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Bookham,
Inc.
Indemnification Agreement
Directors & Officers
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INDEMNIFICATION
AGREEMENT
This Agreement is
made as of the
day of October 2005, by and between Bookham, Inc. , a
Delaware corporation (the “Corporation), and
(the “Indemnitee”), a director or officer of the
Corporation.
WHEREAS, it is
essential to the Corporation to retain and attract as directors and
officers the most capable persons available, and
WHEREAS, the
substantial increase in corporate litigation subjects directors and
officers to expensive litigation risks at the same time that the
availability of directors’ and officers’ liability
insurance has been severely limited, and
WHEREAS, it is now
and has always been the express policy of the Corporation to
indemnify its directors and officers, and
WHEREAS, the
Indemnitee does not regard the protection available under the
Corporation’s Certificate of Incorporation and insurance as
adequate in the present circumstances, and may not be willing to
serve or continue to serve as a director or officer without
adequate protection, and
WHEREAS, the
Corporation desires the Indemnitee to serve, or continue to serve,
as a director or officer of the Corporation.
NOW THEREFORE, the
Corporation and the Indemnitee do hereby agree as
follows:
1.
Agreement to Serve . The Indemnitee agrees to serve or
continue to serve as a director or officer of the Corporation for
so long as the Indemnitee is duly elected or appointed or until
such time as the Indemnitee tenders a resignation in
writing.
2.
Definitions . As used in this Agreement:
(a) The
term “Proceeding” shall include any threatened, pending
or completed action, suit, arbitration, alternative dispute
resolution proceeding, administrative hearing or other proceeding,
whether brought by or in the right of the Corporation or otherwise
and whether of a civil, criminal, administrative or investigative
nature, and any appeal therefrom.
(b) The
term “Corporate Status” shall mean the status of a
person who is or was a director or officer of the Corporation, or
is or was serving, or has agreed to serve, at the request of the
Corporation, as a director, officer, partner, trustee, member,
employee or agent of another corporation, partnership, joint
venture, trust, limited liability company or other
enterprise.
(c) The
term “Expenses” shall include, without limitation,
attorneys’ fees, retainers, court costs, transcript costs,
fees and expenses of experts, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery
service fees and other disbursements or expenses of the types
customarily incurred in connection with investigations,
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Bookham,
Inc.
Indemnification Agreement
Directors & Officers
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judicial or
administrative proceedings or appeals, but shall not include the
amount of judgments, fines or penalties against Indemnitee or
amounts paid in settlement in connection with such
matters.
(d) References
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 Corporation” shall
include any service as a director, officer, employee or agent of
the Corporation 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 such person
reasonably believed to be in the interests of the participants and
beneficiaries of an employee benefit plan shall be deemed to have
acted in a manner “not opposed to the best interests of the
Corporation” as referred to in this Agreement.
3.
Indemnity of Indemnitee . The Corporation hereby agrees to
hold harmless and indemnify Indemnitee to the fullest extent
permitted by law, as such may be amended from time to time. In
furtherance of the foregoing indemnification, and without limiting
the generality thereof:
(a)
Indemnification in Third-Party Proceedings . The Corporation
shall indemnify the Indemnitee in accordance with the provisions of
this Paragraph 3(a) if the Indemnitee was or is a party to or
threatened to be made a party to or otherwise involved in any
Proceeding (other than a Proceeding by or in the right of the
Corporation to procure a judgment in its favor) by reason of the
Indemnitee’s Corporate Status or by reason of any action
alleged to have been taken or omitted in connection therewith,
against all Expenses, judgments, fines, penalties and amounts paid
in settlement actually and reasonably incurred by or on behalf of
the Indemnitee in connection with such Proceeding, if the
Indemnitee acted in good faith and in a manner which the Indemnitee
reasonably believed to be in, or not opposed to, the best interests
of the Corporation and, with respect to any criminal Proceeding,
had no reasonable cause to believe that his or her conduct was
unlawful. The termination of any Proceeding by judgment, order,
settlement, conviction or upon a plea of nolo
contendere or its equivalent, shall not, of itself, create a
presumption that the Indemnitee did not act in good faith and in a
manner which the Indemnitee reasonably believed to be in, or not
opposed to, the best interests of the Corporation, and, with
respect to any criminal Proceeding, had reasonable cause to believe
that his or her conduct was unlawful.
(b)
Indemnification in Proceedings by or in the Right of the
Corporation . The Corporation shall indemnify the Indemnitee in
accordance with the provisions of this Paragraph 3(b) if the
Indemnitee was or is a party to or threatened to be made a party to
or otherwise involved in any Proceeding by or in the right of the
Corporation to procure a judgment in its favor by reason of the
Indemnitee’s Corporate Status or by reason of any action
alleged to have been taken or omitted in connection therewith,
against all Expenses and, to the extent permitted by law, amounts
paid in settlement actually and reasonably incurred by or on behalf
of the Indemnitee in connection with such Proceeding, if the
Indemnitee acted in good faith and in a manner which the Indemnitee
reasonably believed to be in, or not opposed to, the best interests
of the Corporation, except that, if applicable law so applies, no
indemnification shall be made
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Bookham,
Inc.
Indemnification Agreement
Directors & Officers
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under this
Paragraph 4 in respect of any claim, issue, or matter as to
which the Indemnitee shall have been adjudged to be liable to the
Corporation, 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 such liability but in view of all the circumstances
of the case, the Indemnitee is fairly and reasonably entitled to
indemnity for such Expenses as the Court of Chancery or such other
court shall deem proper.
4.
Additional Indemnity . In addition to, and without regard to
any limitations on, the indemnifications provided elsewhere in this
Agreement, the Corporation 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 Corporation), 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 Corporation’s obligations pursuant to this Agreement
shall be that the Corporation 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 3 and 9 hereof) to be unlawful.
5.
Exceptions to Right of Indemnification .
(a) Notwithstanding
anything to the contrary in this Agreement, except as set forth in
Paragraph 10, the Corporation shall not indemnify the
Indemnitee in connection with a Proceeding (or part thereof)
initiated by the Indemnitee unless the initiation thereof was
approved by the Board of Directors of the Corporation.
(b) Notwithstanding
anything to the contrary in this Agreement, the Corporation shall
not indemnify the Indemnitee to the extent the Indemnitee is
reimbursed from the proceeds of insurance, and in the event the
Corporation makes any indemnification payments to the Indemnitee
and the Indemnitee is subsequently reimbursed from the proceeds of
insurance, the Indemnitee shall promptly refund such
indemnification payments to the Corporation to the extent of such
insurance reimbursement.
6.
Indemnification of Expenses of Successful Party .
Notwithstanding any other provision of this Agreement, to the
extent that the Indemnitee has been successful, on the merits or
otherwise, in defense of any Proceeding or in defense of any claim,
issue or matter therein, the Indemnitee shall be indemnified
against all Expenses incurred by or on behalf of the Indemnitee in
connection therewith. Without limiting the foregoing, if any
Proceeding or any claim, issue or matter therein is disposed of, on
the merits or otherwise (including a disposition without
prejudice), without (i) the disposition being adverse to the
Indemnitee, (ii) an adjudication that the Indemnitee was
liable to the Corporation, (iii) a plea of guilty or nolo
contendere by the Indemnitee, (iv) an adjudication that the
Indemnitee did not act in good faith and in a manner the Indemnitee
reasonably believed to be in or not opposed to the best interests
of the Corporation, and (v) with respect to any criminal
proceeding, an adjudication that the Indemnitee had reasonable
cause to believe his or her conduct was unlawful, the Indemnitee
shall be considered for the purposes hereof to have been wholly
successful with respect thereto.
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Bookham,
Inc.
Indemnification Agreement
Directors & Officers
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7.
Notification and Defense of Claim . As a condition precedent
to the Indemnitee’s right to be indemnified, the Indemnitee
must notify the Corporation in writing as soon as practicable of
any Proceeding for which indemnity will or could be sought;
provided, that the failure to notify the Corporation within such
time limit shall not release the Corporation of any liability it
may have to the Indemnitee, except to the extent that the
Corporation has been prejudiced by such failure. With respect to
any Proceeding of which the Corporation is so notified, the
Corporation will be entitled to participate therein at its own
expense and/or to assume the defense thereof at its own expense,
with legal counsel reasonably acceptable to the Indemnitee. After
notice from the Corporation to the Indemnitee of its election so to
assume such defense, the Corporation shall not be liable to the
Indemnitee for any legal or other expenses subsequently incurred by
the Indemnitee in connection with such Proceeding, other than as
provided below in this Paragraph 7. The Indemnitee shall have
the right to employ his or her own
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