Exhibit 10.16
INDEMNIFICATION AGREEMENT
This Indemnification Agreement (this
“ Agreement ”) is made as of this 13th day of
November, 2007 by and between Morgan Capital LLC (“ Morgan
Capital ”) and Coleman Cable, Inc., a Delaware
corporation (“ Coleman Cable ”).
WHEREAS, David Bistricer, is a member
of the Board of Directors of Coleman Cable and owns Morgan Capital,
a company engaged in the real estate business (the “
Employees ”);
WHEREAS, the Employees formerly
purchased health insurance for themselves and their dependents (the
“ Participants ”) from Coleman Cable’s
insurance carrier at the same rates paid by Coleman Cable employees
at no additional cost to Coleman Cable;
WHEREAS, on July 1, 2007,
Coleman Cable revised its health insurance arrangements so that it
would self-insure its employees’ health coverage subject to a
policy providing catastrophic health coverage in the event the
claim of any employee exceeded $40,000 in any year;
WHEREAS, the Participants became part
of the self insurance arrangement;
WHEREAS, Morgan Capital became aware
of the self-insurance arrangement on November 8, 2007;
WHEREAS, Morgan Capital is now
attempting to obtain separate insurance arrangements for the
Participants and expects that these arrangements will be in place
by December 31, 2007, if not sooner;
WHEREAS, in recognition of Coleman
Cable’s need for protection against liability related to the
participation of the Participants in Coleman Cable’s self
insurance arrangement, Morgan Capital has agreed to indemnify
Coleman Cable for any liabilities, costs or claims in excess of
premiums it pays to Coleman Cable relating to the Participants, as
well as for any administrative expenses relating to the
participation of the Participants (the “ Excess
Amounts ”); and
WHEREAS, Coleman Cable expects that
the maximum liability to Morga
