Document:

Exhibit

Notice of Grant of 
Performance Shares for Senior Executives 
under the Ellie Mae, Inc. 2017 Senior Executive Performance Share Program and  
Ellie Mae, Inc. Executive Incentive Plan

Ellie Mae, Inc. (the “Company”), pursuant to its Executive Incentive Plan (the “Plan”) and its 2017 Senior Executive Performance Share Program (the “Program”), hereby grants to the individual set forth below (the “Holder”) that number of performance shares set forth below (the “Performance Shares”).  This grant of Performance Shares is subject to all of the terms and conditions set forth herein and in the Grant Agreement accompanying this Notice of Grant (the “Grant Agreement”), the Plan and the Program, each of which are incorporated herein by reference.  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Grant Agreement.
	
		
	Holder:
	                     

	Grant Date:
	                     

	Number of Performance Shares:
	

                     

Subject to the provisions of the Plan, the Program and the Grant Agreement, vested Performance Shares generally will be settled as provided in Section 4 of the Grant Agreement.  By the Holder’s signature and the Company’s signature below, the Holder and the Company agree that this award of Performance Shares is made under and governed by the terms and conditions of the Plan, the Program and the Grant Agreement.  The Holder acknowledges that he or she has received a copy of the Grant Agreement, the Program, the Plan and the Prospectus relating to the Plan. 
Please sign and return one copy of this Notice of Grant to [insert address]. 

	
					
	ELLIE MAE, INC.
	 
	HOLDER

	 
	 
	 
	 
	 

	HOLDER:
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	            
	 
	By:
	            

	Print Name:
	            
	 
	Print Name:
	            

	Title:
	            
	 
	 
	            

	Address:
	            
	 
	Address:
	            

	 
	            
	 
	 
	            

Grant Agreement for 
Performance Shares for Senior Executives 
under the Ellie Mae, Inc. 2017 Senior Executive Performance Share Program and 
Ellie Mae, Inc. Executive Incentive Plan

This is a Grant Agreement between Ellie Mae, Inc. (the “Company”) and the individual (the “Holder”) named in the Notice of Grant of Performance Shares (the “Notice”) attached hereto as the cover page of this Grant Agreement.
Recitals
The Company has adopted the Executive Incentive Plan, as may be amended from time to time (the “Plan”), and the 2017 Senior Executive Performance Share Program (the “Program”) for the granting to selected employees of awards based upon shares of Common Stock of the Company (the “Common Stock”).  In accordance with the terms of the Plan and the Program, the Compensation Committee of the Board of Directors (the “Committee”) has approved the execution of this Grant Agreement between the Company and the Holder.  Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Plan.
Performance Shares
1.Grant.  The Company grants to the Holder the number of performance shares set forth in the Notice (the “Performance Shares”), subject to adjustment, forfeiture and the other terms and conditions set forth below, as of the effective date of the grant (the “Grant Date”) specified in the Notice.  The number of Performance Shares specified in the Notice reflects the target number of Performance Shares that may be earned by the Holder.  The Company and the Holder acknowledge that the Performance Shares, and any shares of Common Stock issued thereunder, (a) are being granted hereunder in exchange for the Holder’s agreement to provide services to the Company after the Grant Date, for which the Holder will otherwise not be fully compensated, and which the Company deems to have a value at least equal to the aggregate par value of the Shares, if any, that the Holder may become entitled to receive under this Agreement, and (b) will, except as provided otherwise in the Program, be forfeited by the Holder if the Holder’s termination of service to the Company occurs before the applicable Vesting Date (as defined in Section 4 below).
2.    Performance Criteria.  Subject to the Holder’s continuous employment through the Initial Settlement Date and the terms and conditions therein, the Holder will be issued a number of shares of Common Stock underlying the Performance Shares on the Initial Settlement Date determined based on the achievement of annual goals related to revenue growth and contracted SaaS users growth (the “Company Performance Measures”) during all or a portion of the period beginning on January 1, 2017 and ending on December 31, 2017 (the “Performance Period”), in each case, as determined by the Committee and set forth in writing. 
3.    Consequences of Certain Events.  The consequences of the Holder’s termination of employment or a Change in Control shall be as set forth in the Program.
4.    Payout of Performance Shares.  The Committee shall certify in writing the achievement or non-achievement of the Company Performance Measures for the Performance Period on, or as soon as administratively following, the date the Company files with the Securities and Exchange Commission its Form 10-K or Form 10-Q for the last fiscal year or quarterly period, as applicable, ending during the Performance Period (the “Determination Date”).  On the thirtieth (30th) day following the Determination 

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Date (the “Initial Settlement Date”), subject to the Holder’s continuous employment with the Company through the Determination Date (unless otherwise provided in the Program), the Company shall issue that number of shares of Common Stock (the “Restricted Stock”) to the Holder, if any, determined based upon achievement or non-achievement of the Company Performance Measures for the Performance Period.  Twenty-five percent (25%) of the shares of Restricted Stock shall immediately vest on the Initial Settlement Date and seventy-five percent (75%) of the shares of Restricted Stock shall be subject to a risk of forfeiture.  On each of the next three annual anniversaries of the Determination Date (collectively with the Initial Settlement Date, the “Vesting Dates”), subject to the Holder’s continuous employment with the Company through such Vesting Date (unless otherwise provided in the Program), the risk of forfeiture with respect to twenty-five percent (25%) of the shares of Restricted Stock shall lapse.  In the event the Holder terminates service with the Company for any reason, any shares of Restricted Stock that remain subject to a risk of forfeiture as of such date (after giving effect to any accelerated vesting) shall immediately be forfeited.  In the case of the Holder’s death prior to the Initial Settlement Date, the Common Stock to be issued in settlement of Performance Shares as described above shall be delivered to the Holder’s beneficiary or beneficiaries (as designated in the manner determined by the Committee), or if no beneficiary is so designated or if no beneficiary survives the Holder, then the Holder’s administrator, executor, personal representative, or other person to whom the Performance Shares are transferred by means of the Holder’s will or the laws of descent and distribution (such beneficiary, beneficiaries or other person(s), the “Holder’s Heir”).
5.    Code Section 409A.  The Company intends that the Performance Shares shall not constitute “deferred compensation” within the meaning of Section 409A of the Code and this Grant Agreement shall be interpreted based on such intent.  In view of uncertainty surrounding Section 409A of the Code, however, if the Company determines after the Grant Date that an amendment to this Grant Agreement is necessary or advisable so that the Performance Shares will not be subject to Section 409A of the Code, or alternatively so that they comply with Section 409A of the Code, it may make such amendment, effective as of the Grant Date or at any later date, without the consent of the Holder.
Notwithstanding anything in this Grant Agreement to the contrary, to the extent that any payment or benefit constitutes non-exempt “nonqualified deferred compensation” for purposes of Section 409A of the Code, and such payment or benefit would otherwise be payable or distributable hereunder by reason of the Holder’s termination of employment, all references to the Holder’s termination of employment shall be construed to mean a “separation from service,” as defined in Treasury Regulation Section 1.409A-1(h) (a “Separation from Service” ), and the Holder shall not be considered to have a termination of employment unless such termination constitutes a  Separation from Service with respect to the Holder.
Notwithstanding anything in this Grant Agreement to the contrary, if a Holder is deemed by the Company at the time of the Holder’s Separation from Service to be a “specified employee” for purposes of Section 409A(a)(2)(B)(i) of the Code, to the extent delayed commencement of any portion of the benefits to which Holder is entitled under this Grant Agreement is required in order to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, such portion of Holder’s benefits shall not be provided to Holder until the earlier of (i) the expiration of the six-month period measured from the date of the Holder’s Separation from Service or (ii) the date of the Holder’s death.  Upon the first business day following the expiration of the applicable Code Section 409A(a)(2)(B)(i) period, all payments deferred pursuant to the preceding sentence shall be paid or distributed in a lump sum to Holder (or to Holder’s estate or beneficiaries), and any remaining payments due to Holder under this Grant Agreement shall be paid or distributed as otherwise provided herein.  
A Holder’s right to receive any installment payments under this Grant Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at 

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all times be considered a separate and distinct payment as permitted under Treasury Regulation Section 1.409A-2(b)(2)(iii).
6.    Tax Withholding.  Notwithstanding anything to the contrary in this Grant Agreement, the Company shall be entitled to require payment by Holder of any sums required by federal, state or local tax law to be withheld with respect to the grant of the Performance Shares or the issuance of the shares of Common Stock underlying the Performance Shares, or any other taxable event related thereto. The Company may permit Holder to make such payment in one or more of the forms specified below: 
		
	i.
	by cash or check made payable to the Company;

		
	ii.
	by the deduction of such amount from other compensation payable to Holder;

		
	iii. 
	with the consent of the Committee, by tendering shares of Common Stock, including Common Stock otherwise issuable upon such grant or issuance, which have a then-current Fair Market Value on the date of delivery not greater than the amount necessary to satisfy the Company’s withholding obligation based on the minimum statutory withholding rates for federal, state and local income tax and payroll tax purposes;

		
	iv.
	by surrendering other property acceptable to the Committee (including, without limitation, through the delivery of a notice that Holder has placed a market sell order with a broker with respect to shares payable pursuant to the Performance Shares, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of its withholding obligations; provided that payment of such proceeds is then made to the Company at such time as may be required by the Company, but in any event not later than the settlement of such sale); or

		
	v.
	in any combination of the foregoing.

If any such taxes are required to be withheld at a date earlier than the applicable Vesting Date, then notwithstanding any other provision of this Grant Agreement, the Company may (i) satisfy such obligation by causing the forfeiture of a number of shares of Restricted Stock having a Fair Market Value, on such earlier date, equal to the amount necessary to satisfy the minimum required amount of such withholding or (ii) make such other arrangements with the Holder for such withholding as may be satisfactory to the Company in its sole discretion.
7.    Compliance with Law.
		
	i.
	No shares of Common Stock shall be issued and delivered pursuant to Performance Shares unless and until all applicable registration requirements of the Securities Act of 1933, as amended, all applicable listing requirements of any national securities exchange on which the Common Stock is then listed, and all other requirements of law or of any regulatory bodies having jurisdiction over such issuance and delivery, shall have been complied with.  In particular, the Committee may require certain investment (or other) representations and undertakings in connection with the issuance of securities in connection with the Plan in order to comply with applicable law.

		
	ii.
	If any provision of this Grant Agreement is determined to be unenforceable or invalid under any applicable law, such provision will be applied to the maximum extent permitted by applicable law, and shall automatically be deemed amended in a manner consistent with its 

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objectives to the extent necessary to conform to any limitations required under applicable law.  Furthermore, if any provision of this Grant Agreement is determined to be illegal under any applicable law, such provision shall be null and void to the extent necessary to comply with applicable law, but the other provisions of this Grant Agreement shall remain in full force and effect.
8.    Assignability.  Except as may be effected by designation of a beneficiary or beneficiaries in such manner as may be determined by the Committee, or as may be effected by will or other testamentary disposition or by the laws of descent and distribution, any attempt to assign the Performance Shares before they are settled shall be of no effect.
9.    Certain Corporate Transactions.  In the event of certain corporate transactions, the Performance Shares shall be subject to adjustment as provided in Section 9 of Article II of the Plan.
10.    No Additional Rights. 
		
	i.
	Neither the granting of the Performance Shares nor their settlement shall (a) affect or restrict in any way the power of the Company to undertake any corporate action otherwise permitted under applicable law, (b) confer upon the Holder the right to continue performing services for the Company, or (c) interfere in any way with the right of the Company to terminate the services of the Holder at any time, with or without Cause.

		
	ii.
	The Holder acknowledges that (a) this is a one-time grant, (b) the making of this grant does not mean that the Holder will receive any similar grant or grants in the future, or any future grants at all, and (c) this grant does not in any way entitle the Holder to future grants under the Plan, if any, and the Company retains sole and absolute discretion as to whether to make any additional grants to the Holder in the future and, if so, the quantity, terms, conditions and provisions of any such grants.

		
	iii.
	Without limiting the generality of subsections i. and ii. immediately above and subject to the Program, if the Holder’s employment with the Company terminates, the Holder shall not be entitled to any compensation for any loss of any right or benefit or prospective right or benefit relating to the Performance Shares or under the Plan which he or she might otherwise have enjoyed, whether such compensation is claimed by way of damages for wrongful dismissal or other breach of contract or by way of compensation for loss of office or otherwise.

11.    Rights as a Stockholder.  Neither the Holder nor the Holder’s Heir shall have any rights as a stockholder with respect to any shares represented by the Performance Shares unless and until shares of Common Stock have been issued in settlement thereof.
12.    Compliance with Plan and Program.  The Performance Shares and this Grant Agreement are subject to, and the Company and the Holder agree to be bound by, all of the terms and conditions of the Plan and the Program as each may be amended from time to time, which are incorporated herein by reference.  No amendment to the Plan or the Program shall adversely affect the Performance Shares or this Grant Agreement without the consent of the Holder.  In the case of a conflict between the terms of the Plan or the Program and this Grant Agreement, the terms of the Plan or the Program, respectively, shall govern.  In the event of a conflict between the terms of the Plan and the Program, the terms of the Plan shall govern.

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13.    Effect of Grant Agreement on Individual Agreements.  Except where an agreement entered into between the Holder and the Company (an “Individual Agreement”) is approved by the Board of Directors or the Committee and expressly supersedes the terms of this Grant Agreement, (i) in the case of a conflict between the terms of the Holder’s Individual Agreement and this Grant Agreement, the terms of the Grant Agreement shall govern, and (ii) the vesting and settlement of Performance Shares shall in all events occur in accordance with this Grant Agreement to the exclusion of any provisions contained in an Individual Agreement regarding the vesting or settlement of the Performance Shares, and any such Individual Agreement provisions shall have no force or effect with respect to the Performance Shares.
14.    Recoupment of Awards. Performance Shares awarded hereunder are subject to recoupment in accordance with any applicable law and any recoupment policy adopted by the Company from time to time. 
15.    Governing Law.  The interpretation, performance and enforcement of this Grant Agreement shall be governed by the laws of the State of Delaware without regard to principles of conflicts of laws.  The Holder may only exercise his or her rights in respect of the Plan or the Program to the extent that it would be lawful to do so.  

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Performance Goals for the January 1, 2017 –December 31, 2017 Performance Period
For 2017 Senior Executive Performance Share Program 
Under the Ellie Mae, Inc. Executive Incentive Plan

1.    Definitions.  Unless otherwise defined herein, all accounting terms shall be construed in accordance with generally accepted accounting principles.  Capitalized terms not otherwise defined herein shall have the meaning ascribed in the Plan.  The following words and phrases shall have the following meanings:

“Achievement Percentage” shall be determined in accordance with the following table:

	
										
	 
	 
	Performance Period Revenue Growth Rate(1)
	 

	 
	 
	12%
	18%
	23%
	26%
	29%
	32%

	Contracted SaaS Users Growth
	>= EOY 2016(2) + 7,000
	50
	70
	80
	100
	125
	150
	 

	>= EOY 2016 + 22,000
	70
	80
	100
	125
	150
	175
	 

	>= EOY 2016 + 30,000
	80
	90
	125
	150
	175
	190
	 

	>= EOY 2016 + 37,500
	90
	125
	150
	175
	190
	200
	 

(1) Term is defined below.
(2) EOY 2016 means the number of Contracted SaaS Users as of December 31, 2016

provided, that all Achievement Percentages greater than 50% shall, to the extent not specified on the chart, be prorated between the numbers appearing on the chart based on the Performance Period Revenue Growth Rate.  By way of example only, if the Performance Period Revenue Growth Rate was 15% and the number of Contracted SaaS Users at the end of the Performance Period increased by more than 30,000 as compared to EOY 2016, the Achievement Percentage would be 85%.  In no event shall the Committee increase the Achievement Percentage above the amount calculated in accordance with this Exhibit, and the Plan.

“Board” shall mean the Board of Directors of the Company. 

“Committee” shall mean the Compensation Committee of the Board.

“Company” shall mean Ellie Mae, Inc.

“Contracted SaaS Users” shall mean the number of SaaS seats booked by the Company (measured at the end of the period).

“Determination Date” shall mean the date on which the Company first files its Annual Report on Form 10-K with the Securities & Exchange Commission for the year ended December 31, 2016.

“Participant” shall mean an individual named on Appendix A.

“Performance Period” shall mean the period of time commencing on January 1, 2017 and ending December 31, 2017.

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“Performance Period Revenue” shall mean the gross revenue of the Company for the Performance Period, rounded to the nearest thousand dollars, as calculated from the revenues of the Company reported in the Company’s financial statements included in the applicable periodic reports filed by the Company with the Securities and Exchange Commission.

“Performance Period Revenue Growth Rate” shall mean the percentage equal to the quotient of (x) the Performance Period Revenue divided by (y) the gross revenue of the Company for the year ended December 31, 2016 (rounded to the nearest thousand dollars, as calculated from the revenues of the Company reported in the Company’s financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2016 filed by the Company with the Securities and Exchange Commission). 

“Performance Shares” shall mean Performance Awards granted under the Plan consisting of performance shares, each of which shall, upon vesting in accordance with Section 4, convert into that number of shares of Common Stock determined by multiplying such share times the Achievement Percentage.

“Plan” means the Ellie Mae, Inc. Executive Incentive Plan. 

“Program” means the 2017 Senior Executive Performance Share Program adopted under the Plan.
    
2.    Grant of Performance Shares.  Each Participant specified in Appendix A is hereby granted a Performance Award consisting of that number of Performance Shares set forth in Appendix A subject to the terms and conditions set forth herein and in the form Performance Share Award Agreement for the Performance Period effective the date that these Performance Goals are approved by the Board.

3.    Achievement Percentage.  The Board or the Committee shall determine the Achievement Percentage in accordance with the Program on the Determination Date.  In no event shall the Board or the Committee increase the Achievement Percentage above the amount calculated in accordance with this Exhibit, the Program and the Plan.  

4.    Settlement.  Performance Shares shall convert into shares of Common Stock as follows:  One Hundred percent (100%) of the Performance Shares shall convert into shares of Common Stock (using the Achievement Percentage) on the thirtieth (30th) day following the Determination Date (the “Initial Settlement Date”).  Twenty-five percent (25%) of the shares of Common Stock issued on the Initial Settlement Date shall be immediately vested, and the remaining shares of Common Stock shall be subject to a risk of forfeiture.  The risk of forfeiture shall lapse with respect to twenty-five percent (25%) of the shares of Common Stock on each of the first three anniversaries of the Determination Date (collectively with the Initial Settlement Date, the “Vesting Dates”).  Notwithstanding the foregoing and except as otherwise provided under the Program, a Participant must be employed on the Initial Settlement Date in order to be issued Performance Shares and on each Vesting Date in order for the risk of forfeiture to lapse on such Vesting Date. 
 
5.    Adjustments to the Performance Goals.  If, during the Performance Period, the Company makes an extraordinary acquisition, engages in any other extraordinary transaction (including the resolution of a litigation matter that the Committee deems extraordinary and non-recurring in nature) or any extraordinary event or circumstance arises, including such transactions, events or circumstances that may affect revenue growth beyond the control of management or where revenues or the number of Contracted SaaS Users are impacted, the Board or the Committee may make such adjustment to the Performance Goals as it deems appropriate to reflect such acquisition, transaction, event or circumstance.

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6.    Absolute Plan Limitations.  Notwithstanding any provision hereof to the contrary, in no event shall the number of shares of Common Stock issued pursuant to the Performance Shares granted under this Exhibit exceed 105,650, as adjusted to reflect stock splits, reverse stock splits, stock dividends or similar events as determined by the Board or the Committee.  

3Exhibit

EXECUTIVE TRANSITION AGREEMENT
This Executive Transition Agreement (the “Agreement”) is made by and between Ellie Mae, Inc. (the “Company”) and Edgar Luce (“Executive”) (collectively referred to herein as the “Parties”) effective as of March 9, 2017.  
WHEREAS, Executive’s current title and position with the Company as Executive Vice President and Chief Financial Officer shall terminate effective March 31, 2017 (the “Effective Date”); 
WHEREAS, Executive wishes to continue his employment with the Company as an individual contributor in the Company’s finance and accounting organization with the title of Executive Advisor; 
WHEREAS, the Company desires to assure itself of the continued services of Executive through at least March 31, 2018 by engaging Executive under the terms set forth herein; and 
WHEREAS, Executive desires to provide services to the Company on the terms herein provided. 
NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, including the respective covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:
1.Employment.
Executive’s employment as Executive Advisor will begin April 1, 2017 and end March 31, 2018 (the “Term”) unless terminated earlier in accordance with the terms and conditions herein.  While employed during the Term, Executive shall (i) serve as Executive Advisor, performing a substantial role in advising the Company’s finance, accounting and investor relations teams, (ii) not engage directly or indirectly in any other business activity that is competitive with the current business of the Company or with any known type or area of business that the Company is developing or planning to pursue in the mortgage industry, or that might place Executive in a competing position to that of the Company or any of its affiliates in the mortgage industry; and (iii) promptly and faithfully comply with all present and future policies, requirements, directions, requests, and rules and regulations of the Company in connection with the Company’s business. 
2.Compensation and Related Matters.
(a)    Base Salary.  During the Term, Executive shall receive a base salary of $315,000 per annum, subject to withholdings and deductions and which shall be paid to Executive in accordance with the customary payroll practices and procedures of the Company. During the Term, Executive shall not be entitled to any additional bonus compensation. 
(b)    Benefits.  During the Term, Executive may continue to participate in such employee benefit plans and programs as the Company may from time to time provide to its employees, including paid time off, subject to the terms and conditions of such plans. Nothing herein 

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is intended, or shall be construed, to require the Company to institute or continue any, or any particular, plan or benefits.  After the end of the Term, if Executive is not eligible to receive continuing benefits, Executive shall be eligible for continued participation in the Company’s health insurance program at his own expense pursuant to COBRA. 
(c)    Business Expenses.  The Company shall reimburse Executive for all reasonable, documented, out-of-pocket travel, and other business expenses incurred by Executive in the performance of Executive’s duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures as in effect from time to time.
(d)    Equity Awards.  During the Term, Executive shall continue to vest in all equity awards previously issued to him prior to the Effective Date, in accordance with the terms of the applicable equity incentive plan, award agreement and notice of grant. During the Term, Executive shall not be entitled to receive any new equity awards. 
3.Change In Control Severance Agreement.  The Parties hereto agree that Executive’s transition from his current position of Executive Vice President and CFO to Executive Advisor, as described under this Agreement, shall not constitute an “Other Termination” as that term is defined in the Change in Control and Severance Agreement between the Parties, dated October 23, 2014 (“CIC”).  The CIC shall remain in full force and effect during the term, and Executive shall be considered to be employed without any break in service. 
4.Termination. 
(a)    At Will Employment. The Company and Executive acknowledge that Executive’s employment is and shall continue to be at-will, as defined under applicable law.  This means that Executive’s employment is not for any specified period of time and can be terminated by Executive or by the Company at any time, with or without advance notice, and for any or no particular reason or cause, including during the Term.
    
(b)     Acceleration of Equity. If Executive’s employment is terminated by the Company without Cause prior to the end of the Term, then all equity awards (including stock options, restricted stock units or performance shares) that would otherwise vest during the Term but for Executive’s termination shall immediately vest upon such termination. For purposes of this Section 4(b), “Cause” shall mean (i) any material failure by Executive to perform Executive’s duties and responsibilities under any written agreement between Executive and the Company, after being provided 30 days’ written notice and opportunity to cure by the Company; (ii) any act of fraud, embezzlement, theft or misappropriation by Executive relating to the Company; (iii) Executive’s commission of a felony or a crime involving moral turpitude; (iv) any gross negligence or intentional misconduct on the part of Executive in the conduct of Executive’s duties and responsibilities with the Company or which adversely affects the image, reputation or business of the Company, after being provided 30 days’ written notice and opportunity to cure by the Company; or (v) any material breach by Executive of any agreement between the Company, on the one hand, and Executive on the other, after being provided 30 days’ written notice and opportunity to cure by the Company. 

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(c)    Company Property.  Executive hereby acknowledges and agrees that except for Executive’s cell phone and cell phone number, all Personal Property (as defined below) and equipment furnished to, or prepared by, Executive in the course of, or incident to, Executive’s employment, belongs to the Company and shall be promptly returned to the Company upon termination of Executive’s employment (and will not be kept in Executive’s possession or delivered to anyone else).  For purposes of this Agreement, “Personal Property” includes, without limitation, all books, manuals, records, reports, notes, contracts, lists, blueprints, and other documents, or materials, or copies thereof (including computer files), keys, building card keys, company credit cards, telephone calling cards, computer hardware and software, and all other proprietary information relating to the business of the Company or its subsidiaries or affiliates.  Following termination, Executive shall not retain any written or other tangible material containing any proprietary information of the Company or its subsidiaries or affiliates.
5.Mutual Release of Claims.
(a)Executive’s Release:  On behalf of Executive and Executive’s executors, administrators, heirs and assigns, except for obligations arising from this Agreement and the CIC, Executive hereby releases and forever discharges the “Company Released Parties” hereunder, consisting of the Company, and each of its owners, directors, officers, managers, employees, agents, affiliates and insurers, and all persons acting by, through, under or in concert with them, or any of them, of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, cost or expense, of any nature whatsoever, known or unknown, fixed or contingent (hereinafter called “Claims”), which Executive now has or may hereafter have against the Company Released Parties, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof, including, without limiting the generality of the foregoing, any Claims arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever Executive’s employment by the Company or the separation thereof, including without limitation any and all claims arising under federal, state, or local laws relating to employment, any claims arising under the Age Discrimination in Employment Act ("ADEA"), as amended, 29 U.S.C. § 621, et seq.; Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, 42 U.S.C. § 2000 et seq.; the Equal Pay Act, as amended, 29 U.S.C. § 206(d); the Civil Rights Act of 1866, 42 U.S.C. § 1981; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 et seq.; the Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq.; the False Claims Act , 31 U.S.C. § 3729 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; the Worker Adjustment and Retraining Notification Act, as amended, 29 U.S.C.  § 2101 et seq. the Fair Labor Standards Act, 29 U.S.C. § 215 et seq., the whistleblower retaliation provisions of the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (to the maximum extent permitted by the law); the California Fair Employment and Housing Act; the California Family Rights Act; the California Labor Code; California Business & Professions Code Section 17200; Claims for breach of contract; Claims arising in tort, including, without limitation, Claims of wrongful dismissal or discharge, discrimination, harassment, retaliation, fraud, misrepresentation, defamation, libel, infliction of emotional distress, violation of public policy, and/or breach of the implied covenant of good faith and fair dealing; and Claims for damages or other remedies of any sort, including, without limitation, compensatory damages, 

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punitive damages, injunctive relief and attorney’s fees.  Notwithstanding the generality of the foregoing, Executive does not release any claims that cannot be released as a matter of law including, without limitation, claims for indemnity under the California Labor Code and Executive’s right to bring to the attention of the Equal Employment Opportunity Commission or California Department of Fair Employment and Housing any claims of discrimination; provided, however, that Executive does release his rights to secure damages for any alleged discriminatory treatment.
(b)Company’s Release: In consideration of the promises contained in and terms and provisions of this Agreement, except for obligations arising from this Agreement or the Confidential Information Agreement (as defined below), Company releases Executive and his agents ("Executive Released Parties") of and against all liabilities, claims, causes of action, charges, complaints, obligations, costs, losses, damages, injuries, attorneys' fees, and other legal responsibilities (collectively referred to as "claims"), of any form whatsoever, relating to, or arising out of Executive’s employment relationship with Company and/or the termination of said employment, whether known or unknown, unforeseen, unanticipated, unsuspected or latent, which Company or its successors in interest now own or hold, or have at any time heretofore owned or held, or may at any time own or hold by reason of any matter or thing arising from any cause whatsoever prior to the date of execution of this instrument, and without limiting the generality of the foregoing, from all claims, demands and causes of action based upon, relating to, or arising out of Executive’s employment relationship with Company and/or the termination of said employment, including claims asserted by Company employees, vendors, contractors, etc., arising from Executive’s employment with Company.  This Release does not extend to those rights which as a matter of law cannot be waived. 
(c)In accordance with the Older Workers Benefit Protection Act of 1990, Executive acknowledges that he is aware of the following:
(i)    This paragraph, and this Agreement are written in a manner calculated to be understood by Executive.
(ii)    The waiver and release of claims under the ADEA contained in this Agreement does not cover rights or claims that may arise after the date on which Executive signs this Agreement.
(iii)    This Agreement provides for consideration in addition to anything of value to which Executive is already entitled including, but not limited to, continued employment in a reduced role during the Term, and continued equity vesting during the Term.
(iv)    Executive has been advised to consult an attorney before signing this Agreement.
(v)    Executive has been granted twenty-one (21) days after being presented with this Agreement to decide whether or not to sign this Agreement.  By executing this Agreement, Executive does so voluntarily and with the advice of counsel after having had the opportunity to consult with an attorney, and hereby Executive agrees that she has been provided with a reasonable time to consider signing the Agreement.
(vi)    Executive has the right to revoke this general release within seven (7) days of signing this Agreement.  In the event this general release is revoked, this Agreement will be null and void in its entirety, and Executive will not receive the benefits of this Agreement, and may be terminated by the Company immediately.  If Executive wishes to revoke this 

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agreement, Executive must deliver written notice stating that intent to revoke to Brian Brown, Sr. Vice President, General Counsel at 4420 Rosewood Drive, Suite 500, Pleasanton, CA 94588 on or before 5:00 p.m. on the seventh (7th) day after the date on which Executive signs this Agreement. 

(d)Civil Code Section 1542 Release.    Each party acknowledges that it has read section 1542 of the Civil Code of the State of California which states:  “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.”  Each party hereby releases known and unknown claims, and waives all rights she or it has or may have under Civil Code section 1542 or under any other statute or common law principle of similar effect to the full extent that it may lawfully waive such rights with respect to this general release of claims. that it may lawfully waive such rights with respect to this general release of claims.

(e)Nothing contained in this Agreement is intended to, or shall be deemed to, prohibit or restrict Executive or the Company from providing truthful information concerning Executive’s employment or the Company’s business activities to any government, regulatory or self-regulatory agency. Furthermore, nothing within this or any other agreement prohibits or restricts Executive (or Executive’s attorney) or the Company (or its attorneys) from initiating communications directly with, responding to any inquiry from, cooperating with or providing testimony before, the Securities and Exchange Commission or any other federal, state, or local regulatory authority or agency.

		
	6.
	Miscellaneous Provisions.

(a)    Mutual Non-Disparagement.    Executive has not made any defamatory or disparaging comments about the Company, nor will Executive do so in the future. Company has not, through statements by, or the actions of, any of its officers, made any defamatory or disparaging comments about Executive, nor will Company do so in the future.

(b)    Governing Law.  This Agreement shall be governed, construed, interpreted, and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of the State of California, without giving effect to any principles of conflicts of law, whether of the State of California or any other jurisdiction, and where applicable, the laws of the United States, that would result in the application of the laws of any other jurisdiction.
(c)    Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.  
(d)    Notices.  Any notice, request, claim, demand, document, and other communication hereunder to any Party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile, email or certified or registered 

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mail, postage prepaid (or if it is sent through any other method agreed upon by the Parties), as follows:
If to the Company:
Ellie Mae, Inc.
Attn:  General Counsel
4420 Rosewood Drive, Suite 500
Pleasanton, CA 94588

If to Executive: 
Edgar Luce
c/o Ellie Mae, Inc. 
4420 Rosewood Drive, Suite 500
Pleasanton, CA 94588

Or at any other address as any Party shall have specified by notice in writing to the other Party.
(e)    Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.  Signatures delivered by facsimile shall be deemed effective for all purposes.
(f)    Entire Agreement.  The terms of this Agreement, together with the Confidential Information and Invention Assignment Agreement previously entered into between Executive and the Company (the “Confidential Information Agreement”) which shall remain in full force and effect, and the CIC which shall remain in full force and effect, are intended by the Parties to be the final expression of their agreement with respect to the employment of Executive by the Company and supersede all prior understandings and agreements, whether written or oral.  The Parties further intend that this Agreement, together with the Confidential Information Agreement and CIC, shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.   
(g)    Amendments; Waivers.  This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by Executive and a duly authorized representative of Company.  By an instrument in writing similarly executed, Executive or a duly authorized officer of the Company, as applicable, may waive compliance by the other Party with any specifically identified provision of this Agreement that such other Party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure.  No failure to exercise and no delay in exercising any right, remedy, or power hereunder shall preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.  

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(h)    Dispute Resolution.  Except as otherwise provided by applicable law, Executive and the Company agree that if any disputes should arise between Executive and the Company (including claims against its employees, officers, directors, shareholders, agents, successors, and assigns) relating or pertaining to or arising out of this Agreement or Executive’s employment with the Company, the dispute will be submitted exclusively to binding arbitration before a single neutral arbitrator.  This means that such disputes will be decided by an arbitrator rather than a court or jury, and that both Executive and the Company waive their respective rights to a court or jury trial.  Executive understands that the arbitrator’s decision will be final and exclusive.  Judgment on the arbitration award may be entered in any court having jurisdiction.  The arbitration will be conducted in the San Francisco Bay Area in California.  The arbitration shall be administered by JAMS pursuant to its arbitration rules and procedures then in effect.  Within fifteen (15) days after the commencement of arbitration, the Parties shall mutually select one person to act as neutral arbitrator.  If the Parties fail to agree upon the selection of the arbitrator within the allotted time, one neutral selected by Executive and one neutral selected by the Company shall jointly appoint a single, independent, and impartial arbitrator to serve as the sole arbitrator for the dispute.  The arbitrator shall decide the dispute in accordance with the substantive law of the state of California.  The Company shall pay all costs of arbitration, including the arbitrator’s fees.  The arbitrator shall have the authority to apportion fees as between the parties in accordance with applicable law. Nothing herein shall prevent either Party from pursuing injunctive relief in court (without having to post a bond) to avoid irreparable harm pending completion of any arbitration.
(i)    Enforcement.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by its severance from this Agreement.  Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable.
(j)    Withholding.  The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local, or foreign withholding or other taxes or charges which the Company is required to withhold. The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.
(k)    Definitions; Heading; and Number.  A term defined in any part of this Agreement shall have the defined meaning wherever such term is used herein. The headings contained in this Agreement are for reference purposes only and shall not affect in any manner the meaning or interpretation of this Employment Agreement. Where appropriate to the context of this Agreement, use of the singular shall be deemed also to refer to the plural, and use of the plural to the singular. 

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	7.
	Executive Acknowledgment.

Executive acknowledges that Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on Executive’s own judgment.  
IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the date and year first above written.            

ELLIE MAE, INC.	
	
	/s/ Jonathan Corr

	Jonathan Corr
Chief Executive Officer

EXECUTIVE	
	
	/s/ Edgar Luce

	Edgar Luce

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