ADS TACTICAL, INC. INDEMNIFICATION AGREEMENT
Exhibit 10.20
This Indemnification Agreement (“Agreement”) is effective as of , 2011 by
and between ADS TACTICAL, INC., a Delaware corporation (the “Company”), and ___
(“Indemnitee”).
WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and its related entities;
WHEREAS, Indemnitee is a director and/or an officer of the Company;
WHEREAS, in order to induce Indemnitee to continue to provide services to the Company, the
Company wishes to provide for the indemnification of, and the advancement of expenses to,
Indemnitee to the maximum extent permitted by law;
WHEREAS, the Bylaws of the Company (the “Bylaws”) provides for the indemnification of
the Company’s officers, directors, agents, and employees to the maximum extent authorized by law;
WHEREAS, the Bylaws and Section 145 of the Delaware General Corporation Law (the
“DGCL”), by their non-exclusive nature, permit contracts between the Company and the
members of its Board of Directors, its officers and its employees;
WHEREAS, the Bylaws of the Company (the “Bylaws”) provide certain indemnification
rights to the officers, directors, employees and agents of the Company, and its officers and
directors have relied on this assurance of indemnification, as provided by the DGCL;
WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining and
maintaining liability insurance for the Company’s directors, officers, employees, agents and
fiduciaries, the significant increases in the cost of such insurance and the general reductions in
the coverage of such insurance;
WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, agents and fiduciaries to
expensive litigation risks at the same time as the availability and coverage of liability insurance
has been severely limited;
WHEREAS, in recognition of Indemnitee’s need for substantial protection against personal
liability in order to enhance Indemnitee’s continued service to the Company in an effective manner,
the continuing difficulty in obtaining and maintaining liability insurance coverage, and
Indemnitee’s reliance on assurance of indemnification, the Company wishes to provide in this
Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest
extent permitted by the Bylaws, the Bylaws and the DGCL (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 Company’s directors’ and officers’ liability insurance policies; and
WHEREAS, in view of the considerations set forth above and Indemnitee’s continuing to serve as
a director and/or officer of the Company, the Company desires that Indemnitee shall be indemnified
and advanced expenses by the Company as set forth herein;
NOW, THEREFORE, the Company and Indemnitee hereby agree as set forth below.
1. Certain Definitions.
(a) “Board of Directors” shall mean the Board of Directors of the Company.
(b) “Change of Control” shall mean:
(1) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended) (each a “Person”) (other
than any employee benefit plan (or related trust) of the Company) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 15%
or more of either (i) the then outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (ii) the combined voting power of the then
outstanding Voting Securities (the “Outstanding Company Voting Securities”); or
(2) individuals who, as of the date hereof, constitute the Board of Directors (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a director subsequent to
the date hereof whose election, or nomination for election by the stockholders, was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies of consents by or on behalf of a Person other than the Board of
Directors; or
(3) consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of the Company (a “Business Combination”), in each
case, unless, following such Business Combination, (i) the Persons who were the beneficial owners
of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Business Combination, respectively, beneficially own, directly or indirectly, more than 50%
of the then outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of directors,
respectively, of the corporation resulting from such Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities,
respectively, (ii) no Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Company or such corporation resulting from such
Business Combination)
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beneficially owns, directly or indirectly, 15% or more of, respectively, the then outstanding
shares of common stock of the corporation resulting from such Business Combination or the combined
voting power of the then outstanding voting securities of such corporation except to the extent
that such ownership existed prior to the Business Combination, and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial agreement, or of the
action of the Board of Directors, providing for such Business Combination; or
(4) approval by the stockholders of a complete liquidation or dissolution of the Company.
(c) “Claim” shall mean, with respect to a Covered Event, any threatened, pending or
completed action, suit, proceeding or alternative dispute resolution mechanism, whether instituted
by the Company or any other party, or any hearing, inquiry or investigation that Indemnitee in good
faith believes might lead to the institution of any such action, suit, proceeding or alternative
dispute resolution mechanism, whether civil (including intentional and unintentional tort claims),
criminal, administrative, investigative or other.
(d) “Covered Event” shall mean any event or occurrence related to the fact that
Indemnitee is or was a director, officer, employee, consultant, agent or fiduciary of the Company,
or any subsidiary of the Company, or is or was serving at the request of the Company as a director,
officer, employee, consultant, trustee, agent or fiduciary of another corporation, partnership,
joint venture, trust or other enterprise, or by reason of any action or inaction on the part of
Indemnitee while serving in such capacity.
(e) “Disinterested Director” shall mean a director of the Company who is not and was
not a party to the matter in respect of which indemnification is sought by the Indemnitee.
(f) “Expenses” shall mean any and all expenses (including attorneys’ fees and all
other reasonable costs, expenses and obligations paid or incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or preparing to defend, to
be a witness in or to participate in, any action, suit, proceeding, alternative dispute resolution
mechanism, hearing, inquiry or investigation), judgments, fines, penalties and amounts paid in
settlement (if such settlement is approved in advance by the Company, which approval shall not be
unreasonably withheld or delayed), actually paid or incurred, of any Claim, all interest,
assessments and other charges paid or payable in connection therewith or in respect thereof, and
any federal, state, local or foreign taxes imposed on the Indemnitee as a result of the actual or
deemed receipt of any payments under this Agreement.
(g) “Expense Advance” shall mean, pursuant to Section 3, a payment to
Indemnitee of Expenses in advance of the settlement or final judgment of a Claim.
(h) “Independent Legal Counsel” shall mean a law firm, a member of a law firm or an
independent practitioner that is experienced in matters of corporate law and shall include any
person who, under the applicable standards of professional conduct then prevailing,
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would not have a conflict of interest in representing either the Company or the Indemnitee in
an action to determine the Indemnitee’s rights under this agreement.
(i) References to “other enterprises” shall include employee benefit plans; references
to “fines” shall include any excise taxes assessed on Indemnitee with respect to an
employee benefit plan; and references to “serving at the request of the Company” shall
include any service as a director, officer, employee, agent or fiduciary of the Company which
imposes duties on, or involves services by, such director, officer, employee, agent or fiduciary
with respect to an employee benefit plan, its participants or its beneficiaries.
(j) “Reviewing Party” shall mean, subject to the provisions of Section 2(d),
any person or body appointed by the Board of Directors in accordance with applicable law to review
the Company’s obligations hereunder and under applicable law, which may include a member or members
of the Board of Directors, Independent Legal Counsel or any other person or body not a party to the
particular Claim for which Indemnitee is seeking indemnification.
(k) “Section” refers to a section of this Agreement unless otherwise indicated.
(l) “Voting Securities” shall mean any securities of the Company that vote generally
in the election of directors.
2. Indemnification.
(a) Indemnification of Expenses. Subject to the provisions of Section 2(b),
the Company shall indemnify Indemnitee for Expenses to the fullest extent permitted by law if
Indemnitee was or is or becomes a party to or witness or other participant in, or is threatened to
be made a party to or witness or other participant in, any Claim (by reason of or arising in part
out of a Covered Event), including all interest, assessments and other charges paid or payable in
connection with or in respect of such Expenses.
(b) Review of Indemnification Obligations. Notwithstanding the foregoing, in the
event any Reviewing Party shall have determined pursuant to a written legal opinion that Indemnitee
is not entitled to be indemnified hereunder under applicable law, (i) the Company shall have no
further obligation under Section 2(a) to make any payments to Indemnitee not made prior to
such determination by such Reviewing Party, and (ii) the Company shall be entitled to be reimbursed
by Indemnitee (who hereby agrees to reimburse the Company) for all Expenses theretofore paid in
indemnifying Indemnitee; provided, however, that if Indemnitee has commenced or
thereafter commences legal proceedings in a court of competent jurisdiction to secure a
determination that Indemnitee is entitled to be indemnified hereunder under applicable law, any
determination made by any Reviewing Party that Indemnitee is not entitled to be indemnified
hereunder under applicable law shall not be binding and Indemnitee shall not be required to
reimburse the Company for any Expenses theretofore paid in indemnifying Indemnitee until a final
judicial determination is made with respect thereto (as to which all rights of appeal therefrom
have been exhausted or lapsed). Indemnitee’s obligation to reimburse the Company for any Expenses
shall be unsecured and no interest shall be charged thereon.
(c) Indemnitee Rights on Unfavorable Determination, Binding Effect. If any Reviewing
Party determines that Indemnitee substantively is not entitled to be indemnified
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hereunder in whole or in part under applicable law, Indemnitee shall have the right to
commence litigation seeking an initial determination by the court or challenging any such
determination by such Reviewing Party or any aspect thereof, including the legal or factual bases
therefor, and, subject to the provisions of Section 17, the Company hereby consents to
service of process and to appear in any such proceeding. Absent such litigation, any determination
by any Reviewing Party shall be conclusive and binding on the Company and Indemnitee.
(d) Selection of Reviewing Party; Change of Control. If requested by Indemnitee,
Independent Legal Counsel shall be the Reviewing Party with respect to all matters thereafter
arising concerning the rights of Indemnitee to indemnification of Expenses under this Agreement or
any other agreement or under the Certificate of Incorporation of the Company, as amended (the
“Charter”) or the Bylaws, as now or hereafter in effect, or under any other applicable law.
If no such request is made by Indemnitee, any Reviewing Party shall be selected by (i) the Board
of Directors, by a majority vote of a quorum consisting of Disinterested Directors, or (ii) if a
quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even
if obtainable, such quorum of Disinterested Directors so directs, by Independent Legal Counsel in
writing to the Board of Directors, a copy of which shall be delivered to the Indemnitee. In the
event the Reviewing Party shall be Independent Legal Counsel at the request of the Indemnitee, the
Independent Legal Counsel shall be selected by the Board of Directors unless a Change of Control
shall have occurred prior to the date of the commencement of the action, suit or proceeding for
which indemnification is claimed, in which case the Independent Legal Counsel shall be selected by
the Indemnitee and approved by the Company (which approval shall not be unreasonably withheld or
delayed) unless the claimant shall request that such selection be made by the Board of Directors.
Such counsel, among other things, shall render its written opinion to the Company and Indemnitee as
to whether and to what extent Indemnitee would be entitled to be indemnified hereunder under
applicable law and the Company agrees to abide by such opinion. The Company agrees to pay the
reasonable fees of the Independent Legal Counsel referred to above and to indemnify fully such
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. Notwithstanding
any other provision of this Agreement, the Company shall not be required to pay Expenses of more
than one Independent Legal Counsel in connection with all matters concerning a single Indemnitee.
(e) Mandatory Payment of Expenses. Notwithstanding any other provision of this
Agreement other than Section 10, to the extent that Indemnitee has been successful on the
merits or otherwise, including, without limitation, the dismissal of an action without prejudice,
in defense of any Claim, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.
(f) Additional Expenses. Notwithstanding any other provision of this Agreement other
than Section 10 and Section 15, the Indemnitee shall be indemnified against all
Expenses and, if requested by the Indemnitee, advance payment of such Expenses, which are incurred
by the Indemnitee in connection with any action brought by the Indemnitee for (a) indemnification
or advance payment of Expenses by the Company under this Agreement or any other agreement of the
Company now or hereafter in effect relating to Claims for Covered Events or (b) recovery under any
directors’ and officers’ liability insurance policies maintained
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by the Company, regardless of whether the Indemnitee ultimately is determined to be entitled
to such indemnification, advance expense payment or insurance recovery, as the case may be.
3. Expense Advances.
(a) Obligation to Make Expense Advances. Upon receipt of a written undertaking by or
on behalf of the Indemnitee to repay such amounts if it shall ultimately be determined that the
Indemnitee is not entitled to be indemnified therefor by the Company, the Company shall make
Expense Advances to Indemnitee.
(b) Form of Undertaking. Any written undertaking by the Indemnitee to repay any
Expense Advances hereunder shall be unsecured, shall not require any guarantee from any other
Person and no interest shall be charged thereon.
(c) Determination of Reasonable Expense Advances. The parties agree that for the
purposes of any Expense Advance for which Indemnitee has made written demand to the Company in
accordance with this Agreement, all Expenses included in such Expense Advance that are represented
by Indemnitee’s counsel as being reasonable shall be presumed conclusively to be reasonable.
4. Procedures for Indemnification and Expense Advances.
(a) Timing of Payment. All payments of Expenses (including, without limitation,
Expense Advances) by the Company to the Indemnitee pursuant to this Agreement shall be made to the
fullest extent permitted by law as soon as practicable after written demand by Indemnitee therefor
is presented to the Company, but in no event later than thirty (30) days after such written demand
by Indemnitee is presented to the Company, except in the case of Expense Advances, including the
advance payment of Expenses under Section 2(f), which shall be made no later than two (2)
business days after such written demand by Indemnitee is presented to the Company.
(b) Notice/Cooperation by Indemnitee. Indemnitee shall promptly give the Company
notice in writing of any Claim made against Indemnitee for which indemnification will or could be
sought under this Agreement. Notice to the Company shall be directed to the General Counsel of the
Company at the address shown on the signature page of this Agreement (or such other address as the
Company shall designate in writing to Indemnitee); provided, however, that the
failure to promptly give the Company notice in writing shall not relieve it from any liability that
it may have under this Agreement, except to the extent that it has been materially prejudiced
(through the forfeiture of substantive rights or defenses) by such failure. In addition,
Indemnitee shall reasonably cooperate with the Company and shall give the Company such information
as it may reasonably require.
(c) No Presumptions, Burden of Proof.
(1) In making a determination with respect to entitlement to indemnification hereunder, the
Reviewing Party shall presume that Indemnitee is entitled to indemnification under this Agreement
if Indemnitee has submitted a request for indemnification in accordance with Section 2(a),
and the Company shall have the burden of proof to overcome
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that presumption. Neither the failure of the Company (including by its directors or
Independent Counsel) 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 or Independent Counsel) 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.
(2) If the Reviewing Party is selected by the Board of Directors and such Reviewing Party
shall not have made a determination within thirty (30) days after receipt by the Company of the
request therefor, the requisite determination of entitlement to indemnification shall be deemed to
have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement
by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for indemnification, or (ii) a
final judicial determination that any or all such indemnification is expressly prohibited under
applicable law; provided, however, that such 30-day period may be extended for a
reasonable time, not to exceed an additional fifteen (15) days, if the Reviewing Party requires
such additional time for the obtaining or evaluating of documentation and/or information relating
thereto.
(3) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted
in good faith if Indemnitee’s action is based on the records or books of account of the Company,
including financial statements, or on information supplied to Indemnitee by the other officers of
the Company in the course of their duties, or on the advice of legal counsel for the Company or on
information or records given or reports made to the Company by an independent certified public
accountant or by an appraiser or other expert selected by the Company. The provisions of this
Section 4(c)(3) shall not be deemed to be exclusive or to limit in any way the other
circumstances in which the Indemnitee may be deemed or found to have met the applicable standard of
conduct set forth in this Agreement.
(4) For purposes of this Agreement, the termination of any Claim by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a plea of nolo
contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has determined that
indemnification is not permitted by this Agreement or applicable law.
(d) Notice to Insurers. If, at the time of the receipt by the Company of a notice of
a Claim pursuant to Section 4(b), the Company has liability insurance in effect which may
cover such Claim, the Company shall give prompt notice of the commencement of such Claim to the
insurers in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such Claim in accordance with the terms of such
policies.
(e) Selection of Counsel. In the event the Company shall be obligated hereunder to
provide indemnification for or make any Expense Advances with respect to the Expenses of any Claim,
the Company, if appropriate, shall be entitled to assume the defense of
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such Claim with counsel approved by Indemnitee (which approval shall not be unreasonably
withheld or delayed) upon the delivery to Indemnitee of written notice of the Company’s election to
do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of
such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for
any fees or expenses of separate counsel subsequently employed by or on behalf of Indemnitee with
respect to the same Claim; provided that, (i) Indemnitee shall have the right to employ
Indemnitee’s separate counsel in any such Claim at Indemnitee’s expense and (ii) if (A) the
employment of separate counsel by Indemnitee has been previously authorized by the Company, (B)
Indemnitee shall have reasonably concluded that there may be a conflict of interest between the
Company and Indemnitee in the conduct of any such defense, or (C) the Company shall not continue to
retain such counsel to defend such Claim, then the fees and expenses of Indemnitee’s separate
counsel shall be Expenses for which Indemnitee may receive indemnification or Expense Advances
hereunder.
(f) Settlement by Company. The Company shall be permitted to settle any action,
except that it shall not settle any action or claim in any manner which may impose any penalty or
limitation or constitute any admission of wrongdoing or which may compromise, or may adversely
effect, the defense of the Indemnitee in any other proceeding, whether civil or criminal, without
Indemnitee’s prior written consent. Indemnitee will not unreasonably withhold or delay his consent
to any proposed settlement.
5. Additional Indemnification Rights, Nonexclusivity.
(a) Scope. The Company hereby agrees to indemnify the Indemnitee to the fullest
extent permitted by law, notwithstanding that such indemnification may not be specifically
authorized by the Charter, the Bylaws, or by statute as of the date hereof. In the event of any
change after the date of this Agreement in any applicable law, statute or rule which expands the
right of a Delaware corporation to indemnify a member of its board of directors or an officer,
employee, agent or fiduciary, it is the intent of the parties hereto that Indemnitee shall enjoy by
this Agreement the greater benefits afforded by such change. In the event of any change in any
applicable law, statute or rule which narrows the right of a Delaware corporation to indemnify a
member of its board of directors or an officer, employee, agent or fiduciary, such change, to the
extent not otherwise required by such law, statute or rule to be applied to this Agreement, shall
have no effect on this Agreement or the parties’ rights and obligations hereunder except as set
forth in Section 10(a).
(b) Nonexclusivity. The indemnification and the payment of Expense Advances provided
by this Agreement shall be in addition to any rights to which Indemnitee may be entitled under the
Charter, the Bylaws, any subsequent agreement, any vote of stockholders or Disinterested Directors,
the General Corporation Law of the State of Delaware, or otherwise. The indemnification and the
payment of Expense Advances provided under this Agreement shall continue as to Indemnitee for any
action taken or not taken while serving in an indemnified capacity even though subsequent thereto
Indemnitee may have ceased to serve in such capacity.
6. No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with
any Claim made against Indemnitee to the
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extent Indemnitee has otherwise actually received payment
(under any insurance policy, provision of the Charter or Bylaws or otherwise) of the amounts
otherwise payable hereunder.
7. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of Expenses incurred in connection with any Claim, but not, however,
for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
of such Expenses to which Indemnitee is entitled.
8. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that in certain instances, federal law or
applicable public policy may prohibit the Company from indemnifying its directors, officers,
employees, agents or fiduciaries under this Agreement or otherwise. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to undertake with the
Securities and Exchange Commission, or to submit the question of indemnification to a court in
certain circumstances for, a determination of the Company’s right, under public policy, to
indemnify Indemnitee.
9. Liability Insurance. From the date hereof until the sixth anniversary of the date that Indemnitee ceases to be
an officer or director of the Company, the Company shall maintain a directors’ and officers’
liability insurance policy covering the Indemnitee, with coverage in amount and scope at least as
favorable to Indemnitee as is customary for similarly situated officers and directors at similarly
situated companies and any of the Company’s other directors and officers.
10. Exceptions. Notwithstanding any other provision of this Agreement, the Company shall not be obligated
pursuant to the terms of this Agreement:
(a) Excluded Action or Omissions. To indemnify Indemnitee for Expenses resulting from
acts, omissions or transactions for which Indemnitee is prohibited from receiving indemnification
under this Agreement or applicable law; provided, however, that notwithstanding any
limitation set forth in this Section 10(a) regarding the Company’s obligation to provide
indemnification, Indemnitee shall be entitled under Section 3 to receive Expense Advances
hereunder with respect to any such Claim unless and until a court having jurisdiction over the
Claim shall have made a final judicial determination (as to which all rights of appeal therefrom
have been exhausted or lapsed) that Indemnitee has engaged in acts, omissions or transactions for
which Indemnitee is prohibited from receiving indemnification under this Agreement or applicable
law.
(b) Claims Initiated by Indemnitee. To indemnify or make Expense Advances to
Indemnitee with respect to Claims initiated or brought voluntarily by Indemnitee and not by
way of defense, counterclaim or crossclaim, except (i) with respect to actions or proceedings
brought to establish or enforce a right to indemnification under this Agreement or any other
agreement or insurance policy or under the Charter or Bylaws now or hereafter in effect relating to
Claims for Covered Events, (ii) in specific cases if the Board of Directors has approved the
initiation or bringing of such Claim, or (iii) as otherwise required under Section 145 of the
General Corporation Law of the State of Delaware, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification or insurance recovery, as the case may be.
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(c) Bad Faith. To indemnify Indemnitee for any Expenses incurred by the Indemnitee
with respect to any action instituted (i) by Indemnitee to enforce or interpret this Agreement, if
a court having jurisdiction over such action determines as provided in Section 15 that each
of the material assertions made by the Indemnitee as a basis for such action was made in bad faith
or was frivolous, or (ii) by or in the name of the Company to enforce or interpret this Agreement,
if a court having jurisdiction over such action determines as provided in Section 15 that
each of the material defenses asserted by Indemnitee in such action was made in bad faith or was
frivolous.
(d) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Exchange Act, or any similar successor statute; provided, however,
that notwithstanding any limitation set forth in this Section 10(d) regarding the Company’s
obligation to provide indemnification, Indemnitee shall be entitled under Section 3 to
receive Expense Advances hereunder with respect to any such Claim unless and until a court having
jurisdiction over the Claim shall have made a final judicial determination (as to which all rights
of appeal therefrom have been exhausted or lapsed) that Indemnitee has violated said statute.
(e) Illegal Remuneration. To indemnify Indemnitee in respect to remuneration paid to
Indemnitee if it shall be determined by final judgment or final adjudication that such remuneration
was in violation of law.
(f) Unauthorized Settlement. To indemnify Indemnitee for any amounts paid in
settlement of any action or claim without Company’s written consent. The Company will not
unreasonably withhold or delay its consent to any proposed settlement.
11. Contribution. If the indemnification provided for in this Agreement is unavailable by reason of a Court
decision based on grounds other than any of those set forth in paragraphs (a) through (f) of
Section 10, then in respect of any Claim in which the Company is jointly liable with Indemnitee (or
would be if joined in such Claim), the Company, in lieu of indemnifying Indemnitee, shall
contribute to the Expenses incurred by Indemnitee in connection with any Claim relating to an
indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in
light of all of the circumstances of such Claim in order to reflect (i) the relative benefits
received by the Company, on the one hand, and Indemnitee, on the other hand, as a result of the
events(s) and/or transaction(s) giving cause to such Claim, and (ii) the relative fault of the
Company (and its directors, officers, employees and agents) on the one hand and Indemnitee on the
other hand in connection with such event(s) and/or transaction(s). The relative fault of the
Company on the
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. The Company agrees that it would not be
just and equitable if contribution pursuant to this Section 11 were determined by pro rata
allocation or any other method of allocation which does not take account of the foregoing equitable
considerations.
12. Duration of Agreement. All agreements and obligations of the Company contained herein shall continue during the
period Indemnitee serves as a director, officer, employee, agent or
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fiduciary of the Company or as
a director, officer, employee, agent or fiduciary of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise which Indemnitee serves at the request of
the Company and shall continue thereafter so long as Indemnitee shall be subject to any possible
Claim (including any rights of appeal thereto) by reason of a Covered Event, whether or not he is
acting in any such capacity at the time any liability or expense is incurred for which
indemnification can be provided under this Agreement.
13. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall constitute
an original.
14. Binding Effect, Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors, assigns (including any direct or indirect successor
by purchase, merger, consolidation or otherwise to all or substantially all of the business or
assets of the Company), spouses, heirs and personal and legal representatives. The Company shall
require and cause any successor (whether direct or indirect, and whether by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part, of the business or
assets of the Company, by written agreement in form and substance reasonably satisfactory to
Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform if no such succession had taken place.
This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as a
director, officer, employee, agent or fiduciary (as applicable) of the Company or of any other
enterprise at the Company’s request.
15. Expenses Incurred in Action Relating to Enforcement or Interpretation. In the event that any action is instituted by Indemnitee under this Agreement or under any
liability insurance policies maintained by the Company to enforce or interpret any of the terms
hereof or thereof, Indemnitee shall be entitled to be indemnified for all Expenses incurred by
Indemnitee with respect to such action (including without limitation attorneys’ fees), regardless
of whether Indemnitee is ultimately successful in such action, unless as a part of such action a
court having jurisdiction over such action makes a final judicial determination (as to which all
rights of appeal therefrom have been exhausted or lapsed) that each of the material assertions made
by Indemnitee as a basis for such action was not made in good faith or was
frivolous; provided, however, that until such final judicial determination is
made, Indemnitee shall be entitled under Section 3 to receive payment of Expense Advances
hereunder with respect to such action. In the event of an action instituted by or in the name of
the Company under this Agreement to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be indemnified for all expenses incurred by Indemnitee in defense
of such action (including without limitation costs and expenses incurred with respect to
Indemnitee’s counterclaims and cross-claims made in such action), unless as a part of such action a
court having jurisdiction over such action makes a final judicial determination (as to which all
rights of appeal therefrom have been exhausted or lapsed) that each of the material defenses
asserted by Indemnitee in such action was made in bad faith or was frivolous; provided,
however, that until such final judicial determination is made, Indemnitee shall be entitled
under Section 3 to receive payment of Expense Advances hereunder with respect to such
action.
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16. Notice. All notices, requests, demands and other communications under this Agreement shall be in
writing and shall be deemed duly given (i) if delivered by hand and signed for by the party
addressed, on the date of such delivery, (ii) the day after being sent, if sent by a reputable
overnight receipted courier service, or (iii) if mailed by domestic certified or registered mail
with postage prepaid, on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by
written notice.
17. Consent to Jurisdiction. The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the
courts of the State of Delaware for all purposes in connection with any action or proceeding which
arises out of or relates to this Agreement and agree that any action instituted under this
Agreement shall be commenced, prosecuted and continued only in the Court of Chancery of the State
of Delaware in and for New Castle County, which shall be the exclusive and only proper forum for
adjudicating such a claim.
18. Severability. The provisions of this Agreement shall be severable in the event that any of the provisions
hereof (including any provision within a single section, paragraph or sentence) are held by a court
of competent jurisdiction to be invalid, void or otherwise unenforceable, and the remaining
provisions shall remain enforceable to the fullest extent permitted by law. Furthermore, to the
fullest extent possible, the provisions of this Agreement (including without limitation each
portion of this Agreement containing any provision held to be invalid, void or otherwise
unenforceable, which is not itself invalid, void or unenforceable) shall be construed so as to give
effect to the intent manifested by the provision held invalid, illegal or unenforceable.
19. Choice of Law. This Agreement, and all rights, remedies, liabilities, powers and duties of the parties to
this Agreement, shall be governed by and construed in accordance with the laws of the State of
Delaware without regard to principles of conflicts of laws.
20. Subrogation. In the event of 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 documents
required and shall do all acts that may be necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such rights.
21. Amendment and Termination. No amendment, modification, termination or cancellation of this Agreement shall be
effective unless it is in writing signed by both the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed to be or shall constitute a waiver of any other
provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver.
22. Integration and Entire Agreement. Without limiting any of the rights of Indemnitee under the Charter or Bylaws, as they may
be amended from time to time, this Agreement sets forth the entire understanding between the
parties hereto and supersedes and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the parties hereto.
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23. Injunctive Relief. The parties hereto agree that Indemnitee may enforce this Agreement by seeking specific
performance hereof, without any necessity of showing irreparable harm or posting a bond, which
requirements are hereby waived, and that by seeking specific performance, Indemnitee shall not be
precluded from seeking or obtaining any other relief to which he or she may be entitled.
24. No Construction as Employment Agreement. Nothing contained in this Agreement shall be construed as giving Indemnitee any right to be
retained in the employ of the Company or any of its subsidiaries or affiliated entities.
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IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement as of the
date first above written.
| ADS TACTICAL, INC. | ||||
By: |
||||
| Name: | ||||
| Title: | ||||
| Address: | ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ |
| AGREED TO AND ACCEPTED | ||||
| INDEMNITEE: | ||||
| By: | ||||
| Name: | ||||
| Title: | ||||
| Address: | ||||
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