harmless
Indemnitee in accordance with this Agreement. 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 shall be determined according to Section 12(a) of this Agreement.

     12. Procedure Upon Application For Indemnification.

          (a) A determination, if required by applicable law, with respect to Indemnitee’s
entitlement to indemnification shall be made in the specific case by one of the following
methods, which shall be at the election of Indemnitee: (i) by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board or (ii) by Independent Counsel in a written
opinion to the Board, a copy of which shall be delivered to Indemnitee. The Company promptly will
advise Indemnitee in writing with respect to any determination that Indemnitee is or is not
entitled

- 9 -

 

to indemnification, including a description of any reason or basis for which
indemnification has been denied. If it is so determined that Indemnitee is entitled to
indemnification, payment to Indemnitee shall be made as soon as practicable but in no event more
than ten (10) 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, 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 costs or Expenses (including attorneys’ fees and disbursements) incurred by
Indemnitee in so cooperating with the person, persons or entity making such determination shall be
borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless
therefrom.

          (b) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be selected as
provided in this Section 12(b). The Independent Counsel shall be selected by Indemnitee (unless
Indemnitee shall request that such selection be made by the Board), and Indemnitee shall give
written notice to the Company advising it of the identity of the Independent Counsel so selected
and certifying that the Independent Counsel so selected meets the requirements of “Independent
Counsel” as defined in Section 2 of this Agreement. If the Independent Counsel is selected by the
Board, the Company shall give written notice to Indemnitee advising him of the identity of the
Independent Counsel so selected and certifying that the Independent Counsel so selected meets the
requirements of “Independent Counsel” as defined in Section 2 of this Agreement. In either event,
Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice
of selection shall have been received, deliver to the Company or to Indemnitee, as the case may be,
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 twenty (20) days after submission by Indemnitee
of a written request for indemnification pursuant to Section 11(a) hereof, no Independent Counsel
shall have been selected and not objected to, either the Company or Indemnitee may petition the
Delaware Court for resolution of any objection which shall have been made by the Company or
Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as
Independent Counsel of a person selected by the Delaware Court, and the person with respect to whom
all objections are so resolved or the person so appointed shall act as Independent Counsel under
Section 12(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant
to Section 14(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 Company agrees to pay the reasonable fees and expenses of Independent Counsel and to
fully indemnify and hold harmless such Independent Counsel against any and all

- 10 -

 

Expenses, claims,
liabilities and damages arising out of or relating to this Agreement or its engagement pursuant
hereto.

     13. Presumptions and Effect Of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification hereunder, the
person, persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement if Indemnitee has submitted a request for indemnification in
accordance with Section 11(b) of this Agreement, and the Company 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 Company (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 is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company
(including by 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 12 of this Agreement
to determine whether Indemnitee is entitled to indemnification shall not have made a determination
within thirty (30) days after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification, 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 30-day period may be extended for a reasonable time,
not to exceed an additional fifteen (15) days, if the person, persons or entity making the
determination with respect to entitlement to indemnification 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 create a presumption that Indemnitee
did not meet any particular standard of conduct, did not act in good faith and in a manner which he
reasonably believed to be in or not opposed to the best interests of the Company or, with respect
to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was
unlawful.

          (d) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted
in good faith and in a manner which he reasonably believed to be in or not opposed to the best
interests of the Company if Indemnitee’s action is based on the records or books of account of the
Enterprise, including financial statements, or on information, opinions, reports or statements
supplied to Indemnitee by the directors or officers of the Enterprise in the course of their
duties, or on the advice of legal counsel for the Enterprise or on information or records given or
reports made to the Enterprise by an independent certified public accountant or by an appraiser

- 11 -

 

or
other expert selected by the Enterprise. The provisions of this Section 13(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, officer, trustee,
partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to
Indemnitee for purposes of determining the right to indemnification under this Agreement.

     14. Remedies Of Indemnitee.

          (a) In the event that (i) a determination is made pursuant to Section 12 of this Agreement
that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of
Expenses, to the fullest extent permitted by applicable law, is not timely made pursuant to Section
10 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made
pursuant to Section 12(a) of this Agreement within thirty (30) days after receipt by the Company of
the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5,
6, 7 or the last sentence of Section 12(a) of this Agreement within ten (10) days after receipt by
the Company of a written request therefor, (v) a contribution payment is not made in a timely
manner pursuant to Section 8 of this Agreement, (vi) payment of indemnification pursuant to Section
3 or 4 of this Agreement is not made within ten (10) days after a determination has been made that
Indemnitee is entitled to indemnification, or (vii) payment to Indemnitee pursuant to any hold
harmless or exoneration rights under this Agreement or otherwise is not made within ten (10) days
after receipt by the Company of a written request therefor, Indemnitee shall be entitled to an
adjudication by the Delaware Court to such indemnification, hold harmless, exoneration,
contribution or advancement rights. Alternatively, Indemnitee, at his option, 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 Company
shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

          (b) In the event that a determination shall have been made pursuant to Section 12(a) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 14 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 proceeding or arbitration commenced
pursuant to this
Section 14, Indemnitee shall be presumed to be entitled to be indemnified, held harmless,
exonerated to receive advances of Expenses under this Agreement and the Company shall have the
burden of proving Indemnitee is not entitled to be indemnified, held harmless, exonerated and to
receive advances of Expenses, as the case may be, and the Company may not refer to or introduce
into evidence any determination pursuant to Section 12(a) of this Agreement adverse to Indemnitee
for any purpose. If Indemnitee commences a judicial proceeding or arbitration pursuant to this
Section 14, Indemnitee shall not be required to reimburse the Company for any advances pursuant to
Section 10 until a final determination is made with respect to Indemnitee’s

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entitlement to
indemnification (as to which all rights of appeal have been exhausted or lapsed).

          (c) If a determination shall have been made pursuant to Section 12(a) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration commenced pursuant to this Section 14, 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
prohibition of such indemnification under applicable law.

          (d) The Company shall be precluded from asserting in any judicial proceeding or arbitration
commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are

not valid, binding and enforceable and shall stipulate in any such court or before any such
arbitrator that the Company is bound by all the provisions of this Agreement.

          (e) The Company shall indemnify and hold harmless Indemnitee to the fullest extent permitted
by law against all Expenses and, if requested by Indemnitee, shall (within ten (10) days after the
Company’s receipt of such written request) advance to Indemnitee, to the fullest extent permitted
by applicable law, such Expenses which are incurred by Indemnitee in connection with any judicial
proceeding or arbitration brought by Indemnitee (i) to enforce his rights under, or to recover
damages for breach of, this Agreement or any other indemnification, hold harmless, exoneration,
advancement or contribution agreement or provision of the Charter, or the Company’s Bylaws now or
hereafter in effect; or (ii) for recovery or advances under any insurance policy maintained by any
person or the Company for the benefit of Indemnitee, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, advance, contribution or insurance recovery, as
the case may be.

          (f) Interest shall be paid by the Company to Indemnitee at the legal rate under Delaware law
for amounts which the Company indemnifies, holds harmless or exonerates, or is obliged to
indemnify, hold harmless or exonerate for the period commencing with the date on which Indemnitee
requests indemnification, to be held harmless, exonerated, contribution, reimbursement or
advancement of any Expenses and ending with the date on which such payment is made to Indemnitee by
the Company.

     15. Establishment Of Trust. In the event of a Potential Change in Control, the Company
shall, upon written request by Indemnitee, create a “Trust” for the benefit of 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 Company. Nothing in this Section 15 shall relieve the Company 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

- 13 -

 

the Company or,
if the Company and the Indemnitee are unable to reach such an agreement, by Independent Counsel
selected in accordance with Section 12(b) of this Agreement. The terms of the Trust shall provide
that, except upon the consent of both the Indemnitee and the Company, 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 applicable
law, within two (2) business days of a request by the Indemnitee and upon the execution and
delivery to the Company 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 Company; (c) the Trust shall continue to be funded
by the Company 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 Company upon mutual agreement by the
Indemnitee and the Company or, if the Indemnitee and the Company are unable to reach such an
agreement, by Independent Counsel selected in accordance with Section 12(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 23 of this Agreement.

     16. Security. Notwithstanding anything herein to the contrary, to the extent requested by
the Indemnitee and approved by the Board, the Company may at any time and from time to time
provide security to the Indemnitee for the Company’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.

     17. Non-Exclusivity; Survival Of Rights; Insurance; Subrogation.

          (a) The rights of Indemnitee as provided by this Agreement shall not be deemed exclusive of
any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter,
the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors, or
otherwise. 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 Corporate Status 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, hold harmless or exoneration rights or
advancement of Expenses than would be afforded currently under the Charter, the Company’s Bylaws or
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. No right or remedy herein conferred is
intended to be exclusive of any other right or remedy, and every other right and remedy shall be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other
right or remedy.

- 14 -

 

          (b) The DGCL, the Charter and the Company’s Bylaws permit the Company to purchase and maintain
insurance or furnish similar protection or make other arrangements including, but not limited to,
providing a trust fund, letter of credit, or surety bond (“Indemnification Arrangements”) on behalf
of Indemnitee against any liability asserted against him or incurred by or on behalf of him or in
such capacity as a director, officer, employee or agent of the Company, or arising out of his
status as such, whether or not the Company would have the power to indemnify him against such
liability under the provisions of this Agreement or under the DGCL, as it may then be in effect.
The purchase, establishment, and maintenance of any such Indemnification Arrangement shall not in
any way limit or affect the rights and obligations of the Company or of the Indemnitee under this
Agreement except as expressly provided herein, and the execution and delivery of this Agreement by
the Company and the Indemnitee shall not in any way limit or affect the rights and obligations of
the Company or the other party or parties thereto under any such Indemnification Arrangement.

          (c) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, trustees, partners, managing members, fiduciaries,
employees, or agents of the Company or of any other Enterprise which such person serves at the
request of the Company, 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, officer,
trustee, partner, managing member, fiduciary, employee or agent under such policy or policies. If,
at the time the Company receives notice from any source of a Proceeding as to which Indemnitee is a
party or a participant (as a witness or otherwise), the Company has director and officer liability
insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in
accordance with the procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee,
all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

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

          (e) The Company’s obligation to indemnify, hold harmless, exonerate or advance
Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a
director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other
Enterprise shall be reduced by any amount Indemnitee has actually received as indemnification, hold
harmless or exoneration payments or advancement of expenses from such Enterprise.

     18. Duration Of Agreement. All agreements and obligations of the Company contained herein
shall continue during the period Indemnitee serves as a director or officer of the Company or as a
director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other
corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which
Indemnitee serves at the request of the Company and shall continue thereafter 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 14

- 15 -

 

of this Agreement) by reason of his
Corporate Status, whether or not he is acting in any such capacity at the time any liability or
expense is incurred for which indemnification can be provided under this Agreement.

     19. Period of Limitations. No legal action shall be brought and no cause of action shall be
asserted by or in the right of the Company 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 Company 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.

     20. 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 possible, the provisions of this Agreement (including,
without limitation, each portion of any Section, paragraph or sentence of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that is not itself
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested thereby.

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

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

          (b) Without limiting any of the rights of Indemnitee under the Charter or Bylaws of the
Company 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) The indemnification, hold harmless, exoneration and advancement of expenses rights
provided by or granted pursuant to this Agreement shall be binding upon and be enforceable

- 16 -

 

by the
parties hereto and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or substantially all of the
business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a
director, officer, employee or agent of the Company or of any other Enterprise at the Company’s
request, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs,
devisees, executors and administrators and other legal representatives.

          (d) The Company shall require and cause any successor (whether direct or indirect by purchase,
merger, consolidation or otherwise) to all, substantially all or a substantial part, of the
business and/or assets of the Company, by written agreement in form and substance satisfactory to
the 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.

          (e) The Company 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 may be entitled. The Company 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 Company acknowledges that in the absence of a waiver, a bond or undertaking may be required of
Indemnitee by the Court, and the Company hereby waives any such requirement of such a bond or
undertaking.

     23. 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.

     24. Notices. All notices, requests, demands and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given (i) if delivered by hand and
receipted for by the party to whom said notice or other communication shall have been directed, or
(ii) mailed by certified or registered mail with postage prepaid, on the third (3rd) 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 Company.

          (b) If to the Company, to:

	 
	Quanta Services, Inc.

	1360 Post Oak Blvd., #2100

- 17 -

 

	 
	Houston, TX 77056

	Attention: General Counsel

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

     25. 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 14(a) of this Agreement, 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 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, RL&F
Service Corp., One Rodney Square, 10th Floor, 10th and King Streets, Wilmington, Delaware 19801 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.

     26. 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.

     27. Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of
the feminine pronoun where appropriate. The headings of the paragraphs of this Agreement are
inserted for convenience only and shall not be deemed to constitute part of this Agreement or to
affect the construction thereof.

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

	 	 	 	 	 	 	 	 	 
	QUANTA SERVICES, INC.	 	INDEMNITEE
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	

	 	 
	 	 
	 	 
	 	 
	

	 	Name:
	 	John R. Colson
	 	Name:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	Title:
	 	Chief Executive Officer
	 	Address:	 	 
	

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	 

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