Document:

Exhibit
10.1

 

SETTLEMENT
AND RELEASE

 

                This Settlement and Release Agreement (the “Agreement”)
is entered into as of June 29, 2006 (the “Effective Date”) by and between, DynTek,
Inc., a Delaware corporation (“DynTek”), and J. Michael Gullard (“Creditor”).

 

RECITALS

 

                A.            As
of the Effective Date, DynTek and Creditor acknowledge that Creditor is owed
$14,000.00 (the “Payable Amount”).

 

                B.            Execution
of this Agreement will effectuate a settlement on the Payable Amount in
exchange for the amount of shares of common stock, par value $0.0001, of
DynTek, Inc. (the “Common Stock”) set forth in Section 1 below and provide a release
of DynTek from any present or further liability with respect to the Payable
Amount.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the obligations set forth below, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Creditor
agrees to convert the Payable Amount into that number of fully paid and
nonassessable shares of common stock, par value $0.0001, of DynTek (the “Common
Stock”) equal to the Payable Amount divided by $0.20 per share, which equals
70,000 shares.

 

Creditor
acknowledges and agrees that  Creditor is
an “accredited investor,” as defined in Rule 501(a) of Regulation D promulgated
under the Securities Act of 1933, as amended, as indicated by initialing on the
line immediately below.

 

	
  Initial here: 

  	
  \s\ JMG

  

 

Concurrently
with the execution of this Agreement, Creditor must sign and deliver to DynTek
the Investment Letter attached as Exhibit A.

 

Creditor acknowledges and
agrees that any investment in DynTek’s Common Stock involves a high degree of
risk.  Creditor is urged to consider
carefully the investment risks described in DynTek’s Annual Report on Form
10-K, filed with the Securities and Exchange Commission (the “SEC”) on
September 29, 2005, and all other public filings with the SEC before deciding
to make an investment in DynTek Common Stock.  The
documents filed by DynTek with the SEC may be obtained free of charge at DynTek’s
website at www.dyntek.com or at the SEC’s website at www.sec.gov.

 

2.             Payable Amount. Creditor hereby represents that the Payable
Amount is the entire outstanding obligation of DynTek to Creditor as of the Effective
Date and that no other liabilities or obligations have accrued for which DynTek
is responsible.

 

 

3.             General Release.

 

3.1           Release.  In exchange
for the settlement in Section 1 hereof,  Creditor
on behalf of itself and on behalf of its affiliates, as well as its respective
directors, officers, equityholders, agents and employees, past and present
(collectively, the “Releasing Parties”) hereby agrees to waive and release all
claims, known and unknown, which the Releasing Parties have or might have
against DynTek and any of DynTek’s respective subsidiaries, affiliated
corporations and/or business entities, as well as their respective directors,
officers, shareholders, agents and employees, past and present (collectively,
the “Released Parties”), arising under or in connection with (a) all claims
relating in any way to any agreement evidencing the Payable Amount under any
applicable federal, state or local law, regulation or ordinance or public
policy, contract, tort or property law theory, or any other cause of action
whatsoever that arose on or before the Effective Date and (b) all claims relating
in any way to Creditor’s right to collect the Payable Amount (collectively, the
claims identified in (a) and (b) shall be referred to herein as the “Released
Claims”).

 

3.2           Unknown Claims.  It is
further understood and agreed that as a condition of this Agreement, all rights
under Section 1542 of the Civil Code of the State of California are
expressly waived by Creditor.  Such
Section reads as follows:

 

“A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the debtor.”

 

Notwithstanding
Section 1542, and for the purpose of implementing a full and complete release
and discharge of the Released Claims, Creditor, for itself and on behalf of the
applicable Releasing Parties, expressly acknowledges that the foregoing release
is intended to include, and does include in its effect, without limitation, all
Released Claims which the Releasing Parties do not know or suspect to exist in
their favor against the Released Parties at the time of execution hereof, and
that the foregoing release expressly contemplates the extinguishment of all
such claims.

 

4.             Miscellaneous Provisions.

 

4.1           Third Party Beneficiaries.  Creditor
hereby acknowledges that each of the DynTek’s affiliates are intended to be
third party beneficiaries of this Agreement with the right to enforce any of
the terms contained herein.

 

4.2           Governing Law.  This
Agreement is made under and shall be governed by and construed in accordance
with the laws of the State of California. 
Any action or proceeding brought to enforce this Agreement shall be instituted
and maintained in Orange County, California and the parties hereto consent to
such jurisdiction.

 

4.3           Assignment.  Neither
this Agreement nor any duties or obligations under this Agreement may be
assigned by either party without the prior written consent of the other party.

 

4.4           Attorneys’ Fees.  If
any action is brought to enforce or interpret the provisions of this Agreement,
the prevailing party in such action will be entitled to its reasonable
attorneys’ fees and costs incurred, in addition to any other relief to which
such party may be entitled.

 

4.5           Waiver of Breach.  The
waiver of either party of a breach of any provision

 

 

2

 

of
this Agreement shall not operate or be construed as a waiver of any subsequent
breach of this Agreement.

 

4.6           Severability.  To the
extent any provision of this Agreement shall be invalid or unenforceable, it
shall be considered deleted herefrom and the remainder of such provision and of
this Agreement shall be unaffected and shall continue in full force and
effect.  In furtherance and not in
limitation of the foregoing, should the duration or the geographical extent of
or business activities covered by any provision of this Agreement be in excess
of that which is valid and enforceable under applicable law, then such
provision shall be construed to cover only the maximum duration, extent or
activities which may validly and enforceably be covered under applicable law.

 

4.7           Authority.  Each
individual signing for each of the parties herein warrants and represents that
he is an authorized agent of such party, for whose benefit he is executing this
Agreement, and is authorized to execute the same.

 

4.8           Further Assurances. 
Each party agrees to execute such other and further instruments and
documents as may be necessary or proper in order to complete the transactions
contemplated by this Agreement.

 

4.9           Amendments.  No
amendment or modification of this Agreement shall be deemed effective unless
made in writing signed by the parties hereto.

 

4.10         Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.

 

[Signature Page Follows]

 

3

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
and first set forth above.

 

	
   

  	
  DYNTEK,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  \s\ Mark E. Ashdown

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  Mark E. Ashdown

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “CREDITOR”

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  \s\ J. Michael Gullard

  
	
   

  	
   

  	
  J. Michael
  Gullard

  
				

 

4Exh 10_1 Indemnification agreement

    EXHIBIT
      10.1

     

    INDEMNIFICATION
      AGREEMENT

     

    THIS
      AGREEMENT (the “Agreement”) is made and entered into as of this ____ day of
      __________, 2006, by and between ATHEROGENICS, INC., a Georgia corporation
      (the
“Company”), and ________________________ (“Indemnitee”).
      Capitalized terms used herein and not otherwise defined shall have the meanings
      set forth in Section 16.

     

    RECITALS:

     

    WHEREAS,
      Indemnitee performs a valuable service for the Company;

     

    WHEREAS,
      the
      Bylaws of the Company (the “Bylaws”) and the Georgia Business Corporation Code,
      as amended (the “GBCC”), by their nonexclusive nature, permit contracts between
      the Company and the officers and directors of the Company with respect to
      indemnification of such officers or directors; 

     

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

     

    WHEREAS,
      in
      recognition of the need to provide Indemnitee with substantial protection
      against personal liability, the Company has determined and agreed to enter
      into
      this Agreement with Indemnitee;

     

    NOW,
      THEREFORE,
      in
      consideration of Indemnitee’s service as an officer or director after the date
      hereof, the parties hereto agree as follows:

     

    1.  Indemnification
      of Indemnitee.
      Subject
      to Section 5, the Company hereby agrees to hold harmless and indemnify
      Indemnitee if Indemnitee is a party to a Proceeding by reason of his Corporate
      Status to the maximum extent not prohibited by the GBCC, as the same now exists
      or may hereafter be amended (but only to the extent any such amendment permits
      the Company to provide broader indemnification rights than the GBCC permitted
      the Company to provide prior to such amendment); provided, however, that except
      as provided in Section
      6, Indemnitee shall not be entitled to indemnification pursuant to this
      Agreement in connection with a Proceeding initiated by Indemnitee (other than
      in
      a Corporate Status capacity) against the Company or any director or officer
      of
      the Company unless the Company has joined in or consented in writing to the
      initiation of such action. 

     

    2.  Advancement
      of Expenses.
      

     

    (a)  Procedure
      for Advancement of Expenses.
      The
      Company shall pay for or reimburse the Expenses incurred by Indemnitee if
      Indemnitee was or is a party to a Proceeding because of his Corporate Status
      in
      advance of final disposition of the Proceeding if:

     

    (i)  Indemnitee
      furnishes the Company a written affirmation, in a form reasonably acceptable
      to
      the Company, of his good faith belief that he has met the standard of conduct
      set forth in the GBCC or that the Proceeding involves conduct for which
      liability has been eliminated under a provision 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    of
      the
      Articles of Incorporation as authorized by Section 14-2-202(b)(4) of the
      GBCC; and

     

    (ii)  Indemnitee
      furnishes the Company a written undertaking, in a form reasonably satisfactory
      to the Company, to repay any advances if it is ultimately determined that he
      is
      not entitled to indemnification under this Agreement. Such undertaking must
      be
      an unlimited general obligation of Indemnitee but need not be secured and may
      be
      accepted without reference to the financial ability of Indemnitee to make
      repayment.

     

    (b)  Notwithstanding
      any other provision of this Agreement, the Company shall advance any and all
      Expenses incurred by or on behalf of Indemnitee in connection with any
      Proceeding to which Indemnitee is a party by reason of Indemnitee’s Corporate
      Status within fifteen (15) business days after Indemnitee has presented the
      affirmation and undertaking required pursuant to Section 2(a). Any advances
      and
      undertakings to repay pursuant to this Section 2 shall be unsecured and interest
      free. Notwithstanding the foregoing, the obligation of the Company to advance
      Expenses pursuant to this Section 2 shall be subject to the condition that,
      if,
      when and to the extent that the Company determines that Indemnitee would not
      be
      permitted to be indemnified under applicable law, the Company shall be
      reimbursed, within thirty (30) days of such determination, by Indemnitee (who
      hereby agrees to reimburse the Company) for all such amounts theretofore paid;
      provided,
      however,
      that if
      Indemnitee has commenced or thereafter commences legal proceedings in a court
      of
      competent jurisdiction to secure a determination that Indemnitee should be
      indemnified under applicable law, any determination made by the Company that
      Indemnitee would not be permitted to be indemnified under applicable law shall
      not be binding and Indemnitee shall not be required to reimburse the Company
      for
      any advance of Expenses until a final judicial determination is made with
      respect thereto (as to which all rights of appeal therefrom have been exhausted
      or lapsed).

     

    3.  Indemnification
      for Expenses of a Party Who is Wholly or Partly Successful.
      Notwithstanding any other provision of this Agreement, to the extent that
      Indemnitee is, by reason of his Corporate Status, a party to and is successful
      on the merits or otherwise in any Proceeding, he shall be indemnified against
      reasonable Expenses incurred by him in connection with the Proceeding,
      regardless of whether Indemnitee has met the standards set forth in the GBCC
      and
      without any action or determination in accordance with Section 5. If Indemnitee
      is not wholly successful in such Proceeding but is successful on the merits
      or
      otherwise as to one or more but less than all claims, issues or matters in
      such
      Proceeding, the Company shall indemnify Indemnitee against all Expenses actually
      and reasonably incurred by him or on his behalf in connection with each
      successfully resolved claim, issue or matter.

     

    4.  Partial
      Indemnification.
      If
      Indemnitee is entitled under any provision of this Agreement to indemnification
      by the Company for some or a portion of any costs, claims or losses but not
      for
      the total amount thereof, the Company shall nevertheless indemnify Indemnitee
      for the portion thereof to which Indemnitee is entitled. 

     

    5.  Procedures
      and Presumptions for Determination of Entitlement to
      Indemnification.
      It is
      the intent of this Agreement to secure for Indemnitee rights of indemnification
      that are as favorable as may be permitted under the law and public policy of
      the
      State of Georgia. Accordingly, the parties agree that the following procedures
      and presumptions shall apply in the event of any question as to whether
      Indemnitee is entitled to indemnification 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
under
        this Agreement (provided,
        however,
        in the
        event the procedures for determination of entitlement to indemnification
        as
        currently set forth in the GBCC are amended to create any material inconsistency
        between such procedures in the GBCC and the procedures set forth in paragraph
        (b) below, the procedures set forth in paragraph (b) shall also be deemed
        to be
        amended in the same manner to the extent necessary to remove the inconsistency
        without any further action on the part of the Company or
        Indemnitee):

    

     

    (a)  To
      obtain
      indemnification (including, but not limited to, the advancement of Expenses)
      under this Agreement, Indemnitee shall submit to the Company a written request
      in form reasonably satisfactory to the Company, including therein or therewith
      such documentation and information as is reasonably available to Indemnitee
      and
      is reasonably necessary, in the Company’s opinion, to determine whether and to
      what extent Indemnitee is entitled to indemnification. The General Counsel
      of
      the Company (or in the absence of the General Counsel, the Corporate Secretary
      of the Company) shall, promptly upon receipt of such a request for
      indemnification, advise the Board of Directors in writing that Indemnitee has
      requested indemnification. Any Expenses incurred by Indemnitee in connection
      with Indemnitee’s request for indemnification hereunder shall be borne by the
      Company. The Company hereby indemnifies and agrees to hold Indemnitee harmless
      for any Expenses incurred by Indemnitee under the immediately preceding sentence
      irrespective of the outcome of the determination of Indemnitee’s entitlement to
      indemnification. 

     

    (b)  The
      Company shall not indemnify Indemnitee under Section 1 unless a determination
      has been made for a specific Proceeding that indemnification of Indemnitee
      is
      permissible because Indemnitee has met the standards set forth in the GBCC.
      The
      determination shall be made: 

     

    (i)  If
      there
      are two or more Disinterested Directors, by the Board of Directors by a majority
      vote of all the Disinterested Directors (a majority of whom shall for such
      purpose constitute a quorum) or by a majority of the members of a committee
      of
      two or more Disinterested Directors appointed by such a vote;

     

    (ii)  By
      special legal counsel

     

    (A)  selected
      in the manner prescribed in paragraph (i) of this subsection; or

     

    (B)  if
      there
      are fewer than two Disinterested Directors, selected by the Board of Directors
      (in which selection directors who do not qualify as Disinterested Directors
      may
      participate); or

     

    (iii)  By
      the
      shareholders, but the shares owned by or voted under the control of the officers
      and directors who are at the time parties to the Proceeding may not be voted
      on
      the determination; 

     

    provided,
      however, that following a Change of Control of the Company, with respect to
      all
      matters thereafter arising out of acts, omissions or events prior to the Change
      of Control of the Company concerning the rights of Indemnitee to seek
      indemnification under this Section 5, such determination shall be made by
      special legal counsel nominated by 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Indemnitee
      and selected by the Board of Directors or its committee in the manner described
      in Section 5(b)(ii) above (which selection shall not be unreasonably withheld),
      which counsel has not otherwise performed services (other than in connection
      with similar matters) within the five years preceding its engagement to render
      such opinion for Indemnitee or for the Company or any affiliates (as such term
      is defined in Rule 405 under the Securities Act of 1933, as amended) of the
      Company (whether or not they were affiliates when services were so performed)
      ("Independent Counsel"). If Indemnitee fails to nominate Independent Counsel
      within ten (10) business days following written request by the Company to
      nominate Independent Counsel, legal counsel selected by a resolution or
      resolutions of the Board of Directors of the Company prior to a Change of
      Control of the Company shall be deemed to have been selected by the Company
      as
      required. Such Independent Counsel shall determine as promptly as practicable
      whether and to what extent Indemnitee would be permitted to be indemnified
      under
      applicable law and shall render his written opinion to the Company and to
      Indemnitee to such effect. The Company agrees to pay the reasonable fees of
      the
      Independent Counsel referred to above and to fully indemnify such Independent
      Counsel against any and all expenses, claims, liabilities and damages arising
      out of or relating to this Section 5 or its engagement pursuant
      hereto.

     

    (c)  If
      the
      person, persons or entity empowered or selected under Section 5(b) to determine
      whether Indemnitee is entitled to indemnification shall not have made a
      determination within thirty (30) days after receipt by the Company of the
      request therefor, the requisite determination of entitlement to indemnification
      shall be deemed to have been made and Indemnitee shall be entitled to such
      indemnification, absent (i) a misstatement by Indemnitee of a material fact,
      or
      an omission of a material fact necessary to make Indemnitee’s statement not
      materially misleading, in connection with the request for indemnification,
      or
      (ii) a prohibition of such indemnification under applicable law; provided,
      however,
      that
      such thirty (30) day period may be extended for a reasonable time, not to exceed
      an additional thirty (30) days, if the person, persons or entity making the
      determination with respect to entitlement to indemnification in good faith
      requires such additional time for the obtaining or evaluating documentation
      and/or information relating thereto; and provided,
      further,
      that
      the foregoing provisions of this Section 5(c) shall not apply if the
      determination of entitlement to indemnification is to be made by the
      shareholders pursuant to Section 5(b)(iii) of this Agreement and if within
      fifteen (15) days after receipt by the Company of the request for such
      determination (A) the Board of Directors or the Disinterested Directors, if
      appropriate, resolve to submit such determination to the shareholders for their
      consideration at an annual meeting thereof to be held within ninety (90) days
      after such receipt and such determination is made thereat, or (B) a special
      meeting of shareholders is called for the purpose of making such determination,
      the meeting is held for such purpose within ninety (90) days after having been
      so called and the determination is made at the meeting.

     

    (d)  Indemnitee
      shall cooperate with the person, persons or entity making such determination
      with respect to Indemnitee’s entitlement to indemnification, including providing
      to such person, persons or entity upon reasonable advance request any
      documentation or information which is not privileged or otherwise protected
      from
      disclosure and 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
which
        is
        reasonably available to Indemnitee and reasonably necessary to such
        determination. Any Independent Counsel, member of the Board of Directors,
        or
        shareholder of the Company shall act reasonably and in good faith in making
        a
        determination under the Agreement of Indemnitee’s entitlement to
        indemnification. Any Expenses incurred by Indemnitee in so cooperating with
        the
        person, persons or entity making such determination shall be borne by the
        Company (irrespective of the determination as to Indemnitee’s entitlement to
        indemnification) and the Company hereby indemnifies and agrees to hold
        Indemnitee harmless therefrom.

    

     

    6.  Remedies
      of Indemnitee; Legal Fees and Expenses.

     

    (a)  If
      (i) a
      determination is made pursuant to Section 5 of this Agreement that Indemnitee
      is
      not entitled to indemnification under this Agreement, (ii) advancement of
      Expenses is not timely made pursuant to Section 2 of this Agreement, (iii)
      no
      determination of entitlement to indemnification shall have been made pursuant
      to
      Section 5(b) of this Agreement within one hundred twenty (120) days after
      receipt by the Company of the request for indemnification, or (iv) payment
      of indemnification is not made within fifteen (15) business days after a
      determination has been made that Indemnitee is entitled to indemnification
      or
      such determination is deemed to have been made pursuant to Section 5 of this
      Agreement, Indemnitee shall be entitled to an adjudication in an appropriate
      court of the State of Georgia, or in any other court of competent jurisdiction,
      of his entitlement to such indemnification or advancement of Expenses.
      Indemnitee shall commence such action seeking an adjudication within 270 days
      following the date on which Indemnitee first has the right to commence such
      action pursuant to this Section 6(a). The Company shall not oppose Indemnitee’s
      right to seek any such adjudication.

     

    (b)  If
      a
      determination shall have been made pursuant to Section 5(b) of this Agreement
      that Indemnitee is entitled to indemnification, the Company shall be bound
      by
      such determination in any judicial proceeding commenced pursuant to this Section
      6, absent a prohibition of such indemnification under applicable
      law.

     

    (c)  In
      the
      event that Indemnitee, pursuant to this Section 6, seeks an interpretation
      or
      judicial adjudication of his rights under, or to recover damages for breach
      of
      this Agreement, or to recover under any directors’ and officers’ liability
      insurance policies maintained by the Company, the Company shall pay on his
      behalf, in advance, any and all expenses (of the types described in the
      definition of Expenses in Section 16 of this Agreement) actually and reasonably
      incurred by him in such interpretation or judicial adjudication, regardless
      of
      whether Indemnitee ultimately is determined to be entitled to such
      interpretation, indemnification, advancement of expenses or insurance
      recovery.

     

    (d)  The
      Company shall be precluded from asserting in any judicial proceeding commenced
      pursuant to this Section 6 that the procedures and presumptions of this
      Agreement are not valid, binding and enforceable and shall stipulate in any
      such
      court that the Company is bound by all the provisions of this
      Agreement.

     

    7.  Presumption
      of Entitlement.
      In
      making a determination of entitlement to indemnification under this Agreement
      pursuant to Section 5, the person or persons making such determination shall
      presume that indemnification is permissible unless clearly precluded by this
      Agreement or the applicable provisions of the GBCC.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    8.  No
      Presumptions as to Certain Termination Events of Proceeding.
      For
      purposes of this Agreement, the termination of a Proceeding by judgment, order,
      settlement, or conviction, or upon a plea of nolo contendere or its equivalent
      is not, of itself, determinative that Indemnitee did not meet the standard
      of
      conduct set forth in the GBCC.

     

    9.  Non-Exclusivity.
      The
      rights of indemnification as provided by this Agreement (including without
      limitation the right to advancement of Expenses) shall be in addition to, and
      not in lieu of, any other rights to which Indemnitee may at any time be entitled
      under the GBCC, applicable law, the Company’s Articles of Incorporation or
      Bylaws, any agreement, a vote of shareholders or a resolution of directors,
      or
      otherwise. Except as required by applicable law, the Company shall not adopt
      any
      amendment to its Articles of Incorporation or the Bylaws the effect of which
      would be to deny, diminish or encumber Indemnitee’s right to indemnification
      under this Agreement. No amendment, alteration or repeal of this Agreement
      or of
      any provision hereof shall limit or restrict any right of Indemnitee under
      this
      Agreement in respect of any action taken or omitted by such Indemnitee in his
      Corporate Status prior to such amendment, alteration or repeal. To the extent
      that a change in the GBCC, whether by statute or judicial decision, permits
      greater indemnification or advancement of Expenses than would be afforded
      currently under the GBCC, it is the intent of the parties hereto that Indemnitee
      shall enjoy by this Agreement the greater benefits so afforded by such change.
      No right or remedy herein conferred is intended to be exclusive of any other
      right or remedy, and every other right and remedy shall be cumulative and in
      addition to every other right and remedy given hereunder or now or hereafter
      existing at law or in equity or otherwise. The assertion or employment of any
      right or remedy hereunder, or otherwise, shall not prevent the concurrent
      assertion or employment of any other right or remedy. 

     

    10.  Subrogation.
      In the
      event of any payment under this Agreement, the Company shall be subrogated
      to
      the extent of such payment to all of the rights of recovery of Indemnitee.
      Following receipt of indemnification payments hereunder, as further assurance,
      Indemnitee shall execute all papers required and take all action reasonably
      necessary to secure such rights, including execution of such documents as are
      reasonably necessary to enable the Company to bring suit to enforce such
      rights.

     

    11.  No
      Duplication of Payment.
      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 any insurance policy, contract,
      agreement or otherwise.

     

    12.  Defense
      of Claims.
      The
      Company shall be entitled to participate in the defense of any Proceeding to
      which Indemnitee is a party by reason of his Corporate Status or to assume
      the
      defense thereof, with counsel reasonably satisfactory to Indemnitee,
provided,
      however,
      if
      Indemnitee, concludes that (a) the use of counsel chosen by the Company to
      represent Indemnitee would likely present such counsel with an actual or
      potential conflict, (b) the named parties in the Proceeding include both
      Indemnitee and the Company and Indemnitee concludes that there may be one or
      more legal defenses available to him that are different from or in addition
      to
      those available to the Company, or (c) any such representation by counsel would
      be precluded under the applicable standards of conduct then prevailing, then
      Indemnitee shall be entitled to retain separate counsel (but not more than
      one
      law firm plus, if applicable, local counsel) at the Company’s expense. The
      Company shall not be liable to Indemnitee under this Agreement for any amounts
      paid in settlement of any Proceeding effected without the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
Company’s
        prior written consent. The Company shall not, without the prior written consent
        of Indemnitee, effect any settlement of any Proceeding unless such settlement
        solely involves the payment of money and includes a complete and unconditional
        release of Indemnitee from all liability on any claims that are the subject
        matter of the Proceeding. Neither the Company nor Indemnitee shall unreasonably
        withhold its consent to any proposed settlement; provided, however, that
        Indemnitee may withhold consent to any settlement that does not provide a
        complete and unconditional release of Indemnitee. 

    

     

    13.  Successors
      and Binding Agreement.
      

     

    (a)  The
      Company shall require any successor (whether direct or indirect, by purchase,
      merger, consolidation, reorganization or otherwise) to all or substantially
      all
      the business or assets of the Company, by agreement in form and substance
      satisfactory to Indemnitee and his counsel, expressly to assume and agree to
      perform this Agreement in the same manner and to the same extent the Company
      would be required to perform if no such succession had taken place. This
      Agreement shall be binding upon and inure to the benefit of the Company and
      any
      successor to the Company, including any person acquiring directly or indirectly
      all or substantially all the business or assets of the Company whether by
      purchase, merger, consolidation, reorganization or otherwise (and such successor
      will thereafter be deemed the “Company” for purposes of this Agreement).

     

    (b)  Indemnitee’s
      right to indemnification and advancement of Expenses pursuant to this Agreement
      shall continue regardless of whether Indemnitee has ceased for any reason his
      service to the Company and this Agreement shall inure to the benefit of and
      be
      enforceable by Indemnitee’s personal or legal representatives, executors,
      administrators, successors, spouses, heirs, assigns and other
      successors.

     

    (c)  This
      Agreement is personal in nature and neither of the parties hereto shall, without
      the prior written consent of the other, assign or delegate this Agreement or
      any
      rights or obligations hereunder except as expressly provided in Sections 13(a)
      and 13(b). 

     

    14.  Duration
      of Agreement.
      This
      Agreement, including the obligations of the Company to indemnify Indemnitee,
      shall survive regardless of the termination of Indemnitee’s Corporate Status.
      This Agreement shall be binding upon and inure to the benefit of and be
      enforceable by the parties hereto and their respective successors (including
      any
      direct or indirect successor by purchase, merger, consolidation, reorganization
      or otherwise to all or substantially all of the business or assets of the
      Company), assigns, spouses, heirs, executors, administrators and personal and
      legal representatives. 

     

    15.  Enforcement/Reliance.

     

    (a)  The
      Company expressly confirms and agrees that it has entered into this Agreement
      and assumed the obligations imposed on it hereby in order to induce Indemnitee
      to serve as an officer or director of the Company, and the Company acknowledges
      that Indemnitee is relying upon this Agreement in serving as a director or
      officer of the Company.

     

    (b)  This
      Agreement constitutes the entire agreement between the parties hereto with
      respect to the subject matter hereof and supersedes all prior agreements and
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
understandings,
        oral, written and implied, between the parties hereto with respect to the
        subject matter hereof.

    

     

    16.  Definitions.
      For
      purposes of this Agreement:

     

    (a)  “Change
      of Control” means (1) an acquisition by a person of beneficial ownership of 20%
      or more of the combined voting power of the Company's then outstanding voting
      securities, provided that any such securities acquired directly from the Company
      shall be excluded from the determination of such person's beneficial ownership
      (but shall be included in calculating total outstanding securities); or (2)
      the
      individuals who are members of the Incumbent Board cease for any reason to
      constitute two-thirds of the Board of Directors; or (3) approval by the
      shareholders of the Company of (i) a merger or consolidation involving the
      Company if the shareholders of the Company, immediately before such merger
      or
      consolidation, do not own, immediately following such merger or consolidation,
      more than 80% of the combined voting power of the outstanding voting securities
      of the resulting corporation in substantially the same proportion as their
      ownership of voting securities immediately before such merger or consolidation
      or (ii) a complete liquidation or dissolution of the Company or an agreement
      for
      the sale or other disposition of all or substantially all of the assets of
      the
      Company. 

     

    Notwithstanding
      the foregoing, a Change of Control shall not be deemed to occur solely because
      twenty percent (20%) or more of the then outstanding voting securities is
      acquired by (i) a trustee or other fiduciary holding securities under one or
      more employee benefit plans maintained by the Company or any of its subsidiaries
      or (ii) any corporation which, immediately prior to such acquisition, is owned
      directly or indirectly by the shareholders of the Company in the same proportion
      as their ownership of shares in the Company immediately prior to such
      acquisition.

    

    Moreover,
      notwithstanding the foregoing, a change of control shall not be deemed to occur
      solely because any person (the "Subject Person") acquired beneficial ownership
      of more than the permitted amount of the outstanding voting securities as a
      result of the acquisition of voting securities by the Company which, by reducing
      the number of voting securities outstanding increases the proportional number
      of
      shares beneficially owned by the Subject Person, provided, that if a Change
      of
      Control would occur (but for the operation of this sentence) as a result of
      the
      acquisition of voting securities by the Company, and after such share
      acquisition by the Company, the Subject Person becomes the beneficial owner
      of
      any additional voting securities which increases the percentage of the then
      outstanding voting securities beneficially owned by the Subject Person, then
      a
      Change of Control shall occur. 

    

    (b)  “Corporate
      Status” describes the status of a person who is or was a director of the Company
      or an individual who, while a director of the Company, is or was serving at
      the
      Company’s request as a director, officer, partner, trustee, employee,
      administrator or agent of another foreign or domestic corporation, partnership,
      joint venture, trust, employee benefit plan, entity, or other enterprise.
      Corporate Status also describes a person’s service in connection with an
      employee benefit plan at the Company’s request if his duties to the Company also
      impose duties on, or otherwise involve services by, him to the plan or to
      participants in or beneficiaries of the plan. Corporate Status includes, in
      reference to a particular person unless the context requires otherwise, the
      estate or personal representative of such person. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)  “Disinterested
      Director” means a director who at the time of a vote referred to in Section 3(b)
      of this Agreement or a vote or selection referred to in Section 4(b) or 4(c)
      is
      not:

     

    (i)  A
      party
      to the Proceeding; or

     

    (ii)  An
      individual who is a party to a Proceeding having a familial, financial,
      professional, or employment relationship with the director whose indemnification
      or advance for expenses is the subject of the decision being made with respect
      to the proceeding, which relationship would, in the circumstances, reasonably
      be
      expected to exert an influence on the director's judgment when voting on the
      decision being made.

     

    (d)  “Expenses”
      include the reasonable out-of-pocket fees and expenses incurred by Indemnitee,
      including counsel fees and expenses.

     

    (e)  “Incumbent
      Board” includes the individuals who as of ______, 2006 are members of the Board
      of Directors and any individual becoming a director subsequent to _____, 2006
      whose election, or nomination for election by the corporation's shareholders
      was
      approved by a vote of at least two-thirds of the directors then comprising
      the
      Incumbent Board; provided,
      however,
      that
      any individual who is not a member of the incumbent board at the time he or
      she
      becomes a member of the Board of Directors shall become a member of the
      incumbent board upon the completion of two full years as a member of the Board
      of Directors; provided further,
      however,
      that
      notwithstanding the foregoing, no individual shall be considered a member of
      the
      incumbent board if such individual initially assumed office (1) as a result
      of
      either an actual or threatened "election contest" (within the meaning of Rule
      14a-11 promulgated under the 1934 Act) or other actual or threatened
      solicitation of proxies or consents by or on behalf of a person other than
      the
      Board of Directors (a "Proxy Contest") or (2) with the approval of the other
      members of the Board of Directors, but by reason of any agreement intended
      to
      avoid or settle a Proxy Contest.

     

    (f)  “Proceeding”
      means any threatened, pending, or completed action, suit, or proceeding,
      including discovery, whether civil, criminal, administrative, arbitrative,
      or
      investigative, whether formal or informal and including any action brought
      under
      the federal securities laws.

     

    17.  Severability.
      If any
      provision or provisions of this Agreement shall be held by a court of competent
      jurisdiction to be invalid, void, illegal or otherwise unenforceable for any
      reason whatsoever: (a) the validity, legality and enforceability of the
      remaining provisions of this Agreement (including without limitation, each
      portion of any section of this Agreement containing any such provision held
      to
      be invalid, illegal or unenforceable, that is not itself invalid, illegal or
      unenforceable) shall not in any way be affected or impaired thereby and shall
      remain enforceable to the fullest extent permitted by law; and (b) to the
      fullest extent possible, the provisions of this Agreement (including, without
      limitation, each portion of any section of this Agreement containing any such
      provision held to be invalid, illegal or unenforceable, that is not itself
      invalid, illegal or unenforceable) shall be construed so as to give effect
      to
      the intent manifested thereby.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    18.  Modification
      and Waiver.
      No
      supplement, modification, termination 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 provisions hereof (whether or not similar) nor shall such
      waiver constitute a continuing waiver.

     

    19.  Notice
      By Indemnitee.
      Indemnitee agrees promptly to notify the Company in writing upon being served
      with any summons, citation, subpoena, complaint, indictment, information or
      other document relating to any Proceeding or matter which may be subject to
      indemnification covered hereunder. The failure to so notify the Company shall
      not relieve the Company of any obligation which it may have to Indemnitee under
      this Agreement or otherwise unless and only to the extent that such failure
      or
      delay materially prejudices the Company.

     

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

     

    (a)
      If to
      Indemnitee, to:

    _____________________

    _____________________

    _____________________

    

    (b)
      If to
      the Company, to:

    

    AtheroGenics,
      Inc.

    8995
      Westside Parkway

    Alpharetta,
      GA. 30004

    Attention:
      General Counsel

    

    or
      to
      such other address as may have been furnished to Indemnitee by the Company
      or to
      the Company by Indemnitee, as the case may be.

     

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

     

    22.  Headings.
      The
      headings of the paragraphs of this Agreement are inserted for convenience only
      and shall not be deemed to constitute part of this Agreement or to affect the
      construction thereof.

     

    23.  Governing
      Law.
      The
      parties agree that this Agreement shall be governed by, and construed and
      enforced in accordance with, the laws of the State of Georgia without
      application of the conflict of laws principles thereof. The Company and
      Indemnitee each hereby irrevocably consent to the jurisdiction of the courts
      of
      the State of Georgia for all purposes in 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        
connection
        with any action or proceeding which arises out of or relates to this Agreement
        and agree that any action instituted under this Agreement shall be brought
        only
        in the state courts of the State of Georgia. Should any provision of this
        Agreement be determined by a court of law to be illegal or unenforceable,
        such
        provision shall be enforced to the fullest extent allowed by law and the
        other
        provisions shall nevertheless remain effective and shall remain
        enforceable.

    

     

    24.  Gender.
      Use of
      the masculine pronoun shall be deemed to include usage of the feminine pronoun
      where appropriate.

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement on and as
      of
      the day and year first above written.

     

    ATHEROGENICS,
      INC.

     

     

    By:______________________________

     

    Name:____________________________

     

    Title:_____________________________
      

     

    OFFICER:

     

    _________________________________

    Name:
       

     

    Address:
      

                                      ___________________________

                                      ___________________________

                                      ___________________________

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