Document:

exv10w64

Exhibit 10.64

January 30, 2008

Mr. Bob Pearson

2001 Meandering River Court

Austin, Texas 78746

			
	Re:	 	Business Development Arrangement

Dear Bob:

          This letter is to confirm our agreement concerning business development activities you may
conduct on behalf of Introgen. We understand that in the course of your activities you may
encounter potential Introgen co-development partners, collaborators, investors, and/or acquirers.
In the event your efforts produce a collaboration agreement, investment in Introgen, acquisition of
a majority of the voting securities of Introgen or substantially all of its assets, or other
significant investment in Introgen, Introgen will pay you a fee equal to one-half (1/2) of one
percent (1%) of the money or current market value of other assets received by Introgen or its
shareholders in such transaction, net of any contemplated expenditures of money or other assets by
Introgen in connection with such transaction, up to a maximum amount of three million dollars
($3,000,000) (the “Fee”). For example, the Fee would be paid in connection with milestone
payments, upfront payments, and royalties received by Introgen, but would not be paid with respect
to loans, or monies received by Introgen which Introgen is expected to expend for research and
development, fulltime equivalent payments with respect to its employees, or otherwise.

          In the event of an acquisition of Introgen or merger of Introgen into another company in which
Introgen or its shareholders receive securities in exchange for their Introgen securities, the Fee
will be based on the current market value of the securities received at the time of receipt, and
may be paid by Introgen by delivering such securities with a value equal to the amount of the Fee.

          The Fee will not exceed the sum of $3,000,000, regardless of the size of the transaction.
Transactions between or among Introgen and its affiliates, whether now existing or created in the
future, are excluded from this agreement. For this purpose an “affiliate” is an entity in which a
majority of the equity interests are owned or controlled by Introgen, or which owns or controls a

 

 

Mr. Bob Pearson

January 30, 2008

Page Two

majority of the equity interests of Introgen. Transactions between Introgen affiliates and third
parties are also excluded, absent further agreement between you and such affiliate. No Fee will be
owed if payment would violate applicable law.

          This Agreement may be terminated at any time by written notice from one of us to the other;
provided, however, that the Fee will be paid with respect to a transaction produced through
services performed by you before termination, if the transaction is closed within two years after
the date of termination of this Agreement.

          If this accurately sets forth our agreement, please sign where indicated below and return to
me.

	 	 	 	 	 
	 	Yours very truly,

INTROGEN THERAPEUTICS, INC.

 	 
	 

	 

	 	By;	   /s/ DAVID G. NANCE
 	 
	 	 	David G. Nance, Chairman, President 	 
	 	 	and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	AGREED:

 	 
	 

	 	  /s/  BOB PEARSON
 	 
	 	Bob Pearsonexv10w1

EXHIBIT
10.1

ENERGY RECOVERY, INC.

INDEMNIFICATION AGREEMENT

     THIS AGREEMENT is entered into, effective as of       
       , 20      by and
between Energy Recovery, Inc., a Delaware corporation (the “Company”), and           
     ”Indemnitee”).

     WHEREAS, it is essential to the Company to retain and attract as directors and officers the
most capable persons available;

     WHEREAS, Indemnitee is a director and/or officer of the Company;

     WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other
claims currently being asserted against directors and officers of corporations;

     WHEREAS, the Bylaws of the Company require the Company to indemnify and advance expenses to
its directors and officers to the fullest extent permitted under Delaware law, and the Indemnitee
serves as a director and/or officer of the Company in part in reliance on the Company’s Bylaws; and

     WHEREAS, in recognition of Indemnitee’s need for (i) substantial protection against personal
liability based on Indemnitee’s reliance on the aforesaid Bylaws, (ii) specific contractual
assurance that the protection promised by the Bylaws will be available to Indemnitee (regardless
of, among other things, any amendment to or revocation of the Bylaws or any change in the
composition of the Company’s Board of Directors or acquisition transaction relating to the Company)
and (iii) an inducement to provide effective services to the Company as a director and/or officer,
the Company wishes to provide in this Agreement for the indemnification of and the advancing of
expenses to Indemnitee to the fullest extent (whether partial or complete) permitted under Delaware
law and as set forth in this Agreement, and, to the extent insurance is maintained, to provide for
the continued coverage of Indemnitee under the Company’s directors’ and officers’ liability
insurance policies.

     NOW, THEREFORE, in consideration of the above premises and of Indemnitee continuing to serve
the Company directly or, at its request, with another enterprise, and intending to be legally bound
hereby, the parties agree as follows:

1. Certain Definitions.

	 	(a)	 	“Board” shall mean the Board of Directors of the Company.
	 
	 	(b)	 	“Affiliate” shall mean any corporation or other person or entity that directly,
or indirectly through one or more intermediaries, controls or is controlled by or is under
common control with, the person specified, including, without limitation, with respect to
the Company, any direct or indirect subsidiary of the Company.
	 
	 	(c)	 	A “Change in Control” shall be deemed to have occurred if (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) (other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a corporation owned directly or
indirectly by the stockholders of the Company in substantially the same proportions as
their ownership of stock of the Company, and other than any person holding shares of the
Company on the date that the Company first registers under the Act or any transferee of
such individual if such transferee is a spouse or lineal descendant of the transferee or a
trust for the benefit of the individual, his or her spouse or lineal descendants), is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or

 

 

	 	 	 	indirectly, of securities of the Company representing 30% or more of the total voting
power represented by the Company’s then outstanding Voting Securities, (ii) during any
period of two consecutive years, individuals who at the beginning of such period
constitute the Board and any new director whose election by the Board or nomination for
election by the Company’s stockholders was approved by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the beginning
of the period or whose election or nomination for election was previously so approved,
cease for any reason to constitute a majority of the Board, (iii) the stockholders of
the Company approve a merger or consolidation of the Company with any other entity,
other than a merger or consolidation that would result in the Voting Securities of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the surviving
entity) at least 80% of the total voting power represented by the Voting Securities of
the Company or such surviving entity outstanding immediately after such merger or
consolidation or (iv) the stockholders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the Company
(in one transaction or a series of transactions) of all or substantially all of the
Company’s assets.

	 	(d)	 	“Expenses” shall mean any expense, liability or loss, including attorneys’
fees, judgments, fines, ERISA excise taxes and penalties, amounts paid or to be paid in
settlement, any interest, assessments or other charges imposed thereon, any federal, state,
local or foreign taxes imposed as a result of the actual or deemed receipt of any payments
under this Agreement and all other costs and obligations, paid or incurred in connection
with investigating, defending, being a witness in, participating in (including on appeal)
or preparing for any of the foregoing in, any Proceeding relating to any Indemnifiable
Event.
	 
	 	(e)	 	“Indemnifiable Event” shall mean any event or occurrence that takes place
either prior to or after the execution of this Agreement, related to the fact that
Indemnitee is or was a director or officer of the Company or an Affiliate of the Company,
or while a director or officer is or was serving at the request of the Company or an
Affiliate of the Company as a director, officer, employee, trustee, agent or fiduciary of
another foreign or domestic corporation, partnership, joint venture, employee benefit plan,
trust or other enterprise or was a director, officer, employee or agent of a foreign or
domestic corporation that was a predecessor corporation of the Company or of another
enterprise at the request of such predecessor corporation, or related to anything done or
not done by Indemnitee in any such capacity, whether or not the basis of the Proceeding is
alleged action in an official capacity as a director, officer, employee or agent or in any
other capacity while serving as a director, officer, employee or agent of the Company or an
Affiliate of the Company, as described above.
	 
	 	(f)	 	“Independent Counsel” shall mean the person or body appointed in connection
with Section 3.
	 
	 	(g)	 	“Proceeding” shall mean any threatened, pending or completed action, suit or
proceeding or any alternative dispute resolution mechanism (including an action by or in
the right of the Company or an Affiliate of the Company) or any inquiry, hearing or
investigation, whether formal or informal, whether conducted by the Company or an Affiliate
of the Company or any other party, that Indemnitee in good faith believes might lead to the
institution of any such action, suit or proceeding, whether civil, criminal,
administrative, investigative or other.
	 
	 	(h)	 	“Reviewing Party” shall mean the person or body appointed in accordance with
Section 3.
	 
	 	(i)	 	“Voting Securities” shall mean any securities of the Company that vote
generally in the election of directors.

 

 

2. Agreement to Indemnify.

	 	(a)	 	General Agreement. In the event Indemnitee was, is or becomes a party to or
witness or other participant in, or is threatened to be made a party to or witness or other
participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable
Event, the Company shall indemnify Indemnitee from and against any and all Expenses to the
fullest extent permitted by law, as the same exists or may hereafter be amended or
interpreted (but in the case of any such amendment or interpretation, only to the extent
that such amendment or interpretation permits the Company to provide broader
indemnification rights than were permitted prior thereto). The parties hereto intend that
this Agreement shall provide for indemnification in excess of that expressly permitted by
statute, including, without limitation, any indemnification provided by the Company’s
Certificate of Incorporation, its Bylaws, vote of its stockholders or disinterested
directors or applicable law.
	 
	 	(b)	 	Initiation of Proceeding. Notwithstanding anything in this Agreement to the
contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in
connection with any Proceeding initiated by Indemnitee against the Company or any director
or officer of the Company unless (i) the Company has joined in or the Board has consented
to the initiation of such Proceeding, (ii) the Proceeding is one to enforce indemnification
rights under Section 5 or (iii) the Proceeding is instituted after a Change in Control
(other than a Change in Control approved by a majority of the directors on the Board who
were directors immediately prior to such Change in Control) and Independent Counsel has
approved its initiation.
	 
	 	(c)	 	Expense Advances. All Expenses incurred by or on behalf of Indemnitee prior to
the final disposition of a Proceeding shall be advanced by the Company to Indemnitee within
30 days after the receipt by the Company of a written request for such advance unless and
until there has been a final determination by a court of competent jurisdiction that
Indemnitee is not entitled to be indemnified for such Expenses. Notwithstanding the
foregoing, to the extent the Indemnitee has been successful on the merits or otherwise in
the defense of any Proceeding, Indemnitee shall be indemnified against all Expenses
actually and reasonably incurred by Indemnitee in connection therewith. Indemnitee shall
qualify for advances upon the execution and delivery to the Company of this Agreement which
shall constitute an undertaking providing that the Indemnitee undertakes to the fullest
extent permitted by law to reimburse the advance if and to the extent that it is ultimately
determined by a court of competent jurisdiction in a final judgment, not subject to appeal,
that Indemnitee is not entitled to be indemnified by the Company. No other form of
undertaking shall be required other than the execution of this Agreement. Indemnitee’s
obligation to reimburse the Company for advances shall be unsecured and no interest shall
be charged thereon. This Section 2(c) shall not apply to any claim made by Indemnitee for
which indemnity is excluded pursuant to Section 2(b) or 2(f).
	 
	 	(d)	 	Mandatory Indemnification. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in
defense of any Proceeding relating in whole or in part to an Indemnifiable Event or in
defense of any issue or matter therein, Indemnitee shall be indemnified against all
Expenses incurred in connection therewith.
	 
	 	(e)	 	Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of Expenses, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee
for the portion thereof to which Indemnitee is entitled.

 

 

	 	(f)	 	Prohibited Indemnification. No indemnification pursuant to this Agreement shall
be paid by the Company on account of any Proceeding in which a final judgment is rendered
against Indemnitee or Indemnitee enters into a settlement, in each case (i) for an
accounting of profits made from the purchase or sale by Indemnitee of securities of the
Company pursuant to the provisions of Section 16(b) of the Exchange Act or similar
provisions of any federal, state or local laws; (ii) for which payment has actually been
made to or on behalf of Indemnitee under any insurance policy or other indemnity provision,
except with respect to any excess beyond the amount paid under any insurance policy or
other indemnity provision; or (iii) for which payment is prohibited by law. Notwithstanding
anything to the contrary stated or implied in this Section 2(f), indemnification pursuant
to this Agreement relating to any Proceeding against Indemnitee for an accounting of
profits made from the purchase or sale by Indemnitee of securities of the Company pursuant
to the provisions of Section 16(b) of the Exchange Act or similar provisions of any
federal, state or local laws shall not be prohibited if Indemnitee ultimately establishes
in any Proceeding that no recovery of such profits from Indemnitee is permitted under
Section 16(b) of the Exchange Act or similar provisions of any federal, state or local
laws.

	3.	 	Reviewing Party. Prior to any Change in Control, the Reviewing Party shall be any
appropriate person or body consisting of a member or members of the Board or any other person
or body appointed by the Board who is not a party to the particular Proceeding with respect to
which Indemnitee is seeking indemnification; provided that if all members of the Board are
parties to the particular Proceeding with respect to which Indemnitee is seeking
indemnification, the Independent Counsel referred to below shall become the Reviewing Party;
after a Change in Control, the Independent Counsel referred to below shall become the
Reviewing Party. With respect to all matters arising before a Change in Control for which
Independent Counsel shall be the Reviewing Party and all matters arising after a Change in
Control, in each case concerning the rights of Indemnitee to indemnity payments and Expense
Advances under this Agreement or any other agreement or under applicable law or the Company’s
Certificate of Incorporation or Bylaws now or hereafter in effect relating to indemnification
for Indemnifiable Events, the Company shall seek legal advice only from Independent Counsel
selected by Indemnitee and approved by the Company (which approval shall not be unreasonably
withheld or delayed), and who has not otherwise performed services for the Company or the
Indemnitee (other than in connection with indemnification matters) within the last five years.
The Independent Counsel shall not include any person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in representing either
the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.
Such counsel, among other things, shall render its written opinion to the Company and
Indemnitee as to whether and to what extent the Indemnitee should be permitted to be
indemnified under applicable law. The Company agrees to pay the reasonable fees of the
Independent Counsel and to indemnify fully such counsel against any and all expenses
(including attorneys’ fees), claims, liabilities, loss and damages arising out of or relating
to this Agreement or the engagement of Independent Counsel pursuant hereto.

4. Indemnification Process and Appeal.

	 	(a)	 	Indemnification Payment. Indemnitee shall be entitled to indemnification of
Expenses, and shall receive payment thereof, from the Company in accordance with this
Agreement as soon as practicable after Indemnitee has made written demand on the Company
for indemnification, but in no event later than thirty (30) days after demand, unless the
Reviewing Party has given a written opinion to the Company that Indemnitee is not entitled
to indemnification under applicable law. Indemnitee shall cooperate with the Reviewing
Party making a determination with respect to Indemnitee’s entitlement to indemnification,
including providing to the Reviewing Party upon reasonable advance request any
documentation or information which is not privileged

 

 

	 	 	 	or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. In the event the Reviewing Party has
failed to make such determination within thirty (30) days after the Company’s receipt of
Indemnitee’s written demand for indemnification, the requisite determination that
Indemnitee is entitled to indemnification shall be deemed to have been made.

	 	(b)	 	Suit to Enforce Rights. Regardless of any action by the Reviewing Party, if
Indemnitee has not received full indemnification within thirty (30) days after making a
demand in accordance with Section 4(a), Indemnitee shall have the right to enforce its
indemnification rights under this Agreement by commencing litigation in any court in the
State of California or the State of Delaware having subject matter jurisdiction thereof
seeking an initial determination by the court or challenging any determination by the
Reviewing Party or any aspect thereof. The Company hereby consents to service of process
and to appear in any such proceeding. The Company shall be precluded from asserting in any
such proceeding that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such court that the Company is bound by
all the provisions of this Agreement. The remedy provided for in this Section 4 shall be in
addition to any other remedies available to Indemnitee at law or in equity.
	 
	 	(c)	 	Defense to Indemnification, Burden of Proof, and Presumptions. It shall be a
defense to any action brought by Indemnitee against the Company to enforce this Agreement
that it is not permissible under applicable law for the Company to indemnify Indemnitee for
the amount claimed. In connection with any such action or any determination by the
Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified
hereunder, the burden of proving such a defense or determination shall be on the Company.
Neither the failure of the Reviewing Party or the Company (including its Board, independent
legal counsel or its stockholders) to have made a determination prior to the commencement
of such action by Indemnitee that indemnification of the claimant is proper under the
circumstances because Indemnitee has met the standard of conduct set forth in applicable
law, nor an actual determination by the Reviewing Party or Company (including its Board,
independent legal counsel or its stockholders) that the Indemnitee had not met such
applicable standard of conduct, shall be a defense to the action or create a presumption
that the Indemnitee has not met the applicable standard of conduct. For purposes of this
Agreement, the termination of any claim, action, suit or proceeding, by judgment, order,
settlement (whether with or without court approval), conviction or upon a plea of nolo
contendere or its equivalent, shall not create a presumption that Indemnitee did not meet
any particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law. For purposes of any
determination of good faith under any applicable standard of conduct, Indemnitee shall be
deemed to have acted in good faith if Indemnitee’s action is based on the records or books
of account of the Company, including financial statements, or on information supplied to
Indemnitee by the officers of the Company in the course of their duties, or on the advice
of legal counsel for the Company or the Board or counsel selected by any committee of the
Board or on information or records given or reports made to the Company by an independent
certified public accountant or by an appraiser, investment banker, compensation consultant,
or other expert selected with reasonable care by the Company or the Board or any committee
of the Board. The provisions of the preceding sentence shall not be deemed to be exclusive
or to limit in any way the other circumstances in which the Indemnitee may be deemed to
have met the applicable standard of conduct. The knowledge and/or actions, or failure to
act, or any director, officer, agent or employee of the Company shall not be imputed to
Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

 

	5.	 	Indemnification for Expenses Incurred in Enforcing Rights. The Company shall
indemnify Indemnitee against any and all Expenses that are incurred by Indemnitee in
connection with any action brought by Indemnitee for (i) indemnification or advance payment of
Expenses by the Company under this Agreement or any other agreement or under applicable law or
the Company’s Certificate of Incorporation or Bylaws now or hereafter in effect relating to
indemnification for Indemnifiable Events, regardless of whether Indemnitee is ultimately
successful in such action, unless as a part of such action a court of competent jurisdiction
over such action determines that each of the material assertions made by Indemnitee as a basis
for such action was not made in good faith or was frivolous; and/or (ii) recovery under
directors’ and officers’ liability insurance policies maintained by the Company; but only in
the event that Indemnitee ultimately is determined to be entitled to such indemnification or
insurance recovery, as the case may be. In addition, the Company shall, if so requested by
Indemnitee, advance the foregoing Expenses to Indemnitee, subject to and in accordance with
Section 2(c).

	6.	 	Notification and Defense of Proceeding.

	 	(a)	 	Notice. Promptly after receipt by Indemnitee of notice of the commencement of
any Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the
Company under this Agreement, notify the Company of the commencement thereof; but the
omission so to notify the Company will not relieve the Company from any liability that it
may have to Indemnitee, except as provided in Section 6(c).
	 
	 	(b)	 	Defense. With respect to any Proceeding as to which Indemnitee notifies the
Company of the commencement thereof, the Company will be entitled to participate in the
Proceeding at its own expense and except as otherwise provided below, to the extent the
Company so wishes, it may assume the defense thereof with counsel reasonably satisfactory
to Indemnitee. After notice from the Company to Indemnitee of its election to assume the
defense of any Proceeding, the Company shall not be liable to Indemnitee under this
Agreement or otherwise for any Expenses subsequently incurred by Indemnitee in connection
with the defense of such Proceeding other than reasonable costs of investigation or as
otherwise provided below. Indemnitee shall have the right to employ legal counsel in such
Proceeding, but all Expenses related thereto incurred after notice from the Company of its
assumption of the defense shall be at Indemnitee’s expense unless: (i) the employment of
legal counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee has
reasonably determined that there may be a conflict of interest between Indemnitee and the
Company in the defense of the Proceeding, (iii) after a Change in Control, the employment
of counsel by Indemnitee has been approved by the Independent Counsel or (iv) the Company
shall not in fact have employed counsel to assume the defense of such Proceeding, in each
of which cases all Expenses of the Proceeding shall be borne by the Company. The Company
shall not be entitled to assume the defense of any Proceeding brought by or on behalf of
the Company, or as to which Indemnitee shall have made the determination provided for in
(ii) above or under the circumstances provided for in (iii) and (iv) above.
	 
	 	(c)	 	Settlement of Claims. The Company shall not be liable to indemnify Indemnitee
under this Agreement or otherwise for any amounts paid in settlement of any Proceeding
effected without the Company’s written consent, such consent not to be unreasonably
withheld; provided, however, that if a Change in Control has occurred, the Company shall be
liable for indemnification of Indemnitee for amounts paid in settlement if the Independent
Counsel has approved the settlement. The Company shall not settle any Proceeding in any
manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s
written consent. The Company shall not be liable to indemnify the Indemnitee under this
Agreement with regard to any judicial award if the Company was not given a reasonable and
timely opportunity as a result of Indemnitees’ failure to provide notice, at its expense,
to participate in the defense of such

 

 

	 	 	 	action, and the lack of such notice materially prejudiced the Company’s ability to
participate in defense of such action. The Company’s liability hereunder shall not be
excused if participation in the Proceeding by the Company was barred by this Agreement.

	7.	 	Establishment of Trust. In the event of a Change in Control, the Company shall, upon
written request by Indemnitee, create a Trust for the benefit of the Indemnitee and from time
to time upon written request of Indemnitee shall fund the Trust in an amount sufficient to
satisfy any and all Expenses reasonably anticipated at the time of each such request to be
incurred in connection with investigating, preparing for, participating in, and/or defending
any Proceeding relating to an Indemnifiable Event. The amount or amounts to be deposited in
the Trust pursuant to the foregoing funding obligation shall be determined by the Independent
Counsel. The terms of the Trust shall provide that (i) the Trust shall not be revoked or the
principal thereof invaded without the written consent of the Indemnitee, (ii) the Trustee
shall advance, within thirty (30) days of a request by the Indemnitee, any and all Expenses to
the Indemnitee (and the Indemnitee hereby agrees to reimburse the Trust under the same
circumstances for which the Indemnitee would be required to reimburse the Company under
Section 2(c) of this Agreement), (iii) the Trust shall continue to be funded by the Company in
accordance with the funding obligation set forth above, (iv) the Trustee shall promptly pay to
the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification
pursuant to this Agreement or otherwise no later than thirty (30) days after notice pursuant
to Section 4(a) and (v) all unexpended funds in the Trust shall revert to the Company upon a
final determination by the Independent Counsel or a court of competent jurisdiction, as the
case may be, that the Indemnitee has been fully indemnified under the terms of this Agreement.
The Trustee shall be chosen by the Indemnitee. Nothing in this Section 7 shall relieve the
Company of any of its obligations under this Agreement. All income earned on the assets held
in the Trust shall be reported as income by the Company for federal, state, local and foreign
tax purposes. The Company shall pay all costs of establishing and maintaining the Trust and
shall indemnify the Trustee against any and all expenses (including attorneys’ fees), claims,
liabilities, loss and damages arising out of or relating to this Agreement or the
establishment and maintenance of the Trust.

	8.	 	Non-Exclusivity. The rights of Indemnitee hereunder shall be in addition to any other
rights Indemnitee may have under the Company’s Certificate of Incorporation, Bylaws,
applicable law or otherwise; provided, however, that this Agreement shall supersede any prior
indemnification agreement between the Company and the Indemnitee. To the extent that a change
in applicable law (whether by statute or judicial decision) permits greater indemnification
than would be afforded currently under the Company’s Certificate of Incorporation, Bylaws,
applicable law or this Agreement, it is the intent of the parties that Indemnitee enjoy by
this Agreement the greater benefits so afforded by such change.

	9.	 	Liability Insurance. For the duration of Indemnitee’s service as a director and/or
officer of the Company, and thereafter for so long as Indemnitee shall be subject to any
pending or possible Proceeding by reason of (or arising in part out of) an Indemnifiable
Event, the Company shall use commercially reasonable efforts (taking into account the scope
and amount of coverage available relative to the cost thereof) to cause to be maintained in
effect policies of directors’ and officers’ liability insurance providing coverage for
directors and/or officers of the Company that is at least substantially comparable in scope
and amount to that provided by the Company’s current policies of directors’ and officers’
liability insurance. Notwithstanding the foregoing, the Company shall not be required to
maintain said policies of directors’ and officers’ liability insurance during any time period
in which such insurance is not reasonably available or if it is determined in good faith by
the then directors of the Company either that: (a) the premium cost of such insurance is
substantially disproportionate to the amount of coverage provided thereunder, or (b) the
protection provided by such insurance is so limited by exclusions, deductions or otherwise
that there is insufficient benefit to warrant the cost of maintaining such insurance.

 

 

	 	 	The Company shall provide Indemnitee with a copy of all directors’ and officers’ liability
insurance applications, binders, policies, declarations, endorsements and other related
materials, and shall provide Indemnitee with a reasonable opportunity to review and comment on
the same.
	 
	10.	 	Amendment of this Agreement. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver
of any of the provisions of this Agreement shall be binding unless in the form of a writing
signed by the party against whom enforcement of the waiver is sought, and no such waiver shall
operate as a waiver of any other provisions hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver. Except as specifically provided herein, no failure to
exercise or any delay in exercising any right or remedy hereunder shall constitute a waiver
thereof.

	11.	 	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 papers required and shall do everything that may be necessary to secure such
rights, including the execution of such documents necessary to enable the Company effectively
to bring suit to enforce such rights.

	12.	 	No Duplication of Payments. The Company shall not be liable under this Agreement to
make any payment in connection with any claim made against Indemnitee to the extent Indemnitee
has otherwise received payment (under any insurance policy, Bylaw or otherwise) of the amounts
otherwise indemnifiable hereunder.

	13.	 	Duration of Agreement. All agreements and obligations of the Company contained herein
shall continue during the period Indemnitee is a director, officer, employee or other agent of
the Company (or is or was serving at the request of the Company as a director, officer,
employee or other agent of another corporation, partnership, joint venture, trust, employee
benefit plan or other enterprise) and shall continue thereafter so long as Indemnitee shall be
subject to any possible claim or threatened, pending or completed action, suit or proceeding,
whether civil or criminal, arbitrational, administrative or investigative, by reason of the
fact that Indemnitee was serving in the capacity referred to herein.

	14.	 	Binding Effect. This Agreement shall be binding upon and inure to the benefit of and
be enforceable by the parties hereto and their respective successors (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all or substantially all
of the business and/or assets of the Company), assigns, spouses, heirs and personal and legal
representatives. The Company shall require and cause any successor (whether direct or indirect
by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial
part, of the business and/or assets of the Company, by written agreement in form and substance
satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform if no such
succession had taken place. The indemnification provided under this Agreement shall continue
as to Indemnitee for any action taken or not taken while serving in an indemnified capacity
pertaining to an Indemnifiable Event even though Indemnitee may have ceased to serve in such
capacity at the time of any Proceeding.

	15.	 	Severability. If any provision (or portion thereof) of this Agreement shall be held
by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, (a) the
remaining provisions shall remain enforceable to the fullest extent permitted by law; (b) such
provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to
the fullest extent possible, the provisions of this Agreement (including, without limitation,
each portion of this Agreement containing any provision held to be invalid, void or otherwise
unenforceable, that is not itself invalid, void or unenforceable) shall be construed so as to
give effect to the intent manifested by the provision held invalid, void or unenforceable.

 

 

	16.	 	Contribution. To the fullest extent permissible under applicable law, whether or not
the indemnification provided for in this Agreement is available to Indemnitee for any reason
whatsoever, the Company shall pay all or a portion of the amount that would otherwise be
incurred by Indemnitee for Expenses in connection with any claim relating to an Indemnifiable
Event, as is deemed fair and reasonable in light of all of the circumstances of such
Proceeding in order to reflect (i) the relative benefits received by the Company and
Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding;
and/or (ii) the relative fault of the Company (and its directors, officers, employees and
agents) and Indemnitee in connection with such event(s) and/or transaction(s).

	17.	 	Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware applicable to contracts made and to be
performed in such State without giving effect to its principles of conflicts of laws. The
Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or
proceeding arising out of or in connection with this Agreement may be brought in the Delaware
Court of Chancery, (ii) consent to submit to the jurisdiction of the Delaware Court of
Chancery for purposes of any action or proceeding arising out of or in connection with this
Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding
in the Delaware Court of Chancery, and (iv) waive, and agree not to plead or to make, any
claim that any such action or proceeding brought in the Delaware Court of Chancery has been
brought in an improper or inconvenient forum.

	18.	 	Notices. All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt or mailed, postage prepaid, certified or registered mail, return receipt
requested and addressed to the Company at:

Energy Recovery, Inc.

1908 Doolittle Drive

San Leandro, CA 94577

Attention: Chief Executive Officer

and to Indemnitee at the address set forth below Indemnitee’s signature hereto. Notice of change of
address shall be effective only when given in accordance with this Section. All notices complying
with this Section shall be deemed to have been received on the date of hand delivery or on the
third business day after mailing.

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

(signature page follows)

 

 

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Indemnification
Agreement as of the day specified above.

	 	 	 	 	 
	 	ENERGY RECOVERY, INC., a Delaware corporation

 	 
	 	
 	 
	 	(Signature) 	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	“INDEMNITEE”, an individual

 	 
	 	
 	 
	 	(Signature) 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	(Print name) 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	(Street address) 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	(City, State and ZIP)

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