Exhibit 10.10
INDEMNIFICATION AGREEMENT
THIS
INDEMNIFICATION AGREEMENT is effective as of [insert date]
(“Agreement”), by and between Heska Corporation, a
Delaware corporation (the “Company”), and [insert name
of person] (the “Indemnitee”), with reference to the
following facts:
A.
The Company desires the benefits of having Indemnitee serve as an
officer and/or director secure in the knowledge that any expenses,
liability and/or losses incurred by him in his good faith service
to the Company will be borne by the Company or its successors and
assigns;
B.
Indemnitee is willing to serve in his position with the Company
only on the condition that he be indemnified for such expenses,
liability and/or losses;
C.
The Company and Indemnitee recognize that obtaining liability
insurance for directors, officers and agents of a corporation at
reasonable cost may at times be difficult;
D.
The Company and Indemnitee recognize that there has been
substantial litigation against corporate directors, officers and
agents; and
E.
The Company’s Restated Certificate of Incorporation allows
the Company to indemnify its directors, officers and agents to the
maximum extent permitted under Delaware law.
NOW, THEREFORE,
the parties hereby agree as follows:
1. Definitions
. For purposes of this Agreement:
1.1
“Agent” shall mean any person who (a) is or was a
director, officer, employee or agent of the Company or a subsidiary
of the Company whether serving in such capacity or as a director,
officer, employee, agent, fiduciary or other official of another
corporation, joint venture, trust or other enterprise at the
request of, for the convenience of, or to represent the interests
of the Company or a subsidiary of the Company or (b) was a
director, officer, employee or agent of Heska Corporation, a
California corporation and the predecessor by merger to the Company
(the “Predecessor Corporation”), whether serving in
such capacity or as a director, officer, employee, agent, fiduciary
or other official of another corporation, joint venture, trust or
other enterprise at the request of, for the convenience of, or to
represent the interests of such Predecessor
Corporation.
1.2
“Change of Control” shall mean the occurrence of any of
the following events after the date of this Agreement:
(a)
A change in the composition of the board of directors of the
Company (the “Board”), as a result of which fewer than
two-thirds of the incumbent directors are directors who either
(a) had been directors of the Company 24 months prior to such
change or (b) were elected, or nominated for election, to the
Board with the affirmative votes of at least a majority of the
directors who had been directors of the Company 24 months prior to
such change and who were still in office at the time of the
election or nomination; or
(b)
Any “person” (as such term is used in sections
13(d) and 14(d) of the Securities Exchange Act of 1934
(the “Exchange Act”), as amended) through the
acquisition or aggregation of securities is or becomes the
beneficial owner, directly or indirectly, of securities of the
Company representing 20 percent or more of the combined voting
power of the Company’s then outstanding securities ordinarily
(and apart from rights accruing under special circumstances) having
the right to vote at elections of directors (the “Capital
Stock”); provided , however , that any change
in ownership of the Company’s securities by any person
resulting solely from a reduction in the aggregate number of
outstanding shares of Capital Stock, and any decrease thereafter in
such person’s ownership of securities, shall be disregarded
until such person increases in any manner, directly or indirectly,
such person’s beneficial ownership of any securities of the
Company.
1.3
“Disinterested Director” shall mean a director of the
Company who is not and was not a party to the Proceeding in respect
of which indemnification is being sought by Indemnitee.
1.4
“Expenses” shall be broadly construed and shall
include, without limitation, (a) all direct and indirect costs
incurred, paid or accrued, (b) all attorneys’ fees,
retainers, court costs, transcripts, fees of experts, witness fees,
travel expenses, food and lodging expenses while traveling,
duplicating costs, printing and binding costs, telephone charges,
postage, delivery service, freight or other transportation fees and
expenses, (c) all other disbursements and out-of-pocket
expenses, (d) amounts paid in settlement, to the extent not
prohibited by Delaware Law, and (e) reasonable compensation
for time spent by Indemnitee for which he is otherwise not
compensated by the Company or any third party, actually
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and reasonably
incurred in connection with or arising out of a Proceeding,
including a Proceeding by Indemnitee to establish or enforce a
right to indemnification under this Agreement, applicable law or
otherwise.
1.5
“Independent Counsel” shall mean a law firm or a member
of a law firm that neither is presently nor in the past five years
has been retained to represent: (a) the Company, an affiliate
of the Company or Indemnitee in any matter material to either party
or (b) 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 right to indemnification under this
Agreement.
1.6
“Liabilities” shall mean liabilities of any type
whatsoever, including, but not limited to, judgments or fines,
ERISA or other excise taxes and penalties, and amounts paid in
settlement (including all interest, assessments or other charges
paid or payable in connection with any of the foregoing) actually
and reasonably incurred by Indemnitee in connection with a
Proceeding.
1.7
“Delaware Law” means the Delaware General Corporation
Law, as amended and in effect from time to time or any successor or
other statutes of Delaware having similar import and
effect.
1.8
“Proceeding” shall mean any pending, threatened or
completed action, hearing, suit or any other proceeding, whether
civil, criminal, arbitrative, administrative, investigative or any
alternative dispute resolution mechanism, including without
limitation any such Proceeding brought by or in the right of the
Company.
2. Employment Rights
and Duties . Subject to any other obligations imposed on
either of the parties by contract or by law, and with the
understanding that this Agreement is not intended to confer
employment rights on either party which they did not possess on the
date of its execution, Indemnitee agrees to serve as a director or
officer so long as he is duly appointed or elected and qualified in
accordance with the applicable provisions of the Restated
Certificate of Incorporation (the “Certificate”) and
Bylaws (the “Bylaws”) of the Company or any subsidiary
of the Company and until such time as he resigns or fails to stand
for election or until his employment terminates. Indemnitee may
from time to time also perform other services at the request, or
for the convenience of, or otherwise benefiting the Company.
Indemnitee may at any time and for any reason resign or be removed
from such position (subject to any other contractual obligation or
other obligation imposed by operation of law), in which event the
Company shall have no obligation under this Agreement to continue
Indemnitee in any such position.
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2.1
Directors’ and Officers’ Insurance .
(a)
The Company hereby covenants and agrees that, so long as Indemnitee
shall continue to serve as a director or officer of the Company and
thereafter so long as Indemnitee shall be subject to any possible
Proceeding, the Company, subject to Section 2.1(c), shall
maintain directors’ and officers’ insurance in full
force and effect.
(b)
In all policies of directors’ and officers’ insurance,
Indemnitee shall be named as an insured in such a manner as to
provide Indemnitee the same rights and benefits, subject to the
same limitations, as are accorded to the Company’s directors
or officers most favorably insured by such policy.
3.
Indemnification . The Company shall indemnify
Indemnitee to the fullest extent not prohibited by Delaware Law and
the provisions of the Certificate and Bylaws of the Company in
effect on the date hereof, and as Delaware Law, the Certificate and
Bylaws may from time to time be amended (but, in the case of any
such amendment, only to the extent such amendment permits the
Company to provide broader indemnification rights than Delaware
Law, the Certificate and Bylaws permitted the Company to provide
before such amendment). The right to indemnification conferred in
the Certificate shall be presumed to have been relied upon by
Indemnitee in serving or continuing to serve the Company as a
director or officer and shall be enforceable as a contract right.
Without in any way diminishing the scope of the indemnification
provided by the Certificate and this Section 3, the Company
will indemnify Indemnitee if and whenever he is or was a witness,
party or is threatened to be made a witness or a party to any
Proceeding, by reason of the fact that he is or was an Agent or by
reason of anything done or not done, or alleged to have been done
or not done, by him in such capacity, against all Expenses and
Liabilities actually and reasonably incurred by Indemnitee or on
his behalf in connection with the investigation, defense,
settlement or appeal of such Proceeding. In addition to, and not as
a limitation of, the foregoing, the rights of indemnification of
Indemnitee provided under this Agreement shall include those rights
set forth in the remainder of this Agreement.
4. Payment of
Expenses .
4.1 All
Expenses incurred by or on behalf of Indemnitee shall be advanced
by the Company to Indemnitee within 20 days after the receipt by
the Company of a written request for such advance which may be made
from time to time, whether prior to or after final disposition of a
Proceeding (unless there has been a final determination by a court
of competent jurisdiction that Indemnitee is not entitled to be
indemnified for such Expenses). Indemnitee’s entitlement to
advancement of Expenses
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shall include
those incurred in connection with any Proceeding by Indemnitee
seeking a determination, an adjudication or an award in arbitration
pursuant to this Agreement. The requests shall reasonably evidence
the Expenses incurred by Indemnitee in connection therewith.
Indemnitee hereby undertakes to repay the amounts advanced if it
shall ultimately be determined that Indemnitee is not entitled to
be indemnified pursuant to the terms of this Agreement.
4.2
Notwithstanding any other provision in this Agreement, to the
extent that Indemnitee has been successful on the merits or
otherwise in defense of any Proceeding, Indemnitee shall be
indemnified against all Expenses and Liabilities actually and
reasonably incurred by Indemnitee in connection
therewith.
5. Procedure for
Determination of Entitlement to Indemnification .
5.1
Whenever Indemnitee believes that he is entitled to indemnification
pursuant to this Agreement, Indemnitee shall submit a written
request for indemnification (the “Indemnification
Request”) to the Company to the attention of the Chief
Executive Officer with a copy to the Secretary. This request shall
include documentation or information which is necessary for the
determination of entitlement to indemnification and which is
reasonably available to Indemnitee. Determination of
Indemnitee’s entitlement to indemnification shall be made no
later than 60 days after receipt of the Indemnification Request.
The Chief Executive Officer or the Secretary shall, promptly upon
receipt of Indemnitee’s request for indemnification, advise
the Board in writing that Indemnitee has made such request for
indemnification.
5.2 The
Indemnification Request shall set forth Indemnitee’s
selection of which of the following forums shall determine whether
Indemnitee is entitled to indemnification:
(1)
A majority vote of Directors who are not parties to the action with
respect to which indemnification is sought, even though less than a
quorum.
(2)
A written opinion of an Independent Counsel (provided there are no
such Directors as set forth in (1) above or if such Directors
as set forth in (1) above so direct or there has been a Change
of Control).
(3)
A majority vote of the stockholders at a meeting at which a quorum
is present, with the shares owned by the person to be indemnified
not being entitled to vote thereon.
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