EXHIBIT 10.7
INDEMNIFICATION AGREEMENT
INDEMNIFICATION
AGREEMENT
THIS INDEMNIFICATION AGREEMENT (the “
Agreement ”) is made and entered into as of ________,
2009 between New Air, Inc. (the “ Company
”), and ____________ (“ Indemnitee
”).
WHEREAS, highly competent persons have become
more reluctant to serve corporations as directors or in other
capacities unless they are provided with adequate protection
through insurance or adequate indemnification against inordinate
risks of claims and actions against them arising out of their
service to and activities on behalf of the corporation;
WHEREAS, the Board of Directors of the Company
(the “ Board ”) has determined that, in order to
attract and retain qualified individuals, the Company will attempt
to maintain on an ongoing basis, at its sole expense, liability
insurance to protect persons serving the Company and its
subsidiaries from certain liabilities. Although the
furnishing of such insurance has been a customary and widespread
practice among United States-based corporations and other business
enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the
future only at higher premiums and with more
exclusions. At the same time, directors, officers, and
other persons in service to corporations or business enterprises
are being increasingly subjected to expensive and time-consuming
litigation relating to, among other things, matters that
traditionally would have been brought only against the Company or
business enterprise itself. The By-laws of the Company
require indemnification of the officers and directors of the
Company. Indemnitee may also be entitled to
indemnification pursuant to the General Corporation Law of the
State of Maryland (“ MGCL ”). The
By-laws and the MGCL expressly provide that the indemnification
provisions set forth therein are not exclusive, and thereby
contemplate that contracts may be entered into between the Company
and members of the board of directors, officers and other persons
with respect to indemnification;
WHEREAS, the uncertainties relating to such
insurance and to indemnification have increased the difficulty of
attracting and retaining such persons;
WHEREAS, the Board has determined that the
increased difficulty in attracting and retaining such persons is
detrimental to the best interests of the Company's stockholders and
that the Company should act to assure such persons that there will
be increased certainty of such protection in the future;
WHEREAS, it is reasonable, prudent and necessary
for the Company contractually to obligate itself to indemnify, and
to advance expenses on behalf of, such persons to the fullest
extent permitted by applicable law so that they will serve or
continue to serve the Company free from undue concern that they
will not be so indemnified;
WHEREAS, this Agreement is a supplement to and
in furtherance of the By-laws of the Company and any resolutions
adopted pursuant thereto, and shall not be deemed a substitute
therefor, nor to diminish or abrogate any rights of Indemnitee
thereunder;
WHEREAS, Indemnitee does not regard the
protection available under the Company's By-laws and insurance as
adequate in the present circumstances, and may not be willing to
serve as an officer or director without adequate protection, and
the Company desires Indemnitee to serve in such
capacity. Indemnitee is willing to serve, continue to
serve and to take on additional service for or on behalf of the
Company on the condition that he be so indemnified; and
NOW, THEREFORE, in consideration of
Indemnitee’s agreement to serve as a director after the date
hereof, the parties hereto agree as follows:
1. Indemnity of
Indemnitee . The Company 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) 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 his Corporate Status (as hereinafter defined), the Indemnitee
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 the Indemnitee reasonably believed to be in or not opposed
to the best interests of the Company, and with respect to any
criminal Proceeding, had no reasonable cause to believe the
Indemnitee’s 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 his Corporate Status, the
Indemnitee 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 the Indemnitee, or on the Indemnitee’s
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, 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 his 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, as such may be amended from time to time, 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 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 of this Agreement, 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
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 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.
(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 the Company is jointly liable
with Indemnitee (or would be if joined in such action, suit or
proceeding), the 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 the Company hereby waives and relinquishes any right of
contribution it may have against Indemnitee. The Company
shall not enter into any settlement of any action, suit or
proceeding in which the 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 the Company is jointly liable with Indemnitee
(or would be if joined in such action, suit or proceeding), the
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 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, suit or proceeding arose; provided, however,
that the proportion determined on the basis of relative benefit
may, to the extent necessary to conform to law, be further adjusted
by reference to the relative fault of the Company and all officers,
directors or employees of the Company other than 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, in connection with the events that resulted in such
expenses, judgments, fines or settlement amounts, as well as any
other equitable considerations which the Law may require to be
considered. The relative fault of the Company and all
officers, directors or employees of the Company, other than
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, shall be determined by reference to,
among other things, the degree to which their actions were
motivated by intent to gain personal p

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