are credited to a bookkeeping account maintained on behalf of each
Participant. These bookkeeping accounts are utilized solely to
measure and determine the amounts to be paid to a participant, or
his or her designated beneficiary, pursuant to the terms of the
Plan. Amounts credited to each Participant under the Plan will be
periodically adjusted for earnings at a rate that is equal to one
or more of the measurement funds selected by the 401(k) Plan
Administration Committee of the Registrant and elected by a
Participant. In addition, the Registrant may credit additional
matching amounts and/or employer contributions to a Participant’s
account for any Plan year as determined by the Compensation and
Management Development Committee of the Registrant. In the event of
the termination of the Plan, any existing DCOs and any additional
earnings shall remain outstanding until such DCOs and any
additional earnings are satisfied by the Registrant.
Distributions under the Plan will be made in accordance with
elections filed by the Participants at the time of their initial
deferrals and distributions generally are expected to occur after a
Participant’s separation of service but, in certain cases, can
occur while a Participant continues in service with the Registrant.
The DCOs are payable in cash in a lump sum or in installments, as
elected by a Participant in accordance with the Plan, and are
subject to applicable tax withholdings. The DCOs generally are not
transferable except at death.
Item 5. Interests of Named Experts and
Counsel.
Not applicable.
Item 6. Indemnification of Directors and
Officers.
The Registrant is incorporated under the laws of the State of
Delaware. Section 145 of the Delaware General Corporation Law
(the “DGCL”) authorizes a court to award, or a corporation’s board
of directors to grant, indemnity to directors and officers under
certain circumstances and subject to certain limitations. The terms
of Section 145 of the DGCL are sufficiently broad to permit
indemnification under certain circumstances for liabilities,
including reimbursement of expenses incurred, arising under the
Securities Act of 1933, as amended (the “Securities Act”).
As permitted by the DGCL, the Registrant’s restated certificate of
incorporation contains provisions that limit the liability of its
directors for monetary damages to the fullest extent permitted by
the DGCL for any breach of fiduciary duties as a director, except
liability for the following:
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any breach of the director’s duty of loyalty to the Registrant or
its stockholders;
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acts or omissions not in good faith or that involve intentional
misconduct or a knowing violation of law;
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under Section 174 of the DGCL (regarding unlawful dividends,
stock purchases or redemptions); or
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any transaction from which the director derived an improper
personal benefit.
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As permitted by the DGCL, the Registrant’s restated bylaws provide
that:
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the Registrant is required to indemnify its directors and officers
to the fullest extent permitted by the DGCL, subject to certain
very limited exceptions;
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the Registrant may indemnify its other employees and agents as set
forth in the DGCL;
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the Registrant is required to advance expenses, as incurred, to its
directors and officers in connection with a legal proceeding to the
fullest extent permitted by the DGCL, subject to certain very
limited exceptions; and
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the rights conferred in the restated bylaws are not exclusive.
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In addition, the Registrant has entered into indemnity agreements
with each of its current directors and executive officers. These
agreements provide for the indemnification of directors and
executive officers for all reasonable expenses and liabilities
incurred in connection with any action or proceeding brought
against them by reason of the fact that they are or were agents of
the Registrant.
The Registrant currently carries liability insurance for its
directors and executive officers for securities matters.
II-2