Document:

Executive Incentive Plan

 Exhibit 10.1 
 
 
 GRAPHIC PACKAGING 
 EXECUTIVE INCENTIVE PLAN 
  
  
  
  
  
  
  
  
  
  
 Amended and Restated

 Effective February 1, 2002 
  
 Shareholder Approval Obtained: May 14, 2002 
  
  
 

  
 GRAPHIC PACKAGING INTERNATIONAL CORPORATION 
 EXECUTIVE INCENTIVE PLAN 
  
 Effective January
1, 1996 
 (As Amended through February 1, 2002) 
  
 The name of this plan shall be the Graphic Packaging International Corporation Executive Incentive Plan (the “Plan”). The Plan replaces any previous annual and long-term cash incentive plans
used by Graphic Packaging International Corporation (f/k/a ACX Technologies, Inc.) (the “Company”) and its subsidiaries listed below in Section II. Eligible Participants. This plan is effective for fiscal years commencing on and after
January 1, 1996. 
  
 I.  PLAN INCLUDES: 
  
 A.  Cash bonuses based upon predetermined financial goals; and 
  
 B.  Annual grants of stock options. 
  
 II.  ELIGIBLE PARTICIPANTS: 
  
 The Company’s executive officers, division
presidents and select officers. 
  
 III.  CASH BONUS OPPORTUNITY: 
  
 A.  Goals: 
  
 1.  Financial goals are approved at the beginning of each year by the Company’s Compensation Committee (the “Committee”) of the
Board of Directors. Goal achievement determines the bonus amount. Each year’s participants, financial goals and other incentive compensation terms shall be set forth in writing by the Committee within ninety (90) days of the beginning of the
period of service to which the performance goal applies. For purposes of any short-term bonus, the writing shall be in the form of a Short Term Incentive Program (STIP) for the applicable year. For purposes of any long-term bonus, the writing shall
be in the form of a Long Term Incentive Program (LTIP) for the applicable year. 
  
 2.  The
Committee may select from one or more of the following financial measures in determining short term or long term financial goals: Cash Flow of the Company or of the applicable Business, as appropriate, Earnings Before Interest and Taxes
(“EBIT”), Earnings per Share, Operating Income, Ratio of Debt to EBITDA, Return on Capital, Return on Equity, Return on Invested Capital, or Return on Net Assets Employed. The performance goals shall be set forth as an objective formula or
standard, and the objective formula or standard will reclude discretion to increase the amount of compensation payable on attainment of the performance goal, all as required by Treas. Reg. 1.162-27(e)(2)(ii) and (iii). Definitions are in Section F
below. 
  
 3.  For short-term incentive compensation, the financial goals are set each year
at “target,” the expected performance level and a minimum performance level (“threshold”). 

  
 B.  Short Term Bonus Awards: 
  
 1.  Potential short term bonus awards, as a percent of annual salary, are the same for all participants (except
for the Chief Executive Officer, and if other than the Chief Executive Officer, the President) as follows: 
 
	  	  	  
	 Officers
 	  	  
	 Threshold performance
 	  	 –       25%
 
	 Target performance
 	  	 –       50%
 
	 
	 President and Chief Executive Officer
 	  	  
	 Threshold performance
 	  	 –       30%
 
	 Target performance
 	  	 –       60%
 

 
  
 2.  Potential short-term bonus awards are
uncapped except for the limitation provided in Section D.2. below. 
  
 3.  The Committee
has the authority to reduce a short-term bonus amount unilaterally and retroactively, if needed in the sole discretion of the Committee, to adjust for an unintended benefit, or to address a specific transaction, which occurs after the beginning of
the year. 
  
 C.  Long Term Bonus Awards 
  
 1.  The Committee has the authority to set long term bonus awards based on an individual’s level in the
organization. The awards are to be based on the Ratio of Debt to EBITDA and are awarded in the form of cash and stock options. 
  
 D.  Bonus Payments: 
  
 1.  All
bonuses are paid net of applicable withholding taxes. 
  
 2.  To comply with Section 162(m)
of the Internal Revenue Code, if, at the time the performance goal is met and the amount to paid as a bonus is based, in whole or in part, on a percentage of salary or base pay and the dollar amount of the salary or base pay is not fixed at the time
the performance goal is established, then the maximum bonus which may be earned by any participant in any year is limited as follows: 
 
	  	  	  
	 Officers
 	  	 –      $1.0 million
 
	 President and Chief Executive Officer
 	  	 –      $1.5 million
 

 
  

  
 E.  Unusual Items: 
  
 1.  For purposes of measuring the extent to which an incentive goal is achieved, the following unusual items
shall generally be excluded unless the Committee, in its sole judgment, determines the items shall be included: 
  
 a)  restructuring charges as defined by authoritative accounting literature; 
  
 b)  income or loss, including shares issued, related to acquisitions and dispositions of Businesses, Business segments or substantial assets in the year of the transaction; 
  
 c)  the current year effective of adopting accounting pronouncements under generally accepted accounting
principles; 
  
 d)  legal settlements, judgments, and/or tax audit claims; 

 
 e)  tax effect of statutory tax rate changes; 
  

f)  environmental remediation costs incurred as a result of law changes affecting prior years; 
  
 g)  accounting changes, extraordinary items, gain or loss on disposal of a discontinued operation and/or
unusual items as reported under Accounting Principles Board Opinion No. 30; 
  
 h)  gains
or losses from the issuance or retirement of financial instruments; 
  
 i)  other unusual
items which are required to be shown as a separate line item on the income statement; and 
  
 j)  current year impact of share repurchase programs. 

  
 F.  Definitions: 
  
 The capitalized terms used in the Plan shall have the meanings specified below, unless otherwise specified. In determining the values set
forth below, the Committee may choose to consult the audited financial statements of the Company and/or the certified public accountants that regularly audit the Company’s financial affairs, such determinations to be in accordance with
generally accepted accounting principles. 
  
 1.  Business means a separate line of
business within the Company. 
  
 2.  Cash Flow means one or more of the cash flow
components in the Statement of Cash Flows. 
  
 3.  Code means the Internal Revenue Code of
1986, as amended. 
  
 4.  Divisional Net Income means the net income generated by a
distinct division or location of the Company during a fiscal period. 
  
 5.  Earnings per
Share means “primary earnings per share.” 
  
 6.  Earnings Before Interest and
Taxes (EBIT) means operating income plus other income and expense except for interest and taxes. 
  
 7.  Return on Capital means net income for the fiscal year divided by the average of total capital at the beginning and end of the fiscal year. Total capital is the sum of equity and long-term debt. 
  
 8.  Return on Equity means the net income for the fiscal year divided by the average of equity at the beginning
and end of the fiscal year. 
  
 9.  Return on Net Assets Employed means EBIT divided by a
five-quarter average of total assets less current liabilities. 
  
 10.  Return on Invested
Capital means Divisional Net Income divided by a five-quarter average of invested capital. 
  
 11.  Ratio of Debt to EBITDA means total Company debt divided by EBITDA (earnings before interest and taxes plus depreciation and amortization). The program uses a simple average of the four quarterly results annualized.

  
 IV.  STOCK OPTION GRANTS: 
  
 Grants of stock options shall be made pursuant to the terms of the Company’s Equity Incentive Plan. 
  
 V.  ADMINISTRATIVE PROVISIONS: 
  
 A.  Participation for Newly Promoted or Newly Hired Officers: Any annual cash bonus under the Plan is prorated based upon number of days in the
eligible position, unless an exception is made at the time of promotion or hire. The exception for a participant at the Company is made by Office of the President and for a Business participant by the president of the Business. 

 
 B.  Impact of Employment Termination on Bonus Payouts: Participant must be employed on last day of
calendar year to earn a bonus except for the following terminations, which may result in a prorated bonus based upon number of days of participation during the year: 
  
 1.  retirement, including early retirement, under a qualified retirement plan sponsored by the Company; 
  
 2.  death; 
  
 3.  long-term disability, as determined under a disability policy provided for the participant by the Company, or if none, under such other
disability plan sponsored by the Company under which the participant is eligible for benefits, or if none, as defined under Section 22(e)(3) of the Internal Revenue Code of 1986, as amended; 
  
 4.  transfer to another Business within the Company; or 
  
 5.  elimination of position or demotion for reasons other than poor performance. 
  
 Any exceptions and a prorated bonus must be approved by the Office of the President for a Company participant and by the president of a Business for a Business participant.

  
 C.  Bonuses: 
  
 1.  Bonus amounts must be self-funded, i.e., they must be accrued before determining whether a bonus is earned.

  
 2.  Bonuses are subject to annual review or audit and to approval by the Committee.

  
 3.  Bonuses will be paid, net of withholding taxes, after the Company releases its
annual earnings for the bonus year. 
  
 4.  Bonuses may be denied in whole or in part by
the Committee, if in its judgment, the participant took any actions, which were deemed to be detrimental to the Business, to the Company or to one of its subsidiaries. 
  
 D.  Plan Administration and Termination: 
  
 1.  The Plan is administered by the Company at the direction of the Committee, which reserves the right to interpret, modify or terminate the Plan. Changes to the Plan will not apply to
bonuses which have been earned but not paid. 
  
 2.  To the extent the Board considers it
desirable for compensation delivered pursuant to a bonus under the Plan to be eligible to qualify for an exemption under Code Section 162(m), the Committee shall consist of a committee of two or more directors of the Company, all of whom qualify as
“outside directors” within the meaning of Code Section 162(m). The Board may from time to time remove members from or add members to the Committee; fill vacancies on the Committee, howsoever caused; and otherwise increase or decrease the
number of members of the Committee, in each case as the Board deems appropriate to satisfy such conditions of Code Section 162(m) as then in effect. 
  
 3.  Participation in the Plan does not in any way constitute a contract of employment and does not guarantee continued employment with the Company
or any of its subsidiaries. 
  
 4.  In the event of a change of control, the Plan will
normally end and prorated bonuses will be calculated and paid, if any are earned. Change in control at the Company shall be defined as in the Company’s Equity Incentive Plan. 
  
 5.  Potential bonus awards may not be pledged, encumbered, assigned, alienated, anticipated or commuted in any manner by the participant.

  
 6.  The Committee reserves the right to offset any earned bonus against any debts owed
by the participant to the Business, to the Company or to any of the Company’s subsidiaries. 

 

  
 
	 ATTEST:
 	 	  	 	 GRAPHIC PACKAGING INTERNATIONAL
CORPORATION
 
	 
	 
	 	  	 	 

	 
	 Dated:Form of Indemnity Agreement

 Exhibit 10.1 
  
 FORM OF 
 INDEMNITY AGREEMENT 
  
 This Indemnity Agreement (this “Agreement”), dated as of                , 2002, is made by and between
COMPUTER PROGRAMS AND SYSTEMS, INC., a Delaware corporation (the “Company”), and                , a non-employee director of the Company (the
“Indemnitee”). 
  
 RECITALS 
  
 A.  The Company is aware that competent and experienced persons are increasingly reluctant to serve as directors of corporations of which they are not employees
unless they are protected by indemnification, due to increased exposure to litigation costs and risks resulting from their service to such corporations, and due to the fact that the exposure frequently bears no reasonable relationship to the
compensation of such non-employee directors; 
  
 B.  Based on their experience as business managers, the
Board of Directors of the Company (the “Board”) has concluded that, to retain and attract talented and experienced individuals to serve as directors of the Company, and to encourage such individuals to take the business risks necessary for
the success of the Company, it is necessary for the Company contractually to indemnify the Company’s non-employee directors and to assume for itself maximum liability for expenses and damages in connection with claims against such directors in
connection with their service to the Company; 
  
 C.  Section 145 of the General Corporation Law of
Delaware, under which the Company is organized (the “Law”), empowers the Company to indemnify by agreement its directors, and expressly provides that the indemnification provided by the Law is not exclusive; and 
  
 D.  The Company desires and has requested the Indemnitee to serve or continue to serve as a director of the Company free from
undue concern for claims for damages arising out of or related to such services to the Company. 
  
 NOW, THEREFORE,
the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1.  Definitions.

  
 1.1  Expenses.    For purposes of this Agreement, “expenses”
includes all direct and indirect costs of any type or nature whatsoever (including, without limitation, all attorneys’ fees and related disbursements and other out-of-pocket costs) actually and reasonably incurred by the Indemnitee in
connection with the investigation, defense or appeal of a proceeding or establishing or enforcing a right to indemnification or advancement of expenses under this Agreement. 

 

  
 1.2  Proceeding.    For the purposes of this
Agreement, “proceeding” means any threatened, pending or completed action, suit or other proceeding, whether civil, criminal, administrative, investigative or any other type whatsoever. 
  

2.  Agreement to Serve.    The Indemnitee agrees to continue to serve as a director of the Company, at the will of the Company,
faithfully and to the best of his ability, so long as he is duly appointed or elected and qualified in accordance with the applicable provisions of the Certificate of Incorporation and Bylaws of the Company, as amended from time to time; provided,
however, that the Indemnitee may at any time and for any reason resign from such position, and the Company shall have no obligation under this Agreement to continue to allow the Indemnitee to serve in any such position. 
  
 3.  Mandatory Indemnification.    Subject to Section 8 below, the Company shall indemnify the
Indemnitee as provided herein. 
  
 3.1  Third Party Actions.    If the
Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding (other than an action by or in the right of the Company) by reason of the fact that he is or was a director and/or an agent of the Company, or by
reason of anything done or not done by him in any such capacity, against any and all expenses and liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement)
actually and reasonably incurred by him in connection with the investigation, defense, settlement or appeal of such proceeding if he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the
Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. 
  
 3.2  Derivative Actions.    If the Indemnitee is a person who was or is a party or is threatened to be made a party to any proceeding by or in the right of the Company to procure a judgment in its
favor by reason of the fact that he is or was a director and/or an agent of the Company, or by reason of anything done or not done by him in any such capacity, against any amounts paid in settlement of any such proceeding and all expenses actually
and reasonably incurred by him in connection with the investigation, defense, settlement or appeal of such proceeding if he acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Company;
except that no indemnification under this subsection shall be made in respect of any claim, issue or matter as to which such person shall have been finally adjudged to be liable to the Company by a court of competent jurisdiction, unless and only to
the extent that the court in which such proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity
for such amounts which such court shall deem proper. 

 
 2 

  
 4.  Partial Indemnification and Contribution. 

 
 4.1  Partial Indemnification.    If the Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of any expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties and amounts paid in settlement) incurred by him
in the investigation, defense, settlement or appeal of a proceeding but is not entitled, however, to indemnification for all of the total amount thereof, then the Company shall nevertheless indemnify the Indemnitee for such total amount except as to
the portion thereof to which the Indemnitee is not entitled to indemnification. 
  
 4.2  Contribution.    If the Indemnitee is not entitled to the indemnification provided in Section 3 for any reason other than the statutory limitations set forth in the Law, then in respect of
any threatened, pending or completed proceeding in which the Company is jointly liable with the Indemnitee (or would be if joined in such proceeding), the Company shall contribute to the amount of expenses (including attorneys’ fees),
judgments, fines and amounts paid in settlement actually and reasonably incurred and paid or payable by the Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and the
Indemnitee on the other hand from the transaction from which such proceeding arose and (ii) the relative fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the events which resulted in such expenses,
judgments, fines or settlement amounts, as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of the Indemnitee on the other hand shall be determined by reference to, among other things, the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such expenses, judgments, fines or settlement amounts. The Company agrees that it would not be just and equitable if
contribution pursuant to this Section 4 were determined by pro rata allocation or any other method of allocation which does not take account of the foregoing equitable considerations. 
  
 5.  Mandatory Advancement of Expenses.    Subject to Section 8 below, the Company shall advance all expenses incurred by the Indemnitee
in connection with the investigation, defense, settlement or appeal of any proceeding to which the Indemnitee is a party or is threatened to be made a party by reason of the fact that the Indemnitee is or was a director and/or an agent of the
Company or by reason of anything done or not done by him in any such capacity. The Indemnitee hereby undertakes to promptly repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that the Indemnitee is not
entitled to be indemnified by the Company under the provisions of this Agreement, the Certificate of Incorporation or Bylaws of the Company, the Law or otherwise. The advances to be made hereunder shall be paid by the Company to the Indemnitee
within twenty (20) days following delivery of a written request therefor by the Indemnitee to the Company. 

 
 3 

  
 6.  Notice and Other Indemnification Procedures. 

 
 6.1  Promptly after receipt by the Indemnitee of notice of the commencement of or the threat of commencement of any
proceeding, the Indemnitee shall, if the Indemnitee believes that indemnification with respect thereto may be sought from the Company under this Agreement, notify the Company of the commencement or threat of commencement thereof. 

 
 6.2  If, at the time of the receipt of a notice of the commencement of a proceeding pursuant to Section 6.1 hereof,
the Company has D&O Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such D&O Insurance policies. 
  
 6.3  In the event the Company shall be obligated to advance the expenses for any proceeding against the Indemnitee, the Company,
if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by the Indemnitee (which approval shall not be unreasonably withheld), upon the delivery to the Indemnitee of written notice of its election to do so.
After delivery of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under this Agreement for any fees of counsel subsequently incurred by the
Indemnitee with respect to the same proceeding, provided that: (a) the Indemnitee shall have the right to employ his own counsel in any such proceeding at the Indemnitee’s expense; (b) the Indemnitee shall have the right to employ his own
counsel in connection with any such proceeding, at the expense of the Company, if such counsel serves in a review, observer, advice and counseling capacity and does not otherwise materially control or participate in the defense of such proceeding;
and (c) if (i) the employment of counsel by the Indemnitee has been previously authorized by the Company, (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the
conduct of any such defense or (iii) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of the Indemnitee’s counsel shall be at the expense of the Company. 

 
 7.  Determination of Right to Indemnification. 
  
 7.1  To the extent the Indemnitee has been successful on the merits or otherwise in defense of any proceeding referred to in Section 3.1 or 3.2 of this Agreement
or in the defense of any claim, issue or matter described therein, the Company shall indemnify the Indemnitee against expenses actually and reasonably incurred by him in connection with the investigation, defense or appeal of such proceeding, or
such claim, issue or matter, as the case may be. 

 
 4 

  
 7.2  In the event that Section 7.1 is inapplicable, or does not apply
to the entire proceeding, the Company shall nonetheless indemnify the Indemnitee unless the Company shall prove by clear and convincing evidence to a forum listed in Section 7.3 below that the Indemnitee has not met the applicable standard of
conduct required to entitle the Indemnitee to such indemnification. 
  
 7.3  The Indemnitee shall be
entitled to select the forum in which the validity of the Company’s claim under Section 7.2 hereof that the Indemnitee is not entitled to indemnification will be heard from among the following: 
  
 (a)  A quorum of the Board consisting of directors who are not parties to the proceeding for which
indemnification is being sought; 
  
 (b)  Legal counsel mutually agreed upon by the
Indemnitee and the Board, which counsel shall make such determination in a written opinion; 
  
 (c)  A panel of three arbitrators, one of whom is selected by the Company, another of whom is selected by the Indemnitee and the last of whom is selected by the first two arbitrators so selected; or 
  
 (d)  Any court having jurisdiction of subject matter and the parties. 
  
 7.4  As soon as practicable, and in no event later than thirty (30) days after the forum has been selected pursuant to Section
7.3 above, the Company shall, at its own expense, submit to the selected forum its claim that the Indemnitee is not entitled to indemnification, and the Company shall act in the utmost good faith to assure the Indemnitee a complete opportunity to
defend against such claim. 
  
 7.5  If the forum selected in accordance with Section 7.3 hereof is not a
court, then after the final decision of such forum is rendered, the Company or the Indemnitee shall have the right to apply to the court having jurisdiction of subject matter and the parties, the court in which the proceeding giving rise to the
Indemnitee’s claim for indemnification is or was pending or any other court of competent jurisdiction, for the purpose of appealing the decision of such forum, provided that such right is executed within sixty (60) days after the final decision
of such forum is rendered. If the forum selected in accordance with Section 7.3 hereof is a court, then the rights of the Company or the Indemnitee to appeal any decision of such court shall be governed by the applicable laws and rules governing
appeals of the decision of such court. 
  
 7.6  Notwithstanding any other provision in this Agreement to
the contrary, the Company shall indemnify the Indemnitee against all expenses incurred by the Indemnitee in connection with any hearing or proceeding under this Section 7 involving the Indemnitee and against all expenses incurred by the Indemnitee
in connection with any other proceeding between the Company and the Indemnitee involving the interpretation or enforcement of the rights of the Indemnitee under this Agreement unless a court of 

 
 5 

 competent jurisdiction finds that each of the material claims and/or defenses of the Indemnitee in any such proceeding was frivolous or not made
in good faith. 
  
 8.  Exceptions.    Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement in connection with the following: 
  
 8.1  Claims Initiated by Indemnitee.    To indemnify or advance expenses to the Indemnitee with respect to proceedings or claims initiated or brought voluntarily by the Indemnitee and not by way
of defense, except with respect to proceedings specifically authorized by the Board or brought to establish or enforce a right to indemnification and/or advancement of expenses arising under this Agreement, the charter documents of the Company or
any statute or law or otherwise, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board finds it to be appropriate; or 
  
 8.2  Unauthorized Settlements.    To indemnify the Indemnitee hereunder for any amounts paid in settlement of a proceeding unless the
Company consents in advance in writing to such settlement, which consent shall not be unreasonably withheld; or 
  
 8.3  Securities Law Actions.    To indemnify the Indemnitee on account of any suit in which judgment is rendered against the Indemnitee for an accounting of profits made from the purchase or sale
by the Indemnitee of securities of the Company pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any federal, state or local statutory law; or 
  
 8.4  Unlawful Indemnification.    To indemnify the Indemnitee if a final decision by a court having
jurisdiction in the matter shall determine that such indemnification is not lawful. In this respect, the Company and the Indemnitee have been advised that the Securities and Exchange Commission takes the position that indemnification for liabilities
arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication. 
  

9.  Non-Exclusivity.    The provisions for indemnification and advancement of expenses set forth in this Agreement shall not be
deemed exclusive of any other rights which the Indemnitee may have under any provision of law, the Company’s Certificate of Incorporation or Bylaws, the vote of the Company’s stockholders or disinterested directors, other agreements or
otherwise, both as to action in the Indemnitee’s official capacity and to action in another capacity while occupying his position as a director and/or an agent of the Company, and the Indemnitee’s rights hereunder shall continue after the
Indemnitee has ceased acting as a director and/or an agent of the Company and shall inure to the benefit of the heirs, executors and administrators of the Indemnitee. 

 
 6 

  
 10.  General Provisions. 
  
 10.1  Interpretation of Agreement.    It is understood that the parties hereto intend this Agreement
to be interpreted and enforced so as to provide indemnification and advancement of expenses to the Indemnitee to the fullest extent now or hereafter permitted by law, except as expressly limited herein. 
  
 10.2  Severability.    If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable for any reason whatsoever, then: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, all portions of any paragraphs of this Agreement containing any
such provision held to be invalid, illegal or unenforceable that are not 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 this Agreement
(including, without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal or unenforceable and to give effect to Section 10.1 hereof. 
  
 10.3  Modification and Waiver.    No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. 
  
 10.4  Subrogation.    In the event of full payment under this Agreement, the Company shall be subrogated to the extent of such payment
to all of the rights of recovery of the Indemnitee, who shall execute all documents required and shall do all acts that may be necessary or desirable to secure such rights and to enable the Company effectively to bring suit to enforce such rights.

  
 10.5  Counterparts.    This Agreement may be executed in one or more
counterparts, which shall together constitute one agreement. 
  
 10.6  Successors and
Assigns.    The terms of this Agreement shall bind, and shall inure to the benefit of, the successors and assigns of the parties hereto. 
  
 10.7  Notice.    All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed duly given: (a) if delivered
by hand and signed for by the party addressee; or (b) if mailed by certified or registered mail, with postage prepaid, on the third business day after the mailing date. The address for notice to the Company shall be 6600 Wall Street, Mobile, Alabama
36695, and the address for notice to the Indemnitee is as shown on the signature page of this Agreement, which addresses may be subsequently modified by written notice by either party. 

 
 7 

  
 10.8  Governing Law.    This Agreement shall
be governed exclusively by and construed according to the laws of the State of Delaware. 
  
 10.9  Attorneys’ Fees.    In the event Indemnitee is required to bring any action to enforce rights under this Agreement (including, without limitation, the expenses of any Proceeding
described in Section 3), the Indemnitee shall be entitled to all reasonable fees and expenses in bringing and pursuing such action, unless a court of competent jurisdiction finds each of the material claims of the Indemnitee in any such action was
frivolous and not made in good faith. 
  
 10.10  Insurance.    The indemnity and
advancement of expenses obligations of the Company contained in this Agreement shall apply only to the extent that an Indemnitee has not been reimbursed pursuant to any insurance policy the Company may maintain from time to time for the
Indemnitee’s benefit, or otherwise. 
  
 [Signature Page Follows] 

 
 8 

  
 IN WITNESS WHEREOF, the parties hereto have entered into this Indemnity Agreement
effective as of the date first written above. 
  
 
	 Company:
 
	 
	 COMPUTER PROGRAMS AND SYSTEMS,
INC.
 
	 
	 By:
 	 	 

	 Name:
 	 	 

	 Its:
 	 	 

 
  
 
	 Indemnitee:
 
	 
	 Signature:
 	 	 

	 Print Name:
 	 	 

 

 
 9

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