EXHIBIT 10.1
FORM OF INDEMNIFICATION
AGREEMENT
THIS INDEMNIFICATION AGREEMENT (the “
Agreement ”) is made and entered into as of
____________, 200_ between Acco Brands Corporation, a Delaware
corporation (the “ Company ”), and [________]
(“ Indemnitee ”).
WHEREAS, highly competent persons have become
more reluctant to serve corporations as directors or officers or in
other capacities unless they are provided with adequate protection
through insurance and adequate indemnification against risks of
claims and actions against them arising out of their service to and
activities on behalf of the Company;
WHEREAS, the Board of Directors of the Company
(the “ Board of Directors ”) has determined
that, in order to attract and retain qualified individuals, the
Company will attempt to maintain on an ongoing basis, at its sole
expense, liability insurance to protect persons serving the Company
and its subsidiaries from certain liabilities. Although
the furnishing of such insurance has been a customary and
widespread practice among United States-based corporations and
other business enterprises, the Company believes that, given
current market conditions and trends, such insurance may be
available to it in the future only at higher premiums and with more
exclusions. At the same time, directors, officers, and
other persons in service to corporations or business enterprises
are being increasingly subjected to expensive and time-consuming
litigation relating to, among other things, matters that
traditionally would have been brought only against the Company or
business enterprise itself. The By-Laws of the Company
(the “ By-Laws ”) provide for indemnification
of, among other persons, the directors and officers of the
Company. Directors and officers may also be entitled to
indemnification pursuant to the General Corporation Law of the
State of Delaware (“ DGCL ”). The
By-Laws 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 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 qualified directors and
officers;
WHEREAS, the Board of Directors 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 By-Laws of the Company and any resolutions
adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee
thereunder; and
WHEREAS, Indemnitee does not regard the
protection available under the Company’s By-Laws and
insurance as adequate in the present circumstances, and may not be
willing to serve as a director, officer, employee or agent without
adequate protection, and the Company desires Indemnitee to continue
to serve in such capacity or capacities. Indemnitee is
willing to continue to serve and to take on additional service for
or on behalf of the Company on the condition that he or she be so
indemnified.
NOW, THEREFORE, in consideration of
Indemnitee’s agreement to serve as a director, officer,
employee or agent after the date hereof, the parties hereto agree
as follows:
ARTICLE I
INDEMNIFICATION
1.
Proceedings Other Than Proceedings by or in the Right of the
Company . The Company shall indemnify Indemnitee to
the fullest extent permitted by applicable law if Indemnitee was or
is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (other than an action by
or in the right of the Company), by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of the
Company or any of its subsidiaries or is or was serving at the
request of the Company as a director, officer, employee or agent
(except in each of the foregoing situations to the extent any
written agreement, arrangement or understanding of agency to which
Indemnitee is a party contains provisions that supersede or
abrogate indemnification under this Section 1) of another
corporation or of any partnership, joint venture, trust, employee
benefit plan or other enterprise, against Expenses (as hereinafter
defined), judgments, penalties, fines, excise taxes and amounts
paid in settlement actually and reasonably incurred by Indemnitee
or on his behalf in connection with such action, suit or proceeding
if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests
of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his or her conduct
was unlawful. The termination of any action, suit or
proceeding by judgment, order, settlement, conviction, or upon a
plea of nolo contendere or its equivalent, shall not, of itself,
create a presumption that Indemnitee did not act in good faith and
in a manner which Indemnitee reasonably believed to be in or not
opposed to the best interests of the Company, or, with respect to
any criminal action or proceeding, had reasonable cause to believe
that his or her conduct was unlawful.
2.
Proceedings by or in the Right of the Company
. The Company shall indemnify Indemnitee to the fullest
extent permitted by applicable law if Indemnitee was or is a party
or is threatened to be made a party to any threatened, pending or
completed action or suit by or in the right of the Company to
procure a judgment in its favor by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of the
Company or any of its subsidiaries, or is or was serving at the
request of the Company as a director, officer, employee or agent
(except in each of the foregoing situations to the extent any
written agreement, arrangement or understanding of agency to which
Indemnitee is a party contains provisions that supersede or
abrogate indemnification under this Section 2) of another
corporation or of any partnership, joint venture, trust, employee
benefit plan or other enterprise against Expenses actually and
reasonably incurred by Indemnitee or on his behalf in connection
with the defense or settlement
of such action
or suit if Indemnitee acted in good faith and in a manner
Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company and except that no indemnification shall
be made in respect of any claim, issue or matter as to which
Indemnitee shall have been adjudged to be liable to the Company
unless and only to the extent that the Court of Chancery of
Delaware or the court in which such action or suit 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 which the Court of Chancery of Delaware or such other
court shall deem proper.
3.
Indemnification for Expenses of Indemnitee Who is Wholly or
Partly Successful . To the extent that Indemnitee
has been successful on the merits or otherwise in defense of any
action, suit or proceeding referred to in Section 1 or 2 of
this Article I, or in defense of any claim, issue or matter
therein, Indemnitee shall be indemnified against Expenses actually
and reasonably incurred by or on behalf of Indemnitee in connection
therewith. If Indemnitee is not wholly successful in any
such action, suit or proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or
matters therein, the Company shall indemnify Indemnitee against all
Expenses actually and reasonably incurred by or on behalf of
Indemnitee in connection with each claim, issue or matter that is
successfully resolved. For purposes of this
Article I and without limitation, the termination of any
claim, issue or matter by dismissal, with or without prejudice,
shall be deemed to be a successful result as to such claim, issue
or matter.
4.
Additional Indemnity . In addition to, and
without regard to any limitations on, the indemnification provided
for in Section 1 or 2 of this Article I, the Company
shall and hereby does indemnify and hold harmless Indemnitee
against all Expenses, judgments, penalties, fines and amounts paid
in settlement actually and reasonably incurred by him or on his
behalf if, by reason of his Corporate Status, he is, or is
threatened to be made, a party to or participant in any Proceeding
(including a Proceeding by or in the right of the Company),
including, without limitation, all liability arising out of the
negligence or active or passive wrongdoing of
Indemnitee. The only limitation that shall exist upon
the Company’s obligations pursuant to this Agreement shall be
that the Company shall not be obligated to make any payment to
Indemnitee that is finally determined (under the procedures, and
subject to the presumptions, set forth in Sections 7 and 8 of
this Article I and of Article II hereof) to be
unlawful.
(a) Whether
or not the indemnification provided in Sections 1, 2, 3 and 4
of this Article I is available, in respect of any threatened,
pending or completed action, suit or proceeding in which the
Company is jointly liable with Indemnitee (or would be if joined in
such action, suit or proceeding), the Company shall pay, in the
first instance, the entire amount of any judgment or settlement of
such action, suit or proceeding without requiring Indemnitee to
contribute to such payment and the Company hereby waives and
relinquishes any right of contribution it may have against
Indemnitee. The Company shall not enter into any
settlement of any action, suit or proceeding in which the Company
is jointly liable with Indemnitee (or would be if joined in such
action, suit or proceeding) unless such settlement provides for a
full and final release of all claims asserted against
Indemnitee.
(b) Without
diminishing or impairing the obligations of the Company set forth
in Section 5(a) of this Article I, if, for any reason,
Indemnitee shall elect or be required to pay all or any portion of
any judgment or settlement in any threatened, pending or completed
action, suit or proceeding in which the Company is jointly liable
with Indemnitee (or would be if joined in such action, suit or
proceeding), the Company shall contribute to the amount of
Expenses, judgments, fines and amounts paid in settlement actually
and reasonably incurred and paid or payable by Indemnitee in
proportion to the relative benefits received by the Company and all
officers, directors or employees of the Company, other than
Indemnitee, who are jointly liable with Indemnitee (or would be if
joined in such action, suit or proceeding), on the one hand, and
Indemnitee, on the other hand, from the transaction from which such
action, suit or proceeding arose; provided , however
, that the proportion determined on the basis of relative benefit
may, to the extent necessary to conform to law, be further adjusted
by reference to the relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are
jointly liable with Indemnitee (or would be if joined in such
action, suit or proceeding), on the one hand, and Indemnitee, on
the other hand, in connection with the events that resulted in such
expenses, judgments, fines or settlement amounts, as well as any
other equitable considerations which applicable law may require to
be considered. The relative fault of the Company and all
officers, directors or employees of the Company, other than
Indemnitee, who are jointly liable with Indemnitee (or would be if
joined in such action, suit or proceeding), on the one hand, and
Indemnitee, on the other hand, shall be determined by reference to,
among other things, the degree to which their actions were
motivated by intent to gain personal profit or advantage, the
degree to which their liability is primary or secondary and the
degree to which their conduct is active or passive.
(c) The
Company hereby agrees to fully indemnify and hold Indemnitee
harmless from any claims of contribution which may be brought by
officers, directors or employees of the Company, other than
Indemnitee, who may be jointly liable with Indemnitee.
(d) To
the fullest extent permissible under applicable law, if the
indemnification provided for in this Agreement is unavailable to
Indemnitee for any reason whatsoever, the Company, in lieu of
indemnifying Indemnitee, shall contribute to the amount incurred by
Indemnitee, whether for judgments, fines, penalties, excise taxes,
amounts paid or to be paid in settlement and/or for Expenses, 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 Proceeding in order to
reflect (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and/or transaction(s) giving
cause to such Proceeding; and/or (ii) the relative fault of
the Company (and its directors, officers, employees and agents) and
Indemnitee in connection with such event(s) and/or
transaction(s).
6.
Indemnification for Expenses of a Witness
. Notwithstanding any other provision of this
Article I, to the extent Indemnitee is a witness in, but not a
party to, any action, suit or proceeding, whether civil, criminal,
administrative or investigative, by reason of the fact that
Indemnitee is or was a director, officer, employee or agent of the
Company or any of its subsidiaries, or is or was serving at the
request of the Company as a director, officer, employee or agent
(except in each of the foregoing situations to the extent any
written agreement, arrangement or understanding of agency to which
Indemnitee is a party contains provisions that supersede or
abrogate indemnification under this Article I) of another
corporation or of any
partnership,
joint venture, trust, employee benefit plan or other enterprise,
Indemnitee shall be indemnified against all Expenses actually and
reasonably incurred by or on behalf of Indemnitee in connection
therewith.
7.
Determination of Right to Indemnification
. Indemnification under Sections 1 and 2 of this
Article I shall be made only as authorized in the specific
case upon a determination that indemnification of Indemnitee is
proper in the circumstances because Indemnitee has met the
applicable standard of conduct set forth in Section 1 or 2 of
this Article I, as the case may be. Such
determination shall be made (a) if a Change of Control (as
hereinafter defined) shall not have occurred, (i) by the Board
of Directors by a majority vote of the Disinterested Directors (as
hereinafter defined), even though less than a quorum, or
(ii) if there are no Disinterested Directors or, even if there
are Disinterested Directors, if a majority of such Disinterested
Directors so directs, by (A) Independent Counsel (as
hereinafter defined) in a written opinion to the Board of
Directors, a copy of which shall be delivered to Indemnitee, or
(B) if the Board of Directors so directs, the stockholders of
the Company; or (b) if a Change of Control shall have occurred
and subject to Article II, Section 3(c), by Independent
Counsel selected by Indemnitee in a written opinion to the Board of
Directors, a copy of which shall be delivered to Indemnitee, unless
Indemnitee shall request that such determination be made by or at
the direction of the Board of Directors, in which case it shall be
made in accordance with Section 7(a) of this
Article I. Indemnitee shall be entitled to be
indemnified against the Expenses actually and reasonably incurred
by Indemnitee in cooperating with the person or entity making the
determination of entitlement to indemnification (irrespective of
the determination as to Indemnitee’s entitlement to
indemnification) and, to the extent successful, in connection with
any litigation or arbitration with respect to such claim or the
enforcement thereof.
8.
Timing of Determination of Right to Indemnification
. If a Change of Control shall not have occurred, or if
a Change of Control shall have occurred and Indemnitee requests
pursuant to Section 7(b) of this Article I that the
determination as to whether Indemnitee is entitled to
indemnification be made by or at the direction of the Board of
Directors, Indemnitee shall be conclusively presumed to have been
determined pursuant to Section 7 of this Article I to be
entitled to indemnification if (a)(i) within fifteen days
after the next regularly scheduled meeting of the Board of
Directors following receipt by the Company of the request therefor,
the Board of Directors shall not have resolved by majority vote of
the Disinterested Directors to submit such determination to
(A) Independent Counsel for its determination or (B) the
stockholders for their determination at the next annual meeting, or
any special meeting that may be held earlier, after such receipt,
and (ii) within sixty days after receipt by the Company of the
request therefor (or within ninety days after such receipt if the
Board of Directors in good faith determines that additional time is
required by it for the determination and, prior to expiration of
such sixty-day period, notifies Indemnitee thereof), the Board of
Directors shall not have made the determination by a majority vote
of the Disinterested Directors, or (b) after a resolution of
the Board of Directors, timely made pursuant to
Section 8(a)(i)(B) of this Article I, to submit the
determination to the stockholders, the stockholders meeting at
which the determination is to be made shall not have been held on
or before the date prescribed (or on or before a later date, not to
exceed sixty days beyond the original date, to which such meeting
may have been postponed or adjourned on good cause by the Board of
Directors acting in good faith); provided , however ,
that this sentence shall not apply if Indemnitee has misstated or
failed to state a material fact in connection with his or her
request for indemnification. Such presumed determination
that
Indemnitee is
entitled to indemnification shall be deemed to have been made
(I) at the end of the sixty-day or ninety-day period (as the
case may be) referred to in Section 8(a)(ii) of this
Article I or (II) if the Board of Directors has resolved
on a timely basis to submit the determination to the stockholders,
on the last date within the period prescribed by law for holding
such stockholders meeting (or a postponement or adjournment thereof
as permitted above).
9.
Advancement of Expenses . Expenses actually and
reasonably incurred by Indemnitee in defending any civil, criminal,
administrative or investigative action, suit or proceeding referred
to in this Article I shall be paid by the Company in advance
of the final disposition of such action, suit or proceeding,
promptly after receipt of a request therefor stating in reasonable
detail the Expenses incurred; provided that, in each case,
the Company shall have received an undertaking by or on behalf of
Indemnitee to repay such amount if it shall ultimately be
determined that Indemnitee is not entitled to be indemnified by the
Company as authorized in this section.
10.
Definitions . For purposes of this
Agreement:
(a) “
Change of Control ” means any of the
following:
(i) The
acquisition by any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
“ Person ”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or
more of either (A) the then outstanding shares of common stock
of the Company (the “ Outstanding Corporation Common
Stock ”) or (B) the combined voting power of the
then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the “ Outstanding
Corporation Voting Securities ”); provided ,
however , that for purposes of this Section 10(a)(i),
the following acquisitions shall not constitute a Change of
Control: (A) any acquisition directly from the
Company, (B) any acquisition by the Company, (C) any
acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation
controlled by the Company or (D) any acquisition pursuant to a
transaction which complies with Section 10(iii)(A), (B) or (C)
of this Article I; or
(ii) Individuals
who, as of August 17, 2005, 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 that date whose election, or nomination for
election by the Company’s 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 or consents by or on behalf o
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