Document:

ex10_26.htm

    Exhibit
10.26

     

    Escalade,
Incorporated

    Stock
Option Award Agreement – Directors

     

    ESCALADE,
INCORPORATED 2007 INCENTIVE PLAN

    Stock Option Award
Agreement

     

    THIS STOCK OPTION AWARD AGREEMENT
(this “Award Agreement”) evidences the Stock Option Award (the “Award”)
granted by ESCALADE, INCORPORATED, an Indiana corporation (the “Company”) to the
Director (as defined below) as to the number of Stock Options set forth below.
This Award is made pursuant to the Escalade, Incorporated 2007 Incentive Plan
(the “Plan”).

     

    Name of Director:
_______________________ (“Director”)

     

    Date of Grant:
____________________________ (“Grant Date”)

     

    Number of Stock Options:
__________________

     

    Type of Stock Options:
_____________________

     

    Option Price per Share1:
___________________

     

    Expiration of Stock Options:
________________

     

    Vesting Schedule: Subject to
the terms of the Plan and this Award, the Stock Options will become first
exercisable as follows:

     

    
      	
            	
              Number
      of Stock Options

            	 
      	
              Vesting
      Date

            
	 	 	 	 
	 
      	
              _____________________

            	 
      	
              ___________________

            
	 	 	 	 
	 
      	
              _____________________

            	 
      	
              ___________________

            
	 	 	 	 
	 
      	
              _____________________

            	 
      	
              ___________________

            
	 	 	 	 
	 
      	
              _____________________

            	 
      	
              ___________________

            

    

     

    Vesting Conditions: Except as
provided in the Plan or in the attached Terms, the Stock Options granted to you
shall vest in accordance with the Vesting Schedule set forth above provided that
you are serving as a Director of the Company on the applicable vesting
date.

     

    Stock Options: Each Stock
Option is deemed to be the equivalent of one Share of the Company’s common
stock. Pending vesting of the Stock Options and the exercise thereof and the
issuance of the underlying Shares, you will not have any of the rights of a
stockholder with respect to the Shares subject to the Stock Options.
Accordingly, you will not have the right to vote such Shares or receive
dividends until exercise of the Stock Options and payment for the Shares is made
under this Award Agreement.

    
      	 	 

    

    
      1
Option price must be at least equal to 100% of the Fair Market Value of the
Shares on the Grant Date (as defined in the Plan).

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Terms and Conditions of this
Award: This Award is subject to, and governed by, the provisions of the
Plan and the Terms and Conditions of Stock Option Award (the “Terms”) attached
to this Award Agreement, all of which are incorporated herein by reference. In
the event of a conflict between the provisions of the Plan and this Award or the
Terms, the Plan shall control.

     

    Defined Terms: Unless the
context requires otherwise, terms used in this Award Agreement and/or in the
Terms shall have the same meaning as in the Plan.

     

    Acceptance and Agreement: This
Award has been granted to the Director in addition to, and not in lieu of, any
other form of compensation otherwise payable or to be paid to the Director. The
Company and the Director agree to the terms of this Award Agreement, to the
attached Terms and to the provisions of the Plan. The Director acknowledges
receipt of a copy of the Terms and of the Plan.

     

    IN WITNESS WHEREOF, this Award
Agreement has been executed by the Company and the Director effective as of this
__ day of _________, 20__.

     

    
      	
              DIRECTOR

            	 	 ESCALADE,
      INCORPORATED	 
	 	 	 	 	 	 
	
               

            	 
      	 	
              By:
      

            	 	 
	Name:	 	 	 	 	 

    

     

    
      
        
        

      

      
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    ESCALADE,
INCORPORATED 2007 INCENTIVE PLAN

    Terms and Conditions of
Stock Option Award

     

    1.           
Termination of Service
as a Director

     

    (a)           Effect on
Unvested Stock Options. In the event of the
Director’s termination of service as a director of the Company, other than as a
result of Retirement, death or Disability, the Stock Options that were not
vested on the date of such termination of employment shall be immediately
forfeited. In the event of the Director’s Retirement, death or Disability, any
Stock Options not yet vested shall continue to vest over the twelve months
following such Retirement, death or Disability. For purposes of this Agreement,
“Retirement” shall mean completion of service on the Company’s Board of
Directors, and “Disability” shall mean that the Director is unable to serve as a
director by reason of any medically determinable physical or mental impairment
that can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months. The Board may require such proof
of Disability as the Board in its sole and absolute discretion deems appropriate
and the Board’s determination as to whether the Director is disabled shall be
final and binding on all parties concerned.

     

    (b)          Effect on
Vested Stock Options. In the event of the Director’s termination of
service as a director of the Company, including as a result of Retirement, death
or Disability, the Stock Options that were vested on the date of such
termination of service shall remain exercisable until the sooner of the
expiration date or twelve months thereafter. Any Stock Options that vest
pursuant to Section 1(a) above following Retirement, death or Disability, may be
exercised following vesting until the sooner of the expiration date or twelve
months following the date of the Director’s Retirement, death or
Disability.

     

    2.           
Change in
Control

     

    (a)           Vesting
of Stock Options.
In the event of a Change in Control of the Company in which the successor
company does not assume or substitute for the Stock Options on substantially the
same terms and conditions (which may include payment in shares of the common
stock of the successor company), all of such Stock Options shall become fully
vested, provided the Director is then serving as a director of the Company. If
the successor company in a Change in Control does assume or substitute for the
Stock Options on substantially the same terms and conditions (which may include
payment in shares of the common stock of the successor company) and within 24
months thereafter the Director’s service as a director of the Company or the
successor company is terminated without Cause by the Company or the successor
company, all of such Stock Options shall become fully vested.

     

    (b)          Cause.
For purposes of this Section “Cause” shall mean (i) the conviction of the
Director of, or plea of nolo contendere by the
Director to, a felony or misdemeanor involving moral turpitude; (ii) the
indictment of the Director for a felony or misdemeanor involving moral turpitude
under the federal securities laws; (iii) the willful misconduct or gross
negligence by the Director resulting in material harm to the Company; (iv) the
willful breach by the Director of the Director’s duties or responsibilities as a
director; or (v) fraud, embezzlement, theft or dishonesty by the Director
against the Company or any Subsidiary, or willful violation by the Director of a
policy or procedure of the Company, resulting in any case in material harm to
the Company.

     

    3.           
Exercise
of Stock Options.

     

    (a)           Notice of
Exercise. Vested Stock Options shall be exercised by the Director or by a
Permitted Assignee thereof (or by the Director’s executors, administrators,
guardian or legal representative) as to all or part of the Shares covered
thereby, by giving notice of exercise to the Company or its designated agent,
specifying the number of Shares to be purchased. The notice of exercise shall be
in such form, made in such manner, and in compliance with such other
requirements consistent with the provisions of the Plan as the Committee may
prescribe from time to time.

    
      
        
        

      

      
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 (b)           Payment
for Shares. Full payment of the Option Price shall be made at the time of
exercise and shall be made (i) in cash or cash equivalents (including certified
check or bank check or wire transfer of immediately available funds), (ii) by
tendering previously acquired Shares (either actually or by attestation, valued
at their then Fair Market Value), (iii) with the consent of the Committee, by
delivery of other consideration (including, where permitted by law and the
Committee, other Awards) having a Fair Market Value on the exercise date equal
to the total purchase price, (iv) with the consent of the Committee, by
withholding Shares otherwise issuable in connection with the exercise of the
Option, (v) through any other method specified in an Award Agreement, or (vi)
any combination of any of the foregoing. The notice of exercise, accompanied by
such payment, shall be delivered to the Company at its principal business office
or such other office as the Committee may from time to time direct, and shall be
in such form, containing such further provisions consistent with the provisions
of the Plan, as the Committee may from time to time prescribe. In no event may
any Option granted hereunder be exercised for a fraction of a Share. No
adjustment shall be made for cash dividends or other rights for which the record
date is prior to the date of such issuance.

     

    4.           
Withholding.
The Company shall have the right to make all payments or distributions pursuant
to the Plan to a Director (or a Permitted Assignee thereof) (any such person, a
“Payee”) net of any applicable federal, state and local taxes required to be
paid or withheld as a result of (a) the grant of any Award, (b) the exercise of
an Option or Stock Appreciation Right, (c) the delivery of Shares or cash, (d)
the lapse of any restrictions in connection with any Award or (e) any other
event occurring pursuant to the Plan. The Company or any Subsidiary shall have
the right to withhold from wages or other amounts otherwise payable to such
Payee such withholding taxes as may be required by law, or to otherwise require
the Payee to pay such withholding taxes. If the Payee shall fail to make such
tax payments as are required, the Company or its Subsidiaries shall, to the
extent permitted by law, have the right to deduct any such taxes from any
payment of any kind otherwise due to such Payee or to take such other action as
may be necessary to satisfy such withholding obligations. The Committee shall be
authorized to establish procedures for election by Directors to satisfy such
obligation for the payment of such taxes by tendering previously acquired Shares
(either actually or by attestation, valued at their then Fair Market Value), or
by directing the Company to retain Shares (up to the Director’s minimum required
tax withholding rate or such other rate that will not trigger a negative
accounting impact) otherwise deliverable in connection with the
Award.

     

    5.           
Cancellation
of Award. In the
event that the members of the Company’s Board of Directors who are considered
“independent” for purposes of the listing standards of the NASDAQ Stock Market
determine in their sole discretion that the Director, without the consent of the
Company, while serving as a director of the Company or after termination of such
service, establishes a relationship with a competitor of the Company or any
Subsidiary or engages in activity that is in conflict with or adverse to the
interest of the Company or any Subsidiary, then (A) the Stock Options shall be
forfeited effective as of the date on which the Director first engaged in such
fraud or misconduct, and (B) the Director shall within 10 days after written
notice from the Company return to the Company any Shares and dividends paid by
the Company to the Director with respect to the Stock Options and, if the
Director has previously sold all or a portion of the Shares paid to the Director
by the Company, the Director shall pay the proceeds of such sale to the
Company.

    
      
        
        

      

      
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    6.           
Federal
Income Tax Considerations. Subject to changes in federal tax laws, rules
and regulations, the expected U.S. federal income tax considerations relating to
an Award of Stock Options are as follows:

     

    (a)           Incentive
Stock Options. If the Stock Options have been designated on page 1 of the
Award Agreement as Incentive Stock Options, then no taxable income is realized
by the Director upon exercise of an Incentive Stock Option granted under the
Plan, and if no disposition of those Shares is made by the Director within two
years after the Grant Date or within one year after the transfer of those Shares
to the Director, then (a) upon the sale of the Shares, any amount realized in
excess of the Option Price will be taxed as a long-term capital gain and any
loss sustained will be taxed as a long-term capital loss, and (b) no deduction
will be allowed to the Company for federal income tax purposes. Upon exercise of
an Incentive Stock Option, the Director may be subject to alternative minimum
tax on certain items of tax preference. If the Shares acquired upon the exercise
of an Incentive Stock Option are disposed of prior to the expiration of the
two-years-from-grant/one-year-from-transfer holding period, generally (a) the
Director will realize ordinary income in the year of disposition in an amount
equal to the excess (if any) of the Fair Market Value of the Shares at exercise
(or, if less, the amount realized upon disposition of the Shares) over the
exercise price, and (b) the Company will be entitled to deduct such amount. Any
additional gain or loss realized will be taxed as short-term or long-term
capital gain or loss, as the case may be, and may not be deducted by the
Company. If an Incentive Stock Option is exercised at a time when it no longer
qualifies as an Incentive Stock Option, the option will be treated as a
Non-Qualified Stock Option. In addition, if the aggregate fair market value of
Shares (determined at the Grant Date) subject to Stock Options designated as
Incentive Stock Options held by the Director that first become exercisable
during any calendar year exceeds $100,000, then the portion of such Incentive
Stock Options equal to such excess shall be treated as Non-Qualified Stock
Options.

     

    (b)           Non-Qualified
Stock Options. If the Stock Options have been designated on page 1 of the
Award Agreement as Non-Qualified Stock Options, then no income is recognized by
the Director upon the grant of a Non-Qualified Stock Option. Upon exercise, the
Director will realize ordinary income in an amount equal to the excess of the
Fair Market Value of a Share on the date of exercise over the Option Price
multiplied by the number of Shares received pursuant to the exercise of such
Stock Options. A subsequent sale or exchange of such Shares will result in gain
or loss measured by the difference between (a) the exercise price, increased by
any compensation reported upon the Director’s exercise of the Stock Options and
(b) the amount realized on such sale or exchange. Any gain or loss will be
capital in nature if the Shares were held as a capital asset and will be
long-term if such Shares were held for more than one year. The Company is
entitled to a deduction for compensation paid to the Director at the same time
and in the same amount as the Director realizes compensation upon exercise of
the Stock Options.

     

    7.           
Nontransferability. Except as otherwise
permitted under the Plan, no Stock Options shall be assignable or transferable
by the Director or by the Company (other than to successors of the Company) and
no amounts payable under this Agreement, or any rights therein, shall be subject
in any manner to any anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, levy, lien, attachment, garnishment, debt or other charge
or disposition of any kind.

     

    8.           
No
Rights of a Stockholder. The Director shall not have
any of the rights of a stockholder with respect to the Shares subject to the
Stock Options until such Shares have been issued.

     

     
9.           
Notices. All notices required or
permitted under this Agreement shall be in writing and shall be delivered
personally or by mailing by registered or certified mail, postage prepaid, to
the other party. Notice by mail shall be deemed delivered at the time and on the
date the same is postmarked.

    
      
        
        

      

      
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                Notices
      to the Company should be addressed to:

              
	 	 
	 
      	
                Escalade
      Incorporated

              
	 
      	
                817
      Maxwell Avenue

              
	 
      	
                Evansville,
      Indiana 47711

              
	 
      	
                Attention:
      Chief Financial Officer

              

      

       

    

      Notices to the Director
should be addressed to the Director at the Director’s address as it appears on
the Company’s records. The Company or the Director may by writing to the other
party, designate a different address for notices. Notices may be transmitted and
received via fax, e-mail or such other electronic transmission mechanism as may
be available to the parties pursuant to which receipt can be confirmed. Such
notices shall be deemed delivered when received.

     

    10.            Headings. The headings in these Terms
and Conditions are for reference purposes only and shall not affect the meaning
or interpretation of these Terms and Conditions or the applicable Award
Agreement.

     

    11.            Successors
and Assigns.
These Terms and Conditions and the applicable Award Agreement shall inure to the
benefit of and be binding upon the heirs, legatees, distributees, executors and
administrators of the Director and the successors and assigns of the
Company.

     

    12.            Governing
Law. This
Agreement shall be governed by, and interpreted in accordance with, the laws of
the State of Indiana, other than its conflict of laws principles.

     

    13.             Agreement
Not a Contract.
Neither the Award Agreement (and the grant of Stock Options) nor these Terms and
Conditions constitutes an employment or service contract, and nothing herein or
in the Award Agreement shall be deemed to create in any way whatsoever any
obligation on Director’s part to continue as a director, or of the Company or a
Subsidiary to continue Director’s service as a director.

     

    14.            Entire
Agreement; Modification. The Award Agreement, these Terms and Conditions
and the provisions of the Plan constitute the entire agreement between the
parties with respect to the subject matter hereof, and may not be modified
except as provided in the Plan or in a written document executed by both
parties.

     

    15.            Compliance
with Section 409A of the Code.

     

        
 (a)            Automatic
Delay of Payment. Notwithstanding anything to the contrary contained in
these Terms and Conditions, the applicable Award Agreement and/or the Plan, if
the Company determines that as of the date of payment the Director is a
“specified employee” (as such term is defined under Section 409A of the Code),
any Shares (or shares of the common stock of the successor company in the event
of a Change in Control) payable by reason of the Director’s termination of
employment with the Company and its Subsidiaries for any reason other than death
or Disability will not be paid until the date that is 6 months following the
date of termination of employment (or such earlier time permitted under Section
409A of the Code without the imposition of any accelerated or additional taxes
under Section 409A of the Code).

     

        
 (b)           General.
The Award represented by the applicable Award Agreement to which these Terms and
Conditions are attached is intended to comply and shall be administered in a
manner that is intended to comply with section 409A of the Code and shall be
construed and interpreted in accordance with such intent. Payment of the Award
shall be made in a manner that will comply with section 409A of the Code,
including regulations or other guidance issued with respect thereto, as
determined by the Committee. Any provision of the Award that would cause the
payment or settlement thereof to fail to satisfy section 409A of the Code shall
be amended to comply with section 409A of the Code on a timely basis, which may
be made on a retroactive basis, in accordance with regulations and other
guidance issued under section 409A of the Code.

    
      
        
        

      

      
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    16.           Severability. If any provision of these
Terms and Conditions, the applicable Award Agreement and/or the Plan shall be
held unlawful or otherwise invalid or unenforceable in whole or in part by a
court of competent jurisdiction, such provision shall (i) be deemed limited to
the extent that such court of competent jurisdiction deems it lawful, valid
and/or enforceable and as so limited shall remain in full force and effect, and
(ii) not affect any other provision of the Award or part thereof, each of which
shall remain in full force and effect.

     

    17.            Conflict
with Laws. If the issuance or transfer of the Shares covered by the Stock
Options may in the opinion of the Company conflict or be inconsistent with any
applicable federal or state securities laws or regulation, the Company reserves
the right to refuse to issue or transfer such Shares until such conflicts or
inconsistencies are resolved to the satisfaction of the Company. In the event
that the Company’s shares of common stock are no longer registered under the
Securities Exchange Act of 1934, as amended, and the Company determines that it
would be impractical to register the Shares issuable upon exercise of the Stock
Options and/or to satisfy the terms of potentially applicable exemptions from
registration under federal or state securities laws, the Committee may in its
sole discretion issue a Substitute Award (including but not limited to cash)
having value reasonably believed by the Committee to be approximately equal in
value to such Stock Options, and such issuance of a Substitute Award shall
result in the replacement and cancellation of the Stock Options. The Director
hereby agrees to accept such Substitute Award in exchange for the Stock
Options.

     

    18.            Defined
Terms. Unless the
context requires otherwise, terms used in these Terms and Conditions and/or in
the Award Agreement shall have the same meaning as in the Plan.

    
      
        
        

      

      
        7ex10-1.htm

    Exhibit 10.1

      INDEMNIFICATION
AGREEMENT

       

          THIS
AGREEMENT (this “Agreement”)
is effective March 4, 2010, among Genesis Energy, L.P., a Delaware limited
partnership (the “Partnership”),
Genesis Energy, LLC, a Delaware limited liability company (the “Company”),
and the undersigned director or officer of the Company (“Indemnitee”).

       

          WHEREAS, the
Partnership Agreement (as defined below) provides for indemnification of each
director and officer of the Company and the Partnership, as well as persons
serving in various other capacities, to the maximum extent permitted by
law;

       

          WHEREAS, the
Indemnitee is entitled to indemnification pursuant to the Partnership
Agreement;

       

          WHEREAS, the
LLC Agreement (as defined below) provides indemnification of each director and
officer of the Company, as well as persons serving in other capacities, to the
maximum extent authorized by law;

       

          WHEREAS, the
Indemnitee is entitled to indemnification pursuant to the LLC
Agreement;

       

          WHEREAS, in
recognition of Indemnitee’s need for substantial protection against personal
liability in order to enhance Indemnitee’s continued service to the Partnership
and the Company in an effective manner, the Partnership and the Company wish to
provide in this Agreement for the indemnification of, and the advancing of
expenses to, Indemnitee to the fullest extent permitted by law (whether partial
or complete) and as set forth in this Agreement, and, to the extent insurance is
maintained, for the continued coverage of Indemnitee under the Partnership’s
and/or the Company’s directors’ and officers’ liability insurance
policies;

       

          WHEREAS,
Indemnitee is willing to serve, continue to serve and to take on additional
service for or on behalf of the Partnership and/or the Company on condition that
the Indemnitee be so indemnified;

       

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

       

          1. Definitions. As used in this
Agreement:

       

          (a) The term
“Proceeding”
shall include any threatened, pending or completed action, suit, inquiry or
proceeding, whether brought by or in the right of the Partnership or the Company
or any predecessor, subsidiary or affiliated company or otherwise and whether of
a civil, criminal, administrative, arbitrative, legislative, investigative or
other nature, in which Indemnitee is or will be involved as a party, as a
witness or otherwise, by reason of the fact that Indemnitee is or was a director
or officer of the Partnership or the Company, by reason of any action taken by
him or of any inaction on his part while acting as a director or officer or by
reason of the fact that, while a director or officer, he is or was serving at
the request of the Partnership or the Company as a director, officer, trustee,
employee or agent of another corporation, partnership, joint venture, trust,
limited liability company or other enterprise; in

       

       

      -1-

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      each case
whether or not he is acting or serving in any such capacity at the time any
liability or expense is incurred for which indemnification or reimbursement can
be provided under this Agreement; provided that any such
action, suit or proceeding which is brought by Indemnitee against the
Partnership or the Company or any predecessor, subsidiary or affiliated company
or directors or officers of the Partnership or the Company or any predecessor,
subsidiary or affiliated company, other than an action brought by Indemnitee to
enforce his rights under this Agreement, shall not be deemed a Proceeding
without prior approval by a majority of the Board of Directors.

       

          (b) The term
“Expenses”
shall include, without limitation, any judgments, fines and penalties against
Indemnitee in connection with a Proceeding; amounts paid by Indemnitee in
settlement of a Proceeding; and all attorneys’ fees and disbursements,
accountants’ fees, private investigation fees and disbursements, retainers,
court costs, transcript costs, fees of experts, fees and expenses of witnesses,
travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees and all other disbursements or expenses,
in each case, reasonably incurred by or for Indemnitee in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being
or preparing to be a witness in a Proceeding or establishing Indemnitee’s right
of entitlement to indemnification for any of the foregoing.

       

          (c)
References to Indemnitee’s being or acting as “a director or officer of the
Partnership or the Company” or “serving at the request of the Partnership or the
Company as a director, officer, trustee, employee or agent of another
corporation, partnership, joint venture, trust, limited liability company or
other enterprise” shall include in each case service to or actions taken while
and as a result of being a director, officer, trustee, employee or agent of any
predecessor, subsidiary or affiliated company of the Partnership or the
Company.

       

          (d)
References to “other
enterprise” shall include employee benefit plans;

       

          (e)
References to “fines”
shall include any excise tax assessed with respect to any employee benefit
plan;

       

          (f) References to “serving at the
request of the Partnership or the Company” shall include any service as a
director, officer, employee or agent of the Partnership or the Company which
imposes duties on, or involves services by, such director, officer, trustee,
employee or agent with respect to an employee benefit plan, its participants or
beneficiaries;

       

          (g) The term
“substantiating
documentation” shall mean copies of bills or invoices for costs incurred
by or for Indemnitee, or copies of court or agency orders or decrees or
settlement agreements, as the case may be, accompanied by a sworn statement from
Indemnitee that such bills, invoices, court or agency orders or decrees or
settlement agreements, represent costs or liabilities meeting the definition of
“Expenses” herein.

       

          (h) The terms
“he”
and “his” have
been used for convenience and mean “she” and
“her” if
Indemnitee is a female.

       

          (i) The term
“Partnership
Agreement” means the Fourth Amended and Restated Agreement of Limited
Partnership of the Partnership, dated as of June 9, 2005, as amended
by

       

      -2-

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Amendment
No. 1 to the Fourth Amended and Restated Agreement of Limited Partnership of the
Partnership, dated December 18, 2007, as may be further amended, restated or
modified from time to time.

       

          (h) The term
“LLC
Agreement” means the Amended and Restated Limited Liability
Company Agreement of the Company, dated as of February 5, 2010, as may be
amended, restated or modified from time to time.

       

          (i) The term
“LLC
Statute” means the Delaware Limited Liability Company Act as in effect
from time to time.

       

          (j) The term
“Partnership
Statute” means the Delaware Revised Uniform Limited Partnership Act as in
effect from time to time.

       

          (k) The term
“Board of
Directors” means the Board of Directors of the Company.

       

          (l) The term
“Change in
Control” means, with respect to the Partnership or the Company, as
applicable, the occurrence of any of the following events: (i) any sale, lease,
exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all of the Partnership’s or the Company’s
assets to any other person or entity, unless immediately following such sale,
lease, exchange or other transfer such assets are owned, directly or indirectly,
by the Partnership or the Company; (ii) the dissolution or liquidation of the
Partnership or the Company; (iii) the consolidation or merger of the Partnership
or the Company with or into another entity pursuant to a transaction in which
the outstanding securities of any class of the Company entitling the holders
thereof to vote in the election of, or to appoint, members of the Board of
Directors or other similar governing body of the Partnership and the Company
(“Voting
Securities”) are changed into or exchanged for cash, securities or other
property, other than any such transaction where (a) the outstanding Voting
Securities are changed into or exchanged for Voting Securities of the surviving
entity or its parent or (b) the holders of the Voting Securities immediately
prior to such transaction own, directly or indirectly, not less than a majority
of the outstanding Voting Securities of the surviving entity or its parent
immediately after such transaction and (iv) a “person” or “group” (within the
meaning of Sections 13(d) or 14(d)(2) of the Exchange Act) becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act)
of more than 50% of all of the then outstanding Voting Securities, except in a
merger or consolidation which would not constitute a Change in Control under
clause (iii) above.

       

          2. Indemnity of Indemnitee. Each
of the Partnership and the Company hereby agrees (subject to the provisions of
Section 4
hereof) to hold harmless and indemnify Indemnitee against Expenses to the
fullest extent authorized or permitted by law (including the applicable
provisions of the Partnership Statute and the LLC Statute), including, without
limitation, against Expenses incurred by reason of the fact that Indemnitee is
or was a director or officer of the Partnership or the Company, or, while a
director or officer, is or was serving at the request of the Partnership or the
Company as a director, officer, trustee, employee or agent of another
corporation, partnership, joint venture, trust, limited liability company or
other enterprise, including, without limitation, any predecessor, subsidiary or
affiliated entity of the Partnership or the Company; provided that Indemnitee
shall not be indemnified and held harmless if there has

       

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      been a
final judgment or other final adjudication of a court of competent jurisdiction
from which there is no further right of appeal (a “final
adjudication”) determining that, in respect of the matter for which
Indemnitee is seeking indemnification pursuant to this Agreement, Indemnitee is
not entitled to Indemnification hereunder. The phrase “to the fullest extent
permitted by law” shall include, but not be limited to, (a) to the fullest
extent permitted by any provision of the Partnership Statute and/or the LLC
Statute that authorizes or permits additional indemnification by agreement, or
the corresponding provision of any amendment to or replacement of the
Partnership Statute and/or the LLC Statute and (b) to the fullest extent
authorized or permitted by any amendments to or replacements of the Partnership
Statute and/or the LLC Statute adopted after the date of this Agreement that
increase the extent to which an entity may indemnify its officers and directors.
Any amendment, alteration or repeal of the Partnership Statute and/or the LLC
Statute that adversely affects any right of Indemnitee shall be prospective only
and shall not limit or eliminate any such right with respect to any Proceeding
involving any occurrence or alleged occurrence of any action or omission to act
that took place prior to such amendment or repeal.

       

          3. Contribution. If the
indemnification provided under Section 2 hereof is
unavailable by reason of a court decision, based on grounds other than any of
those set forth in Section 4 hereof,
then, in respect of any Proceeding in which the Partnership or the Company is
jointly liable with Indemnitee (or would be if joined in such Proceeding), the
Partnership and the Company shall contribute to the amount of Expenses actually
and reasonably incurred and paid or payable by Indemnitee in such proportion as
is appropriate to reflect (a) the relative benefits received by the Partnership
or the Company, on one hand, and Indemnitee, on the other, from the transaction
from which such Proceeding arose and (b) the relative fault of the Partnership
or the Company, on one hand, and of Indemnitee, on the other, in connection with
the events that resulted in such Expenses as well as any other relevant
equitable considerations. The relative fault of the Partnership or the Company,
on one hand, and of Indemnitee, on the other, 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. Each of the Partnership and the Company agrees that it would not
be just and equitable if contribution pursuant to this Section 3 were
determined by pro rata allocation or any other method of allocation that does
not take the foregoing equitable considerations into account.

       

          4. Exceptions. Any other provision
herein to the contrary notwithstanding, the Partnership and the Company shall
not be obligated pursuant to the terms of this Agreement:

       

          (a) Claims Initiated by
Indemnitee.  Except with respect to proceedings brought to
establish or enforce a right to indemnification or advancement under this
Agreement, to indemnify or advance expenses to Indemnitee with respect to
proceedings or claims initiated or brought voluntarily by Indemnitee and not by
way of defense without prior approval by a majority of the Board of
Directors;

       

          (b) Insured
Claims.  To indemnify Indemnitee for expenses or liabilities of
any type whatsoever (including, but not limited to, judgments, fines, ERISA
excise taxes or penalties, and amounts paid in settlement) to the extent such
expenses or liabilities have been paid directly to Indemnitee by an insurance
carrier under a policy of directors’ and officers’ liability
insurance;

       

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          (c) Claims Under Section
16(b).  To indemnify Indemnitee for expenses or the payment of
profits arising from the purchase and sale by Indemnitee of securities in
violation of Section 16(b) of the Securities Exchange Act of 1934, as amended,
or any similar successor statute;

       

          (d) Unlawful
Claims.  To indemnify Indemnitee to the extent such
indemnification is prohibited by applicable law;

       

          (e) Unauthorized Judicial
Awards.  To indemnify Indemnitee with regard to any judicial
award for which the Partnership or the Company was not given a reasonable and
timely opportunity to participate in the defense of the suit or action giving
rise to such judicial award; or

       

          (f) Unapproved
Settlements.  To indemnify Indemnitee for any amounts paid in
settlement of any Proceeding effected without the Partnership’s or the Company’s
prior written consent, which consent shall not be unreasonably withheld,
conditioned or delayed; notwithstanding the foregoing, the Partnership and/or
the Company shall not settle any Proceeding in any manner that would impose any
penalty or limitation on Indemnitee, without Indemnitee’s prior written
consent.

       

          5. Choice of Counsel. If
Indemnitee is a director but not an officer of the Partnership or the Company,
he, together with the other directors who are not officers of the Partnership or
the Company that are seeking indemnification (collectively, the “Outside
Directors”), shall be entitled to employ, and be reimbursed for the fees
and disbursements of, a single counsel separate from that chosen by the
indemnitees who are officers of the Partnership or the Company (the “Inside
Directors”). The principal counsel for the Outside Directors (“Outside
Counsel”) shall be determined by majority vote of the Outside Directors
who are seeking indemnification, and the principal counsel for the Inside
Directors (“Inside
Counsel”) shall be determined by majority vote of the Inside Directors,
in each case subject to the consent of the Partnership or the Company, which
consent shall not be unreasonably withheld, conditioned or delayed. The
obligation of the Partnership and the Company to reimburse Indemnitee for the
fees and disbursements of counsel hereunder, if and when applicable, shall not
extend to the fees and disbursements of any counsel employed by Indemnitee other
than Outside Counsel or Inside Counsel, as the case may be, unless the
Partnership and the Company shall have consented in writing thereto or
Indemnitee has interests that are different, or defenses available to him that
are in addition to or different, from those of the other Outside Directors or
Inside Directors, as the case may be, such that Outside Counsel or Inside
Counsel, as the case may be, would have an actual or potential conflict of
interest in representing Indemnitee.

       

          6. Advances
of Expenses.

       

       

          (a) To the
fullest extent permitted by the LLC Statute and the Partnership Statute,
Expenses (other than judgments, penalties, fines and settlements) incurred by
Indemnitee shall be paid by the Partnership and the Company, in advance of the
final disposition of the Proceeding, within two (2) business days after receipt
of Indemnitee’s written request, which written request, if required by the LLC
Statute or the Partnership Statute, shall be accompanied by substantiating
documentation and Indemnitee’s written affirmation as described in Section 6(c) hereof,
as well as an affirmation (if any) required by Section
6(b).  No objections based on or involving the question of
whether such charges meet the definition of “Expenses,” including any
question

       

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      regarding
the reasonableness of such Expenses, shall be grounds for failure to advance to
Indemnitee, or to reimburse Indemnitee for, the amount claimed within such two
(2) business day period, provided that Indemnity
provides an undertaking to repay any such amounts determined in a final
adjudication not to have met such definition (and the undertaking and
acknowledgement pursuant to Section 6(b) and
Section 6(c)
shall be deemed to include such an undertaking).  Indemnitee’s right
to advancements and payments under this Section 6 will not be
subject to the satisfaction of any standard of conduct and will be made without
regard to Indemnitee’s ultimate entitlement to indemnification under the other
provisions of this Agreement, or under provisions of the Partnership Agreement
or LLC Agreement.

       

          (b) To the
extent required by the LLC Statute or the Partnership Statute, Indemnitee will
undertake to repay to the Partnership and/or the Company (i) any advances or
payment of Expenses made pursuant to this Section 6 and (ii)
any judgments, penalties, fines and settlements paid to or on behalf of
Indemnitee hereunder, in each case to the extent that it is ultimately
determined in a final adjudication that Indemnitee is not entitled to
indemnification.

       

          (c) To the
extent required by the LLC Statute or the Partnership Statute, as a condition to
the advancement of such Expenses or the payment of such judgments, penalties,
fines and settlements, Indemnitee shall execute an acknowledgment wherein
Indemnitee affirms (i) that Indemnitee is entitled to indemnification under this
Agreement and (ii) that such Expenses or such judgments, penalties, fines and
settlements, as the case may be, are delivered pursuant and are subject to the
provisions of this Agreement.

       

          (d) If a
claim under this Section 6 is not paid
by the Partnership or the Company within two (2) business days of receipt of
written notice, the right to advances or payments (as the case may be) as
provided by this Agreement shall be enforceable by Indemnitee in any court of
competent jurisdiction. Indemnitee shall be presumed to be entitled to advances
or payments (as the case may be) under this Agreement upon submission of a
written request therefor (and where an acknowledgement, if required under this
Agreement, has been tendered to the Partnership and/or the Company) and the
burden of proving by clear and convincing evidence that advances or payments (as
the case may be) are not appropriate shall be on the Partnership and the
Company.

       

          7. Right of Indemnitee to Indemnification
Upon Application; Procedure Upon Application. Any indemnification payment
under this Agreement, excluding advances and payments pursuant to Section 6
hereof, shall be made no later than thirty (30) days after receipt by the
Partnership and the Company of the written request of Indemnitee, accompanied by
substantiating documentation.  If any such claims under this Agreement
are not paid by the Partnership or the Company within thirty (30) days of
receipt of written notice, the right to indemnification as provided by this
Agreement shall be enforceable by Indemnitee in any court of competent
jurisdiction. Indemnitee shall be presumed to be entitled to indemnification
under this Agreement upon submission of a written request therefor and the
burden of proving by clear and convincing evidence that indemnification is not
appropriate shall be on the Partnership and the Company.

       

          8. Indemnification Hereunder Not
Exclusive. The indemnification and advancement of expenses provided by
this Agreement shall not be deemed exclusive of any other rights to
which

       

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      Indemnitee
may be entitled under the Partnership Agreement, the LLC Agreement, the
Partnership Statute, the LLC Statute, any directors’ and officers’ insurance
maintained by or on behalf of the Partnership or the Company, any agreement, or
otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office; provided, however, that this Agreement
supersedes all prior written indemnification agreements between the Partnership
and/or the Company (or any predecessor thereof) and Indemnitee with respect to
the subject matter hereof. However, subject to Section 17 hereof,
Indemnitee shall reimburse the Partnership and the Company for amounts paid to
Indemnitee pursuant to such other rights to the extent such payments duplicate
any payments received pursuant to this Agreement.

       

          9.No
Presumptions.  Neither the failure of the Partnership or the
Company (including the Board of Directors, any committee thereof, independent
legal counsel or its equity owners) to have made a determination prior to any
such payments or the commencement of such action that indemnification is proper
in the circumstances because Indemnitee is entitled to indemnification under
this Agreement, nor an actual determination by the Partnership or the Company
(including the Board of Directors, any committee thereof, independent legal
counsel or its equity owners) that Indemnitee is not entitled to indemnification
under this Agreement, shall be a defense to the action or create a presumption
that Indemnitee is not entitled to indemnification under this
Agreement.  The termination of any Proceeding by judgment, order of
the court, settlement, conviction or upon a plea of nolo contendere, or its
equivalent, shall not, of itself, create a presumption that Indemnitee acted in
bad faith or engaged in fraud or willful misconduct or, in the case of a
criminal matter, acted with knowledge that Indemnitee’s conduct was
unlawful.

       

          10. Continuation of Indemnity. All
agreements and obligations of the Partnership and the Company contained herein
shall continue during the period Indemnitee is a director or officer of the
Partnership or the Company (or is or was serving at the request of the
Partnership or the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, limited liability company or
other enterprise) and shall continue thereafter so long as Indemnitee shall be
subject to any possible Proceeding (notwithstanding the fact that Indemnitee has
ceased to serve the Partnership or the Company).

       

          11. Change in Control of the Partnership
or the Company. Each of the Partnership and the Company agrees that if
there is a Change in Control of the Partnership and/or the Company, then with
respect to all matters thereafter arising concerning the rights of Indemnitee to
indemnity payments and advances relating to a Proceeding under this Agreement,
any other agreements, the Partnership Agreement or the LLC Agreement, the
Partnership and the Company shall seek legal advice only from special
independent counsel selected by Indemnitee and approved by the Partnership and
the Company (which approval shall not be unreasonably withheld, conditioned or
delayed) and who has not otherwise performed services for the Partnership or the
Company (other than in connection with matters unrelated to those for which
Indemnitee is seeking an indemnification payment or advance hereunder) or
Indemnitee. In the event that Indemnitee, on one hand, and the Partnership and
the Company, on the other, are unable to agree on the selection of the special
independent counsel, such special independent counsel shall be selected by lot
from among at least five law firms in New York City, New York or Houston, Texas
selected by Indemnitee. Such selection shall be made in the presence of
Indemnitee (and his legal counsel or either of them, as Indemnitee may elect).
Such special independent counsel, among other things, shall determine whether
and to what extent Indemnitee

       

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      would be
permitted to be indemnified under applicable law and shall render its written
opinion to the Partnership, the Company and Indemnitee to such
effect.

       

               The Company
agrees to pay the reasonable fees of the special independent counsel referred to
above and to fully indemnify such special independent counsel against any and
all expenses (including attorneys’ fees), claims, liabilities and damages
arising out of or relating to this Agreement or its engagement pursuant
hereto.

       

          12. Partial Indemnification. If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Partnership and the Company for a portion of Expenses, but not, however,
for the total amount thereof, the Partnership and the Company shall nevertheless
indemnify Indemnitee for the portion of such Expenses to which Indemnitee is
entitled.

       

          13. Acknowledgements. Each of the
Partnership and 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 or to continue to serve as a director or officer of
the Partnership and/or the Company, and acknowledges that Indemnitee is relying
upon this Agreement in agreeing to serve or in continuing to serve as a director
or officer of the Partnership and/or the Company.

       

          14. Enforcement. In the event
Indemnitee is required to bring any action or other proceeding to enforce rights
or to collect moneys due under this Agreement and is successful in such action,
the Partnership and the Company shall reimburse Indemnitee for all of
Indemnitee’s expenses in bringing and pursuing such action.

       

          15. Severability. If any provision
of this Agreement shall be held to be invalid, illegal or unenforceable, (a) the
validity, legality and enforceability of the remaining provisions of this
Agreement shall not be in any way affected or impaired thereby, and (b) to the
fullest extent possible, the provisions of this Agreement shall be construed so
as to give effect to the intent manifested by the provision held invalid,
illegal or unenforceable. Each section of this Agreement is a separate and
independent portion of this Agreement. If the indemnification or advancement to
which Indemnitee is entitled with respect to any aspect of any claim varies
between two or more sections of this Agreement, that section providing the most
comprehensive indemnification or advancement shall apply.

       

          16. Liability Insurance. To the
extent the Partnership or the Company maintains an insurance policy or policies
providing directors’ and officers’ liability insurance, Indemnitee shall be
covered by such policy or policies, in accordance with its or their terms, to
the maximum extent of the coverage available and maintained by the Partnership
or the Company for any director or officer of the Partnership or the Company or
any applicable subsidiary or affiliated company.

       

          17. Primary Obligors. The Company
hereby acknowledges that Indemnitee has certain rights to indemnification,
advancement of expenses and/or insurance provided by his employer  and
certain of its affiliates (collectively, the “Third Party
Indemnitors”).  The Partnership and the Company hereby agree
(i) that each of the Partnership and the Company is an indemnitor
of

       

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      first
resort (i.e., each of
its obligations to Indemnitee are primary and any obligation of the Third Party
Indemnitors to advance expenses or to provide indemnification for the same
Expenses or liabilities incurred by Indemnitee are secondary), (ii) that each of
the Partnership and the Company shall be required to advance the full amount of
Expenses incurred by Indemnitee and shall be liable for the full amount of all
other payments to Indemnitee to the extent legally permitted and as required by
the terms of this Agreement, the Partnership Agreement or the LLC Agreement (or
any other agreement between or among the Partnership or the Company and
Indemnitee), without regard to any rights Indemnitee may have against the Third
Party Indemnitors, and (iii) that each of the Partnership and the Company
irrevocably waives, relinquishes and releases the Third Party Indemnitors from
any and all claims against the Third Party Indemnitors for contribution,
subrogation or any other recovery of any kind in respect thereof.  The
Partnership and the Company further agree that no advancement or payment by the
Third Party Indemnitors on behalf of Indemnitee with respect to any claim for
which Indemnitee has sought indemnification from the Partnership or the Company
shall affect the foregoing and the Third Party Indemnitors shall have a right of
contribution and/or to be subrogated to the extent of such advancement or
payment to all of the rights of recovery of Indemnitee against the Partnership
and the Company.  The Partnership, the Company and Indemnitee agree
that the Third Party Indemnitors are express third party beneficiaries of the
terms of this Section
17.

       

          18. Joint and Several Liability.
Each of the Partnership and the Company acknowledges and agrees that,
whether or not specifically indicated as such in this Agreement, the
obligation to indemnify Indemnitee or to advance or pay Expenses to Indemnitee
hereunder shall be joint and several obligations of each of the
Partnership and the Company.

       

          19. Miscellaneous.

       

          (a) Governing Law. This
Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the State of Delaware, without giving effect to
principles of conflict of law.

       

          (b) Entire Agreement;
Enforcement of Rights. This Agreement sets forth the entire agreement and
understanding of the parties relating to the subject matter herein and merges
all prior discussions between them. The rights of Indemnitee to indemnification
and the advancement and payment of expenses conferred in this Agreement
supplements and is in addition to, and is not intended to be limited by, those
provisions in the Partnership Agreement and the LLC Agreement that provide
Indemnitee with the same or similar rights with respect to indemnification and
the advancement and payment of expenses thereunder.  No modification
of or amendment to this Agreement, nor any waiver of any rights under this
Agreement, shall be effective unless in writing signed by the parties to this
Agreement. The failure by any party to enforce any rights under this Agreement
shall not be construed as a waiver of any rights of such party.

       

          (c) Construction. This
Agreement is the result of negotiations between and has been reviewed by each of
the parties hereto and their respective counsel, if any; accordingly,
this

       

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      Agreement
shall be deemed to be the product of all of the parties hereto, and no ambiguity
shall be construed in favor of or against any one of the parties
hereto.

       

          (d) Notices. All notices,
demands or other communications to be given or delivered under or by reason of
the provisions of this Agreement shall be in writing and shall be deemed to have
been given (i) when delivered personally to the recipient, (ii) one business day
after the date when sent to the recipient by reputable overnight courier service
(charges prepaid), or (iii) five business days after the date when mailed to the
recipient by certified or registered mail, return receipt requested and postage
prepaid. Such notices, demands and other communications shall be sent to the
parties at the addresses indicated on the signature page hereto, or to such
other address as any party hereto may, from time to time, designate in writing
delivered pursuant to the terms of this Section
19(d).

       

          (e) Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one
instrument.

       

          (f) Successors and
Assigns. This Agreement shall be binding upon the Partnership and the
Company and their respective successors and assigns and shall inure to the
benefit of Indemnitee and Indemnitee’s heirs, legal representatives and
assigns.

       

          (g) Subrogation. In the
event of payment under this Agreement, the Partnership and the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of
Indemnitee, who shall execute all documents reasonably required and shall do all
acts that may be reasonably necessary to secure such rights and to enable the
Partnership and the Company to effectively bring suit to enforce such rights, as
may be requested in writing by the Partnership or the Company.

       

      [Signature
page follows.]

       

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

       

      GENESIS
ENERGY, L.P.

       

      By:
Genesis Energy, LLC,

             its
sole general partner

      

      By:           

      Name:           

      Title:           

       

      Address:

      Genesis
Energy, L.P.

      c/o
Genesis Energy, LLC

      919
Milam, Ste. 2100

      Houston,
TX 77002

       

      GENESIS
ENERGY, LLC

       

      By:                 

      Name:                 

      Title:                 

       

      Address:

      c/o
Genesis Energy, LLC

      919
Milam, Ste. 2100

      Houston,
TX 77002

       

      INDEMNITEE

       

      

      Name:

       

      Address:

      [Address
1]

      [Address
2]

      [City,
State, Zip]

       

      
        
          Indemnity
Agreement

          Signature
Page

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