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Exhibit 10.32
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FORM OF
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DIRECTOR
INDEMNIFICATION AGREEMENT
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This Agreement is made as of
the _____ day of _________, ____, by and between ______________, a
Massachusetts corporation (the "Corporation"), and
_________________ ("Indemnitee").
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WHEREAS, it is essential to
the Corporation to retain and attract as directors the most capable
persons available, and
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WHEREAS, it is the express
policy of the Corporation to indemnify its directors so as to
provide them with the maximum possible protection permitted by law,
and
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WHEREAS, Indemnitee does not
regard the protection that may be available under the Corporation's
insurance as adequate in the present circumstances, and is not
willing to remain as a director without adequate protection,
and
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WHEREAS, the Corporation
desires Indemnitee continue to serve as a director of the
Corporation.
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NOW THEREFORE, the
Corporation and Indemnitee do hereby agree as follows:
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1.
Agreement to Serve . Indemnitee agrees to continue to serve
as a director of the Corporation for so long as he is duly elected
or appointed or until such time as he renders his resignation in
writing.
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2.
Definitions . As used in this Agreement:
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(a) The
term "Corporate Status" shall mean the status of a person who is or
was a director of the Corporation or who, while a director of the
Corporation, is or was serving at the request of the Corporation,
as a director, officer, partner, trustee, employee or agent of
another corporation, partnership, joint venture, trust, employee
benefit plan, or other entity. A director is considered to be
serving an employee benefit plan at the Corporation's request if
his duties to the Corporation also impose duties on, or otherwise
involves services by, him to the plan or to participants in or
beneficiaries of the plan.
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(b) The
term "Disinterested Director" shall mean a director of the
Corporation who, at the time of a vote referred to in Paragraph 8
of this Agreement, is not (a) a party to the Proceeding, or
(b) an individual having a familiar, financial, professional, or
employment relationship with the Indemnitee, which relationship
would, in the circumstances,
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reasonably be expected to exert an influence on the director's
judgment when voting on the decision being made.
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(c) The
term "Expenses" shall include, without limitation, attorneys' fees,
retainers, court costs, transcript costs, fees of experts, travel
expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees and other disbursements or
expenses of the types customarily incurred in connection with a
Proceeding.
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(d) The
term "Liability" shall mean the obligation to pay a judgment,
settlement, penalty, fine including an excise tax assessed with
respect to an employee benefit plan, or reasonable expenses
incurred with respect to a Proceeding.
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(e) The
term "Proceeding" shall mean any threatened, pending or completed
action, suit, or proceeding, whether civil, criminal,
administrative, arbitrative or investigative, and whether formal or
informal, and including the production of documentary or
testimonial evidence, whether or not pursuant to a subpoena.
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3.
Indemnification
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(a) The
Corporation shall indemnify the Indemnitee if he was, is or is
threatened to be made a defendant or respondent in a Proceeding
because of his Corporate Status against Liability incurred in the
Proceeding if (1) (i) he conducted himself in good faith, and
(ii) he reasonably believed that his conduct was in the best
interests of the Corporation or that his conduct was at least not
opposed to the best interests of the Corporation, and (iii) in the
case of any criminal proceeding, he had no reasonable cause to
believe his conduct was unlawful, or (2) he engaged in conduct for
which he shall not be liable under the articles of
organization.
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(b) The
Indemnitee's conduct with respect to an employee benefit plan for a
purpose he reasonably believed to be in the interests of the
participants in, and the beneficiaries of, the plan is conduct that
satisfies the requirement that his conduct was at least not opposed
to the best interests of the Corporation.
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(c) The
termination of a proceeding by judgment, order, settlement, or
conviction, or upon a plea of nolo contendere or its
equivalent, is not, of itself, determinative that the Indemnitee
did not meet the relevant standard of conduct described in this
Paragraph 3.
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4.
Exceptions to Right of Indemnification . Notwithstanding
anything to the contrary in this Agreement, except as set forth in
Paragraphs 9 and 10, the Corporation shall not indemnify the
Indemnitee in connection with a Proceeding (or part thereof)
initiated by the Indemnitee unless the initiation thereof was
approved by the Board of Directors of the Corporation.
Notwithstanding anything to the contrary in this Agreement, the
Corporation shall not indemnify the Indemnitee to the extent
Indemnitee is reimbursed from the proceeds of insurance, and in the
event the Corporation makes any indemnification payment to the
Indemnitee and the Indemnitee is subsequently reimbursed from the
proceeds of insurance, the
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Indemnitee shall promptly refund such indemnification payments
to the Corporation to the extent of such insurance
reimbursements.
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5.
Indemnification of Expenses of Successful Party .
Notwithstanding any other provision of this Agreement, to the
extent that Indemnitee has been successful, on the merits or
otherwise, in the defense of any Proceeding to which he was a party
because of his Corporate Status, the Indemnitee shall be
indemnified against all reasonable Expenses incurred by him on
behalf in connection therewith. Without limiting the foregoing, if
any Proceeding is disposed of, on the merits or otherwise
(including a disposition without prejudice), without (i) the
disposition being adverse to the Indemnitee, (ii) an adjudication
that the Indemnitee was liable to the Corporation, (iii) a plea of
guilty or nolo contendere by the Indemnitee, (iv) an
adjudication that the Indemnitee did not act in good faith and in a
manner he reasonably believed to be in or not opposed to the best
interests of the Corporation, and (v) with respect to any criminal
proceeding, an adjudication that the Indemnitee had no reasonable
cause to believe his conduct was unlawful, the Indemnitee shall be
considered for the purposes hereof to have been wholly successful
with respect thereto.
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6.
Notification and Defense of Claim . As a condition precedent
to his right to be indemnified, the Indemnitee must notify the
Corporation in writing as soon as practicable of any Proceeding for
which indemnity will or could be sought by him and provide the
Corporation with a copy of any summons, citation, subpoena,
complaint, indictment, information or other document relating to
such Proceeding with which he is served. The failure by Indemnitee
to timely notify the Corporation of any Proceeding shall not
relieve the Corporation from any liability hereunder unless, and
only to the extent that, the Corporation did not otherwise learn of
such Proceeding and such failure results in forfeiture by the
Corporation of substantial defenses, rights or insurance coverage
that prejudices the Corporation's position. With respect to any
Proceeding of which the Corporation is so notified, the Corporation
will be entitled to participate therein at its own expense and/or
to assume the defense thereof at its own expense, with legal
counsel reasonably acceptable to the Indemnitee. After notice from
the Corporation to the Indemnitee of its election so to assume such
defense, the Corporation shall not be liable to the Indemnitee for
any legal or other ex
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