Document:

Business Development Solutions, Inc.: Exhibit 10.17 - Prepared by TNT
Filings Inc.

  

Exhibit 10.17

BUSINESS DEVELOPMENT SOLUTIONS, INC.

DIRECTOR AGREEMENT

      THIS AGREEMENT (The “Agreement”) is made as of the _____ day of ________, 2009, by and between
Business Development Solutions, Inc., a Delaware corporation (“BDS” and together with any of its current or future subsidiaries, affiliates, successors or assigns, the “Company”), and __________________ (hereinafter referred to as the “Director”).

 

The Company and the Director desire to enter this Agreement relating to the rights and duties of the Director as a member of the Company’s Board of Directors.

 

AGREEMENT

 

In consideration for the above recited promises and the mutual promises contained herein, the adequacy and sufficiency of which are hereby acknowledged, the Company and the Director hereby agree as follows:

 

1.  

DUTIES.  The Company requires that the Director be available to perform the duties of a director customarily related to this function as may be determined and assigned by the board of directors of
BDS and/or the boards of directors of the Company’s subsidiaries or affiliates (each, a “Board”) and as may be required by the Company’s constituent instruments, including its certificate of incorporation,
bylaws and its corporate governance and board committee charters, each as amended or modified from time to time, and by applicable law.  The Director agrees to devote as much time as is necessary to perform completely the duties as the Director of the Company, including duties as a member of any committee as the Director may hereafter be appointed to.  The Director will perform such duties described herein in accordance with the general fiduciary duty of directors arising under the
General Corporation Law of the State of Delaware.

 

2.

TERM.  The term of this Agreement shall commence as of the date of the Director’s appointment by a Board and shall continue until the Director’s removal or resignation.

 

3.

COMPENSATION.  For all services to be rendered by the Director in any capacity hereunder, the Company agrees to pay the Director a fee of ________ per ______.  Such fee may be adjusted from time to time as agreed by the parties.  

 

4.

EXPENSES.  In addition to the compensation provided in paragraph 3, the Company will reimburse the Director for pre-approved reasonable business related expenses incurred in good faith in the performance of the Director’s duties for the Company.  Such payments shall be made by the Company upon submission by the Director of a signed statement itemizing the expenses incurred.  Such statement shall be accompanied by sufficient documentary matter to support the expenditures.

 

5.

CONFIDENTIALITY.  The Company and the Director each acknowledge that, in order to accomplish the purpose of this Agreement, the Director shall necessarily be obtaining access to certain confidential information concerning the Company and its affairs, including, but not limited to business methods, information systems, financial data and strategic plans which are unique assets of the Company (“Confidential Information”).  The Director covenants not to, either directly or indirectly, in any manner, utilize or disclose to any person, firm, corporation, association or other entity any Confidential Information.

 

 

6.

TERMINATION.  With or without cause, the Company and the Director may each terminate this Agreement at any time upon ten days written notice, and the Company shall be obligated to pay to the Director the compensation and expenses due up to the date of the termination.  Nothing contained in or omitted from this Agreement shall prevent the shareholder(s) of the Company from removing the Director with immediate effect at any time for any reason.

 

7.

INDEMNIFICATION.  The Company shall indemnify, defend and hold harmless the Director, to the full extent allowed by the law of the State of Delaware, and as provided by, or granted pursuant to, any charter provision, bylaw provision, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in the Director’s official capacity and as to action in another capacity while holding such office.  

 

8.

EFFECT OF WAIVER.  The waiver by either party of the breach of any provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach of such provision.

 

9.

NOTICE.  Any and all notices referred to herein shall be sufficient if furnished in writing at the addresses specified on the signature page hereto.

 

10.

GOVERNING LAW.  This Agreement shall be interpreted in accordance with, and the rights of the parties hereto shall be determined by, the laws of the
State of Delaware without reference to that state’s conflicts of laws principles.

 

11.

ASSIGNMENT.  The rights and benefits of the Company under this Agreement shall be transferable, and all the covenants and agreements hereunder shall inure to the benefit of, and be enforceable by or against, its successors and assigns.  The duties and obligations of the Director under this Agreement are personal and therefore the Director may not assign any right or duty under this Agreement without the prior written consent of the Company.

 

12.

MISCELLANEOUS.  If any provision of this Agreement shall be declared invalid or illegal, for any reason whatsoever, then, notwithstanding such invalidity or illegality, the remaining terms and provisions of the this Agreement shall remain in full force and effect in the same manner as if the invalid or illegal provision had not been contained in this Agreement.

 

13.

ARTICLE HEADINGS.  The article headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

 

14.

COUNTERPARTS.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one instrument.  Facsimile execution and delivery of this Agreement is legal, valid and binding for all purposes.

 

15.

ENTIRE AGREEMENT.  Except as provided elsewhere herein, this Agreement sets forth the entire agreement of the parties with respect to its subject matter and supersedes all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party to this Agreement with respect to such subject matter.

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

  
  	

Business Development Solutions, Inc.

By:_____________________________

Name:

Title:

Address:

 

Director

 

_______________________________

Name:

 

 

Address:Exhibit 10.1 

INDEMNIFICATION AGREEMENT 

     This INDEMNIFICATION AGREEMENT (the
"Agreement") is made and entered into as of this 23rd day of March 2009, by and
between Lyris, Inc., a Delaware corporation (the "Company"), and Luis A. Rivera
("Indemnitee"). 

RECITALS: 

     A. Highly
competent and experienced persons are reluctant to serve companies as directors,
executive officers or in other capacities unless they are provided with adequate
protection through insurance and indemnification against claims and actions
against them arising out of their service to and activities on behalf of the
Company. 

     B. The Board
of Directors of the Company (the “Board”) has determined that the inability to
attract and retain such persons would be detrimental to the best interests of
the Company and its stockholders and that the Company should act to assure such
persons that there will be increased certainty of such protection in the future.

     C. The Board
has also determined that it is reasonable, prudent and necessary for the
Company, in addition to purchasing and maintaining directors’ and officers’
liability insurance (or otherwise providing for adequate arrangements of
self-insurance), contractually to obligate itself to indemnify such persons to
the fullest extent permitted by applicable law so that they will serve or
continue to serve the Company free from undue concern that they will not be
adequately protected. 

     D.
Indemnitee is willing to serve, continue to serve, and to take on additional
service for or on behalf of the Company on the condition that he be indemnified
to the fullest extent permitted by law.

     E. Article
Seventh of the Certificate of Incorporation requires the Company to indemnify
its directors and officers to the fullest extent permitted by law. 

AGREEMENTS: 

     NOW, THEREFORE, in consideration of
the foregoing premises, Indemnitee's agreement to serve as a member of the Board
and as an executive officer of the Company, and the covenants contained in this
Agreement, the Company and Indemnitee hereby covenant and agree as follows:

     1. CERTAIN DEFINITIONS. 

          (a)
ACQUIRING PERSON: shall mean any Person other than (i) the Company, (ii) any of
the Company's Subsidiaries, (ii) any employee benefit plan of the Company or of
a Subsidiary of the Company or of a corporation owned directly or indirectly by
the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, or (iv) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or of a
Subsidiary of the Company or of a corporation owned directly or indirectly by
the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

          (b)
CHANGE OF CONTROL: shall be deemed to have occurred upon one or more of the
following events: 

               (i)
an Acquiring Person is or becomes the "beneficial owner" (as defined in Rule
13d-3 under the Securities Exchange Act of 1934, as amended (the "Exchange
Act")), directly or indirectly, of securities of the Company representing 30
percent or more of either (x) the then outstanding shares of common stock, par
value $0.01 per share, of the Company (the “Common Stock”) or (y) the combined
voting power of the then outstanding Voting Securities of the Company; provided,
however, that for purposes of this Section 1(b)(i), the following acquisitions
shall not constitute a Change of Control: (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any acquisition by an employee
benefit plan (or related trust) sponsored or maintained by the Company or any
entity controlled by the Company, or (D) any acquisition by any entity that
complies with clauses (A), (B) or (C) or paragraph (iii) below; or 

               (ii)
members of the Incumbent Board cease for any reason to constitute at least a
majority of the Board; or 

               (iii)
Consummation of a reorganization, merger or consolidation or sale or other
disposition of all or substantially all of the assets of the Company or an
acquisition of assets of another entity (a “Business Combination”), in each case
unless, following such Business Combination, (A) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
outstanding Common Stock and outstanding Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than
50% of, respectively, the then outstanding shares of common equity and the
combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors or other similar governing body, as the
case may be, of the entity resulting from such Business Combination (including,
without limitation, an entity which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination of the outstanding
Common Stock and outstanding Voting Securities, as the case may be, (B) no
Person (excluding any employee benefit plan (or related trust) of the Company or
the entity resulting from such Business Combination) beneficially owns, directly
or indirectly, 40% or more of, respectively, the then outstanding shares of
common equity of the entity resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such entity
except to the extent that such ownership results solely from ownership of the
Company that existed prior to the Business Combination and (C) at least a
majority of the members of the board of directors or other similar governing
body of the entity resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board, providing for such Business Combination; or 

               (iv)
the stockholders of the Company approve, in one transaction or a series of
transactions, a plan of complete liquidation of the Company or an agreement for
the sale or disposition by the Company of all or substantially all the Company's
assets (or, if no such approval is required, the decision by the Board to
proceed with such a liquidation, sale, or disposition in one transaction or
series of related transactions). 

          (c)
CLAIM: any threatened, pending or completed action, suit, arbitration,
investigation, inquiry, alternate dispute resolution mechanism, administrative
or legislative hearing, or any other proceeding (including any securities laws
action, suit, arbitration, alternative dispute resolution mechanism, hearing or
procedure) whether civil, criminal, administrative, arbitrative or investigative
and whether or not based upon events occurring, or actions taken, before the
date hereof, and any appeal in or related to any such action, suit, arbitration,
investigation, hearing or proceeding and any inquiry or investigation (including
discovery), whether conducted by or in the right of the Company or any other
Person, that Indemnitee in good faith believes could lead to any such action,
suit, arbitration, alternative dispute resolution mechanism, hearing or other
proceeding or appeal thereof. 

          (d)
DISINTERESTED DIRECTORS: a director of the Company who at the time of the vote
is not a named defendant or respondent in the Claim in respect of which
indemnification is sought by Indemnitee. 

          (e)
EXPENSES: means all attorneys’ fees and disbursements, retainers, accountant’s
fees and disbursements, private investigator fees and disbursements, court
costs, transcript costs, fees and expenses of experts, witness fees and
expenses, travel expenses, duplicating costs, printing and binding costs,
telephone charges, postage, delivery service fees and all other disbursements,
costs or expenses of the types customarily incurred in connection with
prosecuting, defending (including affirmative defenses and counterclaims),
preparing to prosecute or defend, investigating, being or preparing to be a
witness in, or participating in or preparing to participate in (including on
appeal) any Claim relating to any Indemnifiable Event. Should any payments by
the Company under this Agreement be determined to be subject to any federal,
state or local income or excise tax, “Expenses” shall also include such amounts
as are necessary to place Indemnitee in the same after-tax position (after
giving effect to all applicable taxes) as Indemnitee would have been in had no
such tax been determined to apply to such payments. 

          (f)
INCUMBENT BOARD: individuals who, as of the date hereof, constitute the Board
and any other individual who becomes a director of the Company after the date
hereof and whose election or appointment by the Board or nomination for election
by the Company's stockholders was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board. 

          (g)
INDEMNIFIABLE EVENT: an event or occurrence related to the fact that Indemnitee
is or was a director, officer, employee, agent, or fiduciary of the Company or
is, becomes, or was serving at the request of the Company as a director,
officer, partner, member, venturer, proprietor, employee, trustee, agent,
fiduciary or similar functionary of another foreign or domestic corporation,
partnership, limited liability company, joint venture, sole proprietorship,
employee benefit plan, trust, or other enterprise, or by reason of any thing
done or not done by Indemnitee in any such capacity. For purposes of this
Agreement, the Company agrees that Indemnitee's service on behalf of or with
respect to any Subsidiary of the Company shall be deemed to be at the request of
the Company.

          (h)
PERSON: shall mean any person or entity of any nature whatsoever, specifically
including an individual, a firm, a company, a corporation, a partnership, a
trust or other entity. A Person, together with that Person's Affiliates and
Associates (as those terms are defined in Rule 12b-2 under the Exchange Act),
and any Persons acting as a partnership, limited partnership, joint venture,
association, syndicate, or other group (whether or not formally organized), or
otherwise acting jointly or in concert or in a coordinated or consciously
parallel manner (whether or not pursuant to any express agreement), for the
purpose of acquiring, holding, voting, or disposing of securities of the Company
with such Person, shall be deemed a single "Person." 

          (i)
POTENTIAL CHANGE OF CONTROL: shall be deemed to have occurred if (i) the Company
enters into any agreement or agreements, the consummation of which would effect,
or could reasonably be expected to effect, a Change of Control; (ii) any Person
(including the Company) publicly announces an intention to take or to consider
taking actions that, if consummated, would effect, or could reasonably be
expected to effect, a Change in Control; (iii) any Acquiring Person who is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 10% or more of the combined voting power of the then
outstanding Voting Securities of the Company increases his beneficial ownership
of such securities by 5% or more over the percentage so owned by that Person on
the date hereof; or (iv) the Board adopts a resolution to the effect that, for
purposes of this Agreement or otherwise, a Potential Change of Control has
occurred. 

          (j)
SPECIAL COUNSEL: means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither contemporaneously is, nor
in the five years theretofore has been, retained to represent: (i) the Company
or Indemnitee in any matter material to any such party (other than as Special
Counsel under this Agreement or similar agreements), (ii) any other party to the
Claim for which Indemnitee is seeking indemnification or (iii) the beneficial
owner, directly or indirectly, of securities of the Company representing 5% or
more of the combined voting power of the Company’s then outstanding Voting
Securities. Notwithstanding the foregoing, the term “Special Counsel” shall not
include any person who, under the applicable standards of professional conduct
then prevailing, would have a conflict of interest in representing either the
Company or Indemnitee in an action to determine Indemnitee’s rights under this
Agreement. 

          (k)
SUBSIDIARY: with respect to any Person, any corporation or other entity of which
a majority of the voting power of the voting equity securities or equity
interest is owned or controlled, directly or indirectly, by that Person.

          (l)
VOTING SECURITIES: securities of any class of a Person entitling the holders
thereof to vote for the election of, or to appoint, members of the board of
directors or other similar governing body of the Person. 

     2. SERVICES BY
INDEMNITEE. Indemnitee is serving as a director and an executive officer of the
Company. Indemnitee may from time to time also agree to serve, as the Company
may request from time to time, in another capacity for the Company or as a
director, officer, partner, member, venturer, proprietor, trustee, employee,
agent, fiduciary or similar functionary of another foreign or domestic
corporation, partnership, joint venture, limited liability company, sole
proprietorship, trust, employee benefit plan or other enterprise. Indemnitee and
the Company each acknowledge that they have entered into this Agreement as a
means of inducing Indemnitee to serve, or continue to serve, the Company in such
capacities. Indemnitee may at any time and for any reason resign from such
position or positions (subject to any other contractual obligation or any
obligation imposed by operation of law). The Company shall have no obligation
under this Agreement to continue Indemnitee in any such position or positions.

     3. BASIC
INDEMNIFICATION AND EXPENSE REIMBURSEMENT ARRANGEMENT. 

          (a)
Subject to the provisions set forth in Section 4, the Company shall indemnify,
and advance Expenses to, Indemnitee to the fullest extent permitted by
applicable law in effect on the date hereof and to such greater extent as
applicable law may hereafter from time to time permit. The other provisions set
forth in this Agreement are provided in addition to and as a means of
furtherance and implementation of, and not in limitation of, the obligations and
limitations expressed in this Section 3.

          (b)
In the event Indemnitee was, is, or becomes a party to or witness or other
participant in, or is threatened to be made a party to or witness or other
participant in, a Claim by reason of (or arising in part out of) an
Indemnifiable Event, the Company shall indemnify Indemnitee to the fullest
extent permitted by law, against any and all Expenses, judgments, fines,
penalties, and amounts paid in settlement (including all interest, assessments,
and other charges paid or payable in connection with or in respect of such
Expenses, judgments, fines, penalties, or amounts paid in settlement) of or with
respect to that Claim or any issue or matters with respect thereto.
Notwithstanding the foregoing, the obligations of the Company under this Section
3(b) shall be subject to the condition that no determination (in a written
opinion, in any case in which Special Counsel is involved) shall have been made
pursuant to any provision of this Agreement that Indemnitee would not be
permitted to be indemnified under the terms hereof. Nothing contained in this
Agreement shall require any determination under this Section 3(b) to be made
prior to the disposition or conclusion of the Claim against the Indemnitee.
Nothing in this Section 3(b) shall in any way limit the benefits of any other
Section hereunder. 

          (c)
The Company shall pay any and all Expenses reasonably incurred by, or in the
case of retainers to be incurred by, Indemnitee (or, if applicable, reimburse
Indemnitee for any and all Expenses incurred by Indemnitee and previously paid
by Indemnitee) in connection with any Claim, whether brought by the Company or
otherwise, in advance of any determination respecting entitlement to
indemnification pursuant to Section 4 hereof (and
shall continue to pay such Expenses after such determination and until it shall
be ultimately be determined (in a final adjudication by a court from which there
is no further right of appeal or in a final adjudication of an arbitration
pursuant to Section 5 if the Indemnitee elects to seek such arbitration that
Indemnitee is not entitled to be indemnified by the Company) within 10 days
after the receipt by the Company of (i) a written request from Indemnitee
requesting such payment or payments from time to time, whether prior to or after
final disposition of such Claim, and (b) a written affirmation from Indemnitee
of Indemnitee’s good faith belief that Indemnitee has met the standard of
conduct necessary for Indemnitee to be permitted to be indemnified under
applicable law. Any such payment by the Company is referred to herein as an
"Expense Advance". In connection with any request for an Expense Advance, if
requested by the Company, Indemnitee or Indemnitee's counsel shall submit an
affidavit stating that the Expenses incurred were reasonable. Any dispute as to
the reasonableness of any Expense shall not delay an Expense Advance by the
Company, and the Company agrees that any such dispute shall be resolved only
upon the disposition or conclusion of the underlying Claim against the
Indemnitee. Indemnitee hereby agrees to reimburse the Company without interest
(which agreement shall be an unsecured obligation of Indemnitee) for any Expense
Advances to the extent that it shall ultimately be determined (in a final
adjudication by a court from which there is no further right of appeal or in a
final adjudication of an arbitration pursuant to Section 5 if Indemnitee elects
to seek such arbitration) that Indemnitee is not entitled to be indemnified by
the Company against such Expenses. Indemnitee shall not be required to provide
collateral or otherwise secure the undertaking and agreement described in the
prior sentence. 

          (d)
The Company shall indemnify Indemnitee against any and all Expenses and, if
requested by Indemnitee, shall (within two business days of that request)
advance those costs and expenses to Indemnitee, that are incurred by Indemnitee
in connection with any claims asserted against or action brought by Indemnitee
for (i) indemnification or an Expense Advance by the Company under this
Agreement or any other agreement or provision of the Certificate of
Incorporation or Bylaws of the Company now or hereafter in effect relating to
Claims for Indemnifiable Events, (ii) recovery under any directors' and
officers' liability insurance policies maintained by the Company or (iii)
enforcement of, or claims for breaches of, any provision of this Agreement, in
each case regardless of whether Indemnitee ultimately is determined to be
entitled to that indemnification, advance expense payment, insurance recovery,
enforcement, or damage claim as the case may be and regardless of whether the
nature of the proceeding with respect to such matters is judicial, by
arbitration, or otherwise.

          (e)
If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of the Expenses, judgments,
fines, penalties, and amounts paid in settlement of a Claim but not, however,
for all of the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover,
notwithstanding any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in defense of any or
all Claims relating in whole or in part to an Indemnifiable Event or in defense
of any issue or matter therein, including dismissal without prejudice,
Indemnitee shall be indemnified against all Expenses incurred in connection
therewith. 

     4. PROCEDURE FOR DETERMINATION OF
ENTITLEMENT TO INDEMNIFICATION.

          (a) To
obtain indemnification under this Agreement, Indemnitee shall submit to the
Company a written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary
to determine whether and to what extent Indemnitee is entitled to
indemnification. The Secretary of the Company shall, promptly upon receipt of
such a request for indemnification, advise the Board in writing that Indemnitee
has requested indemnification. 

          (b)
Upon written request by Indemnitee for indemnification pursuant to the first
sentence of Section 4(a) hereof, a determination, if required by applicable law,
with respect to whether Indemnitee is permitted under Section 3 to be
indemnified shall be made in accordance with the terms of Section 4(e), in the
specific case as follows: 

          (i) If
a Potential Change in Control or a Change in Control shall have occurred, by
Special Counsel (selected in accordance with Section 4(c)) in a written opinion
to the Board and Indemnitee, unless Indemnitee shall request that such
determination be made by the Board, or a Committee of the Board, in which case
by the person or persons or in the manner provided for in clauses (A) or (B) of
paragraph (ii) below; or 

          (ii)
If a Potential Change in Control or a Change in Control shall not have occurred,
(A) by the Board by a majority vote of the Disinterested Directors even though
less than a quorum of the Board, or (B) by a majority vote of a committee solely
of two or more Disinterested Directors designated to act in the matter by a
majority vote of all Disinterested Directors even though less than a quorum of
the Board, or (C) by Special Counsel selected by the Board or a committee of the
Board by a vote as set forth in clauses (A) or (B) of this paragraph (ii), or if
such vote is not obtainable or such a committee cannot be established, by a
majority vote of all directors. 

If it is so determined that Indemnitee is
permitted to be indemnified under Section 3, payment to Indemnitee shall be made
within 10 days after such determination. Nothing contained in this Agreement
shall require that any determination be made under this Section 4 prior to the
disposition or conclusion of a Claim against Indemnitee; provided, however, that
Expense Advances shall continue to be made by the Company pursuant to, and to
the extent required by, the provisions of Section 3. Indemnitee shall cooperate
with the Person or Persons making such determination with respect to
Indemnitee’s entitlement to indemnification, including providing to such Person
upon reasonable advance request any documentation or information that is not
privileged or otherwise protected from disclosure and that is reasonably
available to Indemnitee and reasonably necessary to such determination. Any
costs or expenses (including attorneys’ fees and disbursements) incurred by
Indemnitee in so cooperating with the Person or Persons making such
determination shall be borne by the Company (irrespective of the determination
as to Indemnitee’s entitlement to indemnification), and the Company shall
indemnify and hold harmless Indemnitee therefrom. 

          (c) If
a Potential Change in Control or a Change in Control shall not have occurred and
the determination of entitlement to indemnification is to be made by Special
Counsel, the Company shall give written notice to Indemnitee, within 10 days
after receipt by the Company of Indemnitee’s request for indemnification,
specifying the identity and address of the Special Counsel so selected. If a
Potential Change in Control or a Change in Control shall have occurred and the
determination of entitlement to indemnification is to be made by Special
Counsel, the Special Counsel shall be selected by Indemnitee, and Indemnitee
shall give written notice to the Company, within 10 days after submission of
Indemnitee’s request for indemnification, specifying the identity and address of
the Special Counsel so selected (unless Indemnitee shall request that such
selection be made by the Disinterested Directors or a committee of the Board, in
which event the Company shall give written notice to Indemnitee within 10 days
after receipt of Indemnitee’s request for the Board or a committee of the
Disinterested Directors to make such selection, specifying the identity and
address of the Special Counsel so selected). In either event, (x) such notice to
Indemnitee or the Company, as the case may be, shall be accompanied by a written
affirmation of the Special Counsel so selected that it satisfies the
requirements of the definition of “Special Counsel” in Section 1 and that it
agrees to serve in such capacity and (y) Indemnitee or the Company, as the case
may be, may, within seven days after such written notice of selection shall have
been given, deliver to the Company or to Indemnitee, as the case may be, a
written objection to such selection. Any objection to the selection of Special
Counsel pursuant to this Section 4(c) may be asserted only on the ground that
the Special Counsel so selected does not meet the requirements of the definition
of “Special Counsel” in Section 1, and the objection shall set forth with
particularity the factual basis of such assertion. If such written objection is
timely made, the Special Counsel so selected may not serve as Special Counsel
unless and until a court of competent jurisdiction (the “Court”) has determined
that such objection is without merit. In the event of a timely written objection
to a choice of Special Counsel, the party originally selecting the Special
Counsel shall have seven days to make an alternate selection of Special Counsel
and to give written notice of such selection to the other party, after which
time such other party shall have five days to make a written objection to such
alternate selection. If, within 30 days after submission of Indemnitee’s request
for indemnification pursuant to Section 4(a), no Special Counsel shall have been
selected and not objected to, either the Company or Indemnitee may petition the
Court for resolution of any objection that shall have been made by the Company
or Indemnitee to the other’s selection of Special Counsel and/or for the
appointment as Special 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
an objection is so resolved or the person so appointed shall act as Special
Counsel under Section 4(b). The Company shall pay any and all fees and expenses
reasonably incurred by such Special Counsel in connection with acting pursuant
to Section 4(b) and the Company shall pay all fees and expenses reasonably
incurred incident to the procedures of this Section 4(c), regardless of the
manner in which such Special Counsel was selected or appointed. Upon the due
commencement of any judicial proceeding or arbitration pursuant to Section 5,
Special Counsel shall be discharged and relieved of any further responsibility
in such capacity (subject to the applicable standards of professional conduct
then prevailing). 

          (d) In
the event of a Potential Change in Control or a Change in Control, the Company
shall, upon written request by Indemnitee, create a trust for the benefit of
Indemnitee (the "Trust") and from time to time upon written request of
Indemnitee shall fund the Trust in an amount sufficient to satisfy any and all
Expenses reasonably anticipated at the time of each such request to be incurred
in connection with investigating, preparing for, and defending any Claim
relating to an Indemnifiable Event, and any and all judgments, fines, penalties,
and settlement amounts (including all interest, assessments, and other charges
paid or payable in connection with or in respect of such expenses, judgments,
fines, penalties, and settlement amounts) of any and all Claims relating to an
Indemnifiable Event from time to time actually paid or claimed, reasonably
anticipated, or proposed to be paid. The amount or amounts to be deposited in
the Trust pursuant to the foregoing funding obligation shall be determined by
the Special Counsel (or other Person(s) making the determination of whether
Indemnitee is permitted to be indemnified by applicable law). The terms of the
Trust shall provide that, upon a Change in Control, (i) the Trust shall not be
revoked or the principal thereof invaded, without the written consent of
Indemnitee; (ii) the trustee of the Trust shall advance, within two business
days of a request by Indemnitee, any and all expenses to Indemnitee (and
Indemnitee hereby agrees to reimburse the trust under the circumstances in which
Indemnitee would be required to reimburse the Company for Expense Advances under
Section 3(c) of this Agreement); (iii) the Trust shall continue to be funded by
the Company in accordance with the funding obligation set forth above; (iv) the
trustee of the Trust shall promptly pay to Indemnitee all amounts for which
Indemnitee shall be entitled to indemnification pursuant to this Agreement or
otherwise; and (v) all unexpended funds in that Trust shall revert to the
Company upon a final determination by the Reviewing Party or a court of
competent jurisdiction, as the case may be, that Indemnitee has been fully
indemnified under the terms of this Agreement and shall be an institution that
is not affiliated with Indemnitee. The trustee of the Trust shall be chosen by
Indemnitee. Nothing in this Section 4(d) shall relieve the Company of any of its
obligations under this Agreement. 

          (e)
PRESUMPTION AND EFFECT OF CERTAIN PROCEEDINGS.

          (i)
Indemnitee shall be presumed to be entitled to indemnification under this
Agreement upon submission of a request for indemnification under Section 4(a),
and the Company shall have the burden of proof in overcoming that presumption in
reaching a determination contrary to that presumption. Such presumption shall be
used by Special Counsel (or other Person or Persons determining entitlement to
indemnification) as a basis for a determination of entitlement to
indemnification unless the Company provides information sufficient to overcome
such presumption by clear and convincing evidence or unless the investigation,
review and analysis of Special Counsel (or such other Person or Persons)
convinces Special Counsel by clear and convincing evidence that the presumption
should not apply. 

          (ii)
If the Person or Persons empowered or selected under Section 4 of this Agreement
to determine whether Indemnitee is entitled to indemnification shall not have
made a determination within 60 days after receipt by the Company of the request
by Indemnitee therefor, the determination of entitlement to indemnification
shall be deemed to have been made and Indemnitee shall be entitled to such
indemnification; provided, however, that such 60-day period may be extended for
a reasonable time, not to exceed an additional 30 days, if the Person or Persons
making the determination with respect to entitlement to indemnification in good
faith requires such additional time for the obtaining or evaluating of
documentation and/or information relating to such determination; and provided,
further, that the 60-day limitation set forth in this Section 4(e)(ii) shall not
apply and such period shall be extended as necessary if the determination of
entitlement to indemnification is to be made by Special Counsel pursuant to
Section 4(b)(i) of this Agreement, in which case the applicable period shall be
as set forth in Section 5(a)(iii).

          (iii)
The termination of any Claim, issue or matter by judgment, order, settlement
(whether with or without court approval) or conviction, or upon a plea of nolo
contendere or its equivalent, shall not (except as otherwise expressly provided
in this Agreement) by itself adversely affect the rights of Indemnitee to
indemnification or create a presumption that Indemnitee failed to meet any
particular standard of conduct, that Indemnitee had any particular belief, or
that a court has determined that indemnification is not permitted by applicable
law. Indemnitee shall be deemed to have been found liable in respect of any
Claim, issue or matter only after Indemnitee shall have been so adjudged by the
Court after exhaustion of all appeals therefrom. 

     5. CERTAIN REMEDIES OF INDEMNITEE.

          (a) If
(i) a determination is made pursuant to Section 4 that Indemnitee is not
entitled to indemnification under this Agreement; (ii) there has been any
failure by the Company to make timely payment or advancement of any amounts due
hereunder (including, without limitation, any Expense Advances); or (iii) the
determination of entitlement to indemnification is to be made by Special Counsel
pursuant to Section 4(b) and such determination shall not have been made and
delivered in a written opinion within 90 days after the latest of (A) such
Special Counsel’s being appointed, (B) the overruling by the Court of objections
to such counsel’s selection, or (C) expiration of all periods for the Company or
Indemnitee to object to such counsel’s selection, Indemnitee shall be entitled
to commence an action seeking an adjudication in the Court of Indemnitee’s
entitlement to such indemnification or advancements due hereunder, including,
without limitation, Expense Advances. Alternatively, Indemnitee, at Indemnitee’s
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 action seeking an adjudication or an
award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such action pursuant to this Section 4.1, or
such right shall expire. The Company agrees not to oppose Indemnitee’s right to
seek any such adjudication or award in arbitration and it shall continue to pay
Expense Advances pursuant to Section 3(c) until it shall ultimately be
determined (in a final adjudication by a court from which there is no further
right of appeal or in a final adjudication of an arbitration pursuant to this
Section 5(a) if Indemnitee elects to seek such arbitration) that Indemnitee is
not entitled to be indemnified by the Company against such Expenses. 

          (b) If
a determination shall have been made pursuant to Section 4 that Indemnitee is
not entitled to indemnification under this Agreement, any judicial proceeding or
arbitration commenced pursuant to this Agreement shall be conducted in all
respects as a de novo trial or arbitration on the merits, and Indemnitee shall not
be prejudiced by reason of such initial adverse determination. In any judicial
proceeding or arbitration commenced pursuant to this Agreement, Indemnitee shall
be presumed to be entitled to indemnification or advancement of Expenses, as the
case may be, under this Agreement and the Company shall have the burden of proof
in overcoming such presumption and to show by clear and convincing evidence that
Indemnitee is not entitled to indemnification or advancement of Expenses, as the
case may be. 

          (c) If
a determination shall have been made or deemed to have been made pursuant to
Section 4 that Indemnitee is entitled to indemnification, the Company shall be
irrevocably bound by such determination in any judicial proceeding or
arbitration commenced pursuant to this Section 5, and shall be precluded from
asserting that such determination has not been made or that the procedure by
which such determination was made is not valid, binding and enforceable.

          (d)
The Company shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 5 that the procedures and
presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court or before any such arbitrator that the Company is
bound by all the provisions of this Agreement. 

     6. CONTRIBUTION. 

          (a)
CONTRIBUTION PAYMENT. To the extent the indemnification provided for under any
provision of this Agreement is determined (in the manner hereinabove provided)
not to be permitted under applicable law, then in the event Indemnitee was, is
or becomes a party to or witness or other participant in, or is threatened to be
made a party to or witness or other participant in, a Claim by reason of (or
arising in part out of) an Indemnifiable Event, the Company, in lieu of
Indemnifying Indemnitee, shall contribute to the amount of any and all Expenses,
judgments, fines, or penalties assessed against or incurred or paid by
Indemnitee on account of that Claim and any and all amounts paid in settlement
of that Claim (including all interest, assessments, and other charges paid or
payable in connection with or in respect of such Expenses, judgments, fines,
penalties, or amounts paid in settlement) for which such indemnification is not
permitted ("Contribution Amounts"), in such proportion as is appropriate to
reflect the relative fault with respect to the Indemnifiable Event giving rise
to the Contribution Amounts of Indemnitee, on the one hand, and of the Company
and any and all other parties (including officers and directors of the Company
other than Indemnitee) who may be at fault with respect to such Indemnifiable
Event (collectively, including the Company, the "Third Parties") on the other
hand. 

          (b)
RELATIVE FAULT. The relative fault of the Third Parties and the Indemnitee shall
be determined (i) by reference to the relative fault of Indemnitee as determined
by the court or other governmental agency assessing the Contribution Damages or
(ii) to the extent such court or other governmental agency does not apportion
relative fault, by the Reviewing Party (which shall include Special Counsel)
after giving effect to, among other things, the relative intent, knowledge,
access to information, and opportunity to prevent or correct the applicable
Indemnifiable Event and other relevant equitable considerations of each party.
The Company and Indemnitee agree that it would not be just and equitable if
contribution pursuant to this Section 6 were determined by pro rata allocation
or by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 6(b).

     7. ACTION OF OTHERS. The knowledge
and/or actions, or failure to act, of any director, officer, agent, or employee
of the Company shall not be imputed to the Indemnitee for purposes of
determining the right to indemnification under this Agreement. 

     8. NON-EXCLUSIVITY. The rights of
Indemnitee to receive indemnification and advancement of Expenses under this
Agreement shall be in addition to, and shall not be deemed exclusive of, any
other rights Indemnitee may have under the Company's Bylaws or Certificate of
Incorporation or the Delaware General Corporation Law, other applicable law, any
vote of the stockholders of the Company, any other agreement or otherwise. No
amendment or alteration of the Company’s Bylaws or Certificate of Incorporation
or any provision thereof shall adversely affect Indemnitee’s rights hereunder
and such rights shall be in addition to any rights Indemnitee may have under the
Company’s Bylaws and Certificate of Incorporation and the Delaware General
Corporation Law or other applicable law. To the extent that a change in the
Delaware General Corporation Law or other
applicable law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the
Company's Bylaws or Certificate of Incorporation and this Agreement, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits so afforded by that change. Any amendment, alteration or repeal
of the Delaware General Corporation Law that adversely affects any right of
Indemnitee shall be prospective only and shall not limit or eliminate any such
right with respect to any Claim involving any occurrence or alleged occurrence
of any action or omission to act that took place before such amendment or
repeal.

     9. INSURANCE AND
SUBROGATION.

          (a) To
the extent the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, agents or fiduciaries of
the Company or for individuals serving at the request of the Company as
directors, officers, partners, members, venturers, proprietors, trustees,
employees, agents, fiduciaries or similar functionaries of another foreign or
domestic corporation, partnership, limited liability company, joint venture,
sole proprietorship, trust, employee benefit plan or other enterprise,
Indemnitee shall be covered by such policy or policies in accordance with its or
their terms to the maximum extent of the coverage available for any such
director, officer, employee, agent or fiduciary under such policy or
policies.

          (b) In
the event of any payment by the Company under this Agreement for which
reimbursement is available under any insurance policy or policies obtained by
the Company, the Company shall be subrogated to the extent of such payment to
all of the rights of recovery of Indemnitee under such insurance policy or
policies, who shall execute all papers required and take all action necessary to
secure such rights, including execution of such documents as are necessary to
enable the Company to bring suit to enforce such rights, provided that all
Expenses relating to such action shall be borne by the Company.

          (c)
The Company shall not be liable under this Agreement to make any payment of
amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee
has otherwise actually received such payment under the Certificate of
Incorporation or Bylaws, or any insurance policy, contract, agreement or
otherwise. 

          (d)
The parties hereto recognize that the Company may, but except as otherwise
provided in this Agreement, is not required to, procure or maintain insurance or
other similar arrangements, at its expense, to protect itself and any person,
including Indemnitee, who is or was a director, officer, employee, agent or
fiduciary of the Company or who is or was serving at the request of the Company
as a director, officer, partner, member, venturer, proprietor, trustee,
employee, agent, fiduciary or similar functionary of another foreign or domestic
corporation, partnership, limited liability company, joint venture, sole
proprietorship, trust, employee benefit plan or other enterprise against any
expense, liability or loss asserted against or incurred by such person, in such
a capacity or arising out of the person’s status as such a person, whether or
not the Company would have the power to indemnify such person against such
expense or liability or loss. In considering the cost and availability of such
insurance, the Company (through the exercise of the business judgment of its
directors and officers) may, from time to time, purchase insurance which
provides for certain (i) deductibles, (ii) limits on payments required to be
made by the insurer, or (iii) coverage which may not be as comprehensive as that
previously included in insurance purchased by the Company or its predecessors.
The purchase of insurance with deductibles, limits on payments and coverage
exclusions, even if in the best interest of the Company, may not be in the best
interest of Indemnitee. In order to protect Indemnitee who would otherwise be
more fully or entirely covered under such policies, the Company shall, to the
maximum extent permitted by applicable law, indemnify and hold Indemnitee
harmless to the extent (i) of such deductibles, (ii) of amounts exceeding
payments required to be made by an insurer, or (iii) of amounts that prior
policies of directors’ and officers’ liability insurance held by the Company or
its predecessors have provided for payment to Indemnitee, if Indemnitee is or is
threatened to be made a party to any Claim. The obligation of the Company in the
preceding sentence shall be without regard to whether the Company would
otherwise be required to indemnify such officer or director under the other
provisions of this Agreement, or under any law, agreement, or vote of directors
or other arrangement. Without limiting the generality of any provision of this
Agreement, the procedures in Section 4 hereof shall, to the extent applicable,
be used for determining entitlement to indemnification under this Section 9(d).

          (e) If
Indemnitee is a director of the Company, the Company will advise the Board of
any proposed material reduction in the coverage for Indemnitee to be provided by
the Company’s directors’ and officers’ liability insurance policy and will not
effect such a reduction with respect to Indemnitee without the prior approval of
at least 80% of the members of the Board. 

          (f) If
Indemnitee is a director of the Company during the term of this Agreement and if
Indemnitee ceases to be a director of the Company for any reason, the Company
shall procure a run-off directors’ and officers’ liability insurance policy with
respect to claims arising from facts or events that occurred before the time
Indemnitee ceased to be a director of the Company and covering Indemnitee, which
policy, without any lapse in coverage, will provide coverage for a period of six
years after the time Indemnitee ceased to be a director of the Company and will
provide coverage (including amount and type of coverage and size of deductibles)
substantially comparable to the Company’s directors’ and officers’ liability
insurance policy that was most protective of Indemnitee in the 12 months
preceding the time Indemnitee ceased to be a director of the Company; provided,
however, that: 

               (i)
this obligation shall be suspended during the period immediately following the
time Indemnitee ceases to be a director of the Company if and only so long as
the Company has a directors’ and officers’ liability insurance policy in effect
covering Indemnitee for such claims that, if it were a run-off policy, would
meet or exceed the foregoing standards, but in any event this suspension period
shall end when a Change in Control occurs; and 

               (ii)
no later than the end of the suspension period provided in the preceding clause
(i) (whether because of failure to have a policy meeting the foregoing standards
or because a Change in Control occurs), the Company shall procure a run-off
directors’ and officers’ liability insurance policy meeting the foregoing
standards and lasting for the remainder of the six-year period. 

          (g)
Notwithstanding the preceding clause (f) including the suspension provisions
therein, if Indemnitee ceases to be a director of the Company in connection with
a Change in Control or at or during the one-year period following the occurrence
of a Change in Control, the Company shall procure a run-off directors’ and
officers’ liability insurance policy covering Indemnitee and meeting the
foregoing standards in clause (f) and lasting for a six-year period upon the
Indemnitee’s ceasing to be an officer or a director of the Company in such
circumstances. 

     10. PERIOD OF LIMITATIONS. No legal
action shall be brought and no cause of action shall be asserted by or on behalf
of the Company or any affiliate of the Company against Indemnitee or
Indemnitee's spouse, heirs, executors, or personal or legal representatives
after the expiration of one year from the date of accrual of that cause of
action, and any claim or cause of action of the Company or its affiliate shall
be extinguished and deemed released unless asserted by the timely filing of a
legal action within that one-year period; provided, however, that for any claim
based on Indemnitee’s breach of fiduciary duties to the Company or its
stockholders, the period set forth in the preceding sentence shall be three
years instead of one year; provided, further, that if any shorter period of
limitations is otherwise applicable to any such cause of action, the shorter
period shall govern. 

     11. AMENDMENTS. No supplement,
modification, or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. No waiver of any of the provision of this
Agreement shall be deemed or shall constitute a waiver of any other provisions
hereof (whether or not similar) nor shall that waiver constitute a continuing
waiver.

     12. CERTAIN SETTLEMENT PROVISIONS.
The Company shall have no obligation to indemnify Indemnitee under this
Agreement for amounts paid in settlement of a Claim without the Company’s prior
written consent. The Company shall not settle any Claim in any manner that would
impose any fine or other obligation on Indemnitee without Indemnitee’s prior
written consent. Neither the Company nor Indemnitee shall unreasonably withhold
their consent to any proposed settlement. 

     13. DURATION OF AGREEMENT. This
Agreement shall continue for so long as Indemnitee serves as a director,
officer, employee, agent or fiduciary of the Company or, at the request of the
Company, as a director, officer, partner, member, venturer, proprietor, trustee,
employee, agent, fiduciary or similar functionary of another foreign or domestic
corporation, partnership, limited liability company, joint venture, sole
proprietorship, trust, employee benefit plan or other enterprise, and thereafter
shall survive until and terminate upon the later to occur of: (a) the expiration
of 20 years after the latest date that Indemnitee shall have ceased to serve in
any such capacity; (b) the final termination of all pending Claims in respect of
which Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder and of any proceeding commenced by Indemnitee pursuant to Section 4
relating thereto; or (c) the expiration of all statutes of limitation applicable
to possible Claims arising out of an Indemnifiable Event. 

     14. NOTICE OF CLAIMS. Indemnitee
shall promptly notify the Company in writing upon being served with any summons,
citation, subpoena, complaint, indictment, information or other document or
communication relating to any Claim for which Indemnitee may be entitled to
indemnification or advancement of Expenses hereunder; provided, however, that
any failure of Indemnitee to so notify the Company shall not adversely affect
Indemnitee’s rights under this Agreement except to the extent the Company shall
have been materially prejudiced as a direct result of such failure. The Company
shall promptly notify Indemnitee in writing as to the pendency of any Claim for
which Indemnitee may be entitled to indemnification or advancement of Expenses
hereunder. 

     15. BINDING EFFECT. This Agreement
shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors, assigns (including any direct or
indirect successor by purchase, merger, consolidation, or otherwise to all or
substantially all of the business or assets of the Company), spouses, heirs, and
personal and legal representatives. This Agreement shall continue in effect
regardless of whether Indemnitee continues to serve as an officer or director of
the Company or another enterprise at the Company's request. 

     16. SEVERABILITY. If any provision
of this Agreement is held to be illegal, invalid, or unenforceable under present
or future laws effective during the term hereof, that provision shall be fully
severable; this Agreement shall be construed and enforced as if that illegal,
invalid, or unenforceable provision had never comprised a part hereof; and the
remaining provisions shall remain in full force and effect and shall not be
affected by the illegal, invalid, or unenforceable provision or by its severance
from this Agreement. Furthermore, in lieu of that illegal,
invalid, or unenforceable provision, there shall be added automatically as a
part of this Agreement a provision as similar in terms to the illegal, invalid,
or unenforceable provision as may be possible and be legal, valid, and
enforceable. 

     17. GOVERNING LAW. This Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of Delaware applicable to contracts made and to be performed in that
state without giving effect to the principles of conflicts of laws. 

     18. CERTAIN CONSTRUCTION
RULES.

          (a)
The section headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.
As used in this Agreement, unless otherwise provided to the contrary, (1) all
references to days shall be deemed references to calendar days and (2) any
reference to a “Section” shall be deemed to refer to a section of this
Agreement. The words “hereof,” “herein” and “hereunder” and words of similar
import referring to this Agreement refer to this Agreement as a whole and not to
any particular provision of this Agreement. Whenever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without
limitation.” Unless otherwise specifically provided for herein, the term “or”
shall not be deemed to be exclusive. Whenever the context may require, any
pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs
shall include the plural and vice versa. 

          (b)
For purposes of this Agreement, references to “fines” shall include any excise
taxes assessed on a person with respect to any employee benefit plan; references
to “serving at the request of the Company” shall include any service as a
director, officer, employee or agent of the Company or any of its Subsidiaries
which imposes duties on, or involves services by, such director, nominee,
officer, employee or agent with respect to an employee benefit plan, its
participants or beneficiaries. 

     19. CERTAIN PERSONS NOT ENTITLED TO
INDEMNIFICATION. The Company shall not be obligated pursuant to the terms of
this Agreement: 

          (a) To
indemnify Indemnitee if (and to the extent that) a final decision by a court or
arbitration body having jurisdiction in the matter shall determine that such
indemnification is not lawful; or 

          (b) To
indemnify Indemnitee for the payment to the Company of profits pursuant to
Section 16(b) of the Exchange Act, or Expenses incurred by Indemnitee for Claims
in connection with such payment under Section 16(b) of the Exchange
Act.  

     20. MUTUAL ACKNOWLEDGMENTS. Both the
Company and Indemnitee acknowledge that in certain instances, applicable law
(including applicable federal law that may preempt or override applicable state
law) or public policy may prohibit the Company from indemnifying the directors,
officers, employees, agents or fiduciaries of the Company under this Agreement or otherwise. For example, the Company
and Indemnitee acknowledge that the U.S. Securities and Exchange Commission has
taken the position that indemnification of directors, officers and controlling
Persons of the Company for liabilities arising under federal securities laws is
against public policy and, therefore, unenforceable. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to
undertake with the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee. In addition, the
Company and Indemnitee acknowledge that federal law prohibits indemnifications
for certain violations of the Employee Retirement Income Security Act of 1974,
as amended.

     21. INDEMNIFICATION FOR NEGLIGENCE,
GROSS NEGLIGENCE, ETC. Without limiting the generality of any other provision
hereunder, it is the express intent of this Agreement that Indemnitee be
indemnified and Expenses be advanced regardless of Indemnitee’s acts of
negligence or gross negligence to the extent that indemnification and
advancement of Expenses is allowed pursuant to the terms of this Agreement and
under applicable law. 

     22. ENTIRE AGREEMENT. This Agreement
and the documents expressly referred to herein constitute the entire agreement
between the parties hereto with respect to the matters covered hereby, and any
other prior or contemporaneous oral or written understandings or agreements with
respect to the matters covered hereby, including any prior indemnification
agreements, are expressly superseded by this Agreement. 

     23. ENFORCEMENT. The Company agrees
that its execution of this Agreement shall constitute a stipulation by which it
shall be irrevocably bound in any court or arbitration in which a proceeding by
Indemnitee for enforcement of Indemnitee’s rights hereunder shall have been
commenced, continued or appealed, that its obligations set forth in this
Agreement are unique and special, and that failure of the Company to comply with
the provisions of this Agreement will cause irreparable and irremediable injury
to Indemnitee, for which a remedy at law will be inadequate. As a result, in
addition to any other right or remedy Indemnitee may have at law or in equity
with respect to breach of this Agreement, Indemnitee shall be entitled to
injunctive or mandatory relief directing specific performance by the Company of
its obligations under this Agreement. The Company agrees not to seek, and agrees
to waive any requirement for the securing or posting of, a bond in connection
with Indemnitee’s seeking or obtaining such relief. 

     24. NOTICES. Whenever this Agreement
requires or permits notice to be given by one party to the other, such notice
must be in writing to be effective and shall be deemed delivered and received by
the party to whom it is sent upon actual receipt (by any means) of such notice.
Receipt of a notice by any officer of the Company shall be deemed receipt of
such notice by the Company. 

     25. COUNTERPARTS. This
Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, but in making proof hereof it shall not be necessary to
produce or account for more than one such counterpart.

    
EXECUTED as of the date first written above. 

 

		LYRIS, INC.  
		 	
		By:       	  
	     	 
	/s/ William T.
      Comfort, III  
	  
	  
	  
	  	 
	/s/ Luis A.
      Rivera,
      Indemnitee  

Schedule I 

	1.	     	The Company entered
      into an Indemnification Agreement with each of William T. Comfort, III,
      James A. Urry, Andrew Richard Blair, Nicolas De Santis Cuadra, and Robb
      Wilson that is otherwise identical to the one entered into with Luis A.
      Rivera.

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