EXHIBIT 10.55
INFOCUS
CORPORATION
FORM OF
DIRECTOR INDEMNIFICATION
AGREEMENT
THIS AGREEMENT is made as of
, by and between InFocus Corporation , an Oregon corporation
(the “ Corporation ”), and
(“ Director ”), a member of the
Corporation’s Board of Directors (the “ Board
”).
WHEREAS, it is essential to the
Corporation to retain and attract directors who have significant
experience in business, corporate and financial matters;
and
WHEREAS, the Director possesses the
knowledge and experience desired by the Corporation and the
Corporation desires the Director to serve as a director of the
Corporation; and
WHEREAS, the Articles of
Incorporation and the Bylaws of the Corporation require
indemnification of the directors of the Corporation to the fullest
extent permitted by the Oregon Business Corporation Act (the
“ OBCA ”), and the OBCA expressly provides that
the indemnification provisions set forth therein are not exclusive;
and
WHEREAS, the Corporation and the
Director desire to enter into a contract that sets forth their
respective rights and obligations with regard to claims for loss,
liability, expense or damage which, directly or indirectly, may
arise out of or relate to service as a member of the
Board;
NOW THEREFORE, in consideration of
the premises and the covenants contained herein and
Director’s agreement to continue to serve the Corporation
after the date hereof, the sufficiency of which is hereby
acknowledged, the Corporation and Director do hereby covenant and
agree as follows:
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1.
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Agreement to
Serve. The Director shall
serve as a director of the Corporation for so long as the Director
is duly elected or until the Director tenders a resignation in
writing. This Agreement creates no obligation on either party to
continue the service of the Director for a particular term or any
term.
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2.
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Definitions. As used in this Agreement:
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(a)
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The term
“ Proceeding ” shall include any threatened,
pending or completed action, suit or proceeding, whether brought in
the right of the Corporation or otherwise, and whether of a civil,
criminal, administrative or investigative nature, whether formal or
informal, in which the Director may be or may have been involved as
a party, witness or otherwise, by reason of the fact that the
Director is or was a director of the Corporation, or is or was
serving at the request of the Corporation (or is deemed to be
serving or have served) as a director, officer, partner, trustee,
manager, employee or agent of another corporation, limited
liability company, partnership, joint venture, trust or other
enterprise, whether or not serving in such capacity at the time any
liability or expense is incurred for which exculpation,
indemnification or reimbursement can be provided under this
Agreement. The term “ Proceeding ” shall also
include a situation that the Director in good faith believes may
lead to the institution of an action, suit or
proceeding.
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(b)
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The term
“ Expenses ” shall mean any expense, liability
or loss, including attorneys’ fees, judgments, fines, ERISA
excise taxes and penalties, amounts paid or to be paid in
settlement, any interest, assessments or other charges imposed
thereon, any federal, state, local or foreign taxes imposed as a
result of the actual or deemed receipt of any payments under this
Agreement, and shall include, without limitation thereto, expenses
of investigations, judicial or administrative proceedings or
appeals, attorney, accountant and other professional fees and
disbursements and any expenses of establishing a right to
indemnification under Section 12 of this Agreement, but shall
not include amounts paid in settlement by the Director or the
amount of judgments or fines against the Director.
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(c)
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References to
“ other enterprise ” include, without
limitation, employee benefit plans; references to “
fines ” include, without limitation, any excise taxes
assessed on a person with respect to any employee benefit plan;
references to “ serving at the request of the
Corporation ” include, without limitation, any service as
a director, officer, partner, trustee, manager, employee or agent
which imposes duties on, or involves services by, such director,
officer, partner, trustee, manager, employee or agent with respect
to an employee benefit plan, its participants, or its
beneficiaries; and a person who acted in good faith and in a manner
such person reasonably believed to be in the interest 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.
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(d)
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References to
“ the Corporation ” shall include, in addition
to the resulting entity, any constituent corporation or other
entity (including any constituent of a constituent) absorbed in a
consolidation or merger which, if its separate existence had
continued, would have had power and authority to indemnify its
directors, officers, partners, trustees, managers, employees or
agents, so that any person who is or was a director, officer,
partner, trustee, manager, employee or agent of such constituent
entity, or is or was serving at the request of such constituent
entity as a director, officer, partner, trustee, manager, employee
or agent of another corporation, limited liability company,
partnership, joint venture, trust or other enterprise, shall stand
in the same position under this Agreement with respect to the
resulting or surviving entity as such person would have with
respect to such constituent entity if its separate existence had
continued.
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(e)
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For purposes of
this Agreement, the meaning of the phrase “ to the fullest
extent permitted by law ” shall include, but not be
limited to:
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(i)
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to the fullest
extent authorized or permitted by any amendments to or replacements
of the OBCA adopted after the date of this Agreement that increase
the extent to which a corporation may indemnify or exculpate its
directors; and
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(ii)
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to the fullest
extent permitted by any provision of the OBCA that authorizes or
contemplates additional indemnification by agreement, or the
corresponding provision of any amendment to or replacement of the
OBCA.
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(f)
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A “
Change in Control ” shall be deemed to occur upon the
earlier the earliest to occur after the date of this Agreement of
any of the following events:
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(i)
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Acquisition
of Stock by Third Party. Any Person (as defined below) is or becomes the
Beneficial Owner, directly or indirectly, of securities of the
Corporation 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 (a) the change in the relative Beneficial Ownership of
the Corporation’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 (b) 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;
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(ii)
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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 Corporation’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;
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(iii)
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Corporation
Transactions. The
effective date of a reorganization, merger or consolidation of the
Company (a “ Business Combination ”), in each
case, unless, immediately following such Business Combination:
(a) all or substantially all of the Persons who were the
Beneficial Owners of securities entitled to vote generally in
the
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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 Corporation entitled to vote
generally in the election of Directors resulting from such Business
Combination (including, without limitation, a corporation which was
a result of such transaction owns the Corporation or all or
substantially all of the Corporation’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; (b) 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 such
Business Combination; and (c) 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;
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(iv)
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Liquidation. The approval by the stockholders of the
Corporation of a complete liquidation of the Corporation or an
agreement or series of agreements for the sale or disposition by
the Corporation of all or substantially all of the
Corporation’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
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(v)
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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, whether or not the Corporation
is then subject to such reporting requirement.
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(g)
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Beneficial
Owner; Beneficial Ownership. The terms “ Beneficial Owner
” and “ Beneficial Ownership ” shall have
the meanings set forth in Rule 13d-3 promulgated under
the Securities Exchange Act of 1934, as amended, as in
effect on the date hereof (the “ Exchange Act
”) .
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(h)
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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: (a) the Corporation; (b) any subsidiary of the
Corporation; (c) any employment benefit plan of the
Corporation or of a subsidiary of the Corporation or of any
corporation owned, directly or indirectly, by the stockholders of
the Corporation in substantially the same proportions as their
ownership of stock of the Corporation; and (d) any trustee or
other fiduciary holding securities under an employee benefit plan
of the Corporation or of a subsidiary of the Corporation or of a
corporation owned directly or indirectly by the stockholders of the
Corporation in substantially the same proportions as their
ownership of stock of the Corporation.
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3.
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Limitation
of Liability. To the
fullest extent permitted by law, the Director shall have no
monetary liability of any kind or nature whatsoever in respect of
the Director’s errors or omissions (or alleged errors or
omissions) in serving the Corporation or any of its subsidiaries,
their respective shareholders or any other enterprise at the
request of the Corporation, so long as such errors or omissions (or
alleged errors or omissions), if any, are not shown by clear and
convincing evidence to have involved:
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(i)
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any breach of
the Director’s duty of loyalty to such entities, shareholders
or enterprises;
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(ii)
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any act or
omission not in good faith or which involved intentional misconduct
or a knowing violation of law;
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(iii)
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any transaction
from which the Director derived an improper personal
benefit;
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(iv)
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any unlawful
distribution (including, without limitation, dividends, stock
repurchases and stock redemptions), as defined in the OBCA;
or
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(v)
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profits made
from the purchase and sale by the Director of securities of the
Corporation within the meaning of Section 16(b) of the
Securities Exchange Act of 1934, as amended, or similar provision
of any state statutory law or common law.
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(b)
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Without
limiting the generality of subparagraph (a) above and to the
fullest extent permitted by law, the Director shall have no
personal liability to the Corporation or any of its subsidiaries,
their respective shareholders or any other person claiming
derivatively through the Corporation, regardless of the theory or
principle under which such liability may be asserted,
for:
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(i)
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punitive,
exemplary or consequential damages;
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(ii)
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treble or other
damages computed based upon any multiple of damages actually and
directly proved to have been sustained;
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(iii )
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fees of
attorneys, accountants, expert witnesses or professional
consultants; or
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(iv)
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civil fines or
penalties of any kind or nature whatsoever.
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4.
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Indemnity in
Third Party Proceedings. The Corporation shall indemnify the Director in
accordance with the provisions of this Section 4 if the
Director was or is a party to, or is threatened to be made a party
to, any Proceeding (other than a Proceeding by or in the right of
the Corporation to procure a judgment in its favor), against all
Expenses, judgments, fines and amounts paid in settlement, actually
and reasonably incurred by the by the Director in connection with
such Proceeding if the Director acted in good faith and in a manner
the Director reasonably believed was in or not opposed to the best
interests of the Corporation, and, with respect to any criminal
action or proceeding, the Director, in addition, had no reasonable
cause to believe that the Director’s conduct was
unlawful.
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The Director shall not be entitled
to indemnification under this Section 4 in connection with any
Proceeding charging improper personal benefit to the Director in
which the Director is finally adjudged liable without further
rights of appeal on the basis that personal benefit was improperly
received by the Director unless and only to the extent that the
court conducting such Proceeding, or any other court of competent
jurisdiction, determines upon application that, despite the
adjudication of liability, the Director is fairly and reasonably
entitled to indemnification in view of all the relevant
circumstances.
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5.
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Indemnity in Proceedings by or
in the Right of the Corporation. The Corporation shall indemnify the Director in
accordance with the provisions of this Section 5 if the
Director was or is a party to, or is threatened to be made a party
to, any Proceeding by or in the right of the Corporation to procure
a judgment in its favor, against all Expenses actually and
reasonably incurred by the Director in connection with the defense
or settlement of such Proceeding if the Director acted in good
faith and in a manner the
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Director reasonably believed was in
or not opposed to the best interests of the Corporation. The
Director shall not be entitled to indemnification under this
Section 5 in connection with any Proceeding in which the
Director has been finally adjudged liable without further rights of
appeal to the Corporation unless and only to the extent that the
court conducting such Proceeding, or any other court of competent
jurisdiction, determines upon application that, despite the
adjudication of liability, the Director is fairly and reasonably
entitled to indemnification in view of all the relevant
circumstances.
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6.
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Indemnification of Expenses of Successful
Party. Notwithstanding
any other provisions of this Agreement other than Section 8,
to the extent that the Director 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 an
action without prejudice, the Corporation shall indemnify the
Director against all Expenses actually and reasonably incurred in
connection therewith. If any Proceeding is disposed of on the
merits or otherwise (including a disposition without prejudice),
without (i) the disposition being adverse to the Director,
(ii) an adjudication that the Director was liable to the
Corporation, (iii) a plea of guilty by the Director,
(iv) an adjudication that the Director did not act in good
faith, and in a manner he 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
Director had reasonable cause to believe his conduct was unlawful,
the Director shall be considered for the purposes hereof to have
been successful with respect thereto.
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7.
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Additional
Indemnification. Notwithstanding any limitation in Sections 4, 5
or 6, the Corporation shall indemnify the Director to the fullest
extent permitted by law with respect to any Proceeding (including a
Proceeding by or in the right of the Corporation to procure a
judgment in its favor), against all Expenses, judgments, fines and
amounts paid in settlement, actually and reasonably incurred by the
Director in connection with such Proceeding.
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8.
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Exclusions. Notwithstanding any provision in this Agreement,
the Corporation shall not be obligated under this Agreement to make
any indemnification in connection with any claim made against the
Director:
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(a)
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for which
payment has actually been made to or on behalf of the Director
under any insurance policy, except with respect to any excess
amount to which the Director is entitled under this Agreement
beyond the amount of payment under such insurance
policy;
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(b)
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if a court
having jurisdiction in the matter finally determines that such
indemnification is not lawful under any applicable statute or
public policy;
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(c)
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in connection
with any Proceeding (or part of any Proceeding) initiated by the
Director, or any Proceeding by the Director against the Corporation
or its directors, officers, employees or other persons entitled to
be indemnified by the Corporation, unless:
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(i)
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the Corporation
is expressly required by law to make the
indemnification;
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(ii)
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the Proceeding
was authorized by the Board of Directors of the Corporation;
or
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(iii)
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the Director
initiated the Proceeding pursuant to Section 12 of this
Agreement and the Director is successful in whole or in part in
such Proceeding; or
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(d)
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on account of
any Proceeding with respect to which final judgment without further
right of appeal is rendered against the Director for payment or an
accounting of profits made from the purchase or sale by the
Director of securities of the Corporation within the meaning of
Section 16(b) of the Securities Exchange Act of 1934, as
amended, or similar provision of any state statutory law or common
law.
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9.
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Advances of
Expenses. The Corporation
shall pay the Expenses incurred by the Director in any Proceeding
(other than a Proceeding brought for an accounting of profits made
from the purchase and sale by the Director of securities of the
Corporation
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