**Exhibit 10.21**

**SONOSITE, INC.**

**Indemnification Agreement**

This INDEMNIFICATION AGREEMENT (this“Agreement”) dated as of                      is made between SONOSITE, INC., aWashington corporation (the “Company”), and                      (“Indemnitee”). 

**Recitals**

A. Indemnitee is a director or officer of the Company and in such capacity is performing valuable services for the Company. 

B. The Company and Indemnitee recognize the difficulty in obtaining directors’ and officers’ liability insurance and the significant cost of such insurance. 

C. The Company and Indemnitee further recognize the substantial increase in litigation subjecting directors and officers to expensivelitigation risks at the same time that such liability insurance has been severely limited. 

D. The Company has adoptedRestated Articles of Incorporation (the “Articles”) providing for indemnification of the officers, directors, agents and employees of the Company to the full extent permitted by the Business Corporation Act of Washington (the“Act”). 

E. The Articles and the Act specifically provide that they are not exclusive, and therebycontemplate that contracts may be entered into between the Company and its directors and officers with respect to indemnification of such directors and officers. 

F. To induce Indemnitee to serve or continue to serve as a director or officer of the Company, the Company desires to confirm the contract indemnification rights provided in the Amended and RestatedBylaws (the “Bylaws”) and agrees to provide the Indemnitee with the benefits contemplated by this Agreement. 

**Agreement**

In consideration of the recitals above, the mutual covenants and agreements herein contained, andIndemnitee’s continued service as a director or officer, as the case may be, of the Company after the date hereof, the parties to this Agreement agree as follows: 

**1. Indemnification of Indemnitee**

**1.1. Scope**

The Company agrees to hold harmless and indemnify Indemnitee to the full extent provided under the provisions of the Articles, and to thefull extent permitted by law, notwithstanding that the basis for such indemnification is not specifically enumerated in this Agreement, the Articles, any statute or otherwise. In the event of any change, after the date of this Agreement, in anyapplicable law, statute or rule regarding the right of a Washington corporation to indemnify a member of its board of directors or an officer, such change, to the extent that it would expand Indemnitee’s rights hereunder, shall be includedwithin Indemnitee’s rights and the Company’s obligations hereunder, and, to the extent that it would narrow Indemnitee’s rights or the Company’s obligations hereunder,

 

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shall not affect or limit the scope of this Agreement; provided, however, that in no event shall any part of this Agreement be construed so as to require indemnification when such indemnificationis not permitted by then applicable law. 

**1.2. Nonexclusivity**

The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under theCompany’s Articles, the Bylaws, any agreement, any vote of shareholders or disinterested directors, the Act, or otherwise, whether as to action in Indemnitee’s official capacity or otherwise. 

**1.3. Included Coverage**

Subject to the limitations set forth in this Agreement, if Indemnitee was or is made a party, or is threatened to be made a party, to or is otherwise involved (including, without limitation, as a witness)in any Proceeding (as defined below), the Company shall hold harmless and indemnify Indemnitee from and against any and all losses, claims, damages (compensatory, exemplary, punitive or otherwise), liabilities or expenses, including, withoutlimitation, attorneys’ fees, costs, judgments, fines, ERISA excise taxes or penalties, witness fees, amounts paid in settlement and other expenses incurred in connection with the investigation, defense, settlement or approval of such Proceeding(collectively, “Damages”). 

**1.4. Definition of Proceeding**

For purposes of this Agreement, “Proceeding” shall mean any completed, actual, pending or threatened action, suit, claim,hearing or proceeding, whether civil, criminal, arbitrative, administrative, investigative or pursuant to any alternative dispute resolution mechanism (including an action by or in the right of the Company) and whether formal or informal, in whichIndemnitee is, was or becomes involved by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company or that, being or having been such a director, officer, employee or agent, Indemnitee is or was serving atthe request of the Company as a director, officer, employee, trustee or agent of another corporation or of a partnership, joint venture, trust or other enterprise (collectively, a “Related Company”), including service with respectto an employee benefit plan, whether the basis of such proceeding is alleged action (or inaction) by Indemnitee in an official capacity as a director, officer, employee, trustee or agent or in any other capacity while serving as a director, officer,employee, trustee or agent; provided, however, that, except with respect to an Enforcement Action (defined in Section 3.1 below) an action challenging the Company’s determination that Indemnitee is not entitled to indemnification pursuantto Section 1.5, and any other action to enforce the provisions of this Agreement, “Proceeding” shall not include any action, suit, claim or proceeding instituted by or at the direction of Indemnitee unless such action, suit, claim orproceeding is or was authorized by the Company’s Board of Directors; provided further, however, that, in accordance with RCW 23B.08.510(4) or a successor provision of the Act, “Proceeding” shall not include (a) any action, suit,claim, or proceeding by or in the right of the Company in which the Indemnitee was adjudged liable to the Company or (b) any other action, suit, claim, or proceeding charging improper personal benefit to the Indemnitee, whether or not involvingaction in the Indemnitee’s official capacity, in which the Indemnitee was adjudged liable on the basis that personal benefit was improperly received by the Indemnitee. 

 

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**1.5. Determination of Entitlement**

In the event that a determination of Indemnitee’s entitlement to indemnification is required pursuant to RCW 23B.08.550 or asuccessor provision of the Act or pursuant to other applicable law, the appropriate decision-maker shall make such determination; provided, however, that Indemnitee shall initially be presumed in all cases to be entitled to indemnification, thatIndemnitee may establish a conclusive presumption of any fact necessary to such a determination by delivering to the Company a declaration made under penalty of perjury that such fact is true and that, unless the Company shall deliver to Indemniteewritten notice of a determination that Indemnitee is not entitled to indemnification within twenty (20) calendar days after the Company’s receipt of Indemnitee’s initial written request for indemnification, such determination shallconclusively be deemed to have been made in favor of the Company’s provision of indemnification, and that the Company hereby agrees not to assert otherwise. 

**1.6. Contribution**

If the indemnification provided under Section 1.1is unavailable by reason of a court decision, based on grounds other than any of those set forth in paragraphs (b) through (d) of Section 4.1, then, in respect of any Proceeding in which the Company is jointly liable with Indemnitee(or would be if joined in such Proceeding), the Company shall contribute to the amount of Damages (including attorneys’ fees) actually and reasonably incurred and paid or payable by Indemnitee in such proportion as is appropriate to reflect(i) the relative benefits received by the Company on the one hand and Indemnitee on the other from the transaction from which such Proceeding arose and (ii) the relative fault of the Company on the one hand and of Indemnitee on the otherin connection with the events that resulted in such Damages as well as any other relevant equitable considerations. The relative fault of the Company on the one hand and of Indemnitee on the other shall be determined by reference to, among otherthings, the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Damages. The Company agrees that it would not be just and equitable if contribution pursuant tothis Section 1.6 were determined by pro rata allocation or any other method of allocation that does not take account of the foregoing equitable considerations. 

**1.7. Survival**

The indemnification and contribution provided under thisAgreement shall apply to any and all Proceedings, notwithstanding that Indemnitee has ceased to serve the Company or a Related Company and shall continue so long as Indemnitee shall be subject to any possible Proceeding, whether civil, criminal orinvestigative, by reason of the fact that Indemnitee was a director or officer of the Company or serving in any other capacity referred to in Section 1.4 of this Agreement. 

**2. Expense Advances**

**2.1. Generally**

The right to indemnification of Damages conferred by Section 1 shall include the right to have the Company pay Indemnitee’sexpenses in any Proceeding as such expenses are incurred and in advance of such Proceeding’s final disposition (such right, an “Expense Advance”). 

 

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**2.2. Conditions to Expense Advance**

The Company’s obligation to provide an Expense Advance is subject to the following conditions: 

**2.2.1. Undertaking**

If the Proceeding arose in connection with Indemnitee’s service as a director or an officer of the Company (and not in any other capacity in which Indemnitee rendered service, including service to any Related Company), then Indemniteeor Indemnitee’s representative shall have executed and delivered to the Company an undertaking, which need not be secured and shall be accepted without reference to Indemnitee’s financial ability to make repayment, by or on behalf ofIndemnitee to repay all Expense Advances if it shall ultimately be determined by a final, unappealable decision rendered by a court having jurisdiction over the parties that Indemnitee is not entitled to be indemnified under this Agreement orotherwise. 

**2.2.2. Cooperation**

Indemnitee shall give the Company such information and cooperation as it may reasonably request and as shall be within Indemnitee’s legal power to so provide. 

**2.2.3. Affirmation**

Indemnitee shall furnish, upon request by the Company and if required under applicable law, a written affirmation of Indemnitee’s good faith belief that any applicable standards of conduct have been met by Indemnitee. 

**3. Procedures for Enforcement**

**3.1. Enforcement**

In the event that any claim for indemnification, whether an Expense Advance or otherwise, ismade hereunder and is not paid in full within thirty (30) calendar days after written notice of such claim is delivered to the Company, Indemnitee may, but need not, at any time thereafter bring suit against the Company to recover the unpaidamount of the claim (an “Enforcement Action”). 

**3.2. Presumptions in Enforcement Action**

In any Enforcement Action, the following presumptions (and limitation on presumptions) shall apply: 

(a) The Company expressly affirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereunder toinduce Indemnitee to continue as a director or officer, as the case may be, of the Company; 

(b) Neither (i) the failureof the Company (including the Company’s Board of Directors, independent or special legal counsel or the Company’s shareholders) to have made a determination prior to the commencement of the Enforcement Action that indemnification ofIndemnitee is proper in the circumstances nor (ii) an actual determination by the Company, its Board of Directors, independent or special legal counsel or shareholders that Indemnitee is not entitled to indemnification shall be a defense to theEnforcement Action or create a presumption that Indemnitee is not entitled to indemnification hereunder; and 

 

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(c) If Indemnitee is or was serving as a director or officer of a corporation of which amajority of the shares entitled to vote in the election of its directors is held by the Company or as a partner, trustee or otherwise in an executive or management capacity in a partnership, joint venture, trust or other enterprise of which theCompany or a wholly owned subsidiary of the Company is a general partner or has a majority ownership, then such corporation, partnership, joint venture, trust or other enterprise shall conclusively be deemed a Related Company and Indemnitee shallconclusively be deemed to be serving such Related Company at the Company’s request. 

**3.3. Attorneys’ Fees andExpenses for Enforcement Action**

In the event Indemnitee is required to bring an Enforcement Action, the Company shall payall of Indemnitee’s fees and expenses in bringing and pursuing the Enforcement Action (including attorneys’ fees at any stage, including on appeal); provided, however, that the Company shall not be required to provide such payment for suchattorneys’ fees or expenses if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such Enforcement Action was not made in good faith. 

**4. Limitations on Indemnity; Mutual Acknowledgment**

**4.1. Limitation on Indemnity**

No indemnity pursuant to this Agreement shallbe provided by the Company: 

(a) On account of any suit in which a final, unappealable judgment is rendered against Indemniteefor an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company in violation of the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended; 

(b) For Damages that have been paid directly to Indemnitee by an insurance carrier under a policy of insurance maintained by the Company;

(c) With respect to remuneration paid to Indemnitee if it shall be determined by a final judgment or other final adjudicationthat such remuneration was in violation of law; 

(d) For any acts or omissions of the Indemnitee finally adjudged to beintentional misconduct or a knowing violation of law, for conduct of the Indemnitee finally adjudged to be in violation of RCW 23B.08.310 or a successor provision of the Act, for any transaction with respect to which it was finally adjudged that theIndemnitee personally received a benefit in money, property, or services to which the Indemnitee was not legally entitled, or if the Company is otherwise prohibited by applicable law from paying such indemnification; or 

(e) If a final decision by a court having jurisdiction in the matter with no further right of appeal shall determine that suchindemnification is not lawful. 

**4.2. Partial Indemnification**

If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of any Damages inconnection with a Proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Damages to which Indemnitee is entitled. 

 

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**4.3. Mutual Acknowledgment**

The Company and Indemnitee acknowledge that, in certain instances, federal law or public policy may override applicable state law andprohibit the Company from indemnifying Indemnitee under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”) has taken the position that indemnification isnot permissible for liabilities arising under certain federal securities laws, and federal legislation prohibits indemnification for certain ERISA violations. Furthermore, Indemnitee understands and acknowledges that the Company has undertaken ormay be required in the future to undertake with the SEC to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee. 

**5. Notification and Defense of Claim**

**5.1. Notification**

Promptly after receipt by Indemnitee of notice of thecommencement of any Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the omission so to notify the Company will not, however,relieve the Company from any liability which it may have to Indemnitee under this Agreement unless and only to the extent that such omission can be shown to have prejudiced the Company’s ability to defend the Proceeding. 

If, at the time of the receipt of a notice of a claim pursuant to Section 5.1, the Company has director and officer liability insurancein effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall take all necessary or desirable action to cause suchinsurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. 

**5.2. Defense of Claim**

With respect to any such Proceeding as to whichIndemnitee notifies the Company of the commencement thereof: 

(a) The Company may participate therein at its own expense;

(b) The Company, jointly with any other indemnifying party similarly notified, may assume the defense thereof, with counselsatisfactory to Indemnitee. After notice from the Company to Indemnitee of its election so to assume the defense thereof, the Company shall not be liable to Indemnitee under this Agreement for any legal or other expenses (other than reasonable costsof investigation) subsequently incurred by Indemnitee in connection with the defense thereof unless (i) the employment of counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee shall have reasonably concluded that theremay be a conflict of interest between the Company (or any other person or persons included in the joint defense) and Indemnitee in the conduct of the defense of such action, (iii) the Company shall not, in fact, have employed counsel to assumethe defense of such action, in each of which cases the fees and expenses of counsel shall be at the Company’s expense, or (iv) the Company is not financially or legally able to perform its

 

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indemnification obligations. The Company shall not be entitled to assume the defense of any proceeding brought by or on behalf of the Company or as to which Indemnitee shall have reasonably madethe conclusion provided for in (ii) or (iv) above; 

(c) The Company shall not be liable to indemnify Indemniteeunder this Agreement for any amounts paid in settlement of any Proceeding effected without its written consent; 

(d) TheCompany shall not settle any action or claim in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent; and 

(e) Neither the Company nor Indemnitee will unreasonably withhold its, his or her consent to any proposed settlement. 

**6. Severability**

Nothing in this Agreement is intended to require or shallbe construed as requiring the Company to do or to fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of thisAgreement. The provisions of this Agreement shall be severable, as provided in this Section 6. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shallnevertheless indemnify or make contribution to Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable inaccordance with its terms. 

**7. Governing Law; Binding Effect; Amendment and Termination**

(a) This Agreement shall be interpreted and enforced in accordance with the laws of the State of Washington. 

(b) This Agreement shall be binding on Indemnitee and on the Company and its successors and assigns (including any transferee of all orsubstantially all its assets and any successor by merger or otherwise by operation of law), and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, personal representatives and assigns and to the benefit of the Company and itssuccessors and assigns. The Company shall not effect any merger, consolidation, sale of all or substantially all of its assets or other reorganization in which it is not the surviving entity, unless the surviving entity agrees in writing to assureall of the Company’s obligations under this Agreement. 

(c) No amendment, modification, termination or cancellation ofthis Agreement shall be effective unless in writing signed by both parties hereto. 

**8. Entire Agreement**

This Agreement is the entire agreement of the parties regarding its subject matter and supersedes all prior written or oral communications oragreements. 

**9. Counterparts**

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 

 

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**10. Amendments; Waivers**

Neither this Agreement nor any provision may be amended except by written agreement signed by the parties. No waiver of any breach or default shall be considered valid unless in writing, and no suchwaiver shall be deemed a waiver of any subsequent breach or default. 

**11. Notices**

All notices, claims and other communications hereunder shall be in writing and made by hand delivery, registered or certified mail (postageprepaid, return receipt requested), facsimile or overnight air courier guaranteeing next-day delivery: 

 

(a) If to the Company, to:
  with a copy to:
SonoSite, Inc.

21919 30th Drive SE

Bothell, WA 98021-3904

Attn: Kathy Surace-Smith, General Counsel
  
Fenwick & West LLP

1191Second Avenue, Suite 1610

Seattle, WA 98101

Attn: Stephen M. Graham, Esq.

(b) If to Indemnitee, to the address specified on the last page ofthis Agreement or to such other address as either party may from time to time furnish to the other party by a notice given in accordance with the provisions of this Section 11. All such notices, claims and communications shall be deemed to havebeen duly given if (i) personally delivered, at the time delivered, (ii) mailed, five days after dispatched, (iii) sent by facsimile transmission, upon confirmation of receipt, and (iv) sent by any other means, upon receipt.

**12. Directors’ and Officers’ Insurance**

(a) The Company hereby covenants and agrees that, subject to the provisions of Section 12(c) hereof, the Company shall, from a date no later than the closing date of the Company’s firstregistered public offering of the Company’s Common Stock pursuant to an effective registration statement under the Securities Act of 1933, as amended, maintain directors’ and officers’ insurance in full force and effect so long asIndemnitee continues to serve as a director or officer of the Company and thereafter so long as Indemnitee shall be subject to any possible Proceeding. 

(b) In all policies of directors’ and officers’ insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits, subject to the samelimitations, as are accorded to the Company’s directors or officers most favorably insured by such policy. 

(c)Notwithstanding the foregoing provisions of this Section 12, the Company shall have no obligation to maintain directors’ and officers’ insurance if the Company determines in good faith that such insurance is not reasonably available,the premium costs for such insurance are disproportionate to the amount of coverage provided, or the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit. 

**13. Specific Performance**

The Company and Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, will be inadequate, impracticable and difficult of proof, and further

 

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agree that such breach would cause Indemnitee irreparable harm. Accordingly, the Company and Indemnitee agree that Indemnitee shall be entitled to temporary and permanent injunctive relief toenforce this Agreement without the necessity of proving actual damages or irreparable harm. The Company and Indemnitee further agree that Indemnitee shall be entitled to such injunctive relief, including temporary restraining orders, preliminaryinjunctions and permanent injunctions, without the necessity of posting bond or other undertaking in connection therewith. Any such requirement of bond or undertaking is hereby waived by the Company, and the Company acknowledges that in the absenceof such a waiver, a bond or undertaking may be required by the court. 

IN WITNESS WHEREOF, the parties hereto have executedthis Agreement on and as of the day and year first above written. 

 
COMPANY:SONOSITE, INC.By 
 

Its
 INDEMNITEE:
 

Print name:
 
 

Address:
 
 

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