Document:

exv4w9

Exhibit 4.9

Deed of access, insurance and indemnity

Dutch law deed for certain Officeholders of JHINV and JHINV Subsidiaries

Dated

James Hardie Industries N.V. (“Indemnitor”)

[               ] (“Indemnified Person”)

 

 

Deed of access, insurance and indemnity

Contents

	 	 	 	 	 
	Details	 	1
	 
	 	 	 	 
	General terms	 	3
	 
	 	 	 	 
	1
	 	Interpretation	 	3
	1.1
	 	Definitions	 	3
	1.2
	 	General interpretation	 	7
	1.3
	 	Headings	 	7
	1.4
	 	Footnotes	 	7
	1.5
	 	Counterparts	 	7
	 
	 	 	 	 
	2
	 	Consideration	 	7
	 
	 	 	 	 
	3
	 	Access to documents	 	8
	3.1
	 	Access Rights	 	8
	3.2
	 	Request for Access Rights	 	8
	3.3
	 	Indemnitor’s obligations regarding access	 	8
	3.4
	 	Indemnitor’s obligation to maintain documents	 	9
	3.5
	 	Notification of privileged documents	 	9
	3.6
	 	Indemnified Person’s obligations	 	9
	3.7
	 	Return of documents	 	10
	3.8
	 	Other rights of access preserved	 	10
	 
	 	 	 	 
	4
	 	Indemnities	 	10
	4.1
	 	Indemnities	 	10
	4.2
	 	Limit on Indemnities	 	11
	4.3
	 	Nature of indemnities	 	12
	4.4
	 	Payment of indemnified amounts	 	12
	4.5
	 	Currency	 	13
	4.6
	 	Payment of Legal Costs	 	13
	4.7
	 	Other insurance policies and indemnities	 	14
	4.8
	 	Repayment by Indemnified Person	 	14
	4.9
	 	Outside Entities	 	14
	4.10
	 	Multiple indemnities	 	14
	4.11
	 	Reasonable Costs	 	15
	 
	 	 	 	 
	5
	 	Conduct of Claim	 	15
	5.1
	 	Indemnified Person’s undertakings	 	15
	5.2
	 	Conduct of Claim	 	16
	5.3
	 	Control of Claim	 	16
	5.4
	 	Legal advisers appointed by the Indemnified Person	 	16
	5.5
	 	Interpretation	 	17

i

 

	 	 	 	 	 
	6
	 	Insurance	 	17
	6.1
	 	Indemnitor to maintain insurance	 	17
	6.2
	 	Indemnified Person’s undertaking in connection with insurance	 	17
	6.3
	 	Indemnified Person’s acknowledgment in connection with insurance	 	18
	 
	 	 	 	 
	7
	 	Subrogation	 	18
	 
	 	 	 	 
	8
	 	Notices	 	18
	8.1
	 	Requirements for notices	 	18
	8.2
	 	When effective	 	19
	 
	 	 	 	 
	9
	 	Operation of the Previous Deed	 	19
	9.1
	 	Revocation	 	19
	9.2
	 	Preservation	 	19
	9.3
	 	Continuing indemnities	 	19
	 
	 	 	 	 
	10
	 	General	 	20
	10.1
	 	Exercise of rights	 	20
	10.2
	 	Discretion in exercising rights	 	20
	10.3
	 	Successors: Binding Agreement	 	20
	10.4
	 	Reinstatement of rights	 	20
	10.5
	 	VAT	 	20
	10.6
	 	Variation and waiver	 	21
	10.7
	 	Severability	 	21
	10.8
	 	Governing law and jurisdiction	 	21
	 
	 	 	 	 
	Signing page	 	i

ii

 

Deed of access, insurance and indemnity

Details

	 	 	 	 	 
	Parties	 	Indemnitor and Indemnified Person
	 
	 
	 	 	 	 
	Indemnitor
	 	Name	 	James Hardie Industries N.V.
	 
	 	 	 	 
	 
	 	Trade Register	 	34106455
	 
	 	(Amsterdam)	 	 
	 
	 	 	 	 
	 
	 	Address	 	Atrium 8th floor

	 
	 	 	 	Strawinskylaan 3077

	 
	 	 	 	1077 ZX Amsterdam

	 
	 	 	 	The Netherlands
	 
	 	 	 	 
	 
	 	Telephone	 	+31 (0) 20 301 2986
	 
	 	 	 	 
	 
	 	Fax	 	+31 (0) 20 404 2544
	 
	 	 	 	 
	 
	 	Attention	 	general counsel
	 
	 	 	 	 
	 
	 	Email	 	l
	 
	 	 	 	 
	Indemnified Person
	 	Name	 	 
	 
	 	 	 	 
	 
	 	Address	 	 
	 
	 	 	 	 
	 
	 	Telephone	 	 
	 
	 	 	 	 
	 
	 	Fax	 	 
	 
	 	 	 	 
	 
	 	Email	 	 
	 
	 	 	 	 

	 	 	 	 	 	 	 
	Recitals	 	A	 	The Indemnified Person has been appointed as or is
acting in the role of:
	 
	 	 	 	 	 	 
	 

	 	 	 	a)
	 	a director, company secretary, public officer and/or
employee of the Indemnitor; and/or
	 
	 	 	 	 	 	 
	 

	 	 	 	b)
	 	a director, company secretary, public officer and/or
employee of a JHINV Subsidiary; and/or
	 
	 	 	 	 	 	 
	 

	 	 	 	c)
	 	a director, company secretary, public officer and/or
employee of an Outside Entity,
(an “Officeholder”).

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	 	 	B	 	The Indemnitor acknowledges that this deed
constitutes a formal request from the Indemnitor for
the Indemnified Person to act, or continue to act, as
an Officeholder.
	 
	 	 	 	 	 	 
	 	 	C	 	As a condition of the Indemnified Person agreeing to
act (either at the date of this deed or any time after
the date of this deed) or continuing to act as an
Officeholder of:
	 
	 	 	 	 	 	 
	 

	 	 	 	a)
	 	the Indemnitor;
	 
	 	 	 	 	 	 
	 

	 	 	 	b)
	 	any JHINV Subsidiary; or
	 
	 	 	 	 	 	 
	 

	 	 	 	c)
	 	an Outside Entity where the appointment or service
as an Officeholder is made or done at the request of
the Indemnitor,
the Indemnified Person has requested that the
Indemnitor enter into this deed.
	 
	 	 	 	 	 	 
	 	 	D	 	The Indemnitor enters into this deed in order to
secure for itself and/or the JHINV Subsidiaries the
benefit of the Indemnified Person acting as an
Officeholder.
	 
	 	 	 	 	 	 
	 	 	E	 	The Indemnitor has agreed to provide the covenants
and indemnities provided for under this deed and
acknowledges having received valuable consideration for
doing so.
	 
	 	 	 	 	 	 
	 	 	F	 	This deed is not intended to replace or diminish any
Third Party’s obligations to the Indemnified Person,
including any insurer’s obligation to indemnify the
Indemnified Person against any liability, or any other
indemnity granted by any JHINV Subsidiary except to the
extent stated in this deed.
	 
	 	 	 	 	 	 
	Date of deed	 	See Signing page

2

 

Deed of access, insurance and indemnity

General terms

	1	 	Interpretation

	1.1	 	Definitions
	 
	 	 	These meanings apply unless the contrary intention appears:
	 
	 	 	Access Rights means the rights referred to and contained in clause 3.1 to access and take
copies of the Company Books.
	 
	 	 	ASIC means Australian Securities and Investments Commission.
	 
	 	 	Authority means:

	 	(a)	 	a Royal Commission, Board of Inquiry, Parliamentary Committee or similar
body;
	 
	 	(b)	 	ASIC, Australian Prudential Regulation Authority, Australian Competition
and Consumer Commission, Australian Securities Exchange and any other regulatory
authority;
	 
	 	(c)	 	a department of any Australian government or government of any other
jurisdiction;
	 
	 	(d)	 	SEC (the U.S. Securities and Exchange Commission);
	 
	 	(e)	 	NYSE (New York Stock Exchange);
	 
	 	(f)	 	a prosecutor, state attorney or attorney general, law enforcement agency or
other public authority;
	 
	 	(g)	 	an instrumentality, agent or appointee of the Crown in right of the
Commonwealth, in right of a State or in right of a Territory or the equivalent of any
of them in any other jurisdiction; and
	 
	 	(h)	 	any other body exercising statutory or prerogative power under any
applicable law.

Board means the Indemnitor’s boards of directors, comprising the managing board
(directie), the supervisory board (raad van commissarissen) and joint board and any
equivalent corporate body of the Indemnitor.

Board Papers means:

	 	(a)	 	all existing and future Documents given or made available to Officeholders
of the Indemnitor or a JHINV Subsidiary or any of them in such capacity or tabled at
meetings of the Board or any
committee of the Board (including periodic Board papers, submissions, minutes,
letters, presentations, Board committee and sub-committee papers); and

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	 	(b)	 	any other Documents in the possession or control of the Indemnitor or a
JHINV Subsidiary which are referred to in any of those Documents,

whether or not legal professional privilege applies to the Documents.

Claim means:

	 	(a)	 	any Proceedings, including any formal written claim, cause of action,
action, demand or suit (including by way of contribution or indemnity and including
actions by or in the right of the Indemnitor or a JHINV Subsidiary) at law or in
equity (whether for damages or for declaratory, injunctive or other relief) however
commenced;
	 
	 	(b)	 	any investigation or inquiry by or initiated by any Authority or External
Administrator in any way connected with any Indemnified Person’s Act;
	 
	 	(c)	 	any formal investigation or inquiry:

	 	(i)	 	conducted by or initiated by the Indemnitor or a JHINV
Subsidiary concerning any Indemnified Person’s Act; or
	 
	 	(ii)	 	to which it is reasonable in the circumstances for the
Indemnified Person to respond, where the investigation or inquiry is
concerning any Indemnified Person’s Act;

	 	(d)	 	any formal written claim, claim, cause of action, action, demand or suit
originated by the Indemnified Person, but only where the Indemnified Person has first
obtained approval by at least a 2/3 vote of all members of the managing board
(directie) of the Indemnitor holding office; or
	 
	 	(e)	 	any written or oral threat, complaint or demand that might reasonably
result in the Indemnified Person believing that any action referred to in paragraphs
(a) or (b) or (c) might be initiated.

Company Books includes:

	 	(a)	 	a register;
	 
	 	(b)	 	any other record of information;
	 
	 	(c)	 	financial reports or financial records, however compiled, recorded or
stored;
	 
	 	(d)	 	a Document; and
	 
	 	(e)	 	the Board Papers,

of the Indemnitor or a relevant JHINV Subsidiary.

Corporations Act means the Corporations Act 2001 (Cwlth).

4

 

Details means the section of this deed headed “Details”.

Document includes:

	 	(a)	 	any paper or other material on which there is writing or printing or on
which there are marks, figures, symbols or perforations having a meaning for persons
qualified to interpret them;
	 
	 	(b)	 	a disc, tape, hard drive or other article from which sounds, images,
writings or messages are capable of being reproduced; and
	 
	 	(c)	 	a disc, tape, hard drive or other article, or any material, from which
sounds, images, writings or messages are capable of being reproduced with or without
the aid of any other article or device,

including any notice, order, writ, summons and other legal process document.

Effective Date means the date of this deed.

Excluded Liability means a liability for which the Indemnitor is not allowed to grant an
indemnity against under applicable law or under its articles of association (statuten) in
force on the date of this deed.

External Administrator means a liquidator, provisional liquidator, controller (which has
the same meaning as in the Corporations Act) or an administrator, receiver, trustee,
debtor in possession, official committee, examiner, or other person or entity with the
power to act on behalf of the Indemnitor or a JHINV Subsidiary during bankruptcy or an
insolvency, or equivalent officer appointed under or recognized by the law of any
jurisdiction of incorporation of the Indemnitor or a JHINV Subsidiary.

GST has the same meaning as in the GST Law.

GST Law means the A New Tax System (Goods and Services Tax) Act 1999 (Cwlth) and any
legislation or regulation which imposes, levies, implements or varies a GST.

Indemnified Person’s Act means any actual or alleged act, error, statement, misstatement,
misleading statement, omission, neglect, conduct or breach of duty made, committed,
omitted or attempted by the Indemnified Person (either alone or jointly with one or more
other persons) in any way connected with the Indemnified Person being or acting in the
role of an Officeholder of the Indemnitor, any JHINV Subsidiary or any Outside Entity
(whether before or after the Effective Date).

Insurance Policy means an insurance policy against liabilities incurred as a director
and/or officer of the Indemnitor or a JHINV Subsidiary taken out in accordance with and
subject to clause 6.

Insurer means any reputable and financially sound insurer whose business includes the
provision of the insurance contemplated in clause 6.

5

 

JHINV Subsidiary means a subsidiary (dochtermaatschappij) of James Hardie Industries N.V.
within the meaning of Section 2:24a of the Dutch Civil Code and for the avoidance of doubt
includes any corporation that was a subsidiary of James Hardie Industries N.V. when the
Indemnified Person’s Act for which indemnity is sought under this deed occurred, even
though it has ceased to be a subsidiary at the time the Claim is made, but does not
include any subsidiaries in Australia, New Zealand, the Philippines or North America.

Legal Costs means legal costs, fees, charges or expenses.

Liability includes any liability, judgment, fines, costs, amounts paid in settlement,
loss, expense, damages, monetary obligation or charge (whether actual, contingent or
prospective), and includes Legal Costs, other than an Excluded Liability.

Outside Entity has the meaning ascribed to it in clause 4.9 (“Outside Entities”) and for
the avoidance of doubt includes any corporation that was an Outside Entity when the
Indemnified Person’s Act for which indemnity is sought under this deed occurred, even
though it has ceased to be an Outside Entity at the time the Claim is made.

Previous Deed means the [      ] dated [      ].1

Proceedings means any civil, criminal, administrative, investigative or arbitral
proceedings, mediation or other form of alternative dispute resolution (whether or not
held in conjunction with any civil, criminal, administrative or arbitral proceedings), in
which it is alleged that an Indemnified Person’s Act has occurred.

Retirement Date means the last date on which the Indemnified Person ceases to be an
Officeholder of the Indemnitor or a JHINV Subsidiary or an Outside Entity, except that for
the purposes of this definition, the Indemnified Person has not ceased to hold office as
an Officeholder if the Indemnified Person, in his capacity as a director, retires at a
general meeting of the relevant entity in accordance with its constitution or the listing
rules of the relevant exchange, offers himself for re-election at that meeting and is
re-elected at that meeting (or any adjournment of that meeting).

Supply has the same meaning as in the GST Law.

Third Party means a person other than the Indemnitor or a JHINV Subsidiary and includes an
insurer.

VAT means value added tax (omzetbelasting) or any similar levy or tax, including but not
limited to GST.

 

			
	1	 	Delete for a newly appointed Indemnified Person.

6

 

	1.2	 	General interpretation
	 
	 	 	In this deed unless the contrary intention appears:

	 	(a)	 	(executors and administrators) a reference to the Indemnified Person
includes a reference to the Indemnified Person’s personal representatives, executors
and administrators;
	 
	 	(b)	 	(variations or replacement) a reference to this deed includes any variation
or replacement of it;
	 
	 	(c)	 	(singular includes plural) the singular includes the plural and vice versa;
	 
	 	(d)	 	(person) the word “person” includes an individual and a body corporate;
	 
	 	(e)	 	(reference to statutes) a statute, ordinance, code or other law includes
regulations and other instruments under it and consolidations, amendments,
re-enactments or replacements of any of them;
	 
	 	(f)	 	(as an Officeholder) a reference to a Liability incurred “as an
Officeholder of the Indemnitor, a JHINV Subsidiary or an Outside Entity” includes a
reference to a Liability incurred by the Indemnified Person after the Retirement Date
to the extent the Liability relates to any Indemnified Person’s Act occurring while
the Indemnified Person was an Officeholder of the Indemnitor, a JHINV Subsidiary or
an Outside Entity; and
	 
	 	(g)	 	(Officeholder) a reference to an Officeholder of a body corporate includes
a reference to the persons acting in the role of the members of the board of
directors and any equivalent corporate body (under applicable law) and company
secretary, public officer or employee of such body corporate.

	1.3	 	Headings
	 
	 	 	Headings are for convenience only and do not affect the interpretation of this deed.
	 
	1.4	 	Footnotes
	 
	 	 	The footnotes to this deed are for information only and do not form part of this deed.
	 
	1.5	 	Counterparts
	 
	 	 	This deed may be executed in counterparts. All counterparts when taken together are to be
taken to constitute one instrument.

	2	 	Consideration
	 
	 	 	The Indemnitor enters into this deed for valuable consideration from the Indemnified
Person and receipt of that consideration is acknowledged.

7

 

	3	 	Access to documents
	 
	3.1	 	Access Rights
	 
	 	 	It is acknowledged and accepted that the Indemnified Person shall have, to the fullest
extent permitted by applicable law, the right to access and take copies of the Company
Books.
	 
	 	 	Without limiting the generality of the foregoing, the Indemnified Person may have access
to and take copies of the Company Books in connection with:

	 	(a)	 	any investigation or inquiry by an Authority or External Administrator:

	 	(i)	 	into the affairs of the Indemnitor or a JHINV Subsidiary
during the Indemnified Person’s time as an Officeholder of the relevant
entity; or
	 
	 	(ii)	 	into any Indemnified Person’s Act; and

	 	(b)	 	any other purpose, if and to the extent approved by the managing board
(directie) of the Indemnitor or its delegate (such approval not to be unreasonably
withheld or delayed).

The Access Rights in clauses (a) and (b) above continue so long as the Indemnified Person
shall continue to serve as an Officeholder of the Indemnitor or a JHINV Subsidiary and,
following his Retirement Date, so long as the Indemnified Person shall be subject to any
possible Proceedings (such period, the “Access Period”).

	3.2	 	Request for Access Rights
	 
	 	 	To exercise Access Rights, the Indemnified Person must notify the Indemnitor specifying:

	 	(a)	 	the reason the Indemnified Person wants Access Rights; and
	 
	 	(b)	 	to which Company Books the Indemnified Person wants Access Rights.

	3.3	 	Indemnitor’s obligations regarding access
	 
	 	 	If the request is one for which approval for access is required under clause 3.1 (b), the
Indemnitor agrees to promptly procure consideration of the request by its managing board
(directie) or its delegate and notify the Indemnified Person of its decision.
	 
	 	 	If access is permitted under this deed, the Indemnitor agrees to, or, where relevant,
procure that the relevant JHINV Subsidiary:

	 	(a)	 	allow the Indemnified Person access to the Company Books during normal
business hours at the principal office of the relevant entity or another place or
time agreed between the relevant entity and the Indemnified Person; and

8

 

	 	(b)	 	if required by the Indemnified Person, provide free of charge to the
Indemnified Person a copy of any of the Company Books requested.

	3.4	 	Indemnitor’s obligation to maintain documents
	 
	 	 	The Indemnitor agrees to use reasonable endeavours throughout the Access Period to
maintain:

	 	(a)	 	a complete set of Board Papers in an orderly fashion at a secure place; and
	 
	 	(b)	 	procure that each JHINV Subsidiary uses its reasonable endeavours to
maintain the Company Books in accordance with its usual practices and policies.

In this clause, a complete set of Board Papers means those documents formally prepared and
circulated as a Board pack of documents to all members of the Board or to all members of
any relevant committee of the Board (including documents formally distributed or presented
at a Board meeting).

	3.5	 	Notification of privileged documents
	 
	 	 	The Indemnitor agrees to notify or, as applicable, to procure that the relevant JHINV
Subsidiary notifies the Indemnified Person:

	 	(a)	 	if any Company Books to which the Indemnified Person is to be given or has
been given Access Rights are the subject of legal professional privilege in favour of
the Indemnitor or a JHINV Subsidiary; and
	 
	 	(b)	 	of the general nature of acts, omissions or conduct that could cause the
privilege to be waived, extinguished or lost.

	3.6	 	Indemnified Person’s obligations
	 
	 	 	The Indemnified Person agrees:

	 	(a)	 	to use Company Books to which Access Rights have been given only for the
permitted purpose;
	 
	 	(b)	 	to keep Company Books confidential except that, subject to paragraph (c),
the Indemnified Person may disclose them:

	 	(i)	 	to the Indemnified Person’s lawyers and expert advisors
retained by the Indemnified Person or those lawyers but only for the purpose
for which access is given to the Indemnified Person; and
	 
	 	(ii)	 	to the other parties to Proceedings in which the
Indemnified Person is a party if this is necessary for the purposes of those
Proceedings (but only those parts relevant to the Proceedings may be
disclosed),

provided the recipient has agreed to maintain confidentiality; and

9

 

	 	(c)	 	if the Indemnified Person has been advised that privilege exists, not to
waive that privilege or do any act or omit to do any act which would cause that
privilege to be waived or extinguished without the consent of the Indemnitor or the
relevant JHINV Subsidiary (which must not be unreasonably withheld).

	3.7	 	Return of documents
	 
	 	 	On request from the Indemnitor, the Indemnified Person agrees to return to the Indemnitor
or relevant JHINV Subsidiary, as applicable, all copies of Company Books for which Access
Rights were granted when the permitted purpose has finished. This applies even after the
Access Period has ended.

	3.8	 	Other rights of access preserved
	 
	 	 	Nothing in this deed limits or restricts any other right of access to the Company Books
the Indemnified Person has under any applicable law.

	4	 	Indemnities
	 
	4.1	 	Indemnities
	 
	 	 	To the maximum extent permitted by law and subject to this deed, the Indemnitor
unconditionally and irrevocably indemnifies the Indemnified Person against any and all:

	 	(a)	 	Claims or in respect of any Liabilities (including without limitation a
liability for negligence) arising from or in connection with an Indemnified Person’s
Act (other than Legal Costs or civil penalties which are indemnified under paragraphs
(b) and (c));
	 
	 	(b)	 	civil penalties being pecuniary penalties imposed under legislation;
	 
	 	(c)	 	Legal Costs, not limited to taxed costs (i.e. costs reviewed and approved
by a court), actually and reasonably incurred by the Indemnified Person in defending,
or otherwise being represented in connection with a Claim or in respect of any
Liability;
	 
	 	(d)	 	reasonable Legal Costs actually incurred by the Indemnified Person in good
faith in obtaining legal advice for the purposes of making a claim for
indemnification or seeking legal advice in relation to any issues that may arise
under this deed in connection with making a claim for indemnification under this deed
or any insurance policy procured by the Indemnitor under clause 6;
	 
	 	(e)	 	reasonable Legal Costs actually incurred by the Indemnified Person in good
faith in connection with any civil, criminal, administrative, investigative or
arbitral proceedings, mediation or other form of alternative dispute resolution
(whether or not held in conjunction with any civil, criminal, administrative or
arbitral proceedings) in which the Indemnified Person is made a witness by reason of
the fact of his service as an Officeholder of the Indemnitor, a JHINV Subsidiary or
an Outside Entity;

10

 

	 	(f)	 	reasonable Legal Costs actually incurred by the Indemnified Person in good
faith in obtaining legal advice on issues relevant to their performance of their
functions and the discharge of their duties as an Officeholder of the Indemnitor, a
JHINV Subsidiary or an Outside Entity (other than Legal Costs (i) incurred in
connection with a Claim or in respect of any Liability which are indemnified on the
basis specified in paragraph (c), (ii) indemnified on the basis specified in
paragraph (d), or (iii) indemnified on the basis specified in paragraph (e)) if that
expenditure has been approved by the Indemnitor in accordance with the Indemnitor’s
articles of association (statuten); and
	 
	 	(g)	 	any social security premiums or other taxes which are payable by or on
account of the Indemnified Person as a result of the event or circumstances
indemnified against and the Indemnified Person’s actual or deemed receipt of any
payment hereunder.

	4.2	 	Limit on Indemnities
	 
	 	 	Subject to paragraphs (e) and (f) of this clause, the Officeholder is not entitled to the
indemnities contained in this deed to the extent that a Dutch court has established in a
final and non-appealable decision that the Liability is in connection with an Indemnified
Person’s Act which may be characterized as being:

	 	(a)	 	wilful misconduct (opzet);
	 
	 	(b)	 	intentional recklessness (bewuste roekeloosheid);
	 
	 	(c)	 	seriously imputable (ernstig verwijtbaar); or
	 
	 	(d)	 	not in good faith (te kwader trouw) or in a manner the Officeholder
reasonably could not believe to be in or not opposed to the best interests of the
Indemnitor or relevant JHINV Subsidiary, as applicable, or, with respect to any
criminal action or proceeding, had no reasonable cause to believe that the
Officeholder’s conduct was lawful;

(in each case to be determined under the standards of Dutch corporate law, i.e. if the
relevant entity is not governed by Dutch law, it is to be decided whether under rules and
principles of Dutch corporate law, the Indemnified Person’s Act would constitute any of
the above if the entity had been governed by Dutch law),

unless:

	 	(e)	 	otherwise provided for by Dutch law; or
	 
	 	(f)	 	in view of the circumstances of the case, the managing board (directie) of
the Indemnitor provides otherwise based on standards of reasonableness and fairness.

11

 

	 	(g)	 	The termination of any Claim by a judgement, order, settlement, conviction,
or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that (i) the Indemnified Person’s Act may be characterized as being
wilful misconduct (opzet), intentional recklessness (bewuste roekeloosheid) or
seriously imputable (ernstig verwijtbaar), (ii) the Indemnified Person did not act in
good faith or did not act in a manner which the Indemnified Person reasonably could
have believed to be in (or not opposed to) the best interests of the Indemnitor or
the relevant JHINV Subsidiary, as applicable, or, (iii) with respect to any criminal
action or proceeding, the Indemnified Person had no reasonable cause to believe that
the Indemnified Person’s conduct was lawful.

	4.3	 	Nature of indemnities

	 	(a)	 	The indemnities in this deed:

	 	(i)	 	are continuing obligations, independent of the
Indemnitor’s other obligations under this deed and survive the termination
of this deed; and
	 
	 	(ii)	 	extend to Liabilities arising out of Claims made after
the Indemnified Person has ceased being an Officeholder of the Indemnitor or
a JHINV Subsidiary or an Outside Entity.

	 	(b)	 	It is not necessary for the Indemnified Person to incur expense or make
payment before enforcing a right of indemnity under this deed.
	 
	 	(c)	 	The Indemnitor’s obligations under this deed are a primary obligation and
the Indemnified Person is not obliged to proceed against or enforce any other right
against any person or property or demand payment from any other person before making
a demand for payment by the Indemnitor under this deed.
	 
	 	(d)	 	The Indemnitor’s obligations under this deed are absolute and
unconditional. They are not subject to any set-off, counterclaims or conditions. In
particular, the Indemnitor’s obligations will not be affected by anything which might
abrogate, prejudice or limit them or the effectiveness of this deed.
	 
	 	(e)	 	The Indemnitor waives in favour of the Indemnified Person all rights at law
or otherwise against any person or property so far as necessary to give effect to
this deed.

	4.4	 	Payment of indemnified amounts
	 
	 	 	If the Indemnified Person is entitled to be indemnified under this deed for a Liability
which is due and payable, the Indemnitor agrees to pay that amount at the direction of the
Indemnified Person to discharge the Liability. Payment is to be made within 30 days of
the date on which the Indemnified Person provides evidence reasonably satisfactory to the
Indemnitor that the:

	 	(a)	 	Indemnified Person has incurred the Liability; and
	 
	 	(b)	 	amount is due and payable,
or within such shorter time provided that the Indemnified Person can demonstrate that such
a Liability is payable within a shorter time.

12

 

	4.5	 	Currency

	 	(a)	 	Currency of payment

	 	(i)	 	The Indemnitor must pay all money payable by it under
this deed in the currency reasonably required by the Indemnified Person.
	 
	 	(ii)	 	If the Indemnified Person accepts a payment under this
deed in a currency other than that in which payment is required by clause
4.5(a)(i), that payment will not satisfy the amount due for payment except
to the extent that the Indemnified Person could buy (either directly or
through a currency other than that in which the payment is due) with the
payment received the required currency within a reasonable time of receipt
after the deduction of all costs relating to the purchase.

	 	(b)	 	Currency deficiency
	 
	 	 	 	If there is any deficiency between:

	 	(i)	 	an amount payable by the Indemnitor under this deed which
is received by the Indemnified Person in a currency other than the currency
payable under this deed because of a judgment, order or otherwise; and
	 
	 	(ii)	 	the amount produced by converting the payment received
from the currency in which it was paid into the currency in which it was
agreed to be paid either directly or through a currency other than that in
which it was agreed to be paid,

the Indemnitor must pay to the Indemnified Person the deficiency and any loss,
costs or expenses resulting from it.

	 	(c)	 	Exchange rate
	 
	 	 	 	Subject to any express provision to the contrary, if for the purposes of this
deed it is necessary to convert one currency into another currency the conversion
must be effected using an exchange rate selected by
the Indemnified Person (acting reasonably) reflecting market conditions
(including transaction costs) at the time of conversion.

	4.6	 	Payment of Legal Costs
	 
	 	 	Without limiting clause 4.1 and 4.4, to the maximum extent permitted by law, Legal Costs
and other Liabilities incurred by the Indemnified Person which may be indemnified under
clause 4.1 will be paid by the Indemnitor promptly as required in clause 4.4 and, where a
Claim is involved, in advance of the final determination of such Claim, provided that
amounts payable under this clause must be repaid if and to the extent required under
clause 4.8.

13

 

	4.7	 	Other insurance policies and indemnities
	 
	 	 	The Indemnified Person is not obliged to claim under any indemnity or insurance policy
before claiming under this deed.

	4.8	 	Repayment by Indemnified Person
	 
	 	 	The Indemnified Person agrees to repay amounts paid by, or at the direction of, the
Indemnitor under this deed to or on behalf of the Indemnified Person in connection with a
Liability (including but not limited to any amounts paid pursuant to clause 4.6), within
30 days after receiving a written request from the Indemnitor specifying the amount to be
repaid, to the extent that:

	 	(a)	 	the Liability is or becomes a Liability for which the Indemnified Person is
not entitled to be indemnified under this deed;
	 
	 	(b)	 	a court of competent jurisdiction determines that the Indemnified Person is
not entitled to be indemnified by the Indemnitor for the Liability; or
	 
	 	(c)	 	the Indemnified Person is reimbursed by a Third Party for the Liability, or
a Third Party satisfies the Liability directly.

If the law requires earlier repayment then the amount advanced must be repaid when the law
so requires.

For the purpose of this clause, the Indemnified Person is only required to repay amounts
solely and directly attributable to the defence of the Indemnified Person (to the
exclusion of any other party to any Proceedings) in relation to a Claim or Liability.

	4.9	 	Outside Entities
	 
	 	 	In this clause, “Outside Entity” means a body corporate which is not the Indemnitor or a
JHINV Subsidiary (and for this purpose includes another company, a partnership, joint
venture, trust or other enterprise but does not include the Asbestos Injuries Compensation
Fund Limited (ACN 117 363 461), ABN 60 Pty Limited (ACN 000 009 263), Amaca Pty Limited
(ACN 000 035 512) and Amaba Pty Limited (ACN 000 387 342)) where the Indemnified Person
has been appointed as an Officeholder of an Outside Entity at the request of the
Indemnitor or is serving, or continuing to serve, as an Officeholder at the request of the
Indemnitor. In that event the
Indemnified Person is indemnified by the Indemnitor in accordance with this deed against
any Claim and in respect of any Liability incurred in the capacity as an Officeholder of
the Outside Entity as if that Liability had been incurred in the capacity as an
Officeholder of the Indemnitor in accordance with clause 4.1.

	4.10	 	Multiple indemnities

	 	(a)	 	The indemnity given under this clause 4 is only available to the
Indemnified Person to the extent that an Indemnified Person is not actually
indemnified under any other indemnity given in favour of the Indemnified Person,
including but not limited to an indemnity from the Indemnitor, a JHINV Subsidiary or
an indemnity from an Outside Entity.

14

 

	 	(b)	 	The Indemnitor is not obliged to make payments to the extent that the
Indemnified Person has already received payment from any other JHINV Subsidiary and
the Indemnified Person acknowledges he cannot claim payment from the Indemnitor to
the extent he recovers payment from a JHINV Subsidiary.

	4.11	 	Reasonable Costs
	 
	 	 	If the parties do not reach agreement as to whether Legal Costs under clause 4.1 or 4.6
are reasonable within 30 days of the claim being made then either party may refer the
dispute to an expert on legal costs in the place where the dispute arises for
determination. The expert is to be the person nominated by the Chairman of the Board of
the Amsterdam Bar Association or a designee of such person who has regard to the place
where the dispute arises, unless the parties agree to another person before the Chairman
nominates the expert.
	 
	 	 	Where an expert has been nominated under this clause to determine a dispute:

	 	(a)	 	the expert will determine the procedures for determination of the dispute
and the allocation of costs and expenses in connection with the referral; and
	 
	 	(b)	 	the decision of the expert will be conclusive and binding on the parties in
the absence of manifest error.

	5	 	Conduct of Claim
	 
	5.1	 	Indemnified Person’s undertakings
	 
	 	 	The Indemnified Person agrees:

	 	(a)	 	to notify the Indemnitor as soon as possible after the Indemnified Person
becomes aware of any circumstances which could reasonably be expected to give rise to
a request by the Indemnified Person for indemnity under this deed, provided that the
failure to so notify Indemnitor will not relieve Indemnitor from any liability which
it may have to the Indemnified Person (except to the extent that the Indemnitor is
prejudiced by such failure);
	 
	 	(b)	 	to take any action and provide any information the Indemnitor reasonably
requires to avoid, dispute, defend or appeal any Claim which could reasonably be
expected to give rise to a request by the Indemnified Person for indemnity under this
deed;
	 
	 	(c)	 	to assist the Indemnitor to the best of the Indemnified Person’s abilities
in any action the Indemnitor takes to avoid, dispute, defend or appeal any Claim
which may give rise to a request by the Indemnified Person for indemnity under this
deed;
	 
	 	(d)	 	not to admit liability for or settle any Claim which may give rise to a
request by the Indemnified Person for indemnity under this deed without the
Indemnitor’s consent (which must not be unreasonably withheld);

15

 

	 	(e)	 	to notify the Indemnitor immediately of any offer of settlement or
compromise received from a person making a Claim; and
	 
	 	(f)	 	if the Indemnitor is entitled to act under clause 5.2, to do everything the
Indemnitor reasonably requests, to enable the Indemnitor to enforce its rights under
that clause or clause 5.3.

	5.2	 	Conduct of Claim
	 
	 	 	With respect to any Claim:

	 	(a)	 	the Indemnitor shall be entitled to participate therein at its own expense;
	 
	 	(b)	 	except with prior written consent of the Indemnified Person, the Indemnitor
shall not be entitled to assume the defence of any Claim;
	 
	 	(c)	 	the Indemnitor shall not settle any Claim in any manner which would impose
any penalty or limitation on the Indemnified Person without the Indemnified Person’s
prior written consent (not to be unreasonably withheld or delayed);
	 
	 	(d)	 	the Indemnified Person shall not settle any Claim without the Indemnitor’s
prior written consent (not to be unreasonably withheld or delayed); and
	 
	 	(e)	 	as far as legally possible, the Indemnitor may elect to be subrogated to
the rights of the Indemnified Person against a Third Party in connection with the
Claim and any Liability arising in connection with the Claim, unless an insurer is
entitled to be subrogated to those rights.

	5.3	 	Control of Claim
	 
	 	 	If the Indemnitor is entitled to act under clause 5.2, the Indemnitor may manage and
control the conduct of the Claim but must do so at the cost of the Indemnitor or its
insurers. In those circumstances, the Indemnitor agrees to instruct its lawyers on behalf
of both the Indemnitor and the Indemnified Person and indemnify the Indemnified Person
against any costs awarded
against the Indemnified Person in any Claim brought by the Indemnitor in the exercise of
its rights under this clause 5.

	5.4	 	Legal advisers appointed by the Indemnified Person
	 
	 	 	Where Indemnitor has not assumed control of the conduct of a Claim under clause 5.2, the
Indemnified Person may appoint legal or other advisers to assist the Indemnified Person in
connection with the Claim not being the advisers assisting the Indemnitor in connection
with the Claim. Subject to the terms of this deed and to the Indemnitor approving the
identity of the advisers to be appointed (such approval not to be unreasonably withheld or
delayed), the Indemnitor agrees to pay all reasonable Legal Costs and other costs and
expenses incurred by the Indemnified Person in those circumstances.
	 
	 	 	Nothing in this clause 5.4 derogates from clauses 4.1(c), 4.1(d), 4.1(e), 4.1(f) and 4.8.

16

 

	5.5	 	Interpretation
	 
	 	 	Each cause of action, demand or suit comprised in any Claim shall be treated as a separate
and distinct Claim, with the result that clauses 5.2 and 5.4 may each apply to different
aspects of what might otherwise be regarded as the same Claim or Proceeding.
	 
	6	 	Insurance
	 
	6.1	 	Indemnitor to maintain insurance
	 
	 	 	To the extent permitted by law, the Indemnitor must, so long as the Indemnified Person
shall continue to serve as an Officeholder of the Indemnitor or a JHINV Subsidiary or an
Outside Entity and, following his Retirement Date, so long as the Indemnified Person shall
be subject to any possible Proceedings, procure that an adequate Insurance Policy with an
Insurer so far as is reasonably available at a reasonable cost is maintained for the
benefit of the Indemnitor or the relevant JHINV Subsidiary. The Insurance Policy may
contain generally accepted exclusions and conditions.
	 
	 	 	The Indemnitor agrees to and agrees to procure that any JHINV Subsidiary agrees to:

	 	(a)	 	use reasonable endeavours not to do or permit to be done anything which
prejudices, and promptly rectify anything which might prejudice, cover under the
Insurance Policy;
	 
	 	(b)	 	upon receipt of a request in writing from the Indemnified Person, provide
the Indemnified Person with a copy of the Insurance Policy and any certificates of
insurance connected with it;
	 
	 	(c)	 	notify the Indemnified Person promptly if, for any reason, the Insurance
Policy is cancelled or is not renewed or is likely to be cancelled or not renewed;
and
	 
	 	(d)	 	use reasonable endeavours to ensure that cover under the Insurance Policy
following the Retirement Date is not materially less favourable to the Indemnified
Person than to the Officeholders of the Indemnitor in office at that time.

	6.2	 	Indemnified Person’s undertaking in connection with insurance
	 
	 	 	The Indemnified Person agrees:

	 	(i)	 	to do anything the Indemnitor reasonably requires to
enable the Indemnitor to take out and maintain the Insurance Policy at the
Indemnitor’s expense; and

17

 

	 	(ii)	 	to comply at all times with all his obligations under the
Insurance Policy, including reporting claims in writing as soon as
practicable, and reporting circumstances which could give rise to a claim.

	6.3	 	Indemnified Person’s acknowledgment in connection with insurance
	 
	 	 	The Indemnified Person acknowledges that the negotiation of the terms of the Insurance
Policy may:

	 	(a)	 	involve the Insurer varying the terms of the insurance policy offered
which, if accepted by the Indemnitor, may provide less coverage or less favourable
coverage for the Indemnified Person;
	 
	 	(b)	 	involve a decision by the Indemnitor, acting reasonably, to balance the
proposed level of premiums against the terms offered; or
	 
	 	(c)	 	result in a decision by the Indemnitor to accept varied terms or to change
Insurers.

	7	 	Subrogation

	 	(a)	 	In the event of the Indemnitor meeting its obligations under this Deed, any
rights which the Indemnified Person has or might have against any other party in
respect of any matter which has been the subject of indemnity will be subject to a
right of subrogation by the Indemnitor.
	 
	 	(b)	 	If the Indemnitor acts under this clause 7, the Indemnified Person agrees
to any claim or proceedings being brought by the Indemnitor in the Indemnified
Person’s name and agrees to provide the Indemnitor with all reasonable assistance and
co-operation including the execution of any necessary documents and papers.
	 
	 	(c)	 	If the Indemnified Person recovers any amount from a Third Party in respect
of any matter giving rise to a claim under this indemnity, the Liability of the
Indemnitor will be reduced by the amount so recovered. Should the Indemnitor recover
an amount in excess of the total payment made, then the excess of that payment shall
be restored
to the Indemnified Person less the cost to the Indemnitor of such recovery.
	 
	 	(d)	 	The Indemnified Person and Indemnitor shall do nothing to prejudice these
rights.

	8	 	Notices
	 
	8.1	 	Requirements for notices
	 
	 	 	All notices, consents, approvals, waivers and other communications in connection with this
deed must be in writing, signed by the sender (if the Indemnified Person) or an authorised
representative of the sender (if the Indemnitor), and sent to the address or facsimile
number, and marked for attention of the person identified in the Details or, if the
recipient has notified otherwise, then marked for attention in the way last notified.

18

 

	8.2	 	When effective
	 
	 	 	Communications take effect from the time they are received or taken to be received.
Communications are taken to be received:

	 	(a)	 	if sent by post, on the day after the date of posting; or
	 
	 	(b)	 	if sent by fax, at the time shown in the transmission report as the time
that the whole fax was sent; or
	 
	 	(c)	 	if sent by email, on the earlier of receipt by the sender of an automated
message confirming delivery or on the day after the email is sent, unless the sender
receives an automated message that the email has not been delivered.

	9	 	Operation of the Previous Deed2
	 
	9.1	 	Revocation
	 
	 	 	The Previous Deed, to the extent it relates to:

	 	(a)	 	the Indemnitor’s obligation to maintain insurance in respect of the
Indemnified Person, is revoked; and
	 
	 	(b)	 	all other matters, is superseded by this deed,

from the Effective Date.

	9.2	 	Preservation
	 
	 	 	Clause 9.1 of this deed does not prejudice any accrued rights, obligations, claims or
liabilities of a party arising under the Previous Deed before the
Effective Date with respect to any matter other than the Indemnitor’s obligation to
maintain insurance in respect of the Indemnified Person.
	 
	9.3	 	Continuing indemnities
	 
	 	 	Without limiting clause 9.2, clause 9.1 of this deed does not affect the indemnities
provided by the Previous Deed in connection with any Indemnified Person’s Act occurring
before the Effective Date. Those indemnities continue in full force and effect in
connection with any Indemnified Person’s Act occurring before the Effective Date even if a
claim is made under the Previous Deed after the Effective Date.

 

			
	2	 	Delete for a newly appointed Indemnified Person.

19

 

	10	 	General
	 
	10.1	 	Exercise of rights
	 
	 	 	A right in favour of the Indemnified Person under this deed or a breach of an obligation
of the Indemnitor under this deed can only be waived by an instrument duly executed by the
Indemnified Person. No other act, omission or delay of the Indemnified Person will
constitute a waiver binding against, or estoppel against, the Indemnified Person.
	 
	10.2	 	Discretion in exercising rights
	 
	 	 	The Indemnitor may exercise a right or remedy or give or refuse its consent in any way it
considers appropriate (including by imposing conditions), unless this deed expressly
states otherwise. However, the Indemnitor acknowledges that in exercising any discretion
it will in the ordinary course seek to provide the maximum protection to the Indemnified
Person that is consistent with the terms of this deed and applicable law.
	 
	10.3	 	Successors: Binding Agreement
	 
	 	 	This deed shall be binding on, and shall inure to the benefit of and be enforceable by,
the Indemnitor’s successors and assigns and by the Indemnified Person’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, devisees, and
legatees. Indemnitor shall require any successor or assignee (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Indemnitor expressly to assume and agree in writing to
perform this Agreement in the same manner and to the same extent that such Indemnitor
would be required to perform if no such succession or assignment had taken place.
	 
	10.4	 	Reinstatement of rights
	 
	 	 	If a transaction (including a payment) in connection with this deed is determined or
conceded or compromised to be void or voidable then:

	 	(a)	 	the Indemnified Person is immediately entitled as against the Indemnitor to
all the rights under this deed to which the Indemnified Person was entitled
immediately before the transaction; and
	 
	 	(b)	 	on request from the Indemnified Person, the Indemnitor must do all things
necessary (including signing any document) to restore all those rights to the
Indemnified Person.

	10.5	 	VAT
	 
	 	 	Unless otherwise specifically stated, amounts payable under this deed are on a VAT
exclusive basis. If any Supply made by one party (“supplier”) in connection with this
deed becomes subject to VAT, then the party receiving the Supply or other transaction
being subject to VAT (“recipient”) agrees to pay an additional amount to the supplier
equal to the amount of VAT payable to the applicable tax authority in respect of the
Supply or other transaction being subject to VAT. If the amount of VAT recovered by the
supplier from 

20

 

	 	 	the recipient under this clause differs from the amount of VAT payable under
applicable law by the supplier, the amount payable by the recipient to the supplier is to
be adjusted accordingly.

Where one party (“payer”) is liable to reimburse another party (“payee”) for any
expenditure incurred by the payee (“Expenditure”), the amount reimbursed by the payer must
be the VAT exclusive Expenditure plus any VAT payable to the payee by the payer under this
clause.

	10.6	 	Variation and waiver
	 
	 	 	A provision of this deed, or right created under it, may not be waived or varied except in
writing signed by the party or parties to be bound. A purported variation has no effect
if it infringes applicable law.
	 
	10.7	 	Severability
	 
	 	 	If the whole or any part of a provision of this deed is void, unenforceable or illegal in
a jurisdiction it is severed for that jurisdiction. The remainder of this deed has full
force and effect and the validity or enforceability of that provision in any other
jurisdiction is not affected. This clause has no effect if the severance alters the basic
nature of this deed.
	 
	10.8	 	Governing law and jurisdiction

	 	(a)	 	This deed is governed by and is to be construed in accordance with the law
in force in The Netherlands.
	 
	 	(b)	 	Each party irrevocably and unconditionally submits to the non-exclusive
jurisdiction of the courts of The Netherlands and, in the case of an Indemnified
Person at the time resident outside The Netherlands, the relevant courts, whether
state, federal or howsoever organised under the law of the place of residence of the
Indemnified Person and courts of appeal from them. The Indemnitor waives any right
it has to object to an action being brought in those courts including, without
limitation, by claiming that the action has been brought in an inconvenient forum or
that those courts do not have jurisdiction.

EXECUTED as a deed

21

 

Deed of access, insurance and indemnity

Signing page

DATED:
                                        

	 	 	 	 	 	 	 
	EXECUTED by JAMES HARDIE 
	 	)	 	 	 	 
	INDUSTRIES N.V. by: 
	 	)	 	 	 	 
	  
	 	)	 	 	 	 
	 
	 	)	 	 	 	 
	 
	 	)	 	 	 	 
	
 
	 	)	 	 	 	 
	Signature of director
	 	)	 	Signature of director/company  	 	 
	 
	 	)	 	secretary* 	 	 
	 
	 	)	 	*delete whichever is not applicable 	 	 
	 
	 	)	 	 	 	 
	 
	 	)	 	 	 	 
	Name of director (block letters)
	 	)	 	Name of director/company secretary* 	 	 
	 
	 	 	 	(block letters)	 	 
	 
	 	 	 	*delete whichever is not applicable	 	 

CO-SIGNED BY INDEMNIFIED PERSON:

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signature of Indemnified Person
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name of Indemnified Person (block letters)
	 	 	 	 	 	 

iexv4w10

Exhibit 4.10

Indemnity Agreement

Dated

Between

James Hardie Building Products, Inc.,

a corporation formed under the laws of the State of Nevada

(the “Indemnitor”)

and

[                    ] (the “Indemnitee”).

 

 

Indemnity Agreement

     This Indemnity Agreement (the “Agreement”) is made and entered into this                      day of                     ,
200_, by and between James Hardie Building Products, Inc., a Nevada corporation (“Indemnitor”), and
                                         (the “Indemnitee”) (individually, each a “Party” and collectively the
“Parties”).

Recitals

     Both Indemnitor and Indemnitee recognize the increased risk of litigation and other claims
being asserted against directors and officers of public companies in today’s environment. The
Indemnitee and Indemnitor are also aware that it is common for plaintiffs to name a parent company
and its board of directors in lawsuits originating at the subsidiary level.

     Indemnitor acknowledges that Indemnitee has served, is serving and shall serve as a director,
officer and/or employee of Indemnitor and James Hardie Industries, NV (the “Parent”) or as an
Affiliate Indemnitee (as hereinafter defined), in the positions and for the entities identified on
Exhibit A attached hereto, at the request of Indemnitor. The Indemnitee is only willing to
continue such service as a director, officer and/or employee of Indemnitor and of Parent or as an
Affiliate Indemnitee, if the Indemnitee is indemnified by the Indemnitor for any claims against
Indemnitee relating, inter alia, to Indemnitee’s service as a director, officer and/or employee of
Indemnitor and of Parent or as an Affiliate Indemnitee. Parent has also requested that Indemnitor
provide indemnification for the Indemnitee so that it can continue to attract and retain the best
qualified candidates for its Board of Directors.

     Indemnitor’s operations are by far the largest and most important segment of Parent’s
business. In fiscal year 2006, Indemnitor contributed approximately 82% of Parent’s total net
sales and approximately 89% of income before taxes. In that same year, 65% of the employees of the
Parent and its subsidiaries worked for Indemnitor, and Indemnitor’s assets were 82% of Parent’s
total assets (other than general corporate assets).

     Indemnitor recognizes that Indemnitee dedicates substantial time and effort to the concerns of
Indemnitor, including time spent (a) in meetings and in preparation for meetings, reflecting the
importance of Indemnitor to Parent’s corporate group, (b) to review and consider the business and
affairs of Indemnitor, including through annual visits to Indemnitor’s offices and facilities, and
(c) to establish policies for Indemnitor’s activities, operations, and capital improvements.

     In addition to spending time and effort in the manner described above and otherwise,
Indemnitee has made, does make and will make many decisions which greatly affect and benefit
Indemnitor. Such decisions include, but are not limited to, managing equity and debt issues at the
Parent level, allocating Parent resources to Indemnitor and reviewing requests for Parental
investment in and assistance to Indemnitor.

     Indemnitor acknowledges that, due to the benefits it receives from the service of the
Indemnitee and from the valuable administrative, financial and other support provided by Parent, it
has a vested corporate self-interest in ensuring that qualified individuals are not discouraged
from serving as directors and officers of Parent, because of the risk of litigation or other
claims. Moreover, the large and tangible benefits Indemnitor reasonably expects to derive from the
activities of Indemnitee are such that the reasonably expected value to be obtained by Indemnitor
from encouraging service by Indemnitee is at least as great as any reasonably expected cost.

2

 

     In part to provide the Indemnitee with specific contractual assurance of substantial
protection against personal liability (regardless of, among other things, any amendment to or
revocation of any other law or agreement protecting Indemnitee, or any change in Indemnitor’s or
Parent’s Board of Directors, which, in the case of Parent, includes its Management Board,
Supervisory Board, and Joint Board, or control of Indemnitor or Parent), the Indemnitor desires to
enter into this Agreement to hold harmless and indemnify the Indemnitee and to make arrangements
pursuant to which the Indemnitee may be advanced or reimbursed expenses incurred by the Indemnitee
in certain proceedings, in every case to the fullest extent that would be authorized or permitted
by the laws of the State of Nevada. Such agreement is not intended to be exclusive of any other
rights to which the Indemnitee may be entitled.

General terms

     NOW THEREFORE, in consideration of the foregoing recitals, and of the mutual promises
contained herein, which the Parties agree constitute full and adequate consideration, the Parties
agree as follows:

	1	 	Service by the Indemnitee

	 	 	At the request of Indemnitor, the Indemnitee has served, is serving and shall continue to
serve as a director, officer and/or employee of Indemnitor and of Parent and/or as an
Affiliate Indemnitee, as shown on Exhibit A, which may be amended from time to time,
for so long as he is duly elected or qualified for such service or until such time as he
tenders his resignation in writing. Subject to any other contractual obligation or other
obligation imposed by operation of law, the Indemnitee may at any time and for any reason
resign from such position. Nothing in this Agreement will confer upon the Indemnitee the
right to continue in the employ of any of Indemnitor, Parent or an Affiliate Indemnitor (as
hereinafter defined).

	2	 	Indemnification

	 	(a)	 	To the fullest extent permitted by Nevada law in effect on the date hereof or
as such laws may from time to time be amended, the Indemnitor shall hold harmless and
indemnify the Indemnitee, his executors, administrators or assigns against any and all
expenses, liabilities and losses (including, without limitation, investigation
expenses, expert witnesses’ and attorneys’ fees and expenses, judgments, penalties,
fines, amounts paid or to be paid in settlement, any interest, assessments, or other
charges imposed thereon and any federal, state, local or foreign taxes imposed as a
result of actual or deemed receipt of any payment hereunder) actually and reasonably
incurred by the Indemnitee (net of any related insurance proceeds or other amounts
received by the Indemnitee or paid by or on behalf of an Indemnitor on the Indemnitee’s
behalf in compensation of such expenses, liabilities or losses) in connection with any
actual or threatened action, suit or proceeding, whether civil, criminal,
administrative or investigative or in arbitration, to which the Indemnitee is a party
or participant or is threatened to be made a party or participant (a “Proceeding”), as
a plaintiff, defendant, respondent, witness or otherwise, based upon, arising from,
relating to or by reason of the fact that the Indemnitee:

	 	(i)	 	is, was, shall be or shall have been a director, officer and/or
employee of Parent;

3

 

	 	(ii)	 	is, was, shall be or shall have been a director, officer and/or
employee of Indemnitor; or
	 
	 	(iii)	 	is or was serving, shall serve, or shall have served at the
request of Indemnitor as a director, officer, partner, member, manager,
trustee, fiduciary, employee or agent (“Affiliate Indemnitee”) of another
foreign or domestic corporation or non-profit corporation, cooperative,
partnership, joint venture, trust, employee benefit plan, or other incorporated
or unincorporated enterprise (each, an “Affiliate Indemnitor”) or arising from
or relating to any action or omission to act taken by the Indemnitee in any of
the foregoing capacities; provided, however, that, except as provided in
Section 11(d) or (e) hereof, an Indemnitor shall indemnify the Indemnitee in
connection with a Proceeding initiated by the Indemnitee only if such
proceeding (or part thereof) was authorised by a two-thirds vote of the Board
of Directors of Indemnitor.

	 	(b)	 	The Indemnitee shall be presumed to be entitled to such indemnification under
this Agreement upon submission of a written claim pursuant to Section 9 hereof.
Thereafter, the Indemnitor shall have the burden of proof to overcome the presumption
that the Indemnitee is so entitled. Such presumption shall only be overcome by a
judgment or other final adjudication, after all appeals and all time for appeals has
expired (“Final Determination”), which is adverse to the Indemnitee and which
establishes:

	 	(i)	 	that his acts were committed in bad faith, or were the result
of active and deliberate dishonesty or wilful fraud or illegality, and were
material to the cause of action so adjudicated;
	 
	 	(ii)	 	that the Indemnitee in fact personally gained a financial
profit or other advantage to which he was not legally entitled; or
	 
	 	(iii)	 	that indemnification of Indemnitee is prohibited by applicable
law.

	 	(c)	 	The termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement (with or without court approval), conviction or upon a plea
of nolo contendere or its equivalent, shall not (except as otherwise expressly provided
in this Agreement) of itself create a presumption that Indemnitee is not entitled to
indemnification or otherwise adversely affect the rights of the Indemnitee to
indemnification except as may be provided herein.
	 
	 	(d)	 	If the Indemnitee is not wholly successful in any 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 Indemnitor agrees to indemnify the Indemnitee to the
maximum extent permitted by law against all losses and expenses incurred by the
Indemnitee in connection with each successfully resolved claim, issue or matter. For
the purposes of this section and without limitation, the termination of any claim,
issue or matter in such a Proceeding by dismissal with or without prejudice shall be
deemed to be a successful result as to such claim, issue or matter. Neither the
failure of the Indemnitor (including its Board of Directors, legal counsel or
stockholders) to have made a determination prior to the commencement of such Proceeding
that indemnification of the Indemnitee is proper in the circumstances because such
person has met the applicable standard of conduct, nor an actual determination by such
Indemnitor (including its Board of Directors, its legal counsel or its stockholders)
that the Indemnitee has not met the applicable standard of conduct, shall be a defense

4

 

	 	 	 	to the action or create a presumption that the Indemnitee has not met the applicable
standard of conduct. The purchase, establishment or maintenance of any other
indemnification arrangement shall not in any way diminish, restrict, limit or
adversely affect the rights and obligations of the Indemnitor or of the Indemnitee
under this Agreement, except as expressly provided herein, and the execution and
delivery of this Agreement by the Indemnitor and the Indemnitee shall not in any way
diminish, restrict, limit or adversely affect the Indemnitee’s right to
indemnification from the Indemnitor or any other party or parties under any other
indemnification arrangement, the Articles of Incorporation or the Bylaws of the
Indemnitor (the “Charter Documents”), or applicable law.
	 
	 	(e)	 	No indemnity pursuant to this Agreement shall be paid by the Indemnitor:

	 	(i)	 	in respect of remuneration paid to Indemnitee if it shall be
determined by a Final Determination that such remuneration was in violation of
law;
	 
	 	(ii)	 	on account of any suit in which judgment is rendered against
Indemnitee for an accounting of profits made from the purchase or sale by
Indemnitee of securities of Parent pursuant to the provisions of Section 16(b)
of the Securities Exchange Act of 1934 and amendments thereto or similar
provisions of any applicable federal, state or local statutory law;
	 
	 	(iii)	 	on account of Indemnitee’s conduct which is adjudged in a
Final Determination to have been knowingly fraudulent or deliberately
dishonest, or to constitute wilful misconduct; or
	 
	 	(iv)	 	if a Final Determination by a court having jurisdiction in the
matter shall determine that such indemnification is not lawful (and, in this
respect, both the Indemnitor and the Indemnitee have been advised that the
Securities and Exchange Commission believes that:

	 	(A)	 	indemnification for liabilities arising under
the federal securities laws is against public policy and is, therefore,
unenforceable; and
	 
	 	(B)	 	claims for indemnification should be submitted
to the appropriate court for adjudication).

	3	 	Indemnification for Expenses of a Witness

	 	 	Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by
reason of his status as a director, officer, employee or agent or fiduciary of Parent,
Indemnitor, or an Affiliate Indemnitor, a witness in any Proceeding to which Indemnitee is
not a party, he shall be indemnified by the Indemnitor against all expenses actually and
reasonably incurred by him or on his behalf in connection therewith.

	4	 	Period of Limitations

	 	 	No legal action shall be brought and no cause of action shall be asserted by or on behalf of
Indemnitor against the 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, or such longer period as may be required by applicable law under the
circumstances. Any claim or cause of action of the Indemnitor or its affiliate shall be
extinguished and deemed released unless asserted by the timely filing of a legal action
within such period;
provided, however, that if any shorter period of limitations is otherwise applicable to any
such cause of action the shorter period shall govern.

5

 

	5	 	Insurance

	 	 	Subject only to the provisions of this Section 5, as long as the Indemnitee shall continue
to serve at the request of Indemnitor, as a director, officer and/or employee of Indemnitor
or Parent (or shall continue at the request of Indemnitor to serve as an Affiliate
Indemnitee) and, thereafter, as long as the Indemnitee shall be subject to any possible
Proceeding by reason of the fact that the Indemnitee was a director, officer and/or employee
of Indemnitor or Parent (or served in any of said other capacities), the Indemnitor shall
purchase or arrange for, and maintain in effect for the benefit of the Indemnitee, one or
more valid, binding and enforceable policies of directors’ and officers’ liability insurance
providing adequate liability coverage for the Indemnitee’s acts as a director, officer
and/or employee of Parent or Indemnitor or as an Affiliate Indemnitee (“D&O Insurance”) so
far as it is reasonably available at a reasonable cost (or in the event that such third
party insurance policies are not available maintain an appropriate self-insurance program).
The Indemnitor shall promptly notify the Indemnitee if such D&O Insurance is not available
or of any lapse, amendment or failure to renew said policy or policies or any provision
thereof relating to the extent or nature of coverage provided thereunder. In the event that
Indemnitor cannot purchase or maintain in effect said policy or policies of D&O Insurance
pursuant to the provisions of this Section 5, the Indemnitor shall, in addition to and not
in limitation of the other rights granted to the Indemnitee under this Agreement, hold
harmless and indemnify the Indemnitee to the full extent of coverage which would otherwise
have been provided for the benefit of the Indemnitee pursuant to the D&O Insurance. As far
as is legally possible, the Indemnitor shall elect to be subrogated to the rights of the
Indemnitee against a third-party claim in connection with a Proceeding and any liability
arising in connection with such Proceeding, unless an insurer is entitled to be subrogated
to those rights.

	6	 	Claims for Payments

	 	(a)	 	Notwithstanding any other provision of this Agreement, to the fullest extent
allowed by Nevada law, the Indemnitee shall have the right to receive from the
Indemnitor on demand or, at his option, to have the Indemnitor pay promptly on his
behalf, within thirty (30) days of the date the Indemnitee submits a Claim (as defined
below in this paragraph 6(a)) and in advance of a Final Determination of a Proceeding,
all amounts payable by the Indemnitor pursuant to the terms of this Agreement as
corresponding amounts are expended or incurred by the Indemnitee in connection with any
Proceeding or otherwise (such amounts so expended or incurred being referred to as
“Advanced Amounts”). In making any claim for payment by the Indemnitor of any amount,
including any Advanced Amount, pursuant to this Agreement, the Indemnitee shall submit
to the Indemnitor a written request for payment (a “Claim”) which includes a schedule
setting forth in reasonable detail the dollar amount expended (or incurred or expected
to be expended or incurred). Each item on such schedule shall be supported by the
bill, agreement, or other documentation relating thereto, a copy of which shall be
appended to the schedule as an exhibit. The Corporate Secretary of the Indemnitor
shall, promptly upon receipt of such a request for indemnification, advise the
Indemnitor’s Board of Directors in writing that Indemnitee has requested
indemnification.
	 
	 	(b)	 	Where the Indemnitee is requesting Advanced Amounts, the Indemnitee must also
provide an undertaking to repay such Advanced Amounts if a Final Determination is
made that the Indemnitee is not entitled to indemnification hereunder. Any advances
and undertakings to repay pursuant to this Section 6 shall be unsecured and interest
free.

6

 

	 	(c)	 	Notwithstanding the foregoing, the obligation of the Indemnitor to pay Advanced
Amounts pursuant to this Section 6 shall be subject to the condition that, if, when and
to the extent that the Indemnitor determines that Indemnitee would not be permitted to
be indemnified under applicable law, Indemnitor shall be entitled to be reimbursed,
within thirty (30) days of such determination, by Indemnitee (who hereby agrees to
reimburse Indemnitor) for all such amounts thereto paid; provided, however, that if
Indemnitee has commenced or thereafter commences legal proceedings in a court of
competent jurisdiction to secure a determination that Indemnitee should be indemnified
under applicable law, any determination made by Indemnitor that Indemnitee would not be
permitted to be indemnified under applicable law shall not be binding and Indemnitee
shall not be required to reimburse Indemnitor for any Advanced Amounts until a Final
Determination is made with respect thereto (as to which all rights of appeal therefrom
have been exhausted or lapsed).

	7	 	Continuation of Indemnity

	 	 	All agreements and obligations of the Indemnitor contained herein shall continue during the
period the Indemnitee is a director, officer and/or employee of Indemnitor or Parent (or is
serving at the request of Indemnitor as an Affiliate Indemnitee) and shall continue
thereafter so long as the Indemnitee shall be subject to any possible Proceeding by reason
of the fact that the Indemnitee was a director, officer and/or employee of Indemnitor or
Parent or served at the request of the Indemnitor as an Affiliate Indemnitee, whether or not
Indemnitee is acting or serving in any such capacity at the time any liability or expense is
incurred for which indemnification can be provided under this Agreement. This Agreement
shall continue in effect regardless of whether Indemnitee continues to serve as a director,
officer and/or employee of the Indemnitor, Parent or as an Affiliate Indemnitee at
Indemnitor’s request.

	8	 	Successors: Binding Agreement

	 	 	This Agreement shall be binding on, and shall inure to the benefit of and be enforceable by,
the Indemnitor’s successors and assigns and by the Indemnitee’s personal or legal
representatives, executors, administrators, successors, heirs, distributees, divisees and
legatees. Indemnitor shall require any successor or assignee (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of such Indemnitor expressly to assume and agree in writing to perform this
Agreement in the same manner and to the same extent that such Indemnitor would be required
to perform if no such succession or assignment had taken place.

	9	 	Notification and Defense of Claim

	 	(a)	 	Promptly after receipt by the Indemnitee of notice of the commencement of any
Proceeding, the Indemnitee shall, if a claim in respect thereof is to be made against
an Indemnitor under this Agreement, notify such Indemnitor of the commencement thereof,
but the failure to so notify such Indemnitor will not relieve the Indemnitor from any
liability which it may have to the Indemnitee (except to the extent that the Indemnitor
is prejudiced by such failure). With respect to any such Proceeding:

7

 

	 	(i)	 	Indemnitor shall be entitled to participate therein at its own
expense;
	 
	 	(ii)	 	Except with prior written consent of the Indemnitee, the
Indemnitor shall not be entitled to assume the defense of any Proceeding;
	 
	 	(iii)	 	Indemnitor shall not settle any Proceeding in any manner which
would impose any penalty or limitation on the Indemnitee without the
Indemnitee’s prior written consent (not to be unreasonably withheld or
delayed); and
	 
	 	(iv)	 	The Indemnitee shall not settle any Proceeding without the
Indemnitor’s prior written consent (not to be unreasonably withheld or
delayed).

	 	(b)	 	Upon written request by Indemnitee for indemnification pursuant to Section 6
hereof, a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made by the following person or persons empowered to make
such determination:

	 	(i)	 	the Board of Directors of Indemnitor by a majority vote of a
quorum of directors of such Indemnitor who are not and were not parties to the
Proceeding in respect of which indemnification is sought by Indemnitee
(“Disinterested Directors”); or
	 
	 	(ii)	 	if a quorum of the Board of Directors consisting of
Disinterested Directors is not obtainable or, even if obtainable, said
Disinterested Directors so direct, by 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:

	 	(A)	 	the Indemnitor or Indemnitee in any matter
material to either such party; or
	 
	 	(B)	 	any other party to the Proceeding giving rise
to a claim for indemnification hereunder (“Independent Counsel”)
(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 Indemnitor or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement) in a written
opinion to the Indemnitor’s Board of Directors, a copy of which shall
be delivered to Indemnitee; or

	 	(iii)	 	if so directed by said Disinterested Directors, by the
stockholders of Indemnitor, and, if it is determined that Indemnitee is
entitled to indemnification, payment to Indemnitee shall be made within thirty
(30) days after such determination.

	 	 	 	Indemnitee shall 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 Independent Counsel, member of the Board of Directors,
or stockholder of Indemnitor shall act reasonably and in good faith in making a
determination under this Agreement of the Indemnitee’s entitlement to

8

 

	 	 	 	indemnification. 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 such Indemnitor to the extent
allowed by applicable law (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Indemnitor hereby indemnifies and agrees to
hold Indemnitee harmless therefrom.
	 
	 	(c)	 	If the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 9(b) hereof, the Independent Counsel shall be
selected as provided in this Section 9(c). The Independent Counsel shall be selected
by the Board of Directors (subject to this Section 9(c)), and the Indemnitor shall give
written notice to Indemnitee advising him of the identity of the Independent Counsel so
selected. Indemnitee may, within seven (7) days after receipt of such written notice
of selection, deliver to the Indemnitor 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 this Section 9, 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 a written
objection is made and substantiated, the Independent Counsel selected may not serve as
Independent Counsel unless and until such objection is withdrawn or a court has
determined that such objection is without merit. If, within twenty (20) days after
submission by Indemnitee of a written request for indemnification pursuant to Section
9(a) hereof, no Independent Counsel shall have been selected and not objected to, the
Indemnitor may petition a court of competent jurisdiction for resolution of any
objection which shall have been made by Indemnitee to the Indemnitor’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a person
selected by the court or by such other person as the 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(b) hereof. The Indemnitor shall pay
any and all reasonable fees and expenses of Independent Counsel incurred by such
Independent Counsel in connection with acting pursuant to Section 9(b) hereof, and the
Indemnitor shall pay all reasonable fees and expenses incident to the procedures of
this Section 9(c), regardless of the manner in which such Independent Counsel was
selected or appointed. Upon the due commencement of any judicial proceeding or
arbitration pursuant to 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).

	10	 	Security

	 	 	To the extent requested by the Indemnitee and approved by the Board of Directors of the
Indemnitor, the Indemnitor may at any time and from time to time provide security to the
Indemnitee for the Indemnitor’s obligations hereunder through a 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.

	11	 	Enforcement

	 	(a)	 	Indemnitor has entered into this Agreement and assumed the obligations imposed
on Indemnitor hereby in order to induce the Indemnitee to act as a director, officer
and/or employee of Indemnitor or the Parent or as an Affiliate Indemnitee and
acknowledges that the Indemnitee is relying upon this Agreement in agreeing to serve
or continuing in such capacity.

9

 

	 	(b)	 	This Agreement is intended and shall be interpreted to supplement and not
diminish any protection otherwise afforded to Indemnitee.
	 
	 	(c)	 	This Agreement constitutes the entire agreement between the Parties hereto with
respect to the subject matter hereof.
	 
	 	(d)	 	All expenses incurred by the Indemnitee in connection with the preparation and
submission of the Indemnitee’s request for indemnification hereunder shall be borne by
the Indemnitor. In the event the Indemnitee has requested payment of any amount under
this Agreement or under the D&O Insurance and has not received payment thereof within
thirty (30) days of such request, the Indemnitee may bring any action to enforce his
rights or such collect moneys due, and, if the Indemnitee is successful in such action,
the Indemnitor shall reimburse the Indemnitee for all of the Indemnitee’s fees and
expenses in bringing and pursuing such action. If it is determined that the Indemnitee
is entitled to indemnification for part (but not all) of the indemnification so
requested, or is entitled to part (but not all) of the amounts claimed under the D&O
Insurance, such fees and expenses shall be reasonably prorated. The Indemnitee shall
be entitled to the advancement of such amounts to the full extent contemplated by
Section 6 hereof in connection with such Proceeding.
	 
	 	(e)	 	In the event that:

	 	(i)	 	Advanced Amounts are not timely provided pursuant to Section 6
of this Agreement;
	 
	 	(ii)	 	no determination with respect to the entitlement to
indemnification is received by Indemnitee pursuant to Section 9 of this
Agreement within twenty (20) days after receipt by the Indemnitor of the
request for indemnification; or
	 
	 	(iii)	 	payment of indemnification is not made within thirty (30) days
after a determination has been made that Indemnitee is entitled to
indemnification pursuant to Section 9 of this Agreement, Indemnitee shall be
entitled to an adjudication in a court of competent jurisdiction of his
entitlement to such indemnification,

	 	 	 	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. Indemnitee shall commence such proceeding seeking
an adjudication or an award in arbitration within 180 days following the date on
which Indemnitee first has the right to commence such proceeding pursuant to this
Section 11(e). Indemnitor shall not oppose Indemnitee’s right to seek any such
adjudication or award in arbitration. Indemnitor 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
Indemnitor is bound by all the provisions of this Agreement.

10

 

	 	(f)	 	In the event that the Indemnitee is subject to or intervenes in any Proceeding
in which the validity or enforceability of this Agreement is at issue or seeks an
adjudication or award in arbitration to enforce his rights under, or to recover
damages for breach of this Agreement, the Indemnitee, if he prevails in whole or in
part in such action, will be entitled to recover from the Indemnitor and will be
indemnified by the Indemnitor against any actual expenses related thereto incurred
by Indemnitee.

	12	 	Contribution

	 	 	If the indemnification provided for herein in respect of any expense, liability or loss
incurred by the Indemnitee in connection with any Proceeding is determined by a court of
competent jurisdiction in a Final Determination to be prohibited by applicable law or is
otherwise unavailable and may not be paid to Indemnitee for any reason other than those set
forth in paragraphs (i), (ii), (iii) and (iv) of Section 2(e), then the Indemnitor, in lieu
of indemnifying Indemnitee, shall to the fullest extent allowed by law contribute to the
amount paid or payable by Indemnitee as a result of such expense, liability or loss in such
proportion as is appropriate to reflect:

	 	(a)	 	the relative benefits received by the Indemnitor, the Parent and/or an
Affiliate Indemnitor on the one hand and Indemnitee on the other hand from the events,
circumstances, conditions, happenings, actions or transactions from which such
Proceeding arose;
	 
	 	(b)	 	the relative fault of the Indemnitor, the Parent and/or an Affiliate Indemnitor
(including their affiliates) on the one hand and of Indemnitee on the other hand in
connection with the events, circumstances and happenings which result in such expense,
liability or loss (such relative fault to be determined by reference to, among other
things, the relative intent, knowledge, access to information and opportunity to
correct or prevent the events, circumstances and/or happenings resulting in such
expense, liability or loss of the Indemnitor, the Parent and/or an Affiliate Indemnitor
on the one hand and of the Indemnitee on the other hand); and
	 
	 	(c)	 	any other relevant equitable considerations, it being agreed that it would not
be just and equitable if such contribution were determined by pro rata or other method
of allocation which does not take into account the foregoing equitable considerations.

	13	 	Severability

	 	 	If any provision or provisions of this Agreement shall be held by a court of competent
jurisdiction to be invalid, void, illegal or otherwise unenforceable for any reason
whatsoever:

	 	(a)	 	the validity, legality and enforceability of the remaining provisions of this
Agreement (including, without limitation, all portions of any sections or subsections
of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not by themselves invalid, illegal or unenforceable) shall not
in any way be affected or impaired thereby; and
	 
	 	(b)	 	to the fullest extent possible, the provisions of any section or subsections of
this Agreement containing any such provisions held to be invalid, illegal or
unenforceable shall be construed so as to give effect to the intent of the Parties that
the Indemnitor (or any of them) provide protection to the Indemnitee to the fullest
extent enforceable.

11

 

	14	 	Non-exclusivity; survival of rights; subrogation

	 	(a)	 	The rights of indemnification 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, any other document or agreement, a vote of stockholders, 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 prior to such
amendment, alteration or repeal. It is the intent of Indemnitor to provide
indemnification to the fullest extent of the law. To the extent that a change in
applicable law, whether by statute or judicial decision, would permit greater
indemnification than otherwise permitted under 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;
	 
	 	(b)	 	in the event of payment under this Agreement, the Indemnitor shall be
subrogated to the extent of such payment to all of the rights of recovery of the
Indemnitee, who shall execute all papers required and shall do everything that may be
necessary to secure such rights, including execution of such documents as are necessary
to enable the Indemnitor to bring suit to enforce such rights; and
	 
	 	(c)	 	the Indemnitor shall not be liable under this Agreement to make any payments of
amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

	15	 	Operation of Previous Deeds

	 	(a)	 	Those certain agreements by and between Indemnitee and Parent, Indemnitor
and/or Affiliate Indemnitor(s), attached hereto as Exhibit B, providing for
indemnification of the Indemnitee by the Indemnitor, Parent or an Affiliate Indemnitor
(the “Previous Deeds”), to the extent they relate to:

	 	(i)	 	any obligation the Indemnitor, Parent or an Affiliate
Indemnitor may have to maintain insurance in respect of the Indemnitee, are
revoked; and
	 
	 	(ii)	 	all other matters, are superseded by this Agreement,

	 	 	 	from the date hereof (the “Effective Date”).
	 
	 	(b)	 	Section 15(a) of this Agreement does not prejudice any accrued rights,
obligations, claims or liabilities of a party arising under the Previous Deeds before
the Effective Date with respect to any matter other than any obligation the Indemnitor,
Parent and/or an Affiliate Indemnitor may have had under the Previous Deeds to maintain
insurance in respect of the Indemnitee.
	 
	 	(c)	 	Without limiting Section 15(b), Section 15(a) of this Agreement does not affect
the indemnities provided by the Previous Deeds in connection with any actual or alleged
act, error, statement, misstatement, misleading statement, omission, neglect, conduct

12

 

	 	 	 	or breach of duty made, committed, omitted or attempted by the Indemnitee (either
alone or jointly with one or more other persons) in any way connected with the
Indemnitee being a director, officer and/or employee of the Indemnitor or the Parent
or serving as an Affiliate Indemnitee of an Affiliate Indemnitor (an
“Indemnitee’s Act”) occurring before the Effective Date. Those indemnities
continue in full force and effect in connection with any Indemnitee’s Act occurring
before the Effective Date even if a claim is made under the Previous Deeds after the
Effective Date.

	16	 	Modifications

	 	 	No provision of this Agreement may be modified, waived or discharged unless such
modification, waiver or discharge is agreed to in writing by the Indemnitee and an officer
of the Indemnitor designated by the Board of Directors of Indemnitor. No waiver by either
party at any time of any breach by the other party of, or of compliance with, any condition
or provision of this Agreement to be performed by such other party shall be deemed a waiver
of similar or dissimilar provisions or conditions at the same time or at any prior or
subsequent time.

	17	 	Governing law

	 	 	The validity, interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of Nevada, without giving effect to the principles of
conflicts of laws thereof.

	18	 	Notices

	 	 	For the purposes of this Agreement, notices and all other communications provided for in
this Agreement shall be in writing and shall be deemed to have been duly given when
delivered by hand against a receipt therefor, received by facsimile, or five days after
being mailed by United States registered mail, return receipt requested, postage prepaid, as
follows:

	 	 	 
	If to the Indemnitee:

	 	If to Indemnitor:
	 
	 	 
	 

	 	James Hardie Building Products Inc

26300 La Alameda, Ste. 100

Mission Viejo, CA 92691

Facsimile: (949) 348-4534

Attn: President
	 
	 	 
	With a copy to:

	 	With a copy to:
	 
	 	 
	Facsimile:

	 	Facsimile:
	Attn:

	 	Attn:

	 	 	or to such other address as either party may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effective only upon
receipt.

13

 

	19	 	Counterparts

	 	 	This Agreement may be executed in one or more counterparts, each of which shall be deemed to
be an original but all of which together shall constitute one and the same instrument. Only
one such counterpart signed by the party against whom enforceability is sought needs to be
produced to evidence the existence of this Agreement.

	20	 	Headings; references; pronouns

	 	 	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.
References herein to section numbers are to sections of this Agreement. All pronouns and
any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular
or plural as appropriate.

	21	 	Consent to jurisdiction; choice of venue

	 	 	The Indemnitor and the Indemnitee each agree that any litigation arising directly or
indirectly out of, or in any way relating to this Agreement shall commence exclusively in
Clark County District Court in the State of Nevada or in the United States District Court
located in Clark County, Nevada, and each Party, by this Agreement hereby irrevocably
consents to the jurisdiction of these courts.

	22	 	Effectiveness

	 	 	This Agreement shall be effective as of the day and year first above written, and shall
apply to any Proceedings relating to matters which occurred prior to, on or after such date.

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

	 	 	 	 	 
	JAMES HARDIE BUILDING PRODUCTS, INC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	INDEMNITEE

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	 	 	 

14

 

	 	 	 	 	 

Exhibit A

Schedule of Positions Held by Indemnitee at the Request of Indemnitor, as an Officer, Director

and/or Employee of Parent or Indemnitor and/or as an Affiliate Indemnitee

	 	 	 
	Entity

	 	Title

15

 

Exhibit B

Previous Deeds

16

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