Document:

Exhibit 10.8

 

Phantom Performance Share Unit Award Agreement (“Agreement”)
 (Pursuant to the EnergySolutions, Inc. Executive Bonus Plan (“Plan”))

 

EnergySolutions, Inc. (the “Company”) hereby awards to the participant specified below (the “Participant”) a performance-based phantom share unit (“PSU”) award (the “Award”) on the terms and subject to the conditions of this Agreement.  For purposes of this Agreement, references to “Shares” mean shares of common stock of the Company, or such other class or kind of shares or other securities resulting from the application of Section 6 hereof.  The Award and this Agreement are subject to all of the terms and conditions as set forth herein and the Plan (including, without limitation, the maximum bonus limitation set forth in Section 6 of the Plan).  Initial capitalized terms not otherwise defined herein will have the meanings set forth in the Plan.

 

	
Participant:
    	
[                        ]
    
	
“Grant Date”:
    	
[                        ]
    
	
Number of PSUs:
    	
[                ]   PSUs (the “Threshold PSUs”) at the   threshold achievement level.

[                ]   PSUs (the “Target PSUs”) at the target   achievement level.

[                ]   PSUs (the “Maximum PSUs”) at the maximum   achievement level.
    
	
Consideration:
    	
Participant’s services
    

 

1.  PSU Award Earning.

 

(a)           Three-Year TSR Period.

 

(i)            If the End Price on the First Measurement Date (the “First Measurement Date Price”) equals a value that produces a Compound Annual TSR of 25% through the First Measurement Date, Participant will earn 50% of the Target PSUs.  For purposes of this Agreement, (A) “First Measurement Date” means June 12, 2015, (B) except as otherwise provided in Section 3 hereof, “End Price” means the average of the closing sales prices of Shares during the ten consecutive trading days ending on the applicable date, as reported on the exchange on which Shares are then traded (or, if Shares are not traded on a national securities exchange, as determined by the Company’s Board of Directors or its Compensation Committee (together, the “Board”)), except that the End Price on the Change in Control Date will be the closing sales price of Shares on the Change in Control Date (or, if applicable, the value received by holders of Shares in connection with the Change in Control), and in any event, plus the value derived from (x) the assumed reinvestment of dividends, if any, paid on the Company’s common stock from the Grant Date through the applicable End Date, with reinvestment determined as of and based on the closing price of the common stock on the dividend payment date and (y) the assumed reinvestment of proceeds from Share repurchases effected by the Company, if any, from the Grant Date through the applicable End Date

 

 

(determined by dividing the aggregate repurchase price on the applicable date by the aggregate number of Shares outstanding immediately prior to such date), with reinvestment of such proceeds determined as of and based on the closing price of the common stock on the date of the repurchase, (C) “Base Price” means the average of the closing sales prices of Shares during the ten consecutive trading days beginning with the Grant Date, as reported on the exchange on which Shares are then traded (or, if Shares are not traded on a national securities exchange, as determined by the Board), and (D) “Compound Annual TSR” means the compound annual Share price appreciation from the Base Price to the applicable End Price.

 

(ii)           Notwithstanding Section 1(a)(i) hereof, (A) if the First Measurement Date Price equals a value that produces a Compound Annual TSR of 35% or greater through the First Measurement Date, Participant will earn 50% of the Maximum PSUs and (B) if the First Measurement Date Price equals a value that produces a Compound Annual TSR between 25% and 35% through the First Measurement Date, Participant will earn a number of PSUs that is the mathematical interpolation between the number of PSUs that would be earned at such two percentages (as determined pursuant to Sections 1(a)(i) and 1(a)(ii)(A) hereof).

 

(iii)          Notwithstanding the foregoing, in the event that a “Change in Control” (as such term is defined in Participant’s Executive Severance Agreement with the Company (the “Severance Agreement”)) occurs prior to the First Measurement Date (the effective date of the Change in Control being the “Change in Control Date”): (A) if the End Price on the Change in Control Date (the “Change in Control Price”) equals a value that produces a Compound Annual TSR of at least 25% through the First Measurement Date, then (I) if the Change in Control Price equals a value that produces a Compound Annual TSR of 25% through the First Measurement Date, Participant will immediately earn a number of PSUs equal to the Threshold PSUs, (II) if the Change in Control Price equals a value that produces a Compound Annual TSR of 25% through the Second Measurement Date, Participant will immediately earn a number of PSUs equal to the Target PSUs, (III) if the Change in Control Price equals a value that produces a Compound Annual TSR of 35% or greater through the Second Measurement Date, Participant will immediately earn a number of PSUs equal to the Maximum PSUs, (IV) if the Change in Control Price equals a value that produces a Compound Annual TSR between 25% through the First Measurement Date and 25% through the Second Measurement Date, Participant will immediately earn a number of PSUs that is the mathematical interpolation between the number of PSUs that would be earned at such two percentages (as determined pursuant to Sections 1(a)(iii)(A)(I) and 1(a)(iii)(A)(II) hereof), and (V) if the Change in Control Price equals a value that produces a Compound Annual TSR between 25% through the Second Measurement Date and 35% through the Second Measurement Date, Participant will immediately earn a number of

 

2

 

PSUs that is the mathematical interpolation between the number of PSUs that would be earned at such two percentages (as determined pursuant to Sections 1(a)(iii)(A)(II) and 1(a)(iii)(A)(III) hereof); provided, however, that in the event that more than one of Sections 1(a)(iii)(A)(I)-(V) hereof could simultaneously apply, the applicable subsection that will result in Participant earning the highest number of PSUs will be used for purposes of this Section 1(a)(iii)(A) (but in no event will the application of this proviso result in PSUs being earned pursuant to more than one of Sections 1(a)(iii)(A)(I)-(V) hereof); (B) PSUs subject to the PSU Award that are not earned by Participant in accordance with this Section 1(a)(iii), if any, will be immediately forfeited; and (C) Section 1(b) hereof will cease to apply.

 

(iv)          Notwithstanding the foregoing, in the event that, prior to the occurrence of a Change in Control and prior to the First Measurement Date, Participant’s employment with the Company is terminated by the Company without “Cause,” by Participant for “Good Reason,” as a result of Participant’s “Permanent Disability” (each as defined in the Severance Agreement) or in the event of Participant’s death, Participant will immediately earn a number of PSUs determined by the application of Sections 1(a)(i) or 1(a)(ii) hereof, as applicable, except that: (A) the First Measurement Date Price will be deemed to be equal to the End Price on the Termination Date (the “Termination Date Price”); (B) the Compound Annual TSR performance condition will instead be calculated through the Termination Date, provided that, if the Termination Date is prior to June 12, 2013, the Compound Annual TSR will instead be calculated through June 12, 2013; (C) the Target PSUs may be earned pursuant to Section 1(a)(i) hereof and the Maximum PSUs may be earned pursuant to Section 1(a)(ii) hereof; (D) Participant will earn only a pro rata portion of the PSUs otherwise calculated to be earned in accordance with this Section 1(a)(iv), as follows: 25% if the Termination Date occurs prior to June 12, 2013, 50% if the Termination Date occurs thereafter but prior to June 12, 2014, and 75% if the Termination Date occurs thereafter but prior to the First Measurement Date; (E) PSUs subject to the PSU Award that are not earned by Participant in accordance with this Section 1(a)(iv), if any, will be immediately forfeited; and (F) Section 1(b) hereof will cease to apply.  For purposes of this Agreement, “Termination Date” means the date of Participant’s termination of employment with the Company, regardless of the circumstances thereof.

 

(b)           Four-Year TSR Period.

 

(i)            If the End Price on the Second Measurement Date (the “Second Measurement Date Price”) equals a value that produces a Compound Annual TSR of 25% through the Second Measurement Date, Participant will earn a number of PSUs equal to the Target PSUs minus the Three-Year TSR Period Earned PSUs, but in no event less than zero.  For purposes of this Agreement, (A) “Three-Year TSR Period Earned PSUs”

 

3

 

means the number of PSUs earned pursuant to Section 1(a)(i) or 1(a)(ii) hereof, as applicable, and (B) “Second Measurement Date” means June 12, 2016.

 

(ii)           Notwithstanding Section 1(b)(i) hereof, (A) if the Second Measurement Date Price equals a value that produces a Compound Annual TSR of 35% or greater through the Second Measurement Date, Participant will earn a number of PSUs equal to the Maximum PSUs minus the Three-Year TSR Period Earned PSUs, but in no event less than zero, and (B) if the Second Measurement Date Price equals a value that produces a Compound Annual TSR between 25% and 35% through the Second Measurement Date, Participant will earn a number of PSUs that is the mathematical interpolation between the number of PSUs that would be earned at such two percentages (as determined pursuant to Sections 1(b)(i) and 1(b)(ii)(A) hereof and, for the avoidance of doubt, taking into account the reduction in the calculations pursuant to Sections 1(b)(i) and 1(b)(ii)(A) hereof as a result of the exclusion of the Three-Year TSR Period Earned PSUs (but in no event to less than zero)).

 

(iii)          Notwithstanding the foregoing, in the event that a Change in Control occurs after the First Measurement Date but prior to the Second Measurement Date: (A) if the Change in Control Price equals a value that produces a Compound Annual TSR of at least 25% through the Change in Control Date, then (I) if the Change in Control Price equals a value that produces a Compound Annual TSR of 25% through the First Measurement Date, Participant will immediately earn a number of PSUs equal to the Threshold PSUs minus the Three-Year TSR Period Earned PSUs, but in no event less than zero, (II) if the Change in Control Price equals a value that produces a Compound Annual TSR of 25% through the Second Measurement Date, Participant will immediately earn a number of PSUs equal to the Target PSUs minus the Three-Year TSR Period Earned PSUs, but in no event less than zero, (III) if the Change in Control Price equals a value that produces a Compound Annual TSR of 35% or greater through the Second Measurement Date, Participant will immediately earn a number of PSUs equal to the Maximum PSUs minus the Three-Year TSR Period Earned PSUs, but in no event less than zero, (IV) if the Change in Control Price equals a value that produces a Compound Annual TSR between 25% through the First Measurement Date and 25% through the Second Measurement Date, Participant will immediately earn a number of PSUs that is the mathematical interpolation between the number of PSUs that would be earned at such two percentages (as determined pursuant to Sections 1(b)(iii)(A)(I) and 1(b)(iii)(A)(II) hereof and, for the avoidance of doubt, taking into account the reduction in the calculations pursuant to Sections 1(b)(iii)(A)(I) and 1(b)(iii)(A)(II) hereof as a result of the exclusion of the Three-Year TSR Period Earned PSUs (but in no event to less than zero)), and (V) if the Change in Control Price equals a value that produces a Compound Annual TSR between 25% through the Second Measurement Date and

 

4

 

35% through the Second Measurement Date, Participant will immediately earn a number of PSUs that is the mathematical interpolation between the number of PSUs that would be earned at such two percentages (as determined pursuant to Sections 1(b)(iii)(A)(II) and 1(b)(iii)(A)(III) hereof and, for the avoidance of doubt, taking into account the reduction in the calculations pursuant to Sections 1(b)(iii)(A)(II) and 1(b)(iii)(A)(III) hereof as a result of the exclusion of the Three-Year TSR Period Earned PSUs (but in no event to less than zero)); provided, however, that in the event that more than one of Sections 1(b)(iii)(A)(I)-(V) hereof could simultaneously apply, the applicable subsection that will result in Participant earning the highest number of PSUs will be used for purposes of this Section 1(b)(iii)(A) (but in no event will the application of this proviso result in PSUs being earned pursuant to more than one of Sections 1(b)(iii)(A)(I)-(V) hereof); and (B) PSUs subject to the PSU Award that were not earned by Participant on the First Measurement Date and are not earned by Participant in accordance with this Section 1(b)(iii), if any, will be immediately forfeited.

 

(iv)          Notwithstanding the foregoing, in the event that, prior to the occurrence of a Change in Control and after the First Measurement Date but prior to the Second Measurement Date, Participant’s employment with the Company is terminated by the Company without Cause, by Participant for Good Reason, as a result of Participant’s Permanent Disability or in the event of Participant’s death, Participant will immediately earn a number of PSUs determined by the application of Sections 1(b)(i) or 1(b)(ii) hereof, as applicable, except that: (A) the Second Measurement Date Price will be deemed to be equal to the Termination Date Price; (B) the Compound Annual TSR performance condition will instead be calculated through the Termination Date; and (C) PSUs subject to the PSU Award that were not earned by Participant on the First Measurement Date and are not earned by Participant in accordance with this Section 1(b)(iv), if any, will be immediately forfeited.

 

(v)           Any PSUs that have not been earned as of the Second Measurement Date will be immediately forfeited.

 

(c)           The determination of whether the Compound Annual TSR targets have been met will be made by the Board in its sole discretion.  Any such determination will be conclusive for all purposes absent manifest error.

 

2.  PSU Award Payment.

 

(a)           To the extent that any PSUs are earned as described in Section 1 or 3 hereof, as applicable in each case, then, subject to the terms and conditions set forth below, such PSUs will become payable to Participant only on and subject to the occurrence of the date on which any PSUs are earned as described in Section 1 or 3 hereof, as applicable in each case (as applicable, the “Earn Date”):

 

5

 

(i)    The Company will pay to Participant as soon as practicable (but in any event no later than 45 days) following the Earn Date, a cash amount equal to 1/3 of the PSUs earned on the Earn Date multiplied by the End Price on the Earn Date;

 

(ii)   Subject to Participant’s continued employment with the Company on the one-year anniversary of the Earn Date (the “Earn Date First Anniversary”), the Company will pay to Participant as soon as practicable (but in any event no later than 45 days) following the Earn Date First Anniversary, a cash amount equal to 1/3 of the PSUs earned on the Earn Date multiplied by the End Price on the Earn Date First Anniversary; and

 

(iii)  Subject to Participant’s continued employment with the Company on the two-year anniversary of the Earn Date (the “Earn Date Second Anniversary”), the Company will pay to Participant as soon as practicable (but in any event no later than 45 days) following the Earn Date Second Anniversary, a cash amount equal to 1/3 of the PSUs earned on the Earn Date multiplied by the End Price on the Earn Date Second Anniversary.

 

(iv)  In the event that Participant is not employed by the Company on the Earn Date, the Earn Date First Anniversary or the Earn Date Second Anniversary, as applicable, the earned PSUs that would otherwise be payable in respect of such date (as described in Sections 2(a)(i), (ii) or (iii) hereof, as applicable), will be immediately forfeited.

 

(v)   Notwithstanding the foregoing, (A) in the event that Participant’s employment with the Company is terminated by the Company without Cause, by Participant for Good Reason, as a result of Participant’s Permanent Disability or in the event of Participant’s death, then the Company will pay to Participant as soon as practicable (but in any event no later than 45 days) following the Termination Date, a cash amount equal to any PSUs that have been earned, but are not yet otherwise payable as of the Termination Date, multiplied by the End Price on the Termination Date and (B) in the event of a Change in Control, the End Price with respect to any payment event will be deemed to be the End Price on the Change in Control Date.

 

(b)           In the event that Participant’s employment with the Company is terminated by the Company for Cause or by Participant without Good Reason (other than in the event of Participant’s Permanent Disability or death), any PSUs that have been earned, but are not yet otherwise payable as of the Termination Date, will be immediately forfeited.

 

6

 

3.  Business Unit Sale.

 

(a)           Notwithstanding anything herein to the contrary, in the event that the Board determines that a Participant is the chief operating officer of a business unit of the Company (a “Business Unit”) and all or substantially all of the Business Unit’s operations are sold or otherwise disposed of (by liquidation, dissolution, dividend or otherwise) in one transaction or series of transactions (a “Business Unit Sale”), then the following provisions will apply if the Board determines in its discretion that such application would be equitable, provided that any use of the term “End Price” in this Section 3 will be deemed to refer to the average of the closing sales prices of Shares during the ten consecutive trading days beginning with the first trading day after Business Unit Sale Date (including the Business Unit Sale Date, if applicable) as reported on the exchange on which Shares are then traded (or, if Shares are not traded on a national securities exchange, as determined by the Board), plus (x) the value derived from the assumed reinvestment of dividends, if any, paid on the Company’s common stock from the Grant Date through the Business Unit Sale Date, with reinvestment determined as of and based on the closing price of the common stock on the dividend payment date and (y) the assumed reinvestment of proceeds from Share repurchases effected by the Company, if any, from the Grant Date through the Business Sale Date (determined by dividing the aggregate repurchase price on the applicable date by the aggregate number of Shares outstanding immediately prior to such date), with reinvestment of such proceeds determined as of and based on the closing price of the common stock on the date of the repurchase:

 

(i)            Company Employment During Three-Year TSR Period.  If, following the Business Unit Sale, Participant continues employment with the Company, and Participant’s employment with the Company is subsequently terminated by the Company without Cause, by Participant for Good Reason, as a result of Participant’s Permanent Disability or in the event of Participant’s death, in any such case prior to the First Measurement Date, then Participant will immediately earn a number of PSUs determined by the application of Sections 1(a)(i) or 1(a)(ii) hereof, except that: (A) the First Measurement Date Price will be deemed to be equal to the Termination Date Price; (B) the Compound Annual TSR performance condition will instead be calculated through the Termination Date, provided that, if the Termination Date is prior to June 12, 2013, the Compound Annual TSR will instead be calculated through June 12, 2013; (C) the Target PSUs may be earned pursuant to Section 1(a)(i) hereof and the Maximum PSUs may be earned pursuant to Section 1(a)(ii) hereof; (D) Participant will earn only a pro rata portion of the PSUs otherwise calculated to be earned in accordance with this Section 3(a)(i), as follows: 50% if the Termination Date occurs prior to June 12, 2014 and 75% if the Termination Date occurs thereafter but prior to the First Measurement Date; (E) PSUs subject to the PSU Award that are not earned by Participant in accordance with this Section 3(a)(i), if any, will be immediately forfeited; and (F) the Company will pay to Participant as soon as practicable (but in any event no later than 45 days) following the

 

7

 

Termination Date, a cash amount equal to the number of PSUs calculated to be earned in accordance with this Section 3(a)(i), multiplied by the End Price on the Termination Date.

 

(ii)           Company Employment During Four-Year TSR Period.  If, following the Business Unit Sale, Participant continues employment with the Company, and Participant’s employment with the Company is subsequently terminated by the Company without Cause, by Participant for Good Reason, as a result of Participant’s Permanent Disability or in the event of Participant’s death, in any such case after the First Measurement Date but prior to the Second Measurement Date, then Participant will immediately earn a number of PSUs determined by the application of Sections 1(b)(i) or 1(b)(ii) hereof, except that: (A) the Second Measurement Date Price will be deemed to be equal to the Termination Date Price; (B) the Compound Annual TSR performance condition will instead be calculated through the Termination Date; (C) PSUs subject to the PSU Award that were not earned by Participant on the First Measurement Date and are not earned by Participant in accordance with this Section 3(a)(ii), if any, will be immediately forfeited; and (D) the Company will pay to Participant as soon as practicable (but in any event no later than 45 days) following the Termination Date, a cash amount equal to the number of PSUs calculated to be earned in accordance with this Section 3(a)(ii), multiplied by the End Price on the Termination Date.

 

(iii)          Acquiror Employment During Three-Year TSR Period.  If, following a Business Unit Sale that occurs prior to the First Measurement Date (the effective date of the Business Unit Sale, the “Business Unit Sale Date”), Participant continues employment with the acquiror of, or successor to, the applicable Business Unit (“Acquiror”), then Participant will immediately earn a number of PSUs determined by the application of Sections 1(a)(i) or 1(a)(ii) hereof, except that: (A) the First Measurement Date Price will be deemed to be equal to the End Price on the Business Unit Sale Date (the “Business Unit Sale Price”); (B) the Compound Annual TSR performance condition will instead be calculated through the Business Unit Sale Date, provided that, if the Business Unit Sale Date is prior to June 12, 2013, the Compound Annual TSR will instead be calculated through June 12, 2013; (C) the Target PSUs may be earned pursuant to Section 1(a)(i) hereof and the Maximum PSUs may be earned pursuant to Section 1(a)(ii) hereof; (D) Participant will earn only a pro rata portion of the PSUs otherwise calculated to be earned in accordance with this Section 3(a)(iii), as follows: 50% if the Business Unit Sale Date occurs prior to June 12, 2014 and 75% if the Business Unit Sale Date occurs thereafter but prior to the First Measurement Date; and (E) PSUs subject to the PSU Award that are not earned by Participant in accordance with this Section 3(a)(iii), if any, will be immediately forfeited.  Any PSUs earned in accordance with this Section 3(a)(iii) will be paid by the Company, as applicable, in accordance with Section 2 hereof, except that any reference to termination of Participant’s employment in Section 2(a)

 

8

 

hereof will instead be deemed to refer to a termination of Participant’s employment with Acquiror.

 

(iv)          Acquiror Employment During Four-Year TSR Period.  If, following a Business Unit Sale that occurs after the First Measurement Date but prior to the Second Measurement Date, Participant continues employment with Acquiror, then Participant will immediately earn a number of PSUs determined by the application of Section 1(b)(i) or 1(b)(ii) hereof, except that: (A) the Second Measurement Date Price will be deemed to be equal to the Business Unit Sale Price; (B) the Compound Annual TSR performance condition will instead be calculated through the Business Unit Sale Date; and (C) PSUs subject to the PSU Award that were not earned by Participant on the First Measurement Date and are not earned by Participant in accordance with this Section 3(a)(iv), if any, will be immediately forfeited.  Any PSUs earned in accordance with this Section 3(a)(iv) will be paid by the Company, as applicable, in accordance with Section 2(a) hereof, except that any reference to termination of Participant’s employment in Section 2 hereof will instead be deemed to refer to a termination of Participant’s employment with Acquiror.

 

(v)           Notwithstanding anything herein to the contrary, in the event that the Business Unit Sale triggers a Change in Control, the applicable provisions that result in the greatest payment amount to Participant will apply; provided that, for purposes of the foregoing determination, the “End Price” for both calculations will be deemed to be the End Price on the Change on Control Date.

 

4.  Board Determinations.  After PSUs have been earned by Participant, the Board may accelerate the time-based payment triggers of all or a portion of such PSUs.

 

5.  Intentionally Omitted.

 

6.  Adjustments.  Adjustments to the PSUs and/or the number of Shares underlying the PSU Award will be made in accordance with the terms of Article 12 of the EnergySolutions, Inc. 2007 Equity Incentive Plan (as in effect on the Grant Date, the “Equity Plan”), to the same extent and with the same effect as though the Award were an “Award” of “Restricted Stock” (as such terms are defined in the Equity Plan) granted pursuant to the Equity Plan.

 

7.  Compliance with Section 409A of the Code.  This Agreement and the Award are intended to comply with, or otherwise be exempt from, Section 409A of the Code and any regulations and Treasury guidance promulgated thereunder (“Section 409A”).  Notwithstanding any provisions of this Agreement to the contrary, any right of Participant to any payment under this Agreement upon termination of Participant’s employment will be payable only when such termination of employment constitutes a “separation from service” within the meaning of Section 409A.  If Participant is a “specified employee” (within the meaning of Section 409A and determined pursuant to any policies adopted by the Company consistent with Section 409A), at the time of

 

9

 

Participant’s separation from service and if any portion of the payments or benefits to be received by Participant upon separation from service would be considered deferred compensation under Section 409A and cannot be paid or provided to Participant without Participant incurring taxes, interest or penalties under Section 409A, amounts that would otherwise be payable pursuant to this Agreement and benefits that would otherwise be provided pursuant to this Agreement, in each case, during the six-month period immediately following Participant’s separation from service will instead be paid or made available on the earlier of (a) the first business day of the seventh month following the date of Participant’s separation from service and (b) Participant’s death; provided, however, that such deferral will only be effected to the extent required to avoid adverse tax treatment to Participant, including (without limitation) the additional 20% tax for which Participant would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral.  Upon the expiration of the applicable deferral period, any payments which would have otherwise been made during that period (whether in a single sum or in installments) in the absence of this paragraph will be paid to Participant or Participant’s beneficiary in one lump sum (without interest).  It is intended that each installment of the payments provided hereunder constitute separate “payments” for purposes of Treasury Regulation Section 1.409A-2(b)(2)(i).  It is further intended that payments hereunder satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code (and any state law of similar effect) provided under Treasury Regulations Section 1.409A-1(b)(4) (as a “short-term deferral”) and Section 1.409A-1(b)(9) (as a “separation pay due to involuntary separation”).  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder comply with Section 409A.  Notwithstanding anything to the contrary set forth herein, the Company may amend this Agreement and the Award at any time and in any and all respects without Participant’s consent as the Board may, in its sole discretion, deem appropriate in order to comply with Section 409A and any guidance governing Section 409A.  The Company will notify Participant of any such changes made to this Agreement and the Award.  The preceding provisions, however, will not be construed as a guarantee by the Company of any particular tax effect to Participant of any payment made pursuant to this Agreement or the Award.  The Company will not be liable to Participant for any payment under this Agreement that is determined to result in an additional tax, penalty or interest under Section 409A, nor for reporting in good faith any payment as an amount includible in gross income under Section 409A.

 

8.  Transferability.  The Award is not transferable, except by will or by the laws of descent and distribution.  Notwithstanding the foregoing, by delivering written notice to the Company, in a form satisfactory to the Board, Participant may designate a third party who, in the event of Participant’s death, will thereafter be entitled to receive any distribution of the Award.

 

9.  Award Not an Employment Contract.  The Award is not an employment or service contract, and nothing in the Award will be deemed to create in any way whatsoever any obligation on Participant’s part to continue in the service of the Company or any subsidiary or affiliate thereof, or on the part of the Company or any subsidiary or affiliate thereof to continue such service.  In addition, nothing in the Award will obligate the Company or any of its subsidiaries or affiliates, their respective stockholders, boards of

 

10

 

directors or employees to continue any relationship that Participant might have as an employee, director or consultant to the Company or any subsidiary or affiliate thereof.

 

10.  Unsecured Obligation.  The Award is unfunded, and as a holder of a PSU, Participant will be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, pursuant to this Agreement.  Participant will not have voting or any other rights as a stockholder of the Company with respect to the PSUs subject to the Award.  Nothing contained in this Agreement, and no action taken pursuant to its provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between Participant and the Company or any other person.

 

11.  Withholding Obligations.

 

(a)           On or before the time Participant receives any distribution pursuant to the Award, or at any time thereafter as requested by the Company, Participant hereby authorizes any required withholding in respect of any amounts payable to Participant, and Participant otherwise agrees to make adequate provision for any sums required to satisfy the Federal, state, local and foreign tax withholding obligations, if any, that arise in connection with the Award or payment to Participant of any amounts in respect of any portion of the Award.

 

(b)           Unless all tax withholding obligations are satisfied, the Company will have no obligation to make payments to Participant in respect of any portion of the Award.

 

12.  Notices.  Any notices provided for in the Award or the Plan must be given in writing and will be deemed effectively given upon receipt when delivered by electronic mail or by hand delivery (in the case of Participant, at Participant’s address shown at the time of delivery in the records of the Company and, in the case of the Company, to its corporate secretary with a copy to the then-acting Chairman of the Compensation Committee of the Board).

 

13.  Headings.  The headings in this Agreement are inserted for convenience only and will not be deemed to constitute a part of this Agreement or to affect the meaning of this Agreement.

 

14.  Amendment.  The Company may amend this Agreement and the Award at any time without Participant’s consent; provided, however, that no such action may, without Participant’s consent, adversely affect Participant’s rights under the Award and this Agreement (except as otherwise provided herein or therein or in the Plan).  Without limiting the foregoing, the Board reserves the right to change, by written notice to Participant, the provisions of this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, ruling, or judicial decision, provided that any such change will be applicable only to rights relating to that portion of the Award that is then subject to restrictions as provided herein.

 

11

 

15.  Miscellaneous.

 

(a)           The rights and obligations of the Company under the Award will be transferable by the Company to any one or more persons or entities, and all covenants and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns.  No member of the Board will be personally liable for any action, determination, or interpretation made in good faith with respect to the Plan or this Agreement.

 

(b)           Participant agrees upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of the Award.

 

(c)           Participant acknowledges and agrees that Participant has reviewed the Award in its entirety, has had an opportunity to obtain the advice of counsel prior to executing and accepting the Award and fully understands all provisions of the Award.

 

(d)           All obligations of the Company under the Plan and this Agreement will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.  Following a Change in Control or a similar event or occurrence, any successor to the Company will be deemed to be the “Company” for purposes of this Agreement.

 

16.  Governing Plan Document.  Except and solely to the extent set forth herein, the Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of the Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan and, in the event of any conflict between the provisions of the Award and those of the Plan, the provisions of the Plan will control.

 

17.  Effect on Other Benefit Plans.  The value of the Award subject to this Agreement will not be included as compensation, earnings, salaries or other similar terms used when calculating the benefits under any benefit plan sponsored by the Company or any subsidiary or affiliate thereof, except as such plan otherwise expressly provides.  The Company expressly reserves its rights to amend, modify, or terminate any of the Company’s or any of its subsidiaries’ or affiliates’ benefit plans.

 

18.  Choice of Law.  The interpretation, performance and enforcement of this Agreement will be governed by the law of the state of Delaware without regard to such state’s conflict of laws rules.

 

19.  Resolution of Disputes.  SUBJECT TO THE TERMS OF THIS AGREEMENT, (A) THE PARTIES AGREE THAT ANY AND ALL ACTIONS ARISING UNDER OR IN RESPECT OF THIS AGREEMENT WILL BE LITIGATED IN THE FEDERAL OR STATE COURTS IN UTAH.  BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR ITSELF, HIMSELF OR HERSELF AND IN RESPECT OF ITS, HIS OR

 

12

 

HER PROPERTY WITH RESPECT TO SUCH ACTION.  EACH PARTY AGREES THAT VENUE WOULD BE PROPER IN ANY OF SUCH COURTS, AND HEREBY WAIVES ANY OBJECTION THAT ANY SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION AND (B) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

20.  Severability.  If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity will not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid.  Any Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid will, if possible, be construed in a manner that the Board determines in its discretion will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.

 

21.  Clawback.  The Award is subject to the terms and conditions of any of the Company’s applicable recoupment or clawback policies (as previously adopted, and as may be amended or restated from time to time).  Notwithstanding the foregoing, the Company may, in its sole discretion, implement any recoupment or clawback policies or make any changes to any of the Company’s existing recoupment or clawback policies, as the Company deems necessary or advisable in order to comply with applicable law or regulatory guidance (including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act).

 

22.  No Constraint on Corporate Action. Nothing in this Agreement will be construed to (a) limit, impair, or otherwise affect the Company’s or any of its subsidiaries’ or affiliates’ right or power to make adjustments, reclassifications, reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets or (b) limit the right or power of the Company or any of its subsidiaries or affiliates to take any action that such entity deems to be necessary or appropriate.

 

23.  Acknowledgement.  Participant acknowledges receipt of, and understands and agrees to, all of the terms and conditions of this Agreement, the Award and the Plan.  Participant further acknowledges that, as of the Grant Date, this Agreement, the Award and the Plan (along with any other documents or portions thereof referred to in any such document (including, without limitation, the Severance Agreement and the Equity Plan)) set forth the entire understanding between Participant and the Company regarding the PSUs and supersede all prior oral and written agreements on that subject.

 

[Remainder of page intentionally left blank]

 

13

 

	
The Company:
    	
 
    	
Participant:
    
	
 
    	
 
    	
 
    
	
ENERGYSOLUTIONS, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
David J. Lockwood
    	
 
    	
[Name]
    
	
 
    	
President & CEO
    	
 
    	
 
    

 

14Exhibit 10.9

 

OFFICER INDEMNITY AGREEMENT

 

This Indemnity Agreement (“Agreement”) is made as of                           , by and between EnergySolutions, Inc. a Delaware corporation (the “Company”), and                                (“Indemnitee,” and, together with all director and officer parties to an Indemnity Agreement with the Company, the “Indemnitees”).

 

RECITALS

 

WHEREAS, highly competent persons have become more reluctant to serve corporations as directors, officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation.

 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  The Certificate of Incorporation (the “Charter”) of the Company and the Bylaws (the “Bylaws”) of the Company provide for indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to indemnification pursuant to the Delaware General Corporation Law (“DGCL”).  The Charter, Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification.

 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons.

 

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future.

 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified.

 

WHEREAS, this Agreement is a supplement to and in furtherance of the Charter and 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.

 

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

 

 

1.             Services to the Company.  Indemnitee will serve as an officer of the Company or Enterprise for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his resignation or is terminated.

 

2.             Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

 

(a)           “Corporate Status” describes the status of a person who is or was a director, officer, trustee, partner, managing member, fiduciary, employee or agent of the Company or of any other Enterprise Entity which such person is or was serving at the request of the Company.

 

(b)           “Disinterested Director” shall mean, in respect of a Proceeding in which indemnification is sought by Indemnitee, a director of the Company who is not and was not a party to such Proceeding.

 

(c)           “Enterprise” shall mean the Company, any Subsidiary of the Company and any other corporation, limited liability company, partnership, limited partnership, limited liability partnership, joint venture, trust, employee benefit plan or other entity (any, an “Enterprise Entity”) of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, trustee, partner, managing member, fiduciary, employee or agent.

 

(d)           “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(e)           “Expenses” shall include attorneys’ fees and costs, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding.  Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation, the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent.

 

(f)            “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act.

 

(g)           The term “Proceeding” shall include any threatened, pending or completed action, suit, claim, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative or investigative nature, in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was an officer of the Company, by reason of any action taken by him or of any inaction on his part while acting as an officer of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, trustee, general partner, managing member, fiduciary, employee or agent of any other Enterprise Entity, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement, or advancement of expenses can be provided under this Agreement.

 

2

 

(h)           “Subsidiary” shall mean, in respect of any Person, any corporation, association, limited liability company, partnership or other business entity of which more than 50% of the total voting power of shares capital stock or other interests (including partnership or membership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by (i) such Person, (ii) such Person and one or more Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

 

(i)            References to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of the Company or which imposes duties on, or involves services by, such director, officer, trustee, partner, managing member, fiduciary, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as such terms are referred to in this Agreement and used in the DGCL.

 

3.             Indemnity in Third-Party Proceedings.  The Company shall indemnify and hold harmless Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is made, or is threatened to be made, a party to or a participant in (as a witness or otherwise) any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, liabilities, fines, penalties, amounts paid in settlement (including, without limitation, all interest, assessments and other charges paid or payable in connection with or in respect of any of the foregoing) (collectively, “Losses”) actually and reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any action, discovery event, claim, issue or matter therein or related thereto, except as provided in Sections 8 and 15.

 

4.             Indemnity in Proceedings by or in the Right of the Company.  The Company shall indemnify and hold harmless Indemnitee in accordance with the provisions of this Section 4 if Indemnitee was, is, or is threatened to be made, a party to or a participant (as a witness or otherwise) in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, except as provided in Sections 8 and 15.

 

5.             Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify and hold harmless Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith.  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 and hold harmless Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter.  If the Indemnitee is not wholly successful in such Proceeding, the Company also shall indemnify and hold harmless Indemnitee against all 

 

3

 

Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue, or matter on which the Indemnitee was successful.  For purposes of this Section 5 and without limitation, the termination of any claim, issue or matter in such a Proceeding by withdrawal or dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

6.             Indemnification For Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified and held harmless against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

7.             Additional Indemnification.

 

(a)           Notwithstanding any limitation in Sections 3, 4 or 5 hereof, the Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee is made, or is threatened to be made, a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Losses actually and reasonably incurred by Indemnitee in connection with the Proceeding, except as provided in Sections 8 and 15.

 

(b)           For purposes of Section 7(a) hereof, the meaning of the phrase “to the fullest extent permitted by law” shall include, but not be limited to:

 

i.              to the fullest extent authorized or permitted by the provisions of the DGCL as in effect as of the date of this Agreement that authorize or contemplate indemnification by agreement; and

 

ii.             to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers.

 

8.             Exclusions.  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity payment in connection with any claim made against Indemnitee:

 

(a)           for which payment actually has been received by or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount actually received under any insurance policy or other indemnity provision; or

 

(b)           for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act or similar provisions of state statutory law or common law; or

 

(c)           if a final judgment or other final adjudication by a court having jurisdiction in the matter shall determine that such indemnity is not lawful; or

 

4

 

(d)           in connection with any Proceeding if it has been finally adjudicated by a court of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee:

 

(1)           did not act in good faith and in a manner believed by him to be in or not opposed to the best interests of the Company;

 

(2)           engaged in willful misconduct or acts of gross negligence; or

 

(3)           in the case of any criminal Proceeding, failed to have reasonable cause to believe that his conduct was not unlawful; or

 

(e)           in connection with any Proceeding if it has been finally adjudicated by a court of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim for indemnification has arisen, Indemnitee is liable to the Company including, without limitation, a claim that Indemnitee received an illegal or improper personal benefit, unless the court of law or another court in which such Proceeding was brought shall determine upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Expenses of Losses which such court shall deem proper; or

 

(f)            except as otherwise provided in Sections 13(d)-(e) hereof, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law; or

 

(g)           brought about or contributed to by the dishonesty of the Indemnitee seeking payment hereunder; provided, however, that the Indemnitee shall be protected under this Agreement as to any claims upon which suit may be brought against him or her by reason of any alleged dishonesty on his or her part, unless a judgment or other final adjudication thereof adverse to the Indemnitee shall establish that he or she committed (i) acts of active and deliberate dishonesty, (ii) with actual dishonest purpose and intent, and (iii) which acts were material to the cause of action so adjudicated.

 

9.             Advances of Expenses; Defense of Claim.

 

(a)           Except where the Company is not obliged to make indemnity payment under this Agreement pursuant to Section 8 or Section 15, the Company shall advance the Expenses up to the applicable deductible under the Company’s insurance for director and officer liability (after which amount Expenses shall be invoiced by Indemnitee directly to the insurer) incurred by Indemnitee to the fullest extent permitted by law in connection with any Proceeding within ten (10) business days after the receipt by the Company of a statement or statements (including, at the request of the Company, reasonable detail underlying the expenses for which payment is requested) requesting such advances from time to time, whether prior to or after final disposition of any Proceeding.  Advances shall be unsecured, interest free and shall be made 

 

5

 

without regard to Indemnitee’s ability to repay the Expenses.  Advances shall include any and all reasonable Expenses incurred pursuing a Proceeding to enforce this right of advancement.  The Indemnitee shall qualify for advances solely upon the execution and delivery to the Company of both (i) a written affirmation of Indemnitee’s good-faith belief in his or her entitlement to indemnification hereunder of such Expenses and (ii) a written undertaking providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.

 

(b)           The Company will be entitled to participate in the Proceeding at its own cost and expense.

 

(c)           Subject to the last sentence of this subsection (c), in the event the Company shall be obligated to pay expenses of any Proceeding against Indemnitee, the Company shall be entitled to assume the defense of such Proceeding. After the retention of counsel and assumption of such defense by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently paid or incurred by Indemnitee with respect to the same Proceeding, provided that (x) Indemnitee shall have the right to employ separate counsel in any such Proceeding at Indemnitee’s own expense with no possibility of indemnification for such expense; and (y) the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company if (1) the employment of counsel by Indemnitee has been requested by the Company or (2) representation by such counsel retained by the Company would be precluded under the applicable standards of professional conduct; provided, however that the Company shall not be responsible for the fees and expenses of more than one firm of separate counsel for the Indemnitees in connection with any Proceeding in the same jurisdiction, in addition to local counsel, unless the Company otherwise consents or the failure to retain separate counsel for the particular Indemnitees would be precluded under the applicable standards of professional conduct. The Company shall not be entitled to assume the defense of any Proceeding brought by or on behalf of the Company or as to which the assumption of the defense by such counsel retained by the Company would be precluded under the applicable standards of professional conduct.

 

(d)           In the event the Company assumes the defense of the Proceeding, the Company will keep the Indemnitee reasonably informed of the progress of any such defense, compromise or settlement.

 

10.           Procedure for Notification and Application for Indemnification.

 

(a)           Indemnitee agrees to notify promptly 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 or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise unless, and to the extent that, the Company is prejudiced by such failure.

 

(b)           Indemnitee shall thereafter promptly deliver to the Company a written application to indemnify and hold harmless Indemnitee in accordance with this Agreement.  Following such a written application for indemnification by Indemnitee, the Indemnitee’s entitlement to indemnification shall be determined according to Section 11 hereof.

 

6

 

11.           Procedure Upon Application for Indemnification.

 

Upon written request by Indemnitee for indemnification pursuant to Section 10(b) hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made by a majority vote of the Disinterested Directors, even though less than a quorum of the Board.  If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) business days after such determination.  Indemnitee shall reasonably cooperate with the Disinterested Directors making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such Disinterested Directors 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.

 

12.           Presumptions and Effect of Certain Proceedings.

 

(a)           Neither the failure of the Company (including by its directors) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)           If the person or persons empowered or selected under Section 11 of this Agreement 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 made in accordance with Section 13; provided, however, that such thirty (30) day period may be extended for a reasonable time if the person or persons making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto or for compliance with applicable advance notice provisions or delivery of meeting materials in connection with any board meeting.

 

(c)           The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo  contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was not unlawful.

 

13.           Remedies of Indemnitee.

 

(a)           In the event that (i) a determination is made pursuant to Section 11 hereof that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 11 of this Agreement within thirty (30) days after receipt by the Company of the request for indemnification (as such time period may extended in accordance with Section 12(b)), (iv) payment of indemnification is not made pursuant to Section 5, Section 6 or the last sentence of Section 11 hereof within ten 

 

7

 

(10) business days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to Section 3, Section 4 or Section 7 hereof is not made within ten (10) business days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Except as set forth herein, the provisions of Delaware law (without regard to its conflict of laws rules) shall apply to any such arbitration.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

(b)           If a determination shall have been made pursuant to Section 11 hereof that Indemnitee is not entitled to indemnification, any arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de  novo arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  If Indemnitee commences an arbitration pursuant to this Section 13, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 9 hereof until a final determination is made with respect to Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed).

 

(c)           If a determination shall have been made pursuant to Section 11 hereof that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any arbitration commenced pursuant to this Section 13, 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.

 

(d)           The Company and the Indemnitee shall be precluded from asserting in any arbitration commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate before any such arbitrator that the Company and the Indemnitee are bound by all the provisions of this Agreement.

 

(e)           The Company shall indemnify and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses and, if requested by Indemnitee, shall (within ten (10) business days after the Company’s receipt of such written request) advance such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any arbitration brought by Indemnitee (i) to enforce his rights under, or to recover damages for breach of, this Agreement or any other indemnification, advancement or contribution agreement or provision of the Company’s Charter or Bylaws now or hereafter in effect; or (ii) for recovery or advances under any insurance policy maintained by any person for the benefit of Indemnitee.

 

14.           Non-exclusivity; Survival of Rights; Subrogation.

 

(a)           The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Charter, Bylaws, any agreement, a vote of stockholders of the Company or a resolution of the Board, or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater 

 

8

 

indemnification or advancement of Expenses than would be afforded currently under the Charter, Bylaws or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

(b)           In the event of 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, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

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

 

(d)           The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other Enterprise Entity shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such Enterprise Entity.

 

15.           Settlement.

 

(a)   Notwithstanding anything in this Agreement to the contrary, the Company shall have no obligation to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company’s prior written consent.

 

(b)   The Company shall not, without the prior written consent of Indemnitee, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise which (1) includes an admission of fault of Indemnitee, any non-monetary remedy affecting or obligation of Indemnitee, or monetary loss for which Indemnitee is not wholly indemnified hereunder or (2) with respect to any Proceeding with respect to which Indemnitee may be or is made a party, witness or participant or may be or is otherwise entitled to seek indemnification hereunder, does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee.  Neither the Company nor Indemnitee shall unreasonably withhold its consent to any proposed settlement under this Section 15.

 

16.           Duration of Agreement.  This Agreement shall continue until and terminate upon the later of: (a) six (6) years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any Enterprise Entity which Indemnitee served at the request of the Company; or (b) one (1) year after the final termination of any Proceeding (including any rights of appeal thereto) then pending in respect of which Indemnitee is granted rights of 

 

9

 

indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 13 hereof relating thereto (including any rights of appeal of any Section 13 Proceeding).

 

17.           Severability.  If any provision or provisions of this Agreement shall be held to be invalid, illegal or 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, paragraph or sentence 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; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence 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.           Enforcement and Binding Effect.

 

(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 of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an 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.

 

(c)           The indemnification and advancement of expenses provided by, or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), subject to Section 16 shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise Entity at the Company’s request, and shall inure to the benefit of Indemnitee and his or her heirs, devisees, executors and legatees.

 

19.           Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by 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 of this Agreement nor shall any waiver constitute a continuing waiver.  Indemnitee shall not act on behalf of or for the Company in agreeing to any supplement, modification, amendment or waiver of this Agreement.

 

20.           Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (a) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been 

 

10

 

directed, or (b) 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, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide in writing to the Company.

 

(b)           If to the Company to:

 

EnergySolutions, Inc.

423 West 300 South, Suite 200

Salt Lake City, Utah 84101

Attention:  Board of Directors

 

or to any other address as may have been furnished to Indemnitee in writing by the Company.

 

21.           Applicable Law and Consent to Jurisdiction.  This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 13(a) hereof, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the “Court”), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Court has been brought in an improper or inconvenient forum.

 

22.           Counterparts.  This Agreement may be executed in two 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.

 

23.           Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.  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.

 

11

 

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

 

	
ENERGYSOLUTIONS, INC.
    	
 
    	
INDEMNITEE
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Steve   Rogel
    	
 
    	
[Name]
    
	
 
    	
Chairman
    	
 
    	
Address:
    

 

[Signature Page to Officer Indemnity Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00206-of-00352.parquet"}]]