Exhibit 10.1
INDEMNIFICATION
AGREEMENT
This Indemnification Agreement
(“Agreement”) is made as of January 25, 2007 by and
between On Assignment, Inc., a Delaware corporation (the
“Company”), and Officer and/or Director
(“Indemnitee”).
RECITALS
WHEREAS, highly competent persons
have become more reluctant to serve publicly-held corporations as
directors 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
attempt to continue to maintain on an ongoing basis, at its sole
expense, liability insurance to protect persons serving the Company
and its subsidiaries from certain liabilities. The Bylaws of
the Company require indemnification of the officers and directors
of the Company. Indemnitee may also be entitled to
indemnification pursuant to the General Corporation Law of the
State of Delaware (“DGCL”). The 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, such persons are often
concerned about the uncertainties relating to such insurance and
indemnification;
WHEREAS, the Board has determined
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 Bylaws 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
NOW, THEREFORE, in consideration of
the premises and the covenants contained herein, the Company and
Indemnitee do hereby covenant and agree as follows:
1
Section
1.
Services to the Company . Indemnitee agrees to serve
as an officer and/or director of the Company. Indemnitee may
at any time and for any reason resign from such position (subject
to any other contractual obligation or any obligation imposed by
operation of law), in which event the Company shall have no
obligation under this Agreement to continue Indemnitee in such
position. This Agreement shall not be deemed an employment
contract between the Company (or any of its subsidiaries or any
Enterprise) and Indemnitee. Indemnitee specifically
acknowledges that Indemnitee’s employment with the Company
(or any of its subsidiaries or any Enterprise), if any, is at will,
and the Indemnitee may be discharged at any time for any reason,
with or without cause, except as may be otherwise provided in any
written employment contract between Indemnitee and the Company (or
any of its subsidiaries or any Enterprise), other applicable formal
severance policies duly adopted by the Board, or, with respect to
service as a officer or director of the Company, by the
Company’s Certificate of Incorporation, the Company’s
Bylaws, and the General Corporation Law of the State of
Delaware. The foregoing notwithstanding, this Agreement shall
continue in force after Indemnitee has ceased to serve as an
officer of the Company.
Section 2.
Definitions
. As used in this
Agreement:
(a)
A “Change
in Control” shall be deemed to occur upon the earliest to
occur after the date of this Agreement of any of the following
events:
(i)
Acquisition of Stock by Third Party. Any Person (as defined
below) is or becomes the Beneficial Owner (as defined below),
directly or indirectly, of securities of the Company representing
fifteen percent (15%) or more of the combined voting power of the
Company’s then outstanding securities;
(ii)
Change in Board of Directors. During any period of two (2)
consecutive years (not including any period prior to the execution
of this Agreement), individuals who at the beginning of such period
constitute the Board, and any new director (other than a director
designated by a person who has entered into an agreement with the
Company to effect a transaction described in Sections 2(a)(i),
2(a)(iii) or 2(a)(iv)) whose election by the Board or nomination
for election by the Company’s stockholders was approved by a
vote of at least two-thirds 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 least a majority of the
members of the Board;
(iii)
Corporate Transactions. The effective date of a merger or
consolidation of the Company with any other entity, other than a
merger or consolidation which would result in the voting securities
of the Company outstanding immediately prior to such merger or
consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the
surviving entity) more than 51% of the combined voting power of the
voting securities of the surviving entity outstanding immediately
after such merger or consolidation and with the power to elect at
least a majority of the board of directors or other governing body
of such surviving entity;
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(iv)
Liquidation. The approval by the stockholders of the Company
of a complete liquidation of the Company or an agreement for the
sale or disposition by the Company of all or substantially all of
the Company’s assets; and
(v)
Other Events. There occurs any other event of a nature that
would be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A (or a response to any similar item
on any similar schedule or form) promulgated under the Exchange Act
(as defined below), whether or not the Company is then subject to
such reporting requirement.
For purposes of this Section 2(a),
the following terms shall have the following meanings:
(A)
“Exchange Act” shall mean the Securities Exchange Act
of 1934, as amended.
(B)
“Person” shall have the meaning as set forth in
Sections 13(d) and 14(d) of the Exchange Act; provided, however,
that Person shall exclude (i) the Company, (ii) any trustee or
other fiduciary holding securities under an employee benefit plan
of the Company, and (iii) any corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the
Company.
(C)
“Beneficial Owner” shall have the meaning given to such
term in Rule 13d-3 under the Exchange Act; provided, however, that
Beneficial Owner shall exclude any Person otherwise becoming a
Beneficial Owner by reason of the stockholders of the Company
approving a merger of the Company with another entity.
(b)
“Corporate Status” describes the status of a person who
is or was a director, officer, employee or agent of the Company or
of any other corporation, partnership or joint venture, trust,
employee benefit plan or other enterprise which such person is or
was serving at the request of the Company.
(c)
“Disinterested Director” means a director of the
Company who is not and was not a party to the Proceeding in respect
of which indemnification is sought by Indemnitee.
(d)
“Enterprise” shall mean the Company and any other
corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise of which Indemnitee is or was serving at
the request of the Company as a director, officer, employee, agent
or fiduciary.
(e)
“Expenses” shall include all reasonable
attorneys’ fees, retainers, court costs, transcript costs,
fees of experts, witness fees, travel expenses, duplicating costs,
printing
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and binding
costs, telephone charges, postage, delivery service fees, and all
other disbursements or expenses of the types customarily incurred
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.
Expenses, however, shall not include amounts paid in settlement by
Indemnitee or the amount of judgments or fines against
Indemnitee.
(f)
“Independent Counsel” means a law firm, or a member of
a law firm, that is experienced in matters of corporation law and
neither presently is, nor in the past five years has been, retained
to represent: (i) the Company or Indemnitee in any matter
material to either such party (other than with respect to matters
concerning the Indemnitee under this Agreement, or of other
indemnitees under similar indemnification agreements), or (ii) any
other party to the Proceeding giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the
term “Independent Counsel” shall not include any person
who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing
either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company
agrees to pay the reasonable fees and expenses of the Independent
Counsel referred to above and to fully indemnify such counsel
against any and all Expenses, claims, liabilities and damages
arising out of or relating to this Agreement or its engagement
pursuant hereto.
(g)
The term “Proceeding” shall include any threatened,
pending or completed action, suit, 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, whether
of a civil, criminal, administrative or investigative nature and
whether formal or informal, in which Indemnitee was, is or will be
involved as a party or otherwise by reason of the fact that
Indemnitee is or was a director or officer of the Company, by
reason of any action taken by him or of any action on his part
while acting as director or 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, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, 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;
except one initiated by a Indemnitee to enforce his rights under
this Agreement.
(h)
Reference to “other enterprise” shall include employee
benefit plans; 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, employee or agent
of the Company which imposes duties on, or involves services by,
such director, officer, 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 manner “not opposed to the best interests of the
Company” as referred to in this Agreement.
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Section
3.
Indemnity in Third-Party Proceedings . The Company
shall indemnify Indemnitee in accordance with the provisions of
this Section 3 if Indemnitee is, or is threatened to be made, or in
good faith believes it will become, a party to or a participant in
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, fines and amounts paid in settlement actually and
reasonably incurred by Indemnitee or on his behalf in connection
with such Proceeding or any claim, issue or matter therein, if
Indemnitee acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the
Company and, in the case of a criminal proceeding had no reasonable
cause to believe that his conduct was unlawful.
Section
4.
Indemnity in Proceedings by or in the Right of the Company
. The Company shall indemnify Indemnitee in accordance
with the provisions of this Section 4 if Indemnitee is, or is
threatened to be made, a party to or a participant 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, if Indemnitee acted in good faith
and in a manner he reasonably believed to be in or not opposed to
the best interests of the Company. No indemnification for
Expenses shall be made under this Section 4 in respect of any
claim, issue or matter as to which Indemnitee shall have been
finally adjudged by a court to be liable to the Company, unless and
only to the extent that the Delaware Court of Chancery or any court
in which the 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 indemnification.
Section
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 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 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 Indemnitee against all
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 and
without limitation, the termination of any claim, issue or matter
in such a Proceeding by dismissal, with or without prejudice, shall
be deemed to be a successful result as to such claim, issue or
matter.
Section
6
Indemnification For Expenses of a Witness .
Notwithstanding any other provision of this Agreement, to the
extent that Indemnitee is, or in good faith believes it will
become, by reason of his Corporate Status, a witness in any
Proceeding to which Indemnitee is not a party, he shall be
indemnified against all Expenses actually and reasonably incurred
by him or on his behalf in connection therewith.
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Section
7.
Additional Indemnification .
(a)
Notwithstanding any limitation in Sections 3, 4, or 5, the Company
shall indemnify Indemnitee to the fullest extent permitted by law
if Indemnitee is a party to or 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 Expenses,
judgments, fines and amounts paid in settlement actually and
reasonably incurred by Indemnitee in connection with the
Proceeding.
(b)
For purposes of Section 7(a), the meaning of the phrase “to
the fullest extent permitted by law” shall include, but not
be limited to:
(i)
to the fullest extent permitted by the provision of the DGCL that
authorizes or contemplates additional indemnification by agreement,
or the corresponding provision of any amendment to or replacement
of the DGCL, 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 and directors.
Section
8.
Exclusions . Notwithstanding any provision in this
Agreement, the Company shall not be obligated under this Agreement
to make any indemnity in connection with any claim made against
Indemnitee:
(a)
for which payment has actually been made to or on behalf of
Indemnitee under any insurance policy or other indemnity provision,
except with respect to any excess beyond the amount paid 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 Securities Exchange Act
of 1934, as amended, or similar provisions of state statutory law
or common law pursuant to a settlement by or judgment against
Indemnitee; provided this shall not limit the Company’s
ability to defend such claim if it elects to do so; or
(c)
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 of Directors of the Company authorized or consented to the
Proceeding (or any part of any Proceeding) prior to its initiation
or joins in the Proceeding, (ii) the Proceeding is to enforce
rights under this Agreement, (iii) the Proceeding is initiated
after a Change of Control and Independent Counsel has approved its
initiation and (iv) the Company provides the indemnification, in
its sole discretion, pursuant to the powers vested in the Company
under applicable law.
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Section
9.
Advances of Expenses . Notwithstanding any
provision of this Agreement to the contrary, the Company shall
advance the expenses incurred by Indemnitee in connection with any
Proceeding within 10 business days after the re
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