Exhibit 10.9
INDEMNITY AGREEMENT
THIS INDEMNITY AGREEMENT (this " Agreement ") dated as of
___________
, 20___, is made by and between Favrille, Inc. , a Delaware
corporation (the " Company "), and
(" Indemnitee ").
R E C I T A L S :
A.
The Company desires to attract and retain the services of highly
qualified individuals as directors, officers, employees and
agents.
B.
The Company's Amended and Restated Bylaws (the "
Bylaws "), require that the Company indemnify its
directors, and empowers the Company to indemnify its officers,
employees and agents, as authorized by the Delaware General
Corporation Law, as amended (the " Code "), under
which the Company is organized and such Bylaws expressly provide
that the indemnification provided therein is not exclusive and
contemplates that the Company may enter into separate agreements
with its directors, officers and other persons to set forth
specific indemnification provisions.
C.
Indemnitee does not regard the protection currently provided by
applicable law, the Company's governing documents and available
insurance as adequate under the present circumstances, and the
Company has determined that Indemnitee and other directors,
officers, employees and agents of the Company may not be willing to
serve or continue to serve in such capacities without additional
protection.
D.
The Company desires and has requested Indemnitee to serve or
continue to serve as a director, officer, employee or agent of the
Company, as the case may be, and has proferred this Agreement to
Indemnitee as an additional inducement to serve in such
capacity.
E.
Indemnitee is willing to serve, or to continue to serve, as a
director, officer, employee or agent of the Company, as the case
may be, if Indemnitee is furnished the indemnity provided for
herein by the Company.
A G R E E M E N T :
NOW THEREFORE, in consideration of the mutual covenants and
agreements set forth herein, the parties hereto, intending to be
legally bound, hereby agree as follows:
- Definitions .
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- Agent . For purposes of this Agreement, the term
"agent" of the Company means any person who: (i) is or was a
director , officer, employee or other fiduciary of the
Company or a subsidiary of the Company; or (ii) is or was
serving at the request or for the convenience of, or representing
the interests of, the Company or a subsidiary of the Company, as a
director, officer, employee or other fiduciary of a foreign or
domestic corporation, partnership, joint venture, trust or other
enterprise.
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Expenses . For purposes
of this Agreement, the term "expenses" shall be broadly construed
and shall include, without limitation, all direct and indirect
costs of any type or nature whatsoever (including, without
limitation, all attorneys', witness, or other professional fees and
related disbursements, and other out-of-pocket costs of whatever
nature), actually and reasonably incurred by Indemnitee in
connection with the investigation, defense or appeal of a
proceeding or establishing or enforcing a right to indemnification
under this Agreement, the Code or otherwise, and amounts paid in
settlement by or on behalf of Indemnitee, but shall not include any
judgments, fines or penalties actually levied against Indemnitee
for such individual's violations of law. The term "expenses" shall
also include reasonable compensation for time spent by Indemnitee
for which he is not compensated by the Company or any subsidiary or
third party (i) for any period during which Indemnitee is not an
agent, in the employment of, or providing services for compensation
to, the Company or any subsidiary; and (ii) if the rate of
compensation and estimated time involved is approved by the
directors of the Company who are not parties to any action with
respect to which expenses are incurred, for Indemnitee while an
agent of, employed by, or providing services for compensation to,
the Company or any subsidiary.
- Proceedings . For purposes of this Agreement, the term
"proceeding" shall be broadly construed and shall include, without
limitation, 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 and whether of a civil, criminal, administrative or
investigative nature, and whether formal or informal in any case,
in which Indemnitee was, is or will be involved as a party or
otherwise by reason of: (i) the fact that Indemnitee is or was a
director or officer of the Company; (ii) the fact that any action
taken by Indemnitee or of any action on Indemnitee's part while
acting as director, officer, employee or agent of the Company; or
(iii) the fact that Indemnitee is or was serving at the request of
the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust, employee benefit
plan or other enterprise, and in any such case described above,
whether or not serving in any such capacity at the time any
liability or expense is incurred for which indemnification,
reimbursement, or advancement of expenses may be provided under
this Agreement.
- Subsidiary . For purposes of this Agreement, the term
"subsidiary" means any corporation or limited liability company of
which more than 50% of the outstanding voting securities or equity
interests are owned, directly or indirectly, by the Company and one
or more of its subsidiaries, and any other corporation, 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,
employee, agent or fiduciary.
- Independent
Counsel . For purposes of
this Agreement, the term "independent counsel" means a law firm, or
a partner (or, if applicable, member) of such a law firm, that is
experienced in matters of corporation law and neither presently is,
nor in the past five (5) years has been, retained to represent: (i)
the Company or Indemnitee in any matter material to either such
party, 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.
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Agreement to Serve .
Indemnitee will serve, or continue to serve, as a director,
officer, employee or agent of the Company or any subsidiary, as the
case may be, faithfully and to the best of his or her ability, at
the will of such corporation (or under separate agreement, if such
agreement exists), in the capacity Indemnitee currently serves as
an agent of such corporation, so long as Indemnitee is duly
appointed or elected and qualified in accordance with the
applicable provisions of the bylaws or other applicable charter
documents of such corporation, or until such time as Indemnitee
tenders his or her resignation in writing; provided, however, that
nothing contained in this Agreement is intended as an employment
agreement between Indemnitee and the Company or any of its
subsidiaries or to create any right to continued employment of
Indemnitee with the Company or any of its subsidiaries in any
capacity.
The Company acknowledges that it has entered into this Agreement
and assumes the obligations imposed on it hereby, in addition to
and separate from its obligations to Indemnitee under the Bylaws,
to induce Indemnitee to serve, or continue to serve, as a director,
officer, employee or agent of the Company, and the Company
acknowledges that Indemnitee is relying upon this Agreement in
serving as a director, officer, employee or agent of the
Company.
- Indemnification .
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- Indemnification in Third Party
Proceedings . Subject to
Section 10 below, the Company shall indemnify Indemnitee to
the fullest extent permitted by the Code, as the same may be
amended from time to time (but, only to the extent that such
amendment permits Indemnitee to broader indemnification rights than
the Code permitted prior to adoption of such amendment), if
Indemnitee is a party to or threatened to be made a party to or
otherwise involved in any proceeding, for any and all expenses,
actually and reasonably incurred by Indemnitee in connection with
the investigation, defense, settlement or appeal of such
proceeding.
- Indemnification in Derivative Actions and Direct
Actions by the Company .
Subject to Section 10 below, the Company shall indemnify Indemnitee
to the fullest extent permitted by the Code, as the same may be
amended from time to time (but, only to the extent that such
amendment permits Indemnitee to broader indemnification rights than
the Code permitted prior to adoption of such amendment), if
Indemnitee 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
Company to procure a judgment in its favor, against any and all
expenses actually and reasonably incurred by Indemnitee in
connection with the investigation, defense, settlement, or appeal
of such proceedings.
- Indemnification of Expenses of Successful
Party . Notwithstanding
any other provision of this Agreement, to the extent that
Indemnitee has been successful on the merits or otherwise in
defense of any proceeding or in defense of any claim, issue or
matter therein, including the dismissal of any action without
prejudice, the Company shall indemnify Indemnitee against all
expenses actually and reasonably incurred in connection with the
investigation, defense or appeal of such proceeding.
- Partial
Indemnification . If
Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of any
expenses actually and reasonably incurred by Indemnitee in the
investigation, defense, settlement or appeal of a proceeding, but
is precluded by applicable law or the specific terms of this
Agreement to
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indemnification for the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.
- Advancement
of Expenses . To the
extent not prohibited by law, the Company shall advance the
expenses incurred by Indemnitee in connection with any proceeding,
and such advancement shall be made within twenty (20) days after
the receipt by the Company of a statement or statements requesting
such advances (which shall include invoices received by Indemnitee
in connection with such expenses but, in the case of invoices in
connection with legal services, any references to legal work
performed or to expenditures made that would cause Indemnitee to
waive any privilege accorded by applicable law shall not be
included with the invoice) and upon request of the Company, an
undertaking to repay the advancement of expenses if and to the
extent that it is ultimately determined by a court of competent
jurisdiction in a final judgment, not subject to appeal, that
Indemnitee is not entitled to be indemnified by the Company.
Advances shall be unsecured, interest free and without regard to
Indemnitee's ability to repay the expenses. Advances shall include
any and all expenses actually and reasonably incurred by Indemnitee
pursuing an action to enforce Indemnitee's right to indemnification
under this Agreement, or otherwise and this right of advancement,
including expenses incurred preparing and forwarding statements to
the Company to support the advances claimed. Indemnitee
acknowledges that the execution and delivery of this Agreement
shall constitute an undertaking providing that Indemnitee shall, to
the fullest extent required by law, repay the advance if and to the
extent that it is ultimately determined by a court of competent
jurisdiction in a final judgment, not subject to appeal, that
Indemnitee is not entitled to be i
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