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Indemnity Agreement

 

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Title:

Indemnity Agreement

Entities:

InterDigital Communications Corp.

Date:

2003

Size:

Preview shows 8KB of 30KB total

Price:

$44

ID:

#656266

 

 

► Legal ► Indemnity Agreements
► Technology ► Communications Equipment

 

 

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                               INDEMNITY AGREEMENT


This Indemnity Agreement, dated as of May 5, 2003, is made by and
between InterDigital Communications Corporation, a Pennsylvania corporation (the
"Company"), and RICHARD J. BREZSKI (the "Indemnitee").

RECITALS

1. The Company is aware that competent and experienced persons are
increasingly reluctant to serve as directors, officers or agents of corporations
unless they are protected by comprehensive liability insurance and
indemnification, due to increased exposure to litigation costs and risks
resulting from their service to such corporations, and due to the fact that the
exposure frequently bears no reasonable relationship to the compensation of such
directors, officers and other agents.

2. The statutes and judicial decisions regarding the duties of directors
and officers are often difficult to apply, ambiguous, or conflicting, and
therefore fail to provide such directors, officers and agents with adequate,
reliable knowledge of legal risks to which they are exposed or information
regarding the proper course of action to take.

3. Plaintiffs often seek damages in such large amounts and the costs of
litigation may be so enormous (whether or not the case is meritorious), that the
defense and/or settlement of such litigation is often beyond the personal
resources of directors, officers and other agents.

4. The Company believes that it is unfair for its directors, officers and
agents and the directors, officers and agents of its subsidiaries to assume the
risk of huge judgments and other expenses which may occur in cases in which the
director, officer or agent received no personal profit and in cases where the
director, officer or agent was not culpable.

5. The Company recognizes that the issues in controversy in litigation
against a director, officer or agent of a corporation such as the Company or its
subsidiaries are often related to the knowledge, motives and intent of such
director, officer or agent, that he is usually the only witness with knowledge
of the essential facts and exculpating circumstances regarding such matters, and
that the long period of time which usually elapses before the trial or other
disposition of such litigation often extends beyond the time that the director,
officer or agent can reasonably recall such matters; and may extend beyond the
normal time for retirement for such director, officer or agent with the result
that he, after retirement or in the event of his death, his spouse, heirs,
executors or administrators, may be faced with limited ability and undue
hardship in maintaining an adequate defense, which may discourage such a
director, officer or agent from serving in that position.

6. Based upon their experience as business managers, the Board of
Directors of the Company (the "Board") has concluded that, to retain and attract
talented and experienced individuals to serve as directors, officers and agents
of the Company and its subsidiaries and to encourage such individuals to make
the business decisions necessary for the success of the Company and its
subsidiaries, it is necessary for the Company to contractually indemnify its
directors, officers and agents and the directors, officers and agents of its
subsidiaries, and to

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assume for itself maximum liability for expenses and damages in connection with
claims against such directors, officers and agents in connection with their
service to the Company and its subsidiaries, and has further concluded that the
failure to provide such contractual indemnification could result in great harm
to the Company and its subsidiaries and the Company's shareholders.

7. Section 1746 ("Section 1746") of the Pennsylvania Business Corporation
Law (the "PABCL"), under which the Company is organized, permits the Company to
indemnify its representatives (such as directors, officers, employees and
agents) by agreement and to indemnify persons who serve, at the request of the
Company, as the representatives of other corporations or enterprises, and
expressly provides that the indemnification provided by the PABCL is not
exclusive.

8. The Company desires and has requested the Indemnitee to serve or
continue to serve as a director, officer or agent of the Company and/or one or
more subsidiaries of the Company free from undue concern for claims for damages
arising out of or related to such services to the Company and/or one or more
subsidiaries of the Company.

9. Indemnitee is willing to serve, or to continue to serve, the Company
and/or one or more subsidiaries of the Company, provided that he is furnished
the indemnity provided for herein.

AGREEMENT

NOW, THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

1. Definitions.
-----------

a. For the purposes of this Agreement, "agent" of the Company
means any person who is or was a director, officer, employee or other
representative of the Company or a subsidiary of the Company; or is or was
serving at the request of, for the convenience of, or to represent the interests
of the Company or a subsidiary of the Company as a director, officer, employee
or representative of another foreign or domestic corporation, partnership, joint
venture, trust or other enterprise; or was a director, officer, employee or
representative of a foreign or domestic corporation which was a predecessor
corporation of the Company or a subsidiary of the Company, or was a director,
officer, employee or representative of another enterprise at the request of, for
the convenience of, or to represent the interests of such predecessor
corporation.

b. For the purposes of this Agreement, "expenses" include all
out-of-pocket costs of any type or nature whatsoever (including, without
limitation, all attorneys' fees and related disbursements, punitive and other
damages, judgments, fines, penalties, excise taxes assessed with respect to an
employee benefit plan, and amounts paid or to be paid in settlement), actually
and reasonably incurred by the Indemnitee in connection with either the
investigation, defense or appeal of a proceeding or establishing or enforcing a
right to indemnification under this Agreement or PABCL or otherwise.

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{PAGE}

c. For the purposes of this Agreement, "proceeding" means any
threatened, pending, or completed action, suit or other proceeding, whether
civil, criminal, arbitrational, administrative, or investigative.

d. For the purposes of this Agreement, "subsidiary" means any
corporation of which more than 10% of the outstanding voting securities is owned
directly or indirectly by the Company, by the Company and one or more of its
other subsidiaries, or by one or more of its other subsidiaries.

2. Agreement to Serve. The Indemnitee agrees to serve and/or
------------------
continue to serve as agent of the Company, at its will (or under separate
agreement, if such agreement exists), in the capacity Indemnitee currently
serves as an agent of the Company, so long as he is duly appointed or elected
and qualified in accordance with the applicable provisions of the Bylaws of the
Company or any subsidiary of the Company or until such time as he tenders his
resignation in writing; provided, however, that nothing contained in this
Agreement is intended to create any right to continued employment by Indemnitee.

 

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