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Exhibit
10.29
INDEMNIFICATION AGREEMENT
THIS INDEMNIFICATION AGREEMENT (this "Agreement") is made as of
, 200 , by and between RF
Monolithics, Inc., a Delaware corporation (the "Company"), and
("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 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 Bylaws of the Company require
indemnification of the officers and directors of the Company.
Indemnitees may also be entitled to indemnification pursuant to
applicable provisions of the Delaware General Corporation Law
("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 to protect such persons against claims and expenses arising
out of their services on behalf of the Company.
WHEREAS , the uncertainties relating to these risks have
increased the difficulty of attracting and retaining such persons
and have resulted in such persons requiring reasonable protection
in the form of indemnification and insurance.
WHEREAS , the Board 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 reasonable protection in the
future.
WHEREAS , it is reasonable, prudent and necessary for the
Company contractually to obligate itself to indemnify, hold
harmless and to advance expenses on behalf of such persons to the
fullest extent permitted by applicable law, so that such persons
will serve or continue to serve the Company free from undue concern
that they will not be so protected against liabilities.
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.
WHEREAS , Indemnitee does not regard the protection
available under the Bylaws and insurance as adequate in the present
circumstances, and the Company desires Indemnitee to serve in such
capacity.
NOW, THEREFORE , in consideration of the premises and the
covenants contained herein, the Company and Indemnitee do hereby
covenant and agree as follows:
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Indemnification Agreement
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TERMS AND
CONDITIONS
1. SERVICES TO THE COMPANY . Indemnitee will serve or continue
to serve as an officer, director or key employee of the Company for
so long as Indemnitee is duly elected or appointed or until
Indemnitee tenders his resignation.
2. DEFINITIONS . As used in this Agreement:
(a) References to "agent" shall mean any person who is or was a
director, officer, or employee of the Company or a subsidiary of
the Company or other person authorized by the Company to act for
the Company, to include such person serving in such capacity as a
director, officer, employee, fiduciary or other official of another
corporation, partnership, limited liability company, 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.
(b) The terms "Beneficial Owner" and "Beneficial Ownership"
shall have the meanings set forth in Rule 13d-3 promulgated under
the Exchange Act (as defined below) as in effect on the date
hereof.
(c) 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, 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 entitled to vote
generally in the election of directors, unless (1) the change
in the relative Beneficial Ownership of the Company’s
securities by any Person results solely from a reduction in the
aggregate number of outstanding shares of securities entitled to
vote generally in the election of directors, or (2) such
acquisition was approved in advance by the Continuing Directors (as
defined below) and such acquisition would not constitute a Change
in Control under part (iii) of this definition;
(ii) Change in Board of Directors. Individuals who, as of the
date hereof, constitute the Board, and any new director 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 were directors on
the date hereof or whose election for nomination for election was
previously so approved (collectively, the "Continuing Directors"),
cease for any reason to constitute at least a majority of the
members of the Board;
(iii) Corporate Transactions. The effective date of a
reorganization, merger or consolidation of the Company (a "Business
Combination"), in each case, unless, following such Business
Combination: (1) all or substantially all of the individuals
and entities who were the Beneficial Owners of securities entitled
to vote generally in the election of directors immediately prior to
such Business Combination beneficially own, directly or indirectly,
more than 51% of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the
election of directors resulting from such Business Combination
(including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of
the Company’s assets either directly or through one or more
Subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination, of the
securities entitled to vote generally in the election of directors;
(2) no Person (excluding any corporation resulting from such
Business Combination) is the Beneficial Owner, directly or
indirectly, of 15% or more of the combined voting power of the then
outstanding securities entitled to vote generally in the election
of directors of such corporation except to the extent that such
ownership existed prior to the Business Combination; and
(3) at least a majority of the Board of Directors of the
corporation resulting from such Business Combination were
Continuing Directors at the time of the execution of the initial
agreement, or of the action of the Board of Directors, providing
for such Business Combination;
(iv) Liquidation. The approval by the stockholders of the
Company of a complete liquidation of the Company or an agreement or
series of agreements for the sale or disposition by the Company of
all or substantially all of the Company’s assets, other than
factoring the Company’s current receivables or escrows due
(or, if such approval is not required, the decision by the Board to
proceed with such a liquidation, sale, or disposition in one
transaction or a series of related transactions); or
(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.
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Indemnification Agreement
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(d) "Corporate Status" describes the status of a
person who is or was a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent of the Company or of
any other Enterprise (as defined below) which such person is or was
serving at the request of the Company.
(e) "Delaware Court" shall mean the Court of Chancery of the
State of Delaware.
(f) "Disinterested Director" shall mean a director of the
Company who is not and was not a party to the Proceeding (as
defined below) in respect of which indemnification is sought by
Indemnitee.
(g) "Enterprise" shall mean the Company and any other
corporation, constituent corporation (including any constituent of
a constituent) absorbed in a consolidation or merger to which the
Company (or any of its wholly owned subsidiaries) is a party,
limited liability company, 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,
trustee, general partner, managing member, fiduciary, employee or
agent.
(h) "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended.
(i) "Expenses" shall include all direct and indirect costs, fees
and expenses of any type or nature whatsoever, including, without
limitation, all attorneys’ fees and costs, including fees and
costs of Independent Counsel, retainers, court costs, transcript
costs, fees of experts, witness fees, travel expenses, fees of
private investigators and professional advisors, duplicating costs,
printing and binding costs, telephone charges, postage, delivery
service fees, fax transmission charges, secretarial services and
all other disbursements, obligations or expenses in connection with
prosecuting, defending, preparing to prosecute or defend,
investigating, being or preparing to be a witness in, settlement or
appeal of, or otherwise participating in, a Proceeding (as defined
below), including reasonable compensation for time spent by the
Indemnitee for which he or she is not otherwise compensated by the
Company or any third party. Expenses also shall include Expenses
incurred in connection with any appeal resulting from any
Proceeding (as defined below), including without limitation the
principal, 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.
(j) "Independent Counsel" shall mean a law firm or a member of a
law firm with significant experience 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 (as defined below)
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.
(k) References to "fines" shall include any excise tax assessed
on Indemnitee 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, agent or fiduciary of the
Company which imposes duties on, or involves services by, such
director, officer, employee, agent or fiduciary with respect to an
employee benefit plan, its participants or beneficiaries; and if
Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the best interests of the participants
and beneficiaries of an employee benefit plan, Indemnitee shall be
deemed to have acted in a manner "not opposed to the best interests
of the Company" as referred to in this Agreement.
(l) The term "Person" shall have the meaning as set forth in
Sections 13(d) and 14(d) of the Exchange Act as in effect on the
date hereof; provided, however, that "Person" shall exclude:
(i) the Company; (ii) any Subsidiaries (as defined below)
of the Company; (iii) any employment benefit plan of the
Company or of a Subsidiary (as defined below) of the Company or of
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; and (iv) any trustee or
other fiduciary holding securities under an employee benefit plan
of the Company or of a Subsidiary (as defined below) of the Company
or of a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company.
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Indemnification Agreement
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(m) A "Potential Change in Control" shall be
deemed to have occurred if: (i) the Company enters into an
agreement or arrangement, the consummation of which would result in
the occurrence of a Change in Control; (ii) any Person or the
Company publicly announces an intention to take or consider taking
actions which if consummated would constitute a Change in Control;
(iii) any Person who is or becomes the Beneficial Owner,
directly or indirectly, of securities of the Company representing
5% or more of the combined voting power of the Company’s then
outstanding securities entitled to vote generally in the election
of directors increases his Beneficial Ownership of such securities
by 5% or more over the percentage so owned by such Person on the
date hereof unless such acquisition was approved in advance by the
Board; or (iv) the Board adopts a resolution to the effect
that, for purposes of this Agreement, a Potential Change in Control
has occurred.
(n) The term "Proceeding" shall include any threatened, pending
or completed action, suit, arbitration, mediation, 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 and whether of a civil (including intentional or
unintentional tort claims), criminal, administrative or
investigative nature, in which Indemnitee was, is, will or might 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 (or failure to act) taken by him or of any
action (or failure to act) on his part while acting as a 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,
trustee, general partner, managing member, fiduciary, employee or
agent of any 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.
(o) The term "Subsidiary," with respect to any Person, shall
mean any corporation or other entity of which a majority of the
voting power of the voting equity securities or equity interest is
owned, directly or indirectly, by that Person.
3. INDEMNITY IN THIRD-PARTY PROCEEDINGS . The Company
shall indemnify and hold harmless Indemnitee in accordance with the
provisions of this Section 3 if Indemnitee was, is, or is
threatened to be made, a party to or a participant (as a witness or
otherwise) 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 and held
harmless against all Expenses, judgments, liabilities, fines,
penalties and amounts paid in settlement (including all interest,
assessments and other charges paid or payable in connection with or
in respect of such Expenses, judgments, fines, penalties 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, which is the subject of the Proceeding, was unlawful.
4. INDEMNITY IN PROCEEDINGS BY OR IN THE RIGHT OF THE
COMPANY . The Company shall indemnify and hold harmless
Indemnitee in accordance with the provisions of this Section 4
if Indemnitee was, is, or is threatened to be made, a party to or a
participant (as a witness or otherwise) 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
and held harmless 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 or
hold harmless 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 of competent
jurisdiction to be liable to the Company, unless and only to the
extent that any court in which the Proceeding was brought or the
Delaware Court 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 or to be held harmless.
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
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Indemnification Agreement
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or otherwise, in any Proceeding or in defense of
any claim, issue or matter therein, in whole or in part, the
Company shall indemnify and hold harmless 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 and hold harmless
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 and hold
harmless 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.
6. INDEMNIFICATION FOR EXPENSES OF A WITNESS .
Notwithstanding any other provision of this Agreement, to the
extent that Indemnitee is, by reason of his Corporate Status, a
witness in any Proceeding to which Indemnitee is not a party, he
shall be indemnified and held harmless against all Expenses
actually and reasonably incurred by him or on his behalf in
connection therewith.
7. CONTRIBUTION IN THE EVENT OF JOINT LIABILITY .
(a) To the fullest extent permissible under applicable law, if
the indemnification, and/or hold harmless rights provided for in
this Agreement are unavailable to Indemnitee in whole or in part
for any reason whatsoever, the Company, in lieu of indemnifying or
holding harmless Indemnitee, shall pay, in the first instance, the
entire amount incurred by Indemnitee, whether for judgments,
liabilities, fines, penalties, amounts paid or to be paid in
settlement and/or for Expenses, in connection with any Proceeding
without requiring Indemnitee to contribute to such payment, and the
Company hereby waives and relinquishes any right of contribution it
may have at any time against Indemnitee.
(b) The Company shall not enter into any settlement of any
Proceeding in which the Company is jointly liable with Indemnitee
(or would be if joined in such Proceeding) unless such settlement
provides for a full and final release of all claims asserted
against Indemnitee.
(c) The Company hereby agrees to fully indemnify and hold
harmless Indemnitee from any claims for contribution which may be
brought by officers, directors or employees of the Company other
than Indemnitee who may be jointly liable with Indemnitee.
8. EXCLUSIONS . Notwithstanding any provision in this
Agreement, the Company shall not be obligated under this Agreement
to make any indemnification or hold harmless payment in connection
with any claim made against Indemnitee:
(a) for which payment has actually been received by or on behalf
of Indemnitee under any insurance policy or other indemnity
provision, except with respect to any excess beyond the amount
actually received under any insurance policy, contract, agreement,
other indemnity provision or otherwise;
(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 Exchange Act or
similar provisions of state statutory law or common law; or
(c) except as
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