Document:

EX-10.7

 Exhibit 10.7 

RADIAN GROUP INC. STI/MTI INCENTIVE PLAN 

FOR EXECUTIVE EMPLOYEES 

I.    Purpose. The purpose of the Radian Group Inc. STI/MTI Incentive Plan for Executive Employees (the
“Plan”) is to provide a means whereby Radian Group Inc. may provide incentive compensation to eligible employees who hold the position of Vice President or above. The Plan was effective as of January 1, 2009 (“Effective
Date”). The Plan has been amended and restated as of January 1, 2017 and shall apply to STI Bonuses and MTI Bonuses calculated for fiscal years beginning on or after January 1, 2017. 

II.    Definitions. Whenever used in this Plan, the following terms will have the respective meanings set
forth below: 
 2.1    “Actual Incentive Award” means the allocated amount described in
Section 5.1 for a Participant. Pursuant to the terms of Section V, 50% of each Actual Incentive Award will be available for payment as an STI Bonus, and the remaining 50% of the Actual Incentive Award will be available for payment as an MTI
Bonus. 
 2.2    “Actual Incentive Award Pool” means the total amount, based on performance, that is
available to be allocated as Actual Incentive Awards to Participants for a two-year performance period, as determined by the Compensation Committee. 

2.3    “Actual MTI Pool” means the total amount, based on performance, that is available to be allocated
as MTI Bonuses to Participants, as determined by the Compensation Committee. 
 2.4    “Affiliate”
means each entity owned by Radian. Only Affiliates specified by the Compensation Committee will be participating employers in the Plan. 

2.5    “Board” means the board of directors of Radian. 

2.6    “Cause” has the meaning assigned to such term in an executive employment agreement or executive
severance agreement between the Participant and Radian or an Affiliate (for purposes of clarity, “executive employment agreement” and “executive severance agreement” shall not be interpreted to include offer letters,
notwithstanding any terms of employment or severance in such letters), or, if there is no such agreement, “Cause” means any of the following conduct by a Participant, as determined in the sole discretion of the Chief Executive Officer of
Radian and the Chief Human Resources Officer of Radian: (1) indictment for, conviction of, or pleading nolo contendere to, a felony or a crime involving fraud, misrepresentation, or moral turpitude (excluding traffic offenses other than
traffic offenses involving the use of alcohol or illegal substances); (2) fraud, dishonesty, theft, or misappropriation of funds in connection with the Participant’s duties with Radian and its

 
Affiliates; (3) material violation of Radian’s Code of Conduct or employment policies, as in effect from time to time; (4) a breach of any written confidentiality, nonsolicitation
or noncompetition covenant with Radian or an Affiliate; or (5) negligence, misconduct or other failure to perform the Employee’s duties with Radian and its Affiliates after receiving written notice from Radian or an Affiliate of the
deficiencies on which such termination is based. 
 2.7    “Committee” means (i) for all
determinations made with respect to Management, the Compensation Committee, and (ii) for determinations made with respect to all other Employees (except for those determinations specifically reserved to the Compensation Committee), a committee
consisting of Management or its delegates.
 2.8    “Compensation Committee” means the Compensation and
Human Resources Committee of the Board. 
 2.9    “Disability” has the meaning assigned to such term in
the Participant’s employment agreement or severance agreement entered into with Radian or an Affiliate and if there is no such agreement or definition, Disability means a physical or mental impairment of sufficient severity that the Participant
is both eligible for and in receipt of benefits under the long-term disability program maintained by Radian. The date of Disability for purposes of the Plan is the date on which the Participant begins receiving such long-term disability benefits.

 2.10    “Employee” means an employee of Radian or an Affiliate specified by the Compensation
Committee who is not classified as a “temporary employee,” but excluding any person who is classified by Radian or any Affiliate as a “contractor” or “consultant,” no matter how characterized by the Internal Revenue
Service, other governmental agency or a court. Any change of characterization of an individual by the Internal Revenue Service or any court or government agency shall have no effect upon the classification of an individual as an Employee for
purposes of this Plan, unless the Committee determines otherwise. 
 2.11    “Good Reason” has the
meaning assigned to such term in the Participant’s employment agreement or severance agreement entered into with Radian or an Affiliate, if any. 

2.12    “Management” means the Chief Executive Officer of Radian and members of the executive team as
designated by the Chief Executive Officer of Radian. 
 2.13    “MTI Bonus” means a medium term
incentive bonus based on performance, with a target of 50% of the Participant’s Actual Incentive Award, as described in Section 5.2. 

2.14    “MTI Target Award” shall have the meaning given that term in Section 5.2(a). 

2.15    “Participant” means an Employee who holds the position of Vice President or above and who is
designated as a participant in the Plan pursuant to Section III for a fiscal year. 
 2.16    “Plan”
means this Radian Group Inc. STI/MTI Incentive Plan for Executive Employees, as in effect from time to time. 

  
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 2.17     “Radian” means Radian Group Inc. or any
successor thereto. 
 2.18    “Release” shall mean a release of claims described in Section 5.3.

 2.19        “STI Bonus” means the short term incentive bonus payable to a
Participant as provided in Section 5.1(c). 
 2.20    “Target Incentive Award” means a target bonus
amount established by the Committee for each Participant for a two year performance period, which will be equal to a stated dollar amount or a set percentage of the Participant’s base salary, as determined in the sole discretion of the
Committee. 
 2.21     “Target Incentive Award Pool” means the aggregate amount of all Target
Incentive Award amounts established for all Participants for a two-year performance period. 

2.22     “Target MTI Pool” means the aggregate amount of all MTI Target Awards established for all
Participants, as described in Section 5.1(c). 
 III.     Eligibility; Participation; Newly Hired Employees. 

3.1    The Committee will designate the Employees who will participate in the Plan for each performance period. Employees
are eligible for designation by the Committee if they (i) are employed by Radian or an Affiliate specified by the Committee, (ii) hold the position of Vice President or above, and (iii) are not participating in any other short-term
incentive plan sponsored by Radian or an Affiliate. The Committee has sole discretion to determine which Employees will participate in the Plan. 

3.2    Notwithstanding the foregoing, Employees who are newly hired or who are promoted or transferred into a position
eligible to participate in the Plan on or after October 1st of the first fiscal year of the performance period shall not be eligible to participate in the Plan for such performance period. Employees who are newly hired or who are promoted or
transferred into a position eligible to participate in the Plan before October 1st of the first fiscal year of the performance period shall be eligible to participate in the Plan for such performance period and shall be eligible to receive a
prorated bonus award calculated in whole months based on the relative time spent in the eligible position during the performance period, as determined by the Committee. 

3.3    The Committee may determine that certain Participants will only be eligible for STI Bonuses and will not be
eligible for MTI Bonuses. 
 IV.    Performance Metrics/Goals. The Compensation Committee will establish the
applicable business and/or financial performance metrics or goals that Radian and/or specified Affiliates will be measured against in order to determine the Actual Incentive Award Pool and the Actual MTI Award Pool pursuant to which STI Bonuses and
MTI Bonuses are to be payable or allocated, as applicable, for each two-year performance period. The business and/or financial 

  
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performance goals will be established and communicated in writing to eligible Participants. At the end of each fiscal year, the Compensation Committee will determine whether, and to what extent,
such performance goals have been met for that year for purposes of funding the bonus pools to be awarded or allocated under this Plan. The Compensation Committee may adjust the performance results for extraordinary items or other events or
circumstances, as the Compensation Committee deems appropriate. 
 V.    Incentive Bonus Program. 

5.1    Incentive Awards 

(a)    Target Incentive Awards. At the beginning of each two-year
performance period, the Committee will establish a Target Incentive Award for each Participant. Unless the Committee establishes a new Target Incentive Award for a Participant for a fiscal year, the Participant’s Target Incentive Award will be
the same Target Incentive Award as in effect for the Participant for the immediately preceding fiscal year. The Target Incentive Award Pool will be equal to 100% of the Target Incentive Award amounts for all eligible Participants for the year. 

(b)    Approval of Incentive Award Amounts. 

(1)    At the end of the first fiscal year of each performance period, the Compensation Committee will determine how much,
if any, of the Target Incentive Award Pool will be available to be allocated as Actual Incentive Awards based on Radian’s and its Affiliates’ achievement of the performance goals for the first fiscal year that were established pursuant to
Section IV. The Actual Incentive Award Pool may range from zero to 200% of the Target Incentive Award Pool. 

(2)    The Committee will allocate the Actual Incentive Award Pool among Participants, in its sole discretion, based on
such criteria as the Committee deems appropriate, which may include the Participant’s performance rating, the Participant’s relative Target Incentive Award and other factors determined in the sole discretion of the Committee. A
Participant’s Actual Incentive Award may range from zero to 200% of the Participant’s Target Incentive Award amount. The total amount of the Actual Incentive Awards allocated to all Participants in a fiscal year will not exceed the Actual
Incentive Award Pool established under Section 5.1(b)(1) for the fiscal year based on the performance of Radian and its Affiliates. 

(c)    Payment of STI Bonuses; Establishment of MTI Target Award. Except as provided in Section 5.1(d) below, if an
Actual Incentive Award is allocated to a Participant based on performance for the first fiscal year, 50% of the Actual Incentive Award amount will be paid in cash to the Participant in a single lump sum payment as an STI Bonus between January 1
and March 15 following the end of the fiscal year for which the Actual Incentive Award is allocated. The remaining 50% of the Actual Incentive Award amount will be established as the “MTI Target Award” for the Participant and will be
payable based on achievement of performance goals realized in the second year of the performance period, as set 

  
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forth in Section 5.2. Except as provided in Sections 5.1(e) and (f), a Participant must be employed by Radian or an Affiliate on the date on which the STI Bonus is paid in order to receive
an STI Bonus for the fiscal year. If no Actual Incentive Award amount is allocated to a Participant for a fiscal year, the Participant will not receive an STI Bonus or an MTI Target Award or be eligible to receive an MTI Bonus. 

(d)    Payment of STI Bonuses to Participants who are Not Eligible for MTI Bonuses. For Participants who are not
eligible to receive MTI Bonuses pursuant to Section 3.3, if an Actual Incentive Award is allocated to a Participant based on performance for the first fiscal year, 100% of the Actual Incentive Award amount will be paid in cash to the
Participant in a single lump sum payment as an STI Bonus between January 1 and March 15 following the end of the fiscal year for which the Actual Incentive Award is allocated. The Participant will not be eligible to receive an MTI Bonus.

 (e)    Involuntary Termination. If, on or after December 31st of the first fiscal year of the performance
period but prior to the payment date for the STI Bonus, a Participant’s employment is terminated by Radian and its Affiliates without Cause (or the Participant terminates employment for Good Reason, in the case of a Participant who has an
employment agreement or severance agreement with Radian or an Affiliate that provides for termination on account of Good Reason), and in either case the Participant executes and does not revoke a Release (as described in Section 5.3), the
Participant will receive his or her STI Bonus, as determined under Section 5.1(c), and (unless Section 5.1(d) applies to the Participant) the Participant will receive his or her MTI Bonus, as determined under Section 5.2(b), in each case based on
the achievement of the performance goals. The payable amount, if any, will be paid to the Participant at the same time as STI Bonuses and MTI Bonuses, as applicable, are paid to other Participants for the fiscal year. 

(f)    Death or Disability. If a Participant’s employment terminates on account of death, or a Participant
incurs a Disability, before the payment date for the STI Bonus, the Participant will be paid a pro rata portion of the Participant’s STI Bonus, with the Participant’s STI Bonus equal to an amount calculated as the percentage of the
Participant’s Target Incentive Award that is equal to the percentage that the Actual Incentive Award Pool (as determined under 5.1(b)) represents to the Target Incentive Award Pool; provided that, in the case of Disability, payment is
conditioned on the Participant executing and not revoking a Release. The pro rata portion of the Participant’s STI Bonus that shall be paid pursuant to this Section 5.1(f), if any, shall be calculated by multiplying the amount of the
Participant’s STI Bonus, as determined above in the Section 5.1(f), by a fraction, the numerator of which is the number of days during the first fiscal year of the performance period that the Participant was employed by Radian or an Affiliate
and the denominator of which is the number of days in the first fiscal year of the performance period. The payable amount, if any, will be paid to the Participant, or the Participant’s personal representative in the case of death, at the same
time as STI Bonuses are paid to other Participants. 

  
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 5.2    Medium Term Incentive Bonus. 

(a)    MTI Target Award. Except as provided in Section 5.1(d), each Participant who is allocated an Actual Incentive
Award amount based on performance for the first fiscal year of the performance period, and who received payment of an STI Bonus, will have an MTI Target Award equal to 50% of the Actual Incentive Award amount allocated to the Participant. The Target
MTI Pool for the second fiscal year of the performance period will be equal to 100% of the MTI Target Awards established for all eligible Participants. Each such Participant may be paid a percentage of his or her MTI Target Award as a cash MTI Bonus
based on performance for the second fiscal year of the performance period, as set forth in Section 5.2(b). 

(b)    Approval of MTI Bonus Payments. 

(1)    At the end of the second fiscal year of the performance period, the Compensation Committee will determine how much,
if any, of the Target MTI Pool will be available for payment of MTI Bonuses, based upon the achievement of the performance goals realized for the second fiscal year of the performance period that were established pursuant to Section IV. The Actual
MTI Pool will be a percentage ranging from zero to 150% of the Target MTI Pool, as determined by the Compensation Committee. 

(2)    The MTI Bonus payable to a Participant, if any, shall equal the Participant’s MTI Target Award multiplied by
the percentage established by the Committee based on performance as described in Section 5.2(b)(1) to establish the Actual MTI Pool. 

(c)    Payment of MTI Bonuses. If a Participant is awarded an MTI Bonus for a fiscal year, the MTI Bonus will be
paid in cash to the Participant in a single lump sum payment between January 1 and March 15 following the end of the second fiscal year of the performance period. If a Participant who receives payment of an STI Bonus for the first fiscal
year of the performance period terminates employment for any reason (voluntarily or involuntarily) other than Cause, the Participant will remain eligible to receive an MTI Bonus, as determined under Section 5.2(b), provided that the Participant
executes and does not revoke a Release (as described in Section 5.3). Such MTI Bonus shall be payable at the same time as MTI Bonuses are paid to other Participants. A Participant will not receive any MTI Bonus if the Participant’s
employment is terminated for Cause. If a Participant’s employment terminates on account of death, any MTI Bonus will be paid to the Participant’s personal representative at the same time as MTI Bonuses are paid to other Participants. 

5.3    Release. Any payment of an STI Bonus or an MTI Bonus after the Participant’s termination of
employment (except for termination of employment upon death) or on account of Disability shall be conditioned on the Participant executing and not revoking a written Release. The Release will be in a form provided by Radian and will release all
claims against Radian, its Affiliates and all related parties with respect to all matters arising out of Participant’s employment by Radian or an Affiliate, or the termination thereof (other than claims based upon any entitlements under the
terms of this Plan or under any plans or programs of Radian and its Affiliates under which Participant has accrued a benefit). 

  
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 VI.    Administration. The Committee will have full power and
discretionary authority to interpret the Plan. Except as specifically provided otherwise herein, the Committee will have full power and discretionary authority to administer the Plan, to make all determinations, including all participation and award
determinations, and to prescribe, amend and rescind any rules, forms or procedures as the Committee deems necessary or appropriate for the proper administration of the Plan and to make any other determinations and take such other actions as the
Committee deems necessary or advisable in carrying out its duties under the Plan. Any action required of the Committee under the Plan will be made in the sole discretion of the Committee and not in a fiduciary capacity. All decisions and
determinations by the Committee will be final, conclusive and binding on Radian, its Affiliates, the Participants and any other persons having or claiming an interest hereunder. All STI Bonuses and MTI Bonuses will be awarded conditional upon
the Participant’s acknowledgement, by participation in the Plan, that all decisions and determinations of the Committee will be final and binding on the Participant, his or her beneficiaries and any other person having or claiming an interest
in such STI Bonuses or MTI Bonuses. 
 VII.    General Provisions. 

7.1    Transferability. No awards under this Plan may be transferred, assigned, pledged or encumbered by the
Participant nor may any awards under this Plan be subject to any claim of any creditor, and, in particular, to the fullest extent permitted by law, all such payments, benefits and rights will be free from attachment, garnishment, trustee’s
process, or any other legal or equitable process available to any creditor of such Participant. 
 7.2    Unfunded
Arrangement. The Plan is an unfunded incentive compensation arrangement. Nothing contained in the Plan, and no action taken pursuant to the Plan, will create or be construed to create a trust of any kind. Each Participant’s interest in an
STI Bonus or MTI Bonus will be no greater than the right of an unsecured general creditor of Radian. All STI Bonuses and MTI Bonuses will be paid from the general funds of Radian, and no special or separate fund will be established and no
segregation of assets will be made to assure payment of the STI Bonuses and MTI Bonuses. 
 7.3    Withholding
Tax. All payments under this Plan shall be made subject to applicable tax withholding, and Radian or an Affiliate shall withhold from any payments under this Plan all federal, state and local taxes as Radian or an Affiliate is required to
withhold pursuant to any law or governmental rule or regulation. The Participant shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received under this Plan. 

7.4    No Rights to Employment. Nothing in the Plan, and no action taken pursuant hereto, will give a Participant
any right to continued employment. Each Participant’s employment continues to be at-will, which means that Radian or an Affiliate can terminate the Participant’s employment at any time for cause or
for no cause whatsoever. 

  
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 7.5    Deferrals. Radian may allow selected Participants to defer part
or all of their STI Bonuses or MTI Bonuses under a deferred compensation plan, consistent with Section 409A of the Internal Revenue Code. If a Participant elects to defer an STI Bonus or MTI Bonus pursuant to a deferred compensation plan, the STI
Bonus or MTI Bonus will be paid at the time and in the form determined under the deferred compensation plan, notwithstanding the payment terms of this Plan. 

7.6    Section 409A. The Plan is intended to comply with the short-term deferral rule set forth in the regulations
under section 409A of the Internal Revenue Code in order to avoid application of section 409A to the Plan. If and to the extent that any payment under this Plan is deemed to be deferred compensation subject to the requirements of section 409A, this
Plan will be administered so that such payments are made in accordance with the requirements of section 409A, including the six-month delay required for “specified employees,” if applicable. In no
event shall a Participant, directly or indirectly, designate the calendar year of payment, except in accordance with Section 409A. If a payment is subject to section 409A, is subject to execution of a Release, and could be made in more than one
taxable year, based on timing of the execution of the Release, payment shall be made in the later taxable year, as required under section 409A. 

7.7    Termination and Amendment of the Plan. The Compensation Committee may amend or terminate the Plan at any
time. 
 7.8    Successors. The Plan will be binding upon and inure to the benefit of Radian, its successors and
assigns, and each Participant and his or her heirs, executors, administrators and legal representatives. 

7.9    Applicable Law.  

(a)    The Plan shall be construed, administered and governed in all respects under and by the applicable laws of the
Commonwealth of Pennsylvania, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation to the substantive law of another jurisdiction. 

(b)    As a condition of participating in the Plan, each Participant irrevocably and unconditionally (i) agrees that
any legal proceeding arising out of the Plan may be brought only in the United States District Court for the Eastern District of Pennsylvania, or if such court does not have jurisdiction or will not accept jurisdiction, in any court of general
jurisdiction in Philadelphia County, Pennsylvania, (ii) consents to the sole and exclusive jurisdiction and venue of such court in any such proceeding, and (iii) waives any objection to the laying of venue of any such proceeding in any
such court. The Participant also irrevocably and unconditionally consents to the service of any process, pleadings, notices, or other papers. 

 (c)    In addition, the Plan shall be subject to any required approvals by
any governmental or regulatory agencies. STI Bonuses and MTI Bonuses shall be subject to any applicable clawback or recoupment policies and other policies that may be implemented by the Board from time to time in accordance with applicable law.
Notwithstanding anything in the Plan to the contrary, the Plan, STI Bonuses and MTI Bonuses shall be subject to all applicable laws, including any laws, regulations, restrictions, or governmental guidance that becomes applicable in the event of the
Company’s participation in any governmental programs, and the Committee reserves the right to modify the Plan as necessary to conform to any restrictions imposed by any such laws, regulations, restrictions, or governmental guidance or to
conform to any applicable clawback or recoupment policies and other policies that may be implemented by the Board from time to time. As a condition of participating in the Plan and accepting payment of any STI Bonus and MTI Bonus, all Participants
agree to any such modifications that may be imposed by the Committee, and all Participants agree to sign such waivers or acknowledgments as the Committee may deem necessary or appropriate with respect to such modifications. 

Revision History 
  

							
	 Revision
	 	 Date
	 	 Description
	 	 Author

	2.0	 	2/8/2017	 	Updated	 	A. Scottfift_ex101.htm

EXHIBIT 10.1

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (the “Agreement”) is made as of February 10, 2017, by and between Stony Hill Corp., a Nevada corporation (the “Company”), and Chris Bridges (the “Indemnitee”).

 

RECITALS

 

The Company and Indemnitee recognize the increasing difficulty in obtaining liability insurance for directors, officers and key employees, the significant increases in the cost of such insurance and the general reductions in the coverage of such insurance. The Company and Indemnitee further recognize the substantial increase in corporate litigation in general, subjecting directors, officers and key employees to expensive litigation risks at the same time as the availability and coverage of liability insurance has been severely limited. Indemnitee does not regard the current protection available as adequate under the present circumstances, and Indemnitee and agents of the Company may not be willing to continue to serve as agents of the Company without additional protection. The Company desires to attract and retain the services of highly qualified individuals, such as Indemnitee, and to indemnify its directors, officers and key employees so as to provide them with the maximum protection permitted by law.

 

AGREEMENT

 

In consideration of the mutual promises made in this Agreement, and for other good and valuable consideration, receipt of which is hereby acknowledged, the Company and Indemnitee hereby agree as follows:

 

1. Indemnification.

 

(a) Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is or was a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the Company) by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by Indemnitee in connection with such action, suit or proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Company, or, with respect to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

 

	 
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(b) Proceedings by or in the right of the Company. The Company shall indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or completed action or proceeding by or in the right of the Company or any subsidiary of the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any action or inaction on the part of Indemnitee while an officer or director or by reason of the fact that Indemnitee is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees) and, to the fullest extent permitted by law, amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld), in each case to the extent actually and reasonably incurred by Indemnitee in connection with the defense or settlement of such action or suit if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and its stockholders, except that no indemnification shall be made in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudicated by court order or judgment to be liable to the Company in the performance of Indemnitee’s duty to the Company and its stockholders unless and only to the extent that the court in which such action or proceeding is or was pending shall determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.

 

(c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Section 1(a) or Section 1(b) or the defense of any claim, issue or matter therein, Indemnitee shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by Indemnitee in connection therewith.

 

2. No Employment Rights. Nothing contained in this Agreement is intended to create in Indemnitee any right to continued employment.

 

3. Expenses; Indemnification Procedure.

 

(a) Advancement of Expenses. The Company shall advance all expenses incurred by Indemnitee in connection with the investigation, defense, settlement or appeal of any civil or criminal action, suit or proceeding referred to in Section l(a) or Section 1(b) hereof (including amounts actually paid in settlement of any such action, suit or proceeding). Indemnitee hereby undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby.

 

	 
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(b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to his or her right to be indemnified under this Agreement, give the Company notice in writing as soon as practicable of any claim made against Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the Company shall be directed to the Chief Executive Officer of the Company and shall be given in accordance with the provisions of Section 12(d) below. In addition, Indemnitee shall give the Company such information and cooperation as it may reasonably require and as shall be within Indemnitee’s power.

 

(c) Procedure. Any indemnification and advances provided for in Section 1 and this Section 3 shall be made no later than twenty (20) days after receipt of the written request of Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the Company’s Articles of Incorporation or Bylaws providing for indemnification, is not paid in full by the Company within twenty (20) days after a written request for payment thereof has first been received by the Company, Indemnitee may, but need not, at any time thereafter bring an action against the Company to recover the unpaid amount of the claim and, subject to Section 11 of this Agreement, Indemnitee shall also be entitled to be paid for the expenses (including attorneys’ fees) of bringing such action. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in connection with any action, suit or proceeding in advance of its final disposition) that Indemnitee has not met the standards of conduct which make it permissible under applicable law for the Company to indemnify Indemnitee for the amount claimed, but the burden of proving such defense shall be on the Company and Indemnitee shall be entitled to receive interim payments of expenses pursuant to Section 3(a) unless and until such defense may be finally adjudicated by court order or judgment from which no further right of appeal exists. It is the parties’ intention that if the Company contests Indemnitee’s right to indemnification, the question of Indemnitee’s right to indemnification shall be for the court to decide, and neither the failure of the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct required by applicable law, nor an actual determination by the Company (including its Board of Directors, any committee or subgroup of the Board of Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the applicable standard of conduct.

 

(d) Notice to Insurers. If, at the time of the receipt of a notice of a claim pursuant to Section 3(b) hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

 

(e) Selection of Counsel. In the event the Company shall be obligated under Section 3(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee, upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i) Indemnitee shall have the right to employ counsel in any such proceeding at Indemnitee’s expense; and (ii) if (A) the employment of counsel by Indemnitee has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the conduct of any such defense or (C) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of the Company.

 

	 
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4. Additional Indemnification Rights; Nonexclusivity.

 

(a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that such indemnification is not specifically authorized by the other provisions of this Agreement, the Company’s Articles of Incorporation, the Company’s Bylaws or by statute. In the event of any change, after the date of this Agreement, in any applicable law, statute, or rule which expands the right of a Nevada corporation to indemnify a member of its board of directors or an officer, such changes shall be deemed to be within the purview of Indemnitee’s rights and the Company’s obligations under this Agreement. In the event of any change in any applicable law, statute or rule which narrows the right of a Nevada corporation to indemnify a member of its board of directors or an officer, such changes, to the extent not otherwise required by such law, statute or rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights and obligations hereunder.

 

(b) Nonexclusivity. The indemnification provided by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Articles of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested members of the Company’s Board of Directors, Chapter 78 of the Nevada Revised Statutes, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such office. The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity even though he or she may have ceased to serve in any such capacity at the time of any action, suit or other covered proceeding.

 

5. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines or penalties actually or reasonably incurred in the investigation, defense, appeal or settlement of any civil or criminal action, suit or proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which Indemnitee is entitled.

 

	 
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6. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that in certain instances, Federal law or public policy may override applicable state law and prohibit the Company from indemnifying its directors and officers under this Agreement or otherwise. For example, the Company and Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”) has taken the position that indemnification is not permissible for liabilities arising under certain federal securities laws, and federal legislation prohibits indemnification for certain ERISA violations. Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the SEC to submit the question of indemnification to a court in certain circumstances for a determination of the Company’s right under public policy to indemnify Indemnitee.

 

7. Officer and Director Liability Insurance. The Company shall, from time to time, make the good faith determination whether or not it is practicable for the Company to obtain and maintain a policy or policies of insurance with reputable insurance companies providing the officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the Company’s performance of its indemnification obligations under this Agreement. Among other considerations, the Company will weigh the costs of obtaining such insurance coverage against the protection afforded by such coverage. In all policies of director and officer liability insurance, Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company’s directors, if Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or director but is a key employee. Notwithstanding the foregoing, the Company shall have no obligation to obtain or maintain such insurance if the Company determines in good faith that such insurance is not reasonably available, if the premium costs for such insurance are disproportionate to the amount of coverage provided, if the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar insurance maintained by a parent or subsidiary of the Company.

 

8. Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as provided in this Section 8. If this Agreement or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms.

 

9. Exceptions. Any other provision herein to the contrary notwithstanding, the Company shall not be obligated pursuant to the terms of this Agreement:

 

(a) Claims Initiated By Indemnitee. To indemnify or advance expenses to Indemnitee with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to establish or enforce a right to indemnification under this Agreement or any other statute or law or otherwise as required under the Chapter 78 of the Nevada Revised Statutes, but such indemnification or advancement of expenses may be provided by the Company in specific cases if the Board of Directors finds it to be appropriate;

 

	 
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(b) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent jurisdiction determines that each of the material assertions made by Indemnitee in such proceeding was not made in good faith or was frivolous;

 

(c) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and amounts paid in settlement) to the extent such expenses or liabilities have been paid directly to Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability insurance maintained by the Company; or

 

(d) Claims Under Section 16(b). To indemnify Indemnitee for expenses or the payment of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

 

10. Construction of Certain Phrases.

 

(a) For purposes of this Agreement, references to the “Company” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so that if Indemnitee is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued. 

 

(b) For purposes of this Agreement, references to “fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit plan; and references to “serving at the request of the company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants, or beneficiaries; and if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

11. Attorneys’ Fees. In the event that any action is instituted by Indemnitee under this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee with respect to such action, unless as a part of such action, the court of competent jurisdiction determines that each of the material assertions made by Indemnitee as a basis for such action were not made in good faith or were frivolous. In the event of an action instituted by or in the name of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys’ fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s counterclaims and cross-claims made in such action), unless as a part of such action the court determines that each of Indemnitee’s material defenses to such action were made in bad faith or were frivolous.

 

	 
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12. Miscellaneous.

 

(a) Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Nevada, without giving effect to principles of conflict of law.

 

(b) Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire agreement and understanding of the parties relating to the subject matter herein and merges all prior discussions between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. The failure by either party to enforce any rights under this Agreement shall not be construed as a waiver of any rights of such party.

 

(c) Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto. 

 

(d) Notices. Any notice, demand or request required or permitted to be given under this Agreement shall be in writing and shall be deemed sufficient when delivered via e-mail with receipt acknowledged, personally or forty-eight (48) hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address as set forth below or as subsequently modified by written notice.

 

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

 

(f) Successors and Assigns. This Agreement shall be binding upon the Company and its successors and assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, legal representatives and assigns.

 

(g) Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Company to effectively bring suit to enforce such rights.

  

[signature page follows]

 

	 
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The parties hereto have executed this Agreement as of the day and year set forth on the first page of this Agreement.

 

	
The Company:

STONY HILL CORP.
	
	 	 	 
	By:	/s/ John Brady	
	
Name: 
	John Brady 	 
	Title:	Secretary	 

 

Address: 2355 Westwood Blvd., Suite 349

                 Los Angeles, California 90064

 

AGREED TO AND ACCEPTED:

 

Indemnitee:

 

/s/ Chris Bridges                                                                

(Signature)

 

Print Name: Chris Bridges

 

Address: _________________________

 

_________________________

 

 

	
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