FORM OF INDEMNIFICATION AGREEMENT
FOR OFFICERS AND DIRECTORS
THIS AGREEMENT (the
“Agreement”) is made and entered into as of
________________, 20__ between Studio One Media, Inc., a Delaware
corporation (the “Company”), and __________________
(“Indemnitee”).
WITNESSETH THAT:
WHEREAS , the Certificate of Incorporation of the
Company requires the Company to indemnify and advance expenses to
its directors and officers to the fullest extent permitted under
Delaware law, which includes Section 145 of the Delaware
General Corporation Law, as amended (“Law”);
and
WHEREAS , the Board of Directors of the Company has
adopted Bylaws (the “Bylaws”) that permit the
indemnification of the officers, directors, employees, or agents of
the Company to the fullest extent permitted by applicable law;
and
WHEREAS , in accordance with the authorization as
provided by the Law, the Company may purchase and maintain a policy
or policies of directors’ and officers’ liability
insurance (“D & O Insurance”), covering
certain liabilities which may be incurred by its officers or
directors in the performance of their obligations to the Company;
and
WHEREAS , Indemnitee has been serving and continues to
serve as a director and/or officer of the Company in part in
reliance on the Company’s Certificate of Incorporation and
Bylaws and has provided valuable services to and for the Company;
and
WHEREAS , it is essential to the Company to retain and
attract as directors and officers the most capable persons
available; and
WHEREAS , both the Company and Indemnitee recognize the
increased risk of litigation and other claims currently being
asserted against directors and officers of corporations;
and
WHEREAS , in recognition of Indemnitee’s need for
(i) substantial protection against personal liability based on
Indemnitee’s reliance on the aforesaid Certificate of
Incorporation and Bylaws, (ii) specific contractual assurance that
the protection promised by the Certificate of Incorporation and
Bylaws will be available to Indemnitee (regardless of, among other
things, any amendment to or revocation of the Certificate of
Incorporation and Bylaws or any change in the composition of the
Company’s Board of Directors or acquisition transaction
relating to the Company), and (iii) an inducement to provide
effective services to the Company as a director and/or officer, the
Company wishes to provide in this Agreement for the indemnification
of and the advancing of expenses to Indemnitee to the fullest
extent (whether partial or complete) permitted under Delaware law
and as set forth in this Agreement, and, to the extent insurance is
maintained, to provide for the continued coverage of Indemnitee
under the Company’s directors’ and officers’
liability insurance policies;
NOW, THEREFORE , in consideration of the above premises and of
Indemnitee continuing to serve the Company directly or, at its
request, with another enterprise, and intending to be legally bound
hereby, the parties agree as follows:
1.
Indemnity of Indemnitee . The Company hereby
agrees to hold harmless and indemnify Indemnitee to the full extent
authorized or permitted by the provisions of the Law, as such may
be amended from time to time, and the Bylaws (or other applicable
charter documents of the Company), as such may be amended,
notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company's
Certificate of Incorporation, the Company's Bylaws or by
statute. In the event of any change after the date of
this Agreement in any applicable law, statute or rule which expands
the right of a Delaware corporation to indemnify a member of its
board of directors or an officer, employee, or agent, it is the
intent of the parties hereto that Indemnitee shall enjoy by this
Agreement the greater benefits afforded by such
change. In the event of any change in any applicable
law, statute or rule which narrows the right of a Delaware
corporation to indemnify a member of its board of directors or an
officer, employee, or agent, such change, to the extent not
otherwise required by such law, statute or rule to be applied to
this Agreement, shall have no effect on this Agreement or the
parties' rights and obligations hereunder. In
furtherance of the foregoing indemnification, and without limiting
the generality thereof:
(a)
Proceedings Other Than Proceedings by or in the Right of the
Company . Indemnitee shall be entitled to the rights
of indemnification provided in this Section l(a) if, by reason
of Indemnitee’s Corporate Status (as hereinafter defined), he
is, or is threatened to be made, a party to or participant in any
Proceeding (as hereinafter defined) other than a Proceeding by or
in the right of the Company. Pursuant to this Section
1(a), Indemnitee shall be indemnified against all Expenses (as
hereinafter defined), judgments, penalties, fines and amounts paid
in settlement actually and reasonably incurred by him or on his
behalf in connection with such Proceeding or any claim, issue or
matter therein, if the Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company and, with respect to any criminal
Proceeding, the Indemnitee had no reasonable cause to believe his
conduct was unlawful.
(b)
Proceedings by or in the Right of the Company
. Indemnitee shall be entitled to the rights of
indemnification provided in this Section 1(b) if, by reason of
Indemnitee’s Corporate Status, he was, is, or is threatened
to be made, a party to or participant in any Proceeding brought by
or in the right of the Company. Pursuant to this Section
1(b), Indemnitee shall be indemnified against all Expenses actually
and reasonably incurred by him or on his behalf in connection with
such Proceeding if the Indemnitee acted in good faith and in a
manner the Indemnitee reasonably believed to be in or not opposed
to the best interests of the Company; provided, however, that, if
applicable law so provides, no indemnification against such
Expenses shall be made in respect of any claim, issue or matter in
such Proceeding as to which Indemnitee shall have been adjudged to
be liable to the Company unless and to the extent that the Court of
Chancery of the State of Delaware shall determine that such
indemnification may be made.
(c)
Indemnification for Expenses of a Party Who is Wholly or Partly
Successful . Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of
Indemnitee’s Corporate Status, a party to and is successful,
on the merits or otherwise, in any Proceeding, he shall be
indemnified to the maximum extent permitted by law against all
Expenses actually and reasonably incurred by him or on his behalf
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 Indemnitee
against all Expenses actually and reasonably incurred by him or on
his behalf in connection with each successfully resolved claim,
issue or matter. For purposes of this Section 1 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.
2.
Additional Indemnity . In addition to, and
without regard to any limitations on, the indemnification provided
for in Section 1, the Company 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
Indemnitee’s 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 Company), 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 Company’s obligations pursuant to
this Agreement shall be that the Company 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 6 and 7 hereof) to be unlawful under Delaware
law.
3.
Contribution in the Event of Joint Liability .
(a) Whether
or not the indemnification provided in Sections 1 and 2 hereof is
available, in respect of any threatened, pending or completed
action, suit or proceeding in which Company is jointly liable with
Indemnitee (or would be if joined in such action, suit or
proceeding), Company shall pay, in the first instance, the entire
amount of any judgment or settlement of such action, suit or
proceeding without requiring Indemnitee to contribute to such
payment and Company hereby waives and relinquishes any right of
contribution it may have against Indemnitee. Company
shall not enter into any settlement of any action, suit or
proceeding in which Company is jointly liable with Indemnitee (or
would be if joined in such action, suit or proceeding) unless such
settlement provides for a full and final release of all claims
asserted against Indemnitee.
(b) Without
diminishing or impairing the obligations of the Company set forth
in the preceding subparagraph, if, for any reason, Indemnitee shall
elect or be required to pay all or any portion of any judgment or
settlement in any threatened, pending or completed action, suit or
proceeding in which Company is jointly liable with Indemnitee (or
would be if joined in such action, suit or proceeding), Company
shall contribute to the amount of expenses (including
attorneys’ fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred and paid or payable by
Indemnitee in proportion to the relative benefits received by the
Company and all officers, directors or employees of the Company
other than the Indemnitee who are jointly liable with Indemnitee
(or would be if joined in such action, suit or proceeding), on the
one hand, and Indemnitee, on the other hand, from the transaction
from which such action

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