Document:

exv10w11

 

Exhibit 10.11

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO THE CORPORATION AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

WARRANT TO PURCHASE STOCK

Corporation: MyComputer.com. Inc., a Delaware corporation

Number of Shares: 28,000

Class of Stock: Common

Initial Exercise Price: $1.10 per share

Issue Date: April 10, 2000

Expiration Date: Is the later occurrence of any of the following events: (i) April 10, 2007; or (ii) two (2) years from closing of Company’s initial public offering

     THIS WARRANT CERTIFIES THAT, for the agreed upon value of $1.00 and for other good and
valuable consideration, SILICON VALLEY BANK (“Holder”) is entitled to purchase the number of fully
paid and nonassessable shares of the class of securities (the “Shares”) of the corporation (the
“Company”) at the initial exercise price per Share (the “Warrant Price”) all as set forth above and
as adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the terms and
conditions set forth in this Warrant.

     ARTICLE 1. EXERCISE.

          1.1 Method of Exercise. Holder may exercise this Warrant by delivering a duly executed
Notice or Exercise in substantially the form attached as Appendix 1 to the principal office of the
Company. Unless Holder is exercising the conversion right set forth in Section 1.2, Holder shall
also deliver to the Company a check for the aggregate Warrant Price for the shares being purchased.

          1.2 Conversion Right. In lieu of exercising this Warrant as specified in Section 1.1.
Holder may from time to time convert this Warrant, in whole or in part, into a number of Shares
determined by dividing (a) the aggregate fair market value of the Shares or other securities
otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares shall be determined
pursuant to Section 1.4.

          1.3 Intentionally Omitted.

          1.4 Fair Market Value. If the Shares are traded in a public market, the fair market
value of the Shares shall be the closing price of the Shares (or the closing price of the Company’s
stock into which the Shares are convertible) reported for the business day immediately before
Holder delivers its Notice of Exercise to the Company. If the Shares are not traded in a public
market, the Board of Directors of the Company shall determine fair market value in its reasonable
good faith

 

 

judgment. The foregoing notwithstanding, if Holder advises the Board of Directors in writing
that Holder disagrees with such determination, then the Company and Holder shall promptly agree
upon a reputable investment banking firm to undertake such valuation. If the valuation of such
investment banking firm is greater than that determined by the Board of Directors, then all fees
and expenses of such investment banking firm shall be paid by the Company. In all other
circumstances, such fees and expenses shall be paid by Holder.

          1.5 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant, the Company shall deliver to Holder certificates for the Shares acquired
and, if this Warrant has not been fully exercised or converted and has not expired, a new Warrant
representing the Shares not so acquired.

          1.6 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and. in the case of loss,
theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and
amount to the Company or, in (the case of mutilation, on surrender and cancellation of this Warrant,
the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

          1.7 Repurchase on Sale Merger, or Consolidation of the Company.

               1.7.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale,
license, or other disposition of all or substantially all of the assets of the Company, or any
reorganization, consolidation, or merger of the Company where the holders of the Company’s
securities before the transaction beneficially own less than 50% of the outstanding voting
securities of the surviving entity after the transaction.

               1.7.2 Assumption of Warrant. Upon the closing of any Acquisition the successor entity
shall assume the obligations of this Warrant, and this Warrant shall be exercisable for the same
securities, cash, and property as would be payable for the Shares issuable upon exercise of the
unexercised portion of this Warrant as if such Shares were outstanding on the record data for the
Acquisition and subsequent closing. The Warrant Price shall be adjusted accordingly.

     ARTICLE 2. ADJUSTMENTS TO THE SHARES.

          2.1 Stock Dividends, Splits, Etc. If the Company (i) declares or pays a dividend on
its common stock (or the Shares if the Shares are securities other than common stock) payable in
common stock, or other securities, or (ii) subdivides the outstanding common stock into a greater
amount of common stock, or, if the Shares are securities other than common stock, subdivides the
Shares in a transaction that increases the amount of common stock into which the Shares are
convertible, then upon exercise of this Warrant, for each Share acquired, Holder shall receive,
without cost to Holder, the total number and kind of securities to which Holder would have been
entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred.

          2.2 Reclassification, Exchange or Substitution. Upon any classification, exchange,
substitution, or other event that results in a change of the number and/or class of the securities
issuable upon exercise or conversion of this Warrant, Holder shall be entitled to receive, upon

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exercise or conversion of this Warrant, the number and kind of securities and property that
Holder would have received for the Shares if this Warrant had been exercised immediately before
such reclassification. exchange, substitution, or other event. Such an event shall include any
automatic conversion of the outstanding or issuable securities of the Company of the same class or
series as the Shares to common stock pursuant to the terms of the Company’s Articles of
Incorporation upon the closing of a registered public offering of the Company’s common stock. The
Company or its successor shall promptly issue to Holder a new Warrant for such new securities or
other property. The new Warrant shall provide for adjustments which shall be as nearly equivalent
as may be practicable to the adjustments provided for in this Article 2 including, without
limitation, adjustments to the Warrant Price and to the number of securities or property issuable
upon exercise of the new Warrant. The provisions of this Section 2.2 shall similarly apply to
successive reclassifications, exchanges, substitutions, or other events.

          2.3 Adjustments for Combinations, Etc. If the outstanding shares are combined or
consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price
shall be proportionately increased.

          2.4 Adjustments for Diluting Issuances. The Warrant Price and the number of Shares
issuable upon exercise of this Warrant or, if the Shares are Preferred Stock, the number of shares
of common stock issuable upon conversion of the Shares, shall be subject to adjustment, from time
to time in the manner set forth on Exhibit A in the event of Diluting Issuances (as defined on
Exhibit A).

          2.5 No Impairment. The Company shall not, by amendment of its Articles of
Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution,
issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed under this Warrant by the Company,
but shall at all times in good faith assist in carrying out of all the provisions of this Article 2
and in taking all such action as may be necessary or appropriate to protect Holder’s rights under
this Article against impairment. If the Company takes any action affecting the Shares or its common
stock other than as described above that adversely affects Holder’s rights under this Warrant, the
Warrant Price shall be adjusted downward and the number of Shares issuable upon exercise of this
Warrant shall be adjusted upward in such a manner that the aggregate Warrant Price of this Warrant
is unchanged.

          2.6 Fractional Shares. No fractional shares shall be issuable upon exercise or
conversion of the Warrant and the number of Shares to be issued shall be rounded down to the
nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the
Warrant, the Company shall eliminate such fractional share interest by paying Holder an amount
computed by multiplying the fractional interest by the fair market value of a full Share.

          2.7 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the
Company at its expense shall promptly compute such adjustment, and furnish Holder with a
certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which
such adjustment is based. The Company shall, upon written request, furnish Holder a certificate
setting forth the Warrant Price in effect upon the date thereof and the series of adjustments
leading to such Warrant Price.

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     ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY.

          3.1 Representations and Warranties. The Company hereby represents and warrants to the
Holder as follows:

               (a) The initial Warrant Price referenced on the first page of this Warrant is not greater than
(i) the price per share at which the Shares were last issued in an arms-length transaction in which
at least $500,000 of the Shares were sold and (ii) the fair market value of the Shares as of the
date of this Warrant.

               (b) All Shares which may be issued upon the exercise of the purchase right represented by this
Warrant, and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance,
be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and
encumbrances except for restrictions on transfer provided for herein or under applicable federal
and state securities laws.

               (c) The capitalization table attached hereto is true and correct.

          3.2 Notice of Certain Events. If the Company proposes at any time (a) to declare any
dividend or distribution upon its common stock, whether in cash, property, stock, or other
securities and whether or not a regular cash dividend; (b) to offer for subscription pro rata to
the holders of any class or series of its stock any additional shares of stock of any class or
series or other rights; (c) to effect any reclassification or recapitalization of common stock; (d)
to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all
or substantially all of its assets, or to liquidate, dissolve or wind up; or (e) offer holders of
registration rights the opportunity to participate in an underwritten public offering of the
company’s securities for cash, then, in connection with each such event, the Company shall give
Holder (1) at least 20 days prior written notice of the date on which a record will be taken for
such dividend, distribution, or subscription rights (and specifying the date on which the holders
of common stock will be entitled thereto) or for determining rights to vote, if any, in respect of
the matters referred to in (c) and (d) above; (2) in the case of the matters referred to in (c) and
(d) above at least 20 days prior written notice of the date when the same will take place (and
specifying the date on which the holders of common stock will be entitled to exchange their common
stock for securities or other property deliverable upon the occurrence of such event); and (3) in
the case of the matter referred to in (e) above, the same notice as is given to the holders or such
registration rights.

          3.3 Information Rights. So long as the Holder holds this Warrant and/or any of the
Shares, the Company shall deliver to the Holder (a) promptly after mailing, copies of all notices
or other written communications to the shareholders of the Company, (b) within 90 days after the
end of each fiscal year of the Company, the annual audited financial statements of the Company
certified by independent public accountants of recognized standing and (c) such other financial
statements required under and in accordance with any loan documents between Holder and the Company
(or if there are no such requirements [or if the subject loan(s) no longer are outstanding]), then
within 45 days after the end of each of the first three quarters of each fiscal year, the Company’s
quarterly, unaudited financial statements.

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          3.4 Registration Under Securities Act of 1933, as amended. The Company agrees that the
Shares or, if the Shares are convertible into common stock of the Company, such common stock, shall
be subject to the registration rights set forth in the Company’s Investors’ Rights Agreement or
similar agreement.

     ARTICLE 4. MISCELLANEOUS.

          4.1 Term. This Warrant is exercisable, in whole or in part, at any time and from time
to time on or before the Expiration Date set forth above.

          4.2 Legends. This Warrant and the Shares (and the securities issuable, directly or
indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY
NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF
UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
THE CORPORATION AND ITS COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

          4.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable
upon exercise of this Warrant (and the securities issuable, directly or indirectly, upon conversion
of the Shares, if any) may not be transferred or assigned in whole or in part without compliance
with applicable federal and state securities laws by the transferor and the transferee (including,
without limitation, the delivery of investment representation letters and legal opinions reasonably
satisfactory to the Company, as reasonably requested by the Company). The Company shall not require
Holder to provide an opinion of counsel if the transfer is to an affiliate of Holder or if there is
no material question as to the availability of current information as referenced in Rule 144(c),
Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling
broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of
Holder’s notice of proposed sale.

          4.4 Transfer Procedure. Subject to the provisions of Section 4.3, Holder may transfer
all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the securities
issuable, directly or indirectly, upon conversion of the Shares, if any) at any time to Silicon
Valley Bancshares or The Silicon Valley Bank Foundation , or, to any other transferee by giving the
Company notice of the portion of the Warrant being transferred setting forth the name, address and
taxpayer identification number of the transferee and surrendering this Warrant to the Company for
reissuance to the transferee(s) (and Holder if applicable). Unless the Company is filing financial
information with the SEC pursuant to the Securities Exchange Act of 1934, the Company shall have
the right to refuse to transfer any portion of this Warrant to any person who directly competes
with the Company.

          4.5 Notices. All notices and other communications from the Company to the Holder, or
vice versa, shall be deemed delivered and effective when given personally or mailed by

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first-class registered or certified mail, at such address as may have been furnished to the
Company or the Holder, as the case may be, in writing by the Company or such holder from time to
time. All notices to be provided under this Warrant shall be sent to the following address:

Silicon Valley Bank

Attn: Treasury Department HG 100

3003 Tasman Drive

Santa Clara, CA 95054

          4.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or
terminated only by an instrument in writing signed by the party against which enforcement of such
change, waiver, discharge or termination is sought.

          4.7 Attorneys Fees. In the event of any dispute between the parties concerning the
terms and provisions of this Warrant, the party prevailing in such dispute shell be entitled to
collect from the other party all costs incurred in such dispute, including reasonable attorneys’
fees.

          4.8 Governing Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of California, without giving effect to its principles regarding conflicts of
law.

	 	 	 	 	 
	 	“COMPANY”

MyComputer.com, Inc.

	 
	 	By:  	/s/ Joshua G. James	 
	 	 	 	 	 
	 	Name:  	Joshua G. James 	 
	 	 	(Print)	 
	 	 	 	 	 
	 	Title:  	Chairman of the Board, President or
Vice President 	 
	 

	 	 	 	 	 
	 	By:  	/s/ Andrew Hartsfield	 
	 	 	 	 
	 	Name:  	Andrew Hartsfield 	 
	 	 	(Print)	 
	 	 	 	 
	 	Title:  	Chief Financial Officer, Secretary,
Assistant Treasurer or
 Assistant Secretary 
	 
	 

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APPENDIX 1

NOTICE OF EXERCISE

     1. The undersigned hereby elects to purchase _________shares of the Common/Preferred Series
___[Strike one] Stock of MyComputer.com, Inc. pursuant to the terms of the attached Warrant, and
tenders herewith payment of the purchase price of such shares in full.

     or

     1. The undersigned hereby elects to convert the attached Warrant into Shares/cash [strike one]
in the manner specified in the Warrant. This conversion is exercised with respect to
_________of the Shares covered by the Warrant.

     2. Please issue a certificate or certificates representing said shares in the name of the
undersigned or in such other name as is specified below:

	 	 	 	 	 
	 	 	 
	 	(Name)	 
	 	 	 
	 	 	 
	 	 	 
	 	(Address)	 
	 

     3. The undersigned represents it is acquiring the shares solely for its own account and not as
a nominee for any other party and not with a view toward the resale or distribution thereof except
in compliance with applicable securities laws.

	 	 	 	 	 
	 	 	 
	 	(Signature)	 
	 	 	 

	 	 	 	 	 
	 	 	 	 	 
	(Date)	 	 

 

 

SILICON VALLEY BANK

ANTIDILUTION AGREEMENT

     THIS ANTIDILUTION AGREEMENT is entered into as of April 10, 2000, by and between Silicon
Valley Bank (“Purchaser”) and the Company whose name appears on the last page of this Antidilution
Agreement.

RECITALS

     A. Concurrently with the execution of this Antidilution Agreement, the Purchaser is purchasing
from the Company a Warrant to Purchase Stock (the “Warrant”) pursuant to which Purchaser has the
right to acquire from the Company the Shares (as defined in the Warrant).

     B. By this Antidilution Agreement, the Purchaser and the Company desire to set forth the
adjustment in the number of Shares issuable upon exercise of the Warrant as a result of a Diluting
Issuance (as defined in Exhibit A to the Warrant).

     C. Capitalized terms used herein shall have the same meaning as set forth in the Warrant.

     NOW THEREFORE, in consideration of the mutual promises, covenants and conditions hereinafter
set forth, the parties hereto mutually agree as follows:

     1. Definitions. As used in this Antidilution Agreement, the following terms have the
following respective meanings:

          (a) “Option” means any right, option, or warrant to subscribe for, purchase, or otherwise
acquire common stock or Convertible Securities.

          (b) “Convertible Securities” means any evidences of indebtedness, shares of stock, or other
securities directly or indirectly convertible into or exchangeable for common stock.

          (c) “Issue” means to grant, issue, sell, assume, or fix a record date for determining persons
entitled to receive, any security (including Options), whichever of the foregoing is the first to
occur.

          (d) “Additional Common shares” means all common stock (including reissued shares) issued (or
deemed to be issued pursuant to Section 2) after the date of the Warrant. Additional common Shares
does not include, however, any common stock issued in a transaction described in Sections 2.1 and
2.2 of the Warrant; any common stock issued upon conversion of preferred stock outstanding on the
date of the Warrant; the Shares; or common stock issued as incentive or in a nonfinancing
transaction to employees, officers, directors, or consultants to the Company.

 

 

     2. Deemed Issuance of Additional Common Shares. The shares of common stock ultimately
issuable upon exercise of an Option (including the shares of common stock ultimately issuable upon
conversion or exercise of a Convertible Security issuable pursuant to an Option) are deemed to be
issued when the Option is issued. The shares of common stock ultimately issuable upon conversion or
exercise of a Convertible Security (other then a Convertible Security issued pursuant to an Option)
shall be deemed issued upon issuance of the Convertible Security. The maximum amount of common
stock issuable is determined without regard to any future adjustments permitted under the
instrument creating the Options or Convertible Securities.

     3. Adjustment of Warrant Price for Diluting Issuances.

          3.1 Weighted Average Adjustment. If the Company issues Additional Common Shares after
the date of the Warrant and the consideration per Additional Common Share (determined pursuant to
Section 9) is less than the Warrant Price in effect immediately before such Issue, the Warrant
Price shall be reduced, concurrently with such Issue, to a price (calculated to the nearest
hundredth of a cent) determined by multiplying the Warrant Price by a fraction:

          (a) the numerator of which is the amount of such common stock outstanding immediately before
such Issue plus the amount of common stock that the aggregate consideration received by the Company
for the Additional Common Shares would purchase at the Warrant Price in effect immediately before
such issue, and

          (b) the denominator of which is the amount of common stock outstanding immediately before such
issue plus (the number of such Additional Common Shares.

          3.2 Adjustment of Number of Shares. Upon each adjustment of the Warrant Price, the
number of Shares issuable upon exercise of the Warrant shall be increased to equal the quotient
obtained by dividing (a) the product resulting from multiplying (i) the number of Shares issuable
upon exercise or the warrant and (ii) the Warrant Price, in each case as in effect immediately
before such adjustment, by (b) the adjusted Warrant Price.

          3.3 Securities Deemed Outstanding. For the purpose of this Section 3, all securities
issuable upon exercise of any outstanding Convertible Securities or Options, warrants, or other
rights to acquire securities of the Company shall be deemed to be outstanding.

     4. No Adjustment for Issuances Following Deemed Issuances. No adjustment to the
Warrant Price shall be made upon the exercise of Options or conversion of Convertible Securities.

     5. Adjustment Following Changes In Terms of options or Convertible Securities. If the
consideration payable to, or the amount of common stock issuable by, the Company increases or
decreases, respectively, pursuant to the terms of any outstanding Options or Convertible
Securities, the Warrant Price shall be recomputed to reflect such increase or decrease. The
recomputation shall be made as of the time of the issuance of the Options or Convertible
Securities. Any changes in the Warrant Price that occurred after such issuance because other
Additional Common Shares were issued or deemed issued shall also be recomputed.

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     6. Recomputation Upon Expiration of Options or Convertible Securities. The Warrant
Price computed upon the original issue of any Options or Convertible Securities, and any subsequent
adjustments based thereon, shall be recomputed when any Options or rights of conversion under
Convertible Securities expire without having been exercised. In the case of Convertible Securities
or Options for common stock, the Warrant Price shall be recomputed as if the only Additional Common
Shares issued were the shares of common stock actually issued upon the exercise of such securities,
if any, and as if the only consideration received therefor was the consideration actually received
upon the issue, exercise or conversion of the Options or Convertible Securities. In the case of
Options for Convertible Securities, the Warrant Price shall be recomputed as if the only
Convertible Securities issued were the Convertible Securities actually issued upon the exercise
thereof, if any, and as if the only consideration received therefor was the consideration actually
received by the Company (determined pursuant to Section 9), if any, upon the issue of the Options
for the Convertible Securities.

     7. Limit on Readjustments. No readjustment of the Warrant Price pursuant to Sections 5
or 6 shall increase the Warrant Price more than the amount of any decrease made in respect of the
issue of any Options or Convertible Securities.

     8. 30 Day Options. In the case of any Options that expire by their terms not more than
30 days after the date of Issue thereof, no adjustment of the Warrant Price shall be made until the
expiration or exercise of all such Options.

     9. Computation of Consideration. The consideration received by the Company for the
issue of any Additional Common Shares shall be computed as follows:

          (a) Cash shall be valued at the amount of cash received by the Corporation, excluding
amounts paid or payable for accrued interest or accrued dividends.

          (b) Property. Property other than cash shall be computed at the fair market value
thereof at the time of the issue as determined in good faith by the Board of Directors of the
Company.

          (c) Mixed Consideration. The consideration for Additional common Shares issued
together with other property of the Company for consideration that covers both shall be determined
in good faith by the Board of Directors.

          (d) Options and Convertible Securities. The consideration per Additional Common Share
for Options and Convertible Securities shall be determined by dividing:

               (i) the total amount, if any, received or receivable by the Company for the issue of the
Options or Convertible Securities, plus the minimum amount of additional consideration (as set
forth in the instruments relating thereto, without regard to any provision contained therein for a
subsequent adjustment of such consideration) payable to the Company upon exercise of the Options or
conversion of the Convertible Securities, by

               (ii) the maximum amount of common stock (as set forth in the instruments relating thereto,
without regard to any provision contained therein for a subsequent

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adjustment of such number) ultimately issuable upon the exercise of such Options or the
conversion of such Convertible Securities.

     10. General.

          10.1 Governing Law. This Antidilution Agreement shall be governed in all respects by
the laws of the State of California as such laws are applied to agreements between California
residents entered into and to be performed entirely within California.

          10.2 Successors and Assigns. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns,
heirs, executors and administrators of the parties hereto.

          10.3 Entire Agreement. Except as set forth below, this Antidilution Agreement and the
other documents delivered pursuant hereto constitute the full and entire understanding and
agreement between the parties with regard to the subjects hereof and thereof.

          10.4 Notices, etc. All notices and other communications required or permitted
hereunder shall be in writing and shall be mailed by first class mail, postage prepaid, certified
or registered mail, return receipt requested, addressed (a) if to Purchaser at Purchaser’s address
as set forth below, or at such other address as Purchaser shall have furnished to the Company in
writing, or (b) if to the Company, at the Company’s address set forth below, or at such other
address as the Company shall have furnished to the Purchaser in writing.

          10.5 Severability. In case any provision of this Antidilution Agreement shall be
invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining
provisions of this Antidilution Agreement shall not in any way be affected or impaired thereby.

          10.6 Titles and Subtitles. The titles of the sections and subsections of this
Agreement are for convenience of reference only and are not to be considered in construing this
Antidilution Agreement.

          10.7 Counterparts. This Antidilution Agreement may be executed in any number of
counterparts, each of which shall be an original, but all of which together shall constitute one
instrument.

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	PURCHASER	 	COMPANY
	 
	 	 	 	 	 	 
	SILICON VALLEY BANK	 	MYCOMPUTER.COM, INC.
	 
	 	 	 	 	 	 
	By:
	 	/s/ Bruce Helberg	 	By:	 	/s/ Joshua G. James
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	Bruce Helberg	 	Name:	 	Joshua G. James
	 
	 	 	 	 	 	 
	 
	 	(print)	 	 	 	(print)
	 
	 	 	 	 	 	 
	Title:
	 	VP	 	Title:	 	Chairman of the Board, President or
Vice President
	 
	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address
	 	11000 SW Stratus	 	Address:	 	1358 W. Business Park Dr.
	 
	 	 	 	 	 	 
	 
	 	Suite 170	 	 	 	Orem, UT 84058
	 
	 	 	 	 	 	 
	 
	 	Beaverton OR 97007	 	 	 	 
	 
	 	 	 	 	 	 

 

 

ACKNOWLEDGEMENT AND AGREEMENT

     THIS ACKNOWLEDGEMENT AND AGREEMENT (this “Acknowledgement”) is made by and between Omniture,
Inc. (the “Company”) and Silicon Valley Bank (“SVB”) (each a “Party” and collectively, the
“Parties”), effective as of April 26, 2006. Reference is made to that certain Warrant to Purchaser
Stock issued by the Company to SVB on April 10, 2000 (the “Warrant”). Any capitalized term used
but not otherwise defined herein shall have the meaning given such term in the Warrant.

     1. The Parties hereby acknowledge and agree that, as of the date of this Acknowledgement, the
Warrant is exercisable for an aggregate of 84,000 shares of the Company’s common stock at an
exercise price equal to $0.055 per share.

     2. The Parties further acknowledge and agree that Bank’s rights under Section 3.4 of the
Warrant have been satisfied in full by virtue of Bank having entered into that certain Amended and
Restated Registration Rights Agreement dated as of April 26, 2006, by and among the Company and the
Investors, Founders and Additional Holders as defined therein.

[Signature page follows]

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     IN WITNESS WHEREOF, the Parties hereto have executed this Acknowledgement as of the date first
written above.

	 	 	 	 	 
	 	OMNITURE, INC.

	 
	 	/s/ Michael S. Herring	 
	 	Michael S. Herring 	 
	 	Chief Financial Officer 	 
	 
	 

	 	 	 	 	 
	 	SILICON VALLEY BANK

	 
	 	By:  	/s/ Norman Cutler	 
	 
	 	Name:  	Norman Cutler 	 
	 
	 	Its:	Derivatives Manager 	 
	 

-3-EX-10.3 Employment Agreement

 

EXHIBIT 10.3

EMPLOYMENT AGREEMENT

BETWEEN

STONERIDGE, INC.

AND

JOHN C. COREY

EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (this “Employment Agreement”) is entered into as of the
28th day of February, 2006 (the “Effective Date”), between Stoneridge, Inc., an Ohio
corporation (“the Company”), and John C. Corey (the “Executive”).

Recital

          The Company desires to employ the Executive, and the Executive desires to be employed by the
Company, on the terms and subject to the conditions set forth herein.

Agreements

          NOW, THEREFORE, in consideration of the mutual promises and mutual covenants herein contained
and for other good and valuable consideration, the adequacy and receipt of which are hereby
acknowledged, the parties agree as follows:

          1. Employment.

               (a) The Company hereby employs the Executive as its President and Chief Executive Officer and
the Executive hereby accepts such employment for the Term (as defined below), in the positions and
with the duties and responsibilities set forth herein, all subject to the terms and conditions
hereinafter set forth. The Executive shall be located at the Company’s Warren, Ohio corporate
headquarters.

               (b) The term of Executive’s employment under this Employment Agreement (the “Term”) shall
commence as of the Effective Date and shall continue until terminated in accordance with, and
subject to, the terms and condition of this Employment Agreement. During the Term of this
Employment Agreement and any renewal hereof (all references herein to the Term of this Employment
Agreement, except as otherwise specifically provided, shall include references to the period of
renewal hereof, if any), the Executive shall be and have the title of President and Chief Executive
Officer and shall devote his full working time, attention, energy and all reasonable efforts to his
employment and to the affairs of the Company, its subsidiaries and divisions, and perform
faithfully and diligently his duties hereunder and such duties as are customarily performed by
Presidents and Chief Executive Officers of companies similar in size to the Company or whose equity
securities are listed on the New York Stock Exchange, together with such other duties as may be
reasonably requested from time to time by the Board of Directors of the Company (the “Board”),
which duties shall be consistent with his positions as set forth above and as provided in Section 2. To the extent such policies, procedures and practices do not conflict with this Agreement the
Executive agrees to comply with and be bound by the Company’s operational policies, procedures and
practices from time to time in effect during the Term.

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               (c) This Employment Agreement shall not be construed as preventing the Executive from serving
as an outside director of any other company (but no more than two (2) other companies without Board
approval) or from investing his assets in such form or manner as will not require a material amount
of his time, in each case subject to the confidentiality, non-competition and non-solicitation
obligations contained in Section 6(a) below.

          2. Term and Positions.

               (a) Subject to the provisions for renewal and termination hereinafter provided, (i) the Term
of this Employment Agreement shall begin on the Effective Date shall continue until December 31,
2007 and (ii) provided the Executive is less than 65 years old as of the first day of each
succeeding calendar year after December 31, 2007, such Term automatically shall be extended for one
(1) additional calendar year, beginning with the calendar year commencing January 1, 2008. This
Employment Agreement may be terminated at any time as provided in Section 5 or by either the
Executive or the Company at the end of the then current Term upon written notice of termination of
this Employment Agreement given to the other party at least 90 days before the end of the then
current Term.

               (b) The Executive shall be entitled to serve as the President and Chief Executive Officer of
the Company. Without limiting the generality of any of the foregoing, except as hereafter
expressly agreed in writing by the Executive: (i) the Executive shall not be required to report to
any single individual and shall report only to the Board as an entire body, (ii) no other
individual shall be elected or appointed as President or Chief Executive Officer of the Company,
(iii) the other senior executive officers of the Company, with the exception of the Director of
Internal Audit, shall report to no individual other than the Executive, and (iv) no individual or
group of individuals (including a committee established or other designee appointed by the Board)
shall have any authority over or equal to the authority of the Executive in his role as President
and Chief Executive Officer, and neither the Company, the Board, nor any member of the Board shall
take any action which will or could have the effect of, or appear to have the effect of, giving
such authority to any such individual or group. For service as a director, officer and employee of
the Company, the Executive shall be entitled to the fullest indemnification permitted by law,
including the full protection of the applicable indemnification provisions of the articles of
incorporation and code of regulations of the Company, as the same may be amended from time to time.

               (c) If:

          (i) the Company materially changes the Executive’s duties and responsibilities as
set forth in Section 1(b) and 2(b) without his consent (including, without limitation,
by violating any of the provisions of clauses (i), (ii), (iii) and (iv) of Section
2(b));

          (ii) the Executive’s place of employment or the principal executive offices of
the Company are located more than (100) miles from the geographical center of Warren,
Ohio; or

          (iii) there occurs a material breach by the Company of any of its obligations
under this Employment Agreement, which breach has not been cured in all material
respects within ten (10) days after the Executive gives notice thereof to the Company,

then in any such event the Executive shall have the right to terminate his employment with the
Company, but such termination shall not be considered a voluntary resignation or termination of
such employment or of this Employment Agreement by the Executive but rather a discharge of the
Executive by the Company “without cause” (as defined in Section 5(a)).

               (d) The Executive shall be deemed not to have consented to any written proposal calling for a
material change in his duties and responsibilities unless he shall give written notice of his
consent thereto to the Board within fifteen (15) days after receipt of such written proposal. If
the Executive shall not have given such consent, the Company shall have the opportunity to withdraw
such proposed material change by written notice to the Executive given within ten (10) days after
the end of said fifteen (15) day period.

               (e) At all times during the term of his employment hereunder, the Executive shall be entitled
to nominate himself to the Board, and the Company shall take all actions required for the Executive
to be elected to the Board.

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          3. Compensation and Benefits.

               During the Term of this Employment Agreement the Company shall pay or provide, as the case may
be, to the Executive the compensation and other benefits and rights set forth in this Section 3.

               (a) The Company shall pay to the Executive a base salary payable in accordance with the
Company’s usual pay practices (and in any event no less frequently than monthly) of not less than
Five Hundred and Twenty-Five Thousand Dollars ($525,000) per annum.

               (b) For the Company’s 2006 fiscal year the Executive shall participate in the Company’s Annual
Incentive Plan (the “AIP”), in effect at the time and approved by the Compensation Committee of the
Board (the “Committee”), at a target equal to 70% of base salary; provided, however,
notwithstanding the 2006 fiscal year target, if the Executive is employed by the Company on
December 15, 2006, or, provided the Executive has been employed for at least six (6) months if this
Agreement is terminated because of the Executive’s death or permanent disability (defined below),
the Company shall pay to the Executive or his estate, as applicable, incentive or bonus
compensation under the AIP for the 2006 fiscal year of not less than Two Hundred and Fifty Thousand
Dollars ($250,000) and the payment of Two Hundred and Fifty Thousand Dollars ($250,000) may be made
on or before December 31, 2006 at the Company’s discretion. If the Two Hundred and Fifty Thousand
Dollars ($250,000) is not paid in 2006 the Company shall pay to the Executive incentive or bonus
compensation for the Company’s 2006 fiscal year (including any amount earned above $250,000 if the
$250,000 has been paid in 2006) not later than 90 days following the end of the fiscal year or the
termination of the employment, as the case may be, prorated on a per diem basis for the partial
year; provided, however, if the Executive’s employment and this Employment Agreement is terminated
for “cause” the Executive shall not be entitled to be paid any incentive or bonus compensation.

               (c) For the Company’s 2007 fiscal year and fiscal years thereafter, the Company shall pay, if
earned, to the Executive bonus or incentive compensation each fiscal year of the Company, not later
than 90 days following the end of each fiscal year. In the event the Executive’s employment is
terminated other than for “cause” the Executive shall be eligible for incentive or bonus
compensation, if any, prorated on a per diem basis for partial fiscal years. If the Executive’s
employment is terminated for “cause” the Executive shall not be entitled to be paid any incentive
or bonus compensation. Executive’s annual incentive or bonus compensation entitlement for each of
the fiscal years during the Term generally shall be pursuant to the terms of the AIP, in effect at
the time, at the target level approved by the Committee, or in accordance with a formula or other
bonus plan established by the Committee for such fiscal year; provided, however, that with respect
only to termination of employment by reason of death, permanent disability, or termination of
employment other than for “cause” (including retirement provided the Executive has been employed by
the Company at least three (3) years), and provided that such termination occurs more than six
months after the beginning of the then current fiscal year, then the Executive (or his beneficiary)
shall also be entitled to a pro-rated annual bonus based upon the proportion of the fiscal year
during which the Executive was actively employed, but payable only if and when the annual bonus
would have been paid if no termination had occurred. Other than for the 2006 fiscal year as
provided for in Section 3(b) nothing in this Employment Agreement guarantees that the Executive
shall be paid incentive or bonus compensation; provided, however, the Executive shall be entitled
to participate in the AIP or other incentive compensation plans, if any, if approved by the
Committee for the Company’s management employees.

               (d) The Company shall provide to the Executive such life, medical, and hospitalization
insurance for himself, his spouse and eligible dependents, as offered to the Company’s senior
management employees; provided, however, during the Term the Company shall also reimburse the
Executive, upon presentation of appropriate vouchers or receipts, for reimbursement covering
Executive and his eligible dependents under the Company’s generally available medical plan for
uncovered expenses, including deductibles and co-pays, up to five thousand dollars ($5,000.00) per
eligible dependent per year.

               (e) The Company shall pay the Executive, each month, a monthly automobile allowance of Twelve
Hundred Dollars ($1,200.00) to pay for the costs associated with the Executive’s transportation
expenses.

               (f) The Executive shall be entitled to participate in all retirement and other benefit plans,
including 401(k) plans, of the Company generally available from time to time to employees of the
Company and for which the Executive qualifies under the terms thereof (and nothing in this
Agreement shall or shall be deemed to in any way effect the Executive’s right and benefits
thereunder except as expressly provided herein).

               (g) The Company shall reimburse the Executive, monthly, for his country club fees, assessments
and dues in an amount not to exceed Five Hundred Dollars ($500) per month. The Company shall also
pay, on behalf of the

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Executive, for country club initiation fees in an amount not to exceed a one-time payment of
Thirty-Five Thousand Dollars ($35,000); provided, however, such country club must be within 100
miles of Warren, Ohio.

               (h) The Company shall reimburse the Executive, upon presentation of appropriate vouchers or
receipts, for premiums paid by the Executive to maintain in effect a life insurance policy or
policies covering the Executive, the beneficiary of such insurance policy shall be designated by
the Executive; provided, however, that the amounts to be reimbursed by the Company under this
Section 3(h) shall not exceed Fifteen Thousand Dollars ($15,000) per annum.

               (i) The Executive shall be entitled to such vacation with pay during each year of his
employment hereunder consistent with the policies of the Company, but in no event less than four
(4) weeks in any such calendar year (pro-rated as necessary for partial calendar years during the
Term); provided, however, that the vacation days taken do not interfere with the operations of the
Company. Such vacation may be taken, in the Executive’s discretion, at such time or times as are
not inconsistent with the reasonable business needs of the Company. The Executive shall not be
entitled to any compensation in lieu of vacation in the event that the Executive, for whatever
reason, including termination of employment, fails to take such vacation during any year of his
employment hereunder. The Executive shall also be entitled to all paid holidays given by the
Company to its executive officers.

               (j) The Executive shall be entitled to participate in any equity or other employee benefit
plan, including the Company’s Long-Term Incentive Plan, that is generally available to executive
officers. The Executive’s participation in and benefits under any such plan shall be on the terms
and subject to the conditions specified in the governing document of the particular plan. Grants
or awards made under any such plan, if any, shall be made at the discretion of the Committee, the
Board or such other appropriate committee of the Board.

               (k) (1) The Company shall provide the Executive with the Company’s standard relocation
benefits for senior management personnel in connection with the Executive’s relocation to the
Warren, Ohio area. In addition, upon the Executive’s death, permanent disability (defined below)
or termination without cause or upon the Executive’s retirement (provided in the case of retirement
he has been employed hereunder for at least three (3) years or otherwise as approved in advance by
the Committee) the Company shall provide the Executive and his spouse or his spouse (if the spouse
survives the Executive), as the case may be, with the Company’s standard relocation benefits for
senior management (which benefits shall be substantially similar to the benefit provided to move
the Executive to the Warren, Ohio area) to relocate the Executive and/or his spouse, as the case
may be, from the Warren, Ohio area to another location at the Executive’s or his spouse’s
discretion, as the case may be, within the lower 48 states of the United States of America.

                     (2) If not already provided for pursuant to the Company’s standard relocation benefits for
senior management in connection with the relocation benefits set forth in this Section 3(k) the
Company shall (i) pay for temporary housing for the Executive and his spouse and dependants for a
reasonable period of time during a search for permanent housing, (ii) reimburse the Executive and
his wife for reasonable transportation costs, upon presentation of appropriate vouchers or
receipts, in connection with no more than three (3) trips to the Warren, Ohio area to search for
permanent housing, (iii) pay the Executive upon completion of his move to the Warren, Ohio area,
upon the Executive’s request, up to Twenty-Five Thousand Dollars ($25,000) to cover the Executive’s
and his family’s miscellaneous moving expenses, (iv) pay for the Executive’s travel to and from
South Carolina for weekend visits until April 30, 2006 or the Executive’s relocation to the Warren,
Ohio area whichever occurs first, (v) reimburse the cost of full value insurance coverage for
household goods to maximum value of One Hundred and Fifty Thousand ($150,000) (this insurance is
offer by the moving company); (vi) ensure that the appraisers used to value the Executive’s current
house are (notwithstanding the current relocation policy) instructed to appraise the house assuming
180 days to sell the house; and (vii) reimburse the Executive the cost of moving two vehicles. The
Chairman of the Compensation may (but is not obligated to) approve other deviations from the
Company’s standard relocation policy upon request of the Executive.

                     (3) The Executive agrees to reimburse the Company in full for all amounts paid to the
Executive and the value of the relocation benefit to the Executive for the relocation of the
Executive and his family upon his retirement from the Warren, Ohio area pursuant to this Section
3(k) if within 365 days from his retirement from the Company the Executive becomes employed by
another employer.

               (l) The Company shall reimburse the Executive or provide him with an expense allowance during
the term of this Employment Agreement for travel, entertainment and other expenses reasonably and
necessarily incurred by the Executive in connection with the Company’s business. The Executive
shall furnish such documentation with respect to reimbursement to be paid hereunder as the Company
shall reasonably request.

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          4. Payment in the Event of a Termination Without Cause.

               (a) Provided that a “Change in Control” (as defined in a separate Change in Control Agreement,
dated January 16, 2006, by and between the Executive and the Company (the “CIC Agreement”)(a copy
of the CIC Agreement is attached hereto as Appendix A)) has not occurred, at the time that the
Executive’s employment under this Employment Agreement is terminated other than for “cause” (as set
forth in Section 5(a)) or as a result of the Executive’s death or permanent disability (defined in
Section 5(c)), then the Company shall commence, upon the receipt of the release described in
Section 4(e), severance payments to the Executive (which will be in addition to any other
compensation or remuneration to which the Executive is, or becomes, entitled to receive from the
Company);

               (b) The severance payments shall be made monthly for a period of twenty-four (24) months on
the last business day of the month and shall commence on the last business day of the month
immediately following the termination of employment; provided, however, that in the event the
Executive is a “specified employee” under Internal Revenue Code (the “Code”) Section 409A, the
payments under this Agreement and related benefits, as require, will be delayed in accordance with
Code Section 409A(2). The monthly payments shall be made in immediately available funds in an
amount equal to 1/24th of the sum of (i) two times the Executive’s Annual Compensation
(as defined in the CIC Agreement) plus (ii) two times the Executive’s Annual Bonus (as defined in
the CIC Agreement).

               (c) In addition to making the monthly payments described above, the Company shall pay the
Executive a lump sum payment equal to the Executive Pro Rata Annual Bonus (as defined in the CIC
Agreement) at the same time it makes the first monthly payment described above. In addition, the
Company shall, at its expense, provide the Executive, and his eligible dependents with life and
health insurance, including the reimbursements of life insurance premiums set forth in Section 3(h)
(“Health and Welfare Benefits”) in an amount not less than that provided on the date on which the
Change in Control occurred for a period of twenty-four (24) months following the termination
without cause; provided, however, the Company shall not be obligated to pay for Health and Welfare
Benefits after the date on which the Executive shall be eligible to receive benefits from another
employer which are substantially equivalent to or greater than the benefits the Executive and his
family received from Company; provided, further, that if the Executive’s continuation in some or
all of the Company’s Health and Welfare Benefits is not available, then the Company shall make
additional monthly payments to the Executive at the same time it makes the above monthly payments
described above equal to the cost of the coverage, as determined solely by the Company for
similarly situated employees of the Employer, over a period of twenty-four (24) months with respect
to those benefits among the Health and Welfare Benefits not available. All payments pursuant to
this Employment Agreement shall be made less standard required deductions and withholdings.

               (d) Notwithstanding anything in this Employment Agreement to the contrary, if there shall
occur a “Change in Control” and a “Triggering Event” (as those terms are defined in the CIC
Agreement), then the Company or the Executive shall have the right to terminate the employment of
the Executive with the Company and, in the event of such termination, the payments to be made to
the Executive in connection therewith shall be governed by the CIC Agreement and not this Section 4
of this Employment Agreement and the Executive shall be entitled to no further compensation or
other benefits under this Employment Agreement, except (i) unpaid base salary (but no bonus or
incentive compensation), vacation, un-reimbursed expenses, (ii) the relocation benefit set forth in
Section 3(k), and (iii) the payment, if any, set forth in Section 4(e), below.

               (e) In connection with the Executive’s acceptance of the Company’s offer to become the
Company’s President and Chief Executive Officer the Executive was granted 150,000 restricted common
shares in the Company (the “Restricted Shares”) on January 16, 2006. The Company agrees upon a
Change in Control (as defined in the CIC Agreement), whether or not a Triggering Event (as defined
in the CIC Agreement) has occurred (i) if the Executive does not receive at least One Million
Dollars ($1,000,000) in cash or in the value of marketable securities at the time of the Change in
Control for the Restricted Shares in the Change in Control transaction, or (ii) if the Executive’s
Restricted Share are not part of the Change in Control transaction and the Executive’s Restricted
Shares do not have an aggregate value, based upon the market price of the Company’s Common Shares
on the New York Stock Exchange or such other exchange or market, as applicable, of at least One
Million Dollars ($1,000,000) at or anytime within the first thirty (30) day period following the
Change in Control, then the Company shall pay to the Executive the difference between (A) the
highest pre-tax aggregate value of the Restricted Shares during the period based on the market
price of the Company’s common shares, determined as set forth above, or, if the Restricted Shares
are part of the Change in Control transaction, the amount realized (pre-tax) by the Executive for
the Restricted Shares in the Change in Control transaction, and (B) One Million Dollars
($1,000,000). This Section 4(e) shall become null and void if the Executive sells, transfers or
otherwise disposes of any of the Restricted Shares in advance of a Change in Control.

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               (f) Notwithstanding anything in the Employment Agreement to the contrary, as a condition to
the payment by the Company to the Executive of the severance payments set forth in this Section 4,
the Executive shall deliver a signed release of claims against the Company. Such release shall be
in a form and substance reasonably satisfactory to the Company and it shall include operative
language substantially similar to the language set forth in Section 9 of the CIC Agreement. Under
no circumstances there shall be duplication of payments under this Employment Agreement and the CIC
Agreement.

          5. Termination.

               (a) In addition to the termination of this Employment Agreement pursuant to Section 2(a) at
the end of the then current Term, the employment of the Executive under this Employment Agreement,
and the Term hereof, may be terminated by the Company:

	 	(i)	 	on the death or permanent disability of the Executive, or
	 
	 	(ii)	 	“without cause” or for “cause” at any time by action of the Board.

In the event the Executive is terminated for cause, the Executive shall only be paid his unpaid
base salary (but no bonus or incentive compensation) through the date of termination.

For purposes hereof, the term “cause” shall mean the Executive’s:

	 	(1)	 	intentional misappropriation of funds from the Company;
	 
	 	(2)	 	conviction of a felony;
	 
	 	(3)	 	commission of a crime or act or series of acts involving moral turpitude;
	 
	 	(4)	 	commission of an act or series of acts of dishonesty
that are materially inimical to the best interests of the Company;
	 
	 	(5)	 	breach of any material term of this Employment Agreement;
	 
	 	(6)	 	willful and repeated failure to perform the duties
associated with the Executive’s position, which failure has not been cured
within thirty (30) days after the Company gives notice thereof to the
Executive; or
	 
	 	(7)	 	failure to cooperate with any Company investigation
or with any investigation, inquiry, hearing or similar proceedings by any
governmental authority having jurisdiction over the Executive or the
Company.

Provided, however, the Executive shall have been provided with written notice that there is a basis
for termination for cause under clauses (1) and clauses (4)-(7), above. The notice shall set forth
the facts regarding the basis for termination. The Executive shall be afforded a reasonable amount
of time under the circumstances after the delivery of the notice before the Board meets to consider
any possible termination for cause (which amount of time the parties acknowledge may be very
limited depending on the circumstances). At or prior to the meeting of the Board to consider the
matters described in the written notice the Executive will be afforded an opportunity to express
his views to the Board on the subject matter of the notice. Notwithstanding the Executive’s
views, the Board’s determination concerning a “for cause” termination hereunder shall be made at
the sole discretion of the Board.

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     Any other termination of the Executive’s employment by the Company shall be deemed to be
“without cause.” Also, in addition to the events described in Section 2(c), the Executive may
terminate his employment under this Employment Agreement with the Company and such termination
shall be deemed to be a termination by the Company “without cause” if:

	 	(1)	 	The Executive is younger than 64 years old and the
Company provides notice of its intent to terminate the agreement at the
end of the then current term;
	 
	 	(2)	 	The Company reduces the Executive’s title,
responsibilities, power or authority in comparison with the Executive’s
title, responsibilities, power or authority on the Effective Date;
	 
	 	(3)	 	The Company assigns the Executive duties which are
inconsistent with the duties assigned to the Executive on the Effective
Date and which duties the Company persists in assigning to the Executive
despite the Executive’s prior written objection;
	 
	 	(4)	 	The Company changes the Executive’s reporting
responsibilities so that the Executive is no longer the chief executive
officer of the Company reporting directly to the Board; or
	 
	 	(5)	 	The Company reduces the Executive’s annual base
compensation, or materially reduces the Executive’s health, life,
disability or other insurance programs, the Executive’s pension,
retirement or profit-sharing benefits or any benefits provided by the
Company, or excludes the Executive from any plan, program or arrangement,
including but not limited to bonus or incentive plans (unless such
decrease is proportionate with a decrease in the base compensation or
various benefit plans provided or available to the officers of the Company
as a group);

Upon any termination of this Employment Agreement, the Executive shall be deemed to have resigned
from all offices and directorships held by the Executive in the Company or its subsidiaries.

          (b) In the event of termination for reason of death (in the case of death the Executive’s
employment hereunder shall be terminated as of the date of his death) the Executive’s designated
beneficiary, or, in the absence of such designation, the estate or other legal representative of
the Executive shall be paid the Executive’s unpaid base salary (but no bonus or incentive
compensation except as specifically provided in Section 3(a) or 3(b) with respect to a pro-rated
annual bonus) through the end of the month in which the death occurs. No other benefits shall be
payable under this Section 5 due to the Executive’s termination in the event of death other than
the relocation benefit set forth in Section 3(k).

          (c) In the event that the Executive is reasonably determined to be permanently disabled, the
Company shall have the right to terminate Executive’s employment under this Employment Agreement by
giving the Executive ten (10) days’ prior written notice. If the Executive’s employment hereunder
is so terminated, the Executive shall continue to receive his base salary for a period of three (3)
months (but no bonus or incentive compensation except as specifically provided in Section 3(a) or
3(b) with respect to a pro-rated annual bonus). No other benefits shall be payable under this
Section 5 due to the Executive’s termination in the event the Committee reasonably determines that
the Company’s termination of the Executive’s employment was due to his permanent disability other
than the relocation benefit set forth in Section 3(k). For purposes of this Employment Agreement,
the Executive’s “permanent disability” shall be deemed to have occurred after one hundred twenty
(120) days in the aggregate during any consecutive twelve (12) month period, or after ninety (90)
consecutive days, during which one hundred twenty (120) or ninety (90) days, as the case may be,
the Executive, by reason of his physical or mental disability or illness, shall have been unable to
discharge his duties under this Employment Agreement. The date of permanent disability shall be
such one hundred twentieth (120th) or ninetieth (90th) day, as the case may be. In the event
either the Company or the Executive, after receipt of notice of the Executive’s permanent
disability from the other, dispute that the Executive’s permanent disability shall have occurred,
the Executive shall promptly submit to a physical examination by the chief of medicine (or the
physician designed by such individual) of any major accredited hospital in the Cleveland, Ohio,
area and, unless such physician shall issue his written statement to the effect that in his
opinion, based on his diagnosis, the Executive is capable of resuming his employment and devoting
his full time and energy to discharging his duties within thirty (30) days after the date of such
statement, such permanent disability shall be deemed to have occurred.

          (d) If the Executive terminates his employment voluntarily, other than a termination that
shall be deemed to be a termination “without cause” pursuant to Section 5(a) (i.e., a constructive
termination), the Executive shall be paid

7

 

his unpaid base salary (but no bonus or incentive compensation except as specifically provided in
Section 3(b) with respect to retirement and with respect to a pro-rated annual bonus).

          6. Covenants, Non-Competition and Confidential Information.

               (a) The Executive acknowledges the Company’s reliance and expectation of the Executive’s
continued commitment to performance of his duties and responsibilities during the term of this
Employment Agreement. In light of such reliance and expectation on the part of the Company, during
the Term of this Employment Agreement, while the Executive is receiving payments hereunder and for
a period of two (2) years after the Executive has received his last payment hereunder (and, as to
clauses (iii) and (iv) of this subsection (a), at any time during and after the Term of this
Employment Agreement), the Executive shall not, directly or indirectly, do or suffer any of the
following:

                  (i) Own, manage, control or participate in the ownership, management, or control
of, or be employed or engaged by or otherwise affiliated or associated as a
consultant, independent contractor or otherwise with, any other corporation,
partnership, proprietorship, firm, association or other business entity (1) that has
material operations which are engaged in any business activity competitive (directly
or indirectly) with the business of the Company or (2) engaged in the business of
designing and/or manufacturing of engineered electrical and electronic components,
modules and systems for the automotive, medium- and heavy-duty truck, agricultural and
off-highway vehicle markets; provided, however, that the ownership of not more than
one percent (1%) of any class of publicly traded securities of any entity shall not be
deemed a violation of this covenant;

                  (ii) Without the prior written consent of the Company, on his own behalf or on
behalf of any person or entity, directly or indirectly, hire or solicit the employment
of any employee who has been employed by the Company or its subsidiaries at any time
during the six (6) months immediately preceding such date of hiring or solicitation;

                  (iii) Use, disclose or make accessible to any other person, firm, partnership,
corporation or any other entity any Confidential Information (as defined below)
pertaining to the business of the Company or any entity controlling, controlled by or
under common control with the Company (each an “Affiliate”) except (i) while employed
by the Company in the business of and for the benefit of the Company or its Affiliates
or (ii) when required to do so by a court of competent jurisdiction, by any
governmental agency having supervisory authority over the business of the Company or
its Affiliates, or by any administrative body or legislative body (including a
committee thereof) with jurisdiction to order the Company or its Affiliates to
divulge, disclose or make accessible such information. For purposes of this
Employment Agreement, “Confidential Information” shall mean non-public information
concerning the Company’s financial data, statistical data, strategic business plans,
product development (or other proprietary product data), customer and supplier lists,
customer and supplier information, pricing data, information relating to governmental
relations, discoveries, practices, processes, methods, trade secrets, developments,
marketing plans and other non-public, proprietary and confidential information of the
Company or its Affiliates, that, in any case, is not otherwise generally available to
the public and has not been disclosed by the Company, or its Affiliates, as the case
may be, to others not subject to confidentiality agreements. In the event the
Executive’s employment is terminated hereunder for any reason, the Executive
immediately shall return to the Company all Confidential Information in his
possession; or

                  (iv) Disclose, divulge, discuss, copy or otherwise use or suffer to be used in
any manner, in competition with, or contrary to the interests of, the Company, any
Confidential Information relating to the Company’s operations, properties or otherwise
to its particular business or other trade secrets of the Company, it being
acknowledged by the Executive that all such information regarding the business of the
Company compiled or obtained by, or furnished to, the Executive while the Executive
shall have been employed by or associated with the Company is confidential information
and the Company’s exclusive property; provided, however, that the foregoing
restrictions shall not apply to the extent that such information (1) is clearly
obtainable in the public domain, (2) becomes obtainable in the public domain, except
by reason of the breach by the Executive of the terms hereof, (3) was not acquired by
the Executive in connection with his employment or affiliation with the Company, (4)
was not acquired by the Executive from the Company or its representatives, or (5) is
required to be disclosed by rule of law or by order of a court or governmental body or
agency.

8

 

               (b) The Executive agrees and understands that the remedy at law for any breach by him of this
Section 6 will be inadequate and that the damages flowing from such breach are not readily
susceptible to being measured in monetary terms. Accordingly, it is acknowledged that, upon
adequate proof of the Executive’s violation of any legally enforceable provision of this Section 6,
the Company shall be entitled to immediate injunctive relief and may obtain a temporary order
restraining any threatened or further breach. Nothing in this Section 6 shall be deemed to limit
the Company’s remedies at law or in equity for any breach by the Executive of any of the provisions
of this Section 6, which may be pursued or availed of by the Company.

               (c) The Executive and the Company agree that the covenants of non-competition and
non-solicitation are reasonable covenants under the circumstances, and further agree that if, in
the opinion of any court of competent jurisdiction such covenants are not reasonable in any
respect, such court shall have the right, power and authority to excise or modify such provision or
provisions of these covenants as to the court shall appear not reasonable and to enforce the
remainder of these covenants as so amended.

               (d) The Executive has carefully considered the nature and extent of the restrictions upon him
and the rights and remedies conferred upon the Company under this Section 6, and hereby
acknowledges and agrees that the same are reasonable in time and otherwise, are designed to
eliminate competition which otherwise would be unfair to the Company, do not stifle the inherent
skill and experience of the Executive, would not operate as a bar to the Executive’s sole means of
support, are fully required to protect the legitimate interests of the Company and do not confer a
benefit upon the Company disproportionate to the detriment to the Executive.

               (e) The provisions of this Section 6 shall survive any termination of this Employment
Agreement.

               (f) Notwithstanding anything else in this Employment Agreement, the cash component and
benefits component of any severance payments made pursuant to Section 4 under this Employment
Agreement shall cease in the event that the Executive breaches any covenant of this Section 6.

          7. Representations and Warranties of the Company.

               (a) The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Ohio, and has all requisite corporate power and authority to enter into,
execute and deliver this Employment Agreement, fulfill its obligations hereunder and consummate the
transactions contemplated hereby.

               (b) The execution and delivery of, performance of obligations under, and consummation of the
transactions contemplated by, this Employment Agreement have been duly authorized and approved by
all requisite corporate action by or in respect of the Company, and this Employment Agreement
constitutes the legally valid and binding obligation of the Company, enforceable by the Executive
in accordance with its terms.

               (c) No provision of the Company’s governing documents or any agreement to which its is a party
or by which it is bound or of any material law or regulation of the kind usually applicable and
binding upon the Company prohibits or limits its ability to enter into, execute and deliver this
Employment Agreement, fulfill its respective obligations hereunder and consummate the transactions
contemplated hereby.

          8. Miscellaneous.

               (a) The Executive represents and warrants that he is not a party to any agreement, contract or
understanding, whether employment or otherwise, which would restrict or prohibit him from
undertaking or performing employment in accordance with the terms and conditions of this Employment
Agreement.

               (b) The provisions of this Employment Agreement are severable and if any one or more
provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions and any partially unenforceable provision to the extent enforceable in any
jurisdiction nevertheless shall be binding and enforceable.

               (c) The rights and obligations of the Company under this Employment Agreement shall inure to
the benefit of, and shall be binding on, the Company and its successors and assigns, and the rights
and obligations (other than

9

 

obligations to perform services) of the Executive under this Employment Agreement shall inure to
the benefit of, and shall be binding upon, the Executive and his heirs, personal representatives
and assigns. “Successors and assigns” shall mean, in the case of the Company, any successor
pursuant to a merger, consolidation, or sale, or other transfer of all or substantially all of the
assets or common shares of the Company.

               (d) Any controversy or claim arising out of or relating to this Employment Agreement, or the
breach thereof, shall be settled by arbitration in accordance with the Rules of the American
Arbitration Association then pertaining in the County of Cuyahoga, Ohio, and judgment upon the
award rendered by the arbitrator or arbitrators may be entered in any court having jurisdiction
thereof. The arbitrator or arbitrators shall be deemed to possess the powers to issue mandatory
orders and restraining orders in connection with such arbitration; provided, however, that nothing
in this Section 8(d) shall be construed so as to deny the Company the right and power to seek and
obtain injunctive relief in a court of equity for any breach or threatened breach by the Executive
of any of his covenants contained in Section 6 hereof.

               (e) All notices and other communications hereunder shall be in writing and shall be deemed to
have been given if delivered personally or sent by facsimile transmission, overnight courier, or
certified, registered or express mail, postage prepaid. Any such notice shall be deemed given when
so delivered personally or sent by facsimile transmission (provided that a confirmation copy is
sent by overnight courier), one day after deposit with an overnight courier, or if mailed, five (5)
days after the date of deposit in the United States mails, as follows:

To the Company:

Stoneridge, Inc.

9400 East Market Street

Warren, Ohio 44484

Telephone: (330) 856-2443

Attention: Secretary

With copy to:

Robert M. Loesch

Baker & Hostetler LLP

3200 National City Center

1900 E. 9th Street

Cleveland, Ohio 44114

Telephone (216) 861-7594

Fax (216) 696-0740

To Executive:

John C. Corey

c/o Stoneridge, Inc.

9400 East Market Street

Warren, Ohio 44484

With copy to:

Cary H. Hall

Wyche Law Firm

P.O. Box 728

Greenville, SC 29602

Telephone (864) 242-8299

Fax (864) 235-8900

               (f) The failure of either party to enforce any provision or provisions of this Employment
Agreement shall not in any way be construed as a waiver of any such provision or provisions as to
any future violations thereof, nor prevent that party thereafter from enforcing each and every
other provision of this Employment Agreement. The rights

10

 

granted the parties herein are cumulative and the waiver of any single remedy shall not constitute
a waiver of such party’s right to assert all other legal remedies available to it under the
circumstances.

               (g) This Employment Agreement supersedes all prior agreements and understandings between the
parties and may not be modified or terminated orally. No modification, termination or attempted
waiver shall be valid unless in writing and signed by the party against whom the same is sought to
be enforced.

               (h) This Employment Agreement shall not be assignable or otherwise transferable by Executive.
The Company shall have the right to assign this Agreement to any successor which agrees to be bound
by the terms hereof.

               (i) This Employment Agreement shall be governed by and construed according to the laws of the
State of Ohio.

               (j) Captions and Section headings used herein are for convenience and are not a part of this
Employment Agreement and shall not be used in construing it.

               (k) Where necessary or appropriate to the meaning hereof, the singular and plural shall be
deemed to include each other, and the masculine, feminine and neuter shall be deemed to include
each other.

               (l) This Employment Agreement may be executed in one or more counterparts, which together
shall constitute one agreement. It shall not be necessary for each party to sign each counterpart
so long as each party has signed at least one counterpart.

          IN WITNESS WHEREOF, the parties have executed this Employment Agreement on the day and year
first set forth above.

	 	 	 	 	 
	Stoneridge, Inc., an Ohio corporation
	 	 

	 
	 	 
	By:
	 	 
	 

	 	 
	 

	 	George E. Strickler

Executive Vice President and Chief Financial Officer
	 
	 	 
	 
	 	 
	 
	 	 

	John C. Corey
	 	 

11

 

Appendix A

STONERIDGE, INC.

CHANGE IN CONTROL AGREEMENT

     THIS CHANGE IN CONTROL AGREEMENT (the “Agreement”) is by and between Stoneridge, Inc., an Ohio
corporation (“Employer”), and                      (“Executive”), made this 6th day of
January, 2006.

RECITALS

     A. Executive is presently employed by Employer as its                     ;

     B. Employer wishes to induce Executive to continue as its                      and, accordingly, to
provide certain employment security to Executive in the event of a “Change in Control” (as
hereinafter defined);

     C. Employer believes that it is in the best interest of its shareholders for Executive to
continue in his position on an objective and impartial basis and without distraction, whether based
upon individual financial uncertainties or otherwise, or conflict of interest as a result of a
possible or actual Change in Control; and

     D. In consideration of this Agreement, Executive is willing to continue as Employer’s
                    ;

     NOW THEREFORE, in consideration of Executive continuing as the                      of Employer and
of the mutual promises herein contained, Executive and Employer, intending to be legally bound,
hereby agree as follows;

SECTION 1

DEFINITIONS

     1. A “Change in Control” for the purpose of this Agreement will be deemed to have occurred if,
at any time:

          (a) the Board of Directors or shareholders of Employer approve a consolidation or merger that
results in the shareholders of Employer, immediately prior to the transaction giving rise to the
consolidation or merger, owning less than 50% of the total combined voting power of all classes of
equity securities entitled to vote of the surviving entity immediately after the consummation of
the transaction giving rise to the merger or consolidation;

          (b) the Board of Directors or shareholders of Employer approve the sale of substantially all
of the assets of Employer or the liquidation or dissolution of Employer;

          (c) any person or other entity (other than Employer or a subsidiary of Employer or any
Employer employee benefit plan (including any trustee of any such plan acting in its capacity as
trustee)) purchases any common shares (or securities convertible into common shares) pursuant to a
tender or exchange offer without the prior consent of the Board of Directors, or becomes the
beneficial owner of securities of Employer representing 35% or more of the voting power of
Employer’s outstanding securities; or

          (d) during any two-year period, individuals who at the beginning of such period constitute the
entire Board of Directors cease to constitute a majority of the Board of Directors, unless the
election or the nomination for election of each new director is approved by the Nominating and
Corporate Governance Committee (if comprised entirely of directors who were in office at the
beginning of that period) or at least two-thirds of the directors then still in office who were
directors at the beginning of that period.

     2. A “Triggering Event” for the purpose of this Agreement will be deemed to have occurred if
within two years after the date on which the Change in Control occurred:

12

 

          (a) Employer separates Executive from the service of Employer, other than in the case of a
Termination For Cause, as hereafter defined;

          (b) Executive separates from the service of Employer after Employer reduces Executive’s title,
responsibilities, power or authority in comparison with his title, responsibilities, power or
authority at or about the time of the Change in Control;

          (c) Executive separates from service with Employer after Employer assigns Executive duties
which are inconsistent with the duties assigned to Executive on the date on which the Change in
Control occurred, and which duties Employer persists in assigning to Executive despite the prior
written objection of Executive;

          (d) Executive separates from service with Employer after Employer reduces Executive’s base
compensation (unless such decrease is proportionate with a decrease in the base compensation of the
executive officers of Employer as a group), or materially reduces his group health, life,
disability or other insurance programs (including any such benefits provided to Executive’s
family), his pension, retirement or profit-sharing benefits or any benefits provided by Employer’s
Long-Term Incentive Plan or any substitute therefor, or excludes him from any plan, program or
arrangement, including but not limited to bonus or incentive plans, in which the other executive
officers of Employer are included; or

          (f) Executive separates from service with Employer after Employer requires Executive to be
based at or generally work from any location more than 100 miles from the geographical center of
the city where Executive worked on the date on which the Change of Control occurred (the “Location
of Employment”) or Employer over the course of any calendar month requires Executive to be away
from his Location of Employment for more than 50% of the business days during that month.

For purposes of this paragraph 2, the term “separates from the service of Employer” shall mean
Executive’s death, retirement or termination of employment with Employer. However, the employment
relationship shall not be treated as terminated and is treated as continuing intact while Executive
is on sick leave or other bona fide leave of absence if the period of leave does not exceed six
months, or, if longer, the right to continued employment is guaranteed by contract. Executive will
not be treated as having terminated employment to the extent Executive provides more than
insignificant services as defined by Internal Revenue Code Section 409A and the regulations
thereunder.

     3. A “Termination For Cause” for the purposes of this Agreement will be deemed to have
occurred if, and only if, the Board of Directors of Employer, or its designee, in good faith
determines that termination is because of any one or more of the following:

          Executive’s:

          (a) misappropriation of funds from Employer;

          (b) conviction of a felony;

          (c) commission of a crime or act or series of acts involving moral turpitude;

          (d) commission of an act or series of acts of dishonesty that are materially inimical to the
best interests of Employer;

          (e) willful and repeated failure to perform the duties associated with Executive’s position,
which failure has not been cured within thirty (30) days after Employer gives notice thereof to
Executive; or

          (f) failure to cooperate with any Employer investigation or with any investigation, inquiry,
hearing or similar proceedings by any governmental authority having jurisdiction over Employer or
Executive.

     4. “Executive’s Annual Bonus” means the greater of Executive’s average annual bonus over the
last three completed fiscal years or the last five completed fiscal years. If Executive has not
been employed by Employer for three completed fiscal years, Executive’s Annual Bonus means the
average annual bonus awarded to Executive for the completed fiscal

13

 

years during his employment, or if Executive has not been employed for a complete fiscal year,
Executive’s Annual Bonus means an amount equal to the incentive compensation Executive would have
been entitled to in the year the Triggering Event occurred calculated upon the assumption that 100%
of personal and Employer targets or performance goals were achieved in that year.

     5. “Executive’s Annual Salary” means the greater of Executive’s annual base salary at the time
of a Triggering Event or at the time of the occurrence of a Change in Control.

     6. “Executive Pro Rata Annual Bonus” means an amount equal to the pro rata amount of incentive
compensation Executive would have been entitled to at the time of a Triggering Event calculated on
the assumption that 100% of personal and Employer targets or performance goals were achieved in the
year in which the Triggering Event occurred.

SECTION 2

TRIGGERING EVENT PAYMENTS

     1. Upon the earliest occurrence of a Triggering Event and upon the receipt of the release
described in Section 9, Employer shall commence payments to Executive of a benefit, which will be
in addition to any other compensation or remuneration to which Executive is, or becomes, entitled
to receive from Employer. The payment of the benefit shall be made monthly for a period of
twenty-four (24) months on the last business day of the month and shall commence on the last
business day of the month immediately following the later to occur of a Triggering Event and the
delivery of the release described in Section 9. The monthly payments shall be made in immediately
available funds in an amount equal to 1/24th of the sum of (i) two times Executive’s
Annual Compensation plus (ii) two times Executive’s Annual Bonus. In addition to making the
monthly payments described above, Employer shall pay Executive a lump sum payment equal to the
Executive Pro Rata Annual Bonus at the same time it makes the first monthly payment described
above. In addition, Employer shall, at its expense, provide Executive, and his family with life
and health insurance (“Health and Welfare Benefits”) in an amount not less than that provided on
the date on which the Change in Control occurred for a period of twenty-four (24) months following
the later to occur of a Triggering Event and the delivery of the release described in Section 9;
provided, however, Employer shall not be obligated to pay for Health and Welfare Benefits after the
date on which Executive shall be eligible to receive benefits from another employer which are
substantially equivalent to or greater than the benefits Executive and his family received from
Employer; provided, further, that if Executive’s continuation in some or all of Employer Health and
Welfare Benefits is not available, then Employer shall make additional monthly payments to
Executive at the same time it makes the above monthly payments described above equal to the cost of
the coverage, as determined solely by Employer for similarly situated employees of Employer, over a
period of twenty-four (24) months with respect to those benefits among the Health and Welfare
Benefits not available. All payments pursuant to this Agreement shall be made less standard
required deductions and withholdings. Notwithstanding the above, if Executive is a “specified
employee” (within the meaning of Section 409A of the Internal Revenue Code (the “Code”)),
Executive’s date of payment shall be made or commence, as applicable, on the date which is six (6)
months after the date of Executive’s separation from service with Employer or (b) Executive’s
death.

     2. Notwithstanding anything to the contrary above, if any portion of the compensation under
the payments pursuant to this Agreement, or under any other agreement with, plan or program of,
Employer (in the aggregate “Total Payments”) would constitute an “excess parachute payment” under
Section 280G of the Code, then the payments to which Executive is entitled under paragraph 1 of
this Section 2 above shall be the value of the aggregate total payments that Executive is entitled
to receive under paragraph 1, or under any other agreement with, plan or program of, Employer, up
to the maximum amount of payments allowed under Section 280G of the Code without being an “excess
parachute payment” less 3% of the Total Payments so that Executive is not subject to the tax
imposed by Section 4999 of the Code and Employer does not lose its deduction under Section 280G of
the Code. The calculation of such potential excise tax liability, as well as the method in which
the compensation reduction is applied, shall be conducted and determined by a national accounting
firm selected by Employer and those determinations shall be binding on all parties; provided,
however, that if the calculation of such national accounting firm will result in a reduction in the
payments to be made to Executive, prior to issuance of the final and binding determination,
Executive shall be given a reasonable opportunity to (i) review and comment upon all of the
material, information and documentation provided to the national accounting firm by Employer and
(ii) offer such input as Executive may determine to be helpful to the national accounting firm’s
preliminary determination.

     3. If, notwithstanding the determination of the national accounting firm, the Total Payments
are determined by the Internal Revenue Service to be an “excess parachute payment” within the
meaning of Section 280G of the Code that are subject to

14

 

the excise tax imposed by Section 4999 of the Code (or any similar tax or assessment), the
amounts payable to Executive by Employer shall be increased to the extent necessary to place
Executive in the same after-tax position as Executive would have been in had no such tax been
imposed on any such amount paid or payable to Executive under this Agreement.

     4. If in any future year a determination is made that the decrease described in Section 2,
paragraph 2 is not required in order to satisfy such paragraph 2, such payment shall be made as
soon as administratively feasible.

SECTION 3

SETOFF

     No amounts otherwise due or payable under this Agreement will be subject to setoff or
counterclaim by either party hereto.

SECTION 4

ATTORNEY’S FEES

     All attorney’s reasonable fees and related expenses incurred in good faith by Executive in
connection with or relating to the enforcement by him of his rights under this Agreement will be
paid for by Employer.

SECTION 5

SUCCESSORS AND PARTIES IN INTEREST

     This Agreement will be binding upon and will inure to the benefit of Employer and its
successors and assigns, including, without limitation, any corporation or other person which
acquires, directly or indirectly, by purchase, merger, consolidation or otherwise, all or
substantially all of the business or assets of Employer. Without limitation of the foregoing,
Employer will require any such successor, by agreement in form and substance satisfactory to
Executive, expressly to assume and agree to perform this Agreement in the same manner and to the
same extent that it is required to be performed by Employer. This Agreement will be binding upon
and will inure to the benefit of Executive, his heirs at law and his personal representatives.

SECTION 6

ATTACHMENT

     Neither this Agreement nor any benefits payable hereunder will be subject to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge or to execution, attachment,
levy or similar process at law, whether voluntary or involuntary.

SECTION 7

NO EMPLOYMENT CONTRACT; TERMINATION

     This Agreement will not in any way constitute an employment agreement between Employer and
Executive and it will not oblige Executive to continue in the employ of Employer, nor will it
oblige Employer to continue to employ Executive, but it will merely require Employer to pay
benefits hereunder to Executive under the agreed upon circumstances. In addition, provided a
Change in Control has not occurred, this Agreement shall terminate and be of no further force or
effect one year from the date Executive ceases to be a Board-elected officer or key employee (as
determined by the Board of Directors of Employer in its sole discretion and reflected in the
minutes of Board of Directors after notice to such Executive) of Employer.

15

 

SECTION 8

RIGHTS UNDER OTHER PLANS AND AGREEMENTS

     The Change in Control benefits herein provided will be in addition to, and are not intended to
reduce, restrict or eliminate any benefit to which Executive may otherwise be entitled by virtue of
his termination of employment or otherwise.

SECTION 9

RELEASE

     As a condition to the payment of the benefits by Employer to Executive pursuant to this
Agreement, Executive shall deliver a signed release of claims against Employer. Such release shall
be delivered to Employer no later than thirty (30) days following a Triggering Event and shall be
in a form and substance reasonably satisfactory to Employer and it must include the operative
language substantially similar to the following:

In exchange for the payments set forth in the Change in Control Agreement by and between
Stoneridge, Inc. (the “Employer”) and me (the “CIC Agreement”), I and my heirs, personal
representatives, successors and assigns, hereby forever release, remise and discharge
Employer and each of its past, present, and future officers, directors, shareholders,
members, employees, trustees, agents, representatives, affiliates, successors and assigns
(collectively the “Employer Released Parties”) from any and all claims, claims for relief,
demands, actions and causes of action of any kind or description whatsoever, known or
unknown, whether arising out of contract, tort, statute, treaty or otherwise, in law or in
equity, which I now have, have had, or may hereafter have against any of the Employer
Released Parties from the beginning of my employment with Employer to the date of this
release, arising from, connected with, or in any way growing out of, directly or indirectly,
my employment by Employer, my service as an officer or key employee, as the case may be, of
Employer, the services provided by me to Employer, or any transaction prior to the date of
this release and all effects, consequences, losses and damages relating thereto, including,
but not limited to, all claims arising under the Civil Rights Acts of 1866 and 1964, the Fair
Labor Standards Act of 1938, the Equal Pay Act of 1963, the Age Discrimination in Employment
Act of 1967, the Rehabilitation Act of 1973, the Older Workers Benefit Protection Act of
1990, the Americans with Disabilities Act of 1990, the Civil Rights Act of 1991, the Family
and Medical Leave Act of 1993, the Consolidated Omnibus Budget Reconciliation Act (“COBRA”),
Title 4112 of the Ohio Revised Code, and all other federal or state laws governing employers
and employees; provided, however, that nothing in this release will bar, impair or affect the
obligations, covenants and agreements of Employer set forth in the CIC Agreement.

If the release described in this Section 9 is not timely delivered by Executive to Employer, then
this Agreement shall terminate and be of no further force or effect.

SECTION 10

NOTICES

     All notices and other communications required to be given hereunder shall be in writing and
will be deemed to have been delivered or made when mailed, by certified mail, return receipt
requested, if to Executive, to the last address which Executive shall provide to Employer, in
writing, for this purpose, but if Executive has not then provided such an address, then to the last
address of Executive then on file with Employer; and if to Employer, then to the last address which
Employer shall provide to Executive, in writing, for this purpose, but if Employer has not then
provided Executive with such an address, then to:

Secretary

Stoneridge, Inc.

9400 East Market Street

Warren, Ohio 44484

16

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