INDEMNITY
AGREEMENT
This Indemnity Agreement, dated October 20, 2011, is made between
Extreme Networks, Inc. a Delaware corporation (the “
Company ”), and ______________________________ (the
“ Indemnitee ”).
RECITALS
1.
The Company desires to attract and retain the services of talented
and experienced individuals, such as Indemnitee, to serve as
directors and officers of the Company and its subsidiaries and
wishes to indemnify its directors and officers to the maximum
extent permitted by law;
2.
The Company and Indemnitee recognize that corporate litigation in
general has subjected directors and officers to expensive
litigation risks;
3.
Section 145 of the General Corporation Law of Delaware, under
which the Company is organized (“ Section 145
”), empowers the Company to indemnify its directors and
officers by agreement and to indemnify persons who serve, at the
request of the Company, as the directors and officers of other
corporations or enterprises, and expressly provides that the
indemnification provided by Section 145 is not
exclusive;
4.
Section 145(g) allows for the purchase of management liability
(“D&O”) insurance by the Company, which in theory
can cover asserted liabilities without regard to whether they are
indemnifiable or not; and
5.
Individuals considering service or presently serving expect to be
extended market terms of indemnification commensurate with their
position, and that entities such as Company will endeavor to
maintain appropriate D&O insurance; and
6.
In order to induce Indemnitee to serve or continue to serve as a
director or officer of the Company and/or one or more subsidiaries
of the Company, the Company and Indemnitee enter into this
Agreement.
AGREEMENT
NOW, THEREFORE, the Indemnitee and the Company hereby agree as
follows:
a.
Definitions
. As used in this Agreement:
i.
“ Agent ” means any person who is or was a
director, officer, employee or similar agent 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 agent of another foreign or domestic corporation,
partnership, joint venture, trust or other enterprise; or was a
director, officer, employee or agent 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
agent of another enterprise at the request of, for the convenience
of, or to represent the interests of such predecessor
corporation.
ii.
“ Board ” means the Board of Directors of the
Company.
iii.
A “ Change in Control ” shall be deemed to have
occurred if (i) any “person,” as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), other than a trustee or
other fiduciary holding securities under an employee benefit plan
of the Company or a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company, is or becomes the
“beneficial owner” (as defined in Rule 13d‑3
under the Exchange Act), directly or indirectly, of securities of
the Company representing a majority of the total voting power
represented by the Company's then outstanding voting securities,
(ii) during any period of two consecutive years, individuals who at
the beginning of such period constituted the Board, together with
any new directors whose election by the Board or nomination for
election by the Company's stockholders was approved by a vote of at
least two-thirds of the directors then still in office who either
were directors at the beginning of the period or whose election or
nomination was previously so approved, cease for any reason to
constitute a majority of the Board, (iii) the stockholders of the
Company approve a merger or consolidation or a sale of all or
substantially all of the Company's assets with or to another
entity, other than a merger, consolidation or asset sale that would
result in the holders of the Company's outstanding voting
securities immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least a majority of the
total voting power represented by the voting securities of the
Company or such surviving or successor entity outstanding
immediately thereafter, or (iv) the stockholders of the Company
approve a plan of complete liquidation of the Company.
iv.
“ Expenses ” shall include all
out‑of‑pocket costs of any type or nature whatsoever
(including, without limitation, all attorneys' fees and related
disbursements), 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 Section 145 or otherwise; provided,
however, that “Expenses” shall not include any
judgments, fines, ERISA excise taxes or penalties, or amounts paid
in settlement of a Proceeding.
v.
“ Independent Counsel ” means a law firm, or a
partner (or, if applicable, member) of such a law firm, that is
experienced in relevant matters of corporation law and neither
currently is, nor in the past five years has been, retained to
represent: (i) the Company or the Indemnitee in any matter
material to either such party or (ii) any other party to or
witness in 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 the Indemnitee in an action to determine the
Indemnitee's rights under this Agreement.
vi.
“ Proceeding ” means any threatened, pending, or
completed action, suit or other proceeding, whether civil,
criminal, arbitration, administrative, or investigative.
vii.
“ Subsidiary ” means any corporation of which
more than 50% of the outstanding voting securities is owned
directly or indirectly by the Company, by the Company and one or
more other subsidiaries, or by one or more other
subsidiaries.
b.
Agreement to Serve
. The Indemnitee agrees to serve and/or continue to serve as an
Agent of the Company, at its will (or under separate agreement, if
such agreement exists), in the capacity the Indemnitee currently
serves as an Agent of the Company, so long as the Indemnitee 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 the Indemnitee
tenders his or her resignation in writing; provided, however, that
nothing contained in this Agreement is intended to create any right
to continued employment by the Indemnitee.
c.
Liability Insurance
.
i.
Maintenance of D&O Insurance
. The Company hereby covenants and agrees that, so long as the
Indemnitee shall continue to serve as an Agent of the Company and
thereafter so long as the Indemnitee shall be subject to any
possible Proceeding by reason of the fact that the Indemnitee was
an Agent of the Company, the Company, subject to Section 3(c),
shall promptly obtain and maintain in full force and effect
directors' and officers' liability insurance (“ D&O
Insurance ”) in reasonable amounts and terms from
established and reputable insurers, as more fully described below.
Any decline in coverage amounts or lesser coverage terms for such
D&O Insurance shall be prima facie evidence that Company is not
meeting its duties under this Section 3. The D&O insurance
shall not be on a duty to defend basis for management liability
risks; furthermore, any panel counsel requirement for management
liability claims shall be for counsel of the tier and quality of
counsel utilized by the Company in past securities and management
liability litigation.
ii.
Rights and Benefits
. In all policies of D&O Insurance, the Indemnitee shall
qualify as an insured in such a manner as to provide the Indemnitee
the same rights and benefits as are accorded to the most favorably
insured of the Company's independent directors (as defined by the
insurer) if the Indemnitee is such an independent director; of the
Company's non-independent directors if the Indemnitee is not an
independent director; of the Company's officers if the Indemnitee
is an officer of the Company; or of the Company's key employees, if
the Indemnitee is not a director or officer but is a key employee.
The Company shall take any action necessary to preserve insurance
coverage for Indemnitee by promptly noticing all claims and
circumstances that could lead to claims, and shall take all
reasonable actions to enforce Indemnitee's rights to D&O
Insurance if there is a claim or if any insurer under D&O
insurance attempts to cancel, rescind, or otherwise disclaim any
coverage. In the context of any bankruptcy proce