EXHIBIT
10.1
BASIC CARE NETWORKS,
INC.
DIRECTORS AND OFFICERS
INDEMNIFICATION AGREEMENT
THIS DIRECTORS
AND OFFICERS INDEMNIFICATION AGREEMENT is entered into, effective
as of February __, 2006 by and between Basic Care Networks, Inc., a
Delaware corporation (the "Company"), and ___________________
("Indemnitee").
WHEREAS, it is
essential to the Company to retain and attract as directors and
officers the most capable persons available;
WHEREAS,
Indemnitee is a director and/or officer of the Company;
and
WHEREAS, in
recognition of Indemnitee's need for substantial protection against
personal liability in order to enhance Indemnitee's continued and
effective service to the Company, and in order to induce Indemnitee
to provide services to the Company as a director and/or officer,
the Company wishes to provide in this Agreement for the
indemnification of and the advancing of expenses to Indemnitee to
the fullest extent (whether partial or complete) permitted by
Delaware law and as set forth in this Agreement, and, to the extent
insurance is maintained, for the coverage of Indemnitee under the
Company's directors' and officers' liability insurance
policies.
NOW, THEREFORE,
in consideration of the above premises and of Indemnitee's
continuing to serve the Company directly or, at its request, with
another enterprise, and intending to be legally bound hereby, the
parties agree as follows:
(a) “Board” shall mean the Board of
Directors of the Company.
(b) “Change In Control” shall be deemed
to have occurred if (i) any "person" (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the "Act")), other than a trustee or other fiduciary
holding securities under an employee benefit plan of the Company or
a corporation owned directly or indirectly by the stockholders of
the Company in substantially the same proportions as their
ownership of stock of the Company (collectively "excluded
persons"), is or becomes the "Beneficial Owner" (as defined in Rule
13d-3 under the Act), directly or indirectly, of securities of the
Company representing 30% or more of the total voting power
represented by the Company's then outstanding Voting Securities, or
(ii) during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board and any new
director whose election by the Board or nomination for election by
the Company's stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either
were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any
reason to constitute a majority of the Board, or (iii) the
stockholders of the Company approve a merger or consolidation of
the Company with any other corporation, other than a merger or
consolidation that would result in the Voting Securities of the
Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted
into Voting Securities of the surviving entity) at least 50% of the
total voting power represented by the Voting Securities of the
Company or such surviving entity outstanding immediately after such
merger or consolidation, or (iv) the stockholders of the Company
approve a plan of complete liquidation of the Company or an
agreement for the sale or disposition by the Company (in one
transaction or a series of transactions) of all or substantially
all of the Company's assets.
(c) “Expenses” shall mean any expense,
liability, or loss, including attorneys' fees, judgments, fines,
ERISA excise taxes and penalties, amounts paid or to be paid in
settlement, any interest, assessments, or other charges imposed
thereon, and any federal, state, local, or foreign taxes imposes as
a result of the actual or deemed receipt of any payments under this
Agreement, paid or incurred in connection with investigating,
defending, being a witness in, or participating in (including on
appeal), or preparing for any of the foregoing in, any Proceeding
relating to any Indemnifiable Event.
(d) “Indemnifiable Event” shall mean
any event or occurrence that takes place either prior to or after
the effective date of this Agreement, related to the fact that
Indemnitee is or was a director or an officer of the Company, or
while a director or officer is or was serving at the request of the
Company as a director, officer, employee, trustee, agent, or
fiduciary of another foreign or domestic corporation, partnership,
joint venture, employee benefit plan, trust, or other enterprise,
or was a director, officer, employee, or agent of a foreign or
domestic corporation that was a predecessor corporation of the
Company or of another enterprise at the request of such predecessor
corporation, or related to anything done or not done by Indemnitee
in any such capacity.
(e) “Independent Counsel” shall mean
the person or body appointed in connection with Section 3 of this
Agreement.
(f) “Potential Change In Control” shall
be deemed to have occurred if (i) the Company enters into an
agreement or arrangement, the consummation of which would result in
the occurrence of a Change in Control, (ii) any person (including
the Company) publicly announces an intention to take or to consider
taking actions that, if consummated, would constitute a Change in
Control, (iii) any person (other than an Excluded Person) who is or
becomes the Beneficial Owner, directly or indirectly, of securities
of the Company representing 10% or more of the combined voting
power of the Company's then outstanding Voting Securities,
increases his beneficial ownership of such securities by 5% or more
over the percentage so owned by such person on the date hereof, or
(iv) the Board adopts a resolution to the effect that, for purposes
of this Agreement, a Potential Change in Control has
occurred.
(g) “Proceeding” shall mean (i) any
threatened, pending, or complete action, suit, or proceeding,
whether civil, criminal, administrative, investigative, or other,
or (ii) any inquiry, hearing, or investigation, whether conducted
by the Company or any other party, that Indemnitee in good faith
believes might lead to the institution of any such action, or
proceeding.
(h) “Reviewing Party” shall mean the
person or body appointed in accordance with Section 3 of this
Agreement.
(i) “Voting Securities” shall mean any
securities of the Company that vote generally in the election of
directors.
2. Agreement to Indemnify .
(a) General Agreement . In the
event Indemnitee was, 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, a Proceeding by reason of (or arising in
part out of) an Indemnifiable Event, the Company shall indemnify
Indemnitee from and against any and all Expenses to the fullest
extent permitted by law, as the same exists or may hereafter be
amended or interpreted (but in the case of any such amendment or
interpretation, only to the extent that such amendment or
interpretation permits the Company to provide broader
indemnification rights than were permitted prior
thereto).
(b) Initiation Of Proceeding .
Notwithstanding anything in this Agreement to the contrary,
Indemnitee shall not be entitled to indemnification pursuant to
this Agreement in connection with any Proceeding initiated by
Indemnitee against the Company or any director or officer of the
Company unless (i) the Company has joined in or the Board has
consented to the initiation of such Proceeding, (ii) the Proceeding
is one to enforce indemnification rights under Section 4, or (iii)
the Proceeding is instituted after a Change in Control and
Independent Counsel has approved its initiation.
(c) Expense Advances . If so requested by
Indemnitee, the Company shall advance (within ten business days of
such request) any and all Expenses to Indemnitee (an "Expense
Advance"); provided that such request shall be accompanied by
reasonable evidence of the expenses incurred by Indemnitee and
that, if and to the extent that the Reviewing Party determines that
Indemnitee would not be permitted to be so indemnified under
applicable law, the Company shall be entitled to be reimbursed by
Indemnitee (who hereby agrees to reimburse the Company) for all
such amounts theretofore paid. If Indemnitee has commenced legal
proceedings in a court of competent jurisdiction to secure a
determination that Indemnitee should be indemnified under
applicable law, as provided in Section 4, any determination made by
the Reviewing Party that Indemnitee would not be permitted to be
indemnified under applicable law shall not be binding and
Indemnitee shall not be required to reimburse the Company for any
Expense Advance until a final judicial determination is made with
respect thereto (as to which all rights of appeal therefrom have
been exhausted or have lapsed).
(d) Mandatory Indemnification
. Notwithstanding any other
provision of this Agreement (other than Section 2(f) below), to the
extent that Indemnitee has been successful on the merits in defense
of any Proceeding relating in whole or in part to an Indemnifiable
Event or in defense of any issue or matter therein, Indemnitee
shall be indemnified against all Expenses incurred in connection
therewith.
(e) Partial Indemnification . If
Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of Expenses,
but not, however, for the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion thereof to which
Indemnitee is entitled.
(f) Prohibited Indemnification
. No indemnification pursuant to
this Agreement shall be paid
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