Document:

Exhibit 10.2

 

January 24, 2005

 

NAME

c/o Digital Impact, Inc.

177 Bovet Road, Suite 200

San Mateo, CA 94402

 

Retention Agreement

 

Dear NAME:

 
Digital Impact, Inc. and its subsidiaries (collectively, the “Company”) considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel.  Further, the Board of Directors of the Company (the “Board”) recognizes that the possibility of a change in control exists, and that such possibility, and the uncertainty and questions that it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its stockholders.
 
The Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the management of the Company, including you, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from any possible change in control of the Company.
 
In order to induce you to remain in the employ of the Company, the Company agrees that you will receive the benefits set forth in this letter agreement (this “Agreement”) in the event your employment with the Company is terminated following a Change in Control (as defined on Schedule A) under the circumstances described below.
 

1.             Termination
Following Change in Control.  If a
Change in Control occurs, you will be entitled to the benefits provided in
Section 2 hereof upon the subsequent termination of your employment by the
Company without Cause (as defined on Schedule A) or by you for Good Reason (as
defined on Schedule A) during the twelve-month period following such Change in
Control (the “Covered Period”).  Any purported termination of your employment
by the Company or by you shall be communicated by a Notice of Termination to
the other party hereto in accordance with Section 6(e) hereof.  For purposes of this Agreement, a “Notice of Termination” shall mean a
written notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of your employment
under the provision so indicated.

 

 

2.             Compensation
upon Termination.

 

(a)           Severance
Benefits.  If your employment by the
Company is terminated during the Covered Period by the Company without Cause or
by you for Good Reason, then you shall be entitled to the following benefits:

 

(i)            Severance.  The
Company shall pay you in a cash lump sum within fifteen (15) days following the
effective date of your termination of employment (the “Date
of Termination”) the full amount of any earned but unpaid base
salary through the Date of Termination, plus a cash payment for all bonuses and
sales commissions earned but unpaid (as reasonably determined by the Company)
and unused vacation time which you may have accrued as of the Date of
Termination.  In addition, the Company
shall pay you in a cash lump sum, within fifteen (15) days following the Date
of Termination, an amount (the “Severance Payment”)
equal to six (6) months of your annual base salary on the Termination Date
(without giving effect to any salary reductions which constitute Good
Reason).  The Severance Payment shall be
in lieu of any other severance payments which you are entitled to receive under
any other severance pay plan or arrangement sponsored by the Company or any of
its subsidiaries (including, without limitation, any agreement).

 

(ii)           Benefit Continuation. 
You and your eligible dependents may elect to continue group health,
dental and vision coverage under the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”).  Provided that you and/or your eligible
dependents are eligible for and elect continuation coverage pursuant to COBRA,
the Company will reimburse you and your eligible dependents for COBRA premiums
until the earlier of (i) six (6) months from the termination date; or (ii) the
date you or your dependents, as applicable, are no longer eligible to receive
continuation coverage pursuant to COBRA. 
You and your dependents shall be responsible for payment of your COBRA
premiums for the remaining COBRA period.

 

(b)           Equity.  If your employment is terminated during the
Covered Period by the Company without Cause or by you for Good Reason, your
unvested Company equity-based incentive awards including, without limitation,
restricted stock, restricted units and stock options, shall vest in their
entirety.

 

(c)           No
Mitigation.  You shall not be
required to mitigate the amount of any payment or benefit provided for in this
Section 2 by seeking other employment or otherwise.

 

(d)           Withholding.  All
payments and benefits will be subject to applicable withholding.

 

 

3.             Golden
Parachute Excise Taxes. 
Notwithstanding anything herein to the contrary, if any payment or
benefit hereunder or otherwise payable to you constitutes a “parachute payment”
(as defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as
amended (the “Code”)), and the net
after-tax amount of any such parachute payment is less than the net after-tax
amount if the aggregate payments and benefits to be made to you were three
times your “base amount” (as defined in Section 280G(b)(3) of the Code), less
$1.00, then the aggregate of the amounts constituting the parachute payments
shall be reduced to an amount equal to three times your base amount, less
$1.00.  The determinations to be made
with respect to this Section 3(b) (other than any determination as to
which parachute payments shall be reduced, which shall be made by you in your
sole discretion) shall be made by the Company’s independent accountants, which
shall be paid by the Company for the services to be provided hereunder.  For purposes of making the calculations
required by this Section, the accountants may make reasonable, good faith
interpretations concerning the application of Sections 280G and 4999 of the
Code.  You and the Company shall furnish
to the accountants such information and documents as the accountants may
reasonably request in order to make a determination under this Section.

 

4.             Successors;
Binding Agreement.

 

(a)           Assumption
by Successor.  The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company to expressly assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  Failure of the Company to obtain such
assumption and agreement prior to the effectiveness of any such succession
shall be a breach of this Agreement and shall entitle you to compensation from
the Company in the same amount and on the same terms as you would be entitled
hereunder if you had terminated your employment for Good Reason following a
Change in Control, except that for purposes of implementing the foregoing, the
date on which any such succession becomes effective shall be deemed the Date of
Termination.  As used in this Agreement, “the
Company” shall mean the Company as hereinbefore defined and any successor to
its business or assets which assumes and agrees to perform this Agreement by
operation of law, by agreement or otherwise.

 

(b)           Enforceability
by Beneficiaries.  This Agreement
shall inure to the benefit of and be enforceable by your personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.  If you should die
while any amount would still be payable to you hereunder if you had continued
to live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to your devisee, legatee or other
designee or, if there is no such designee, to your estate.

 

 

5.             Arbitration.

 

(a)           Procedure.  Any dispute or controversy arising out of,
relating to, or in connection with this Agreement, or the interpretation,
validity, construction, performance, breach, or termination thereof, shall be
settled by binding arbitration to be held in San Mateo County, California, in accordance with the National
Rules for the Resolution of Employment Disputes then in effect of the American
Arbitration Association (the “Rules”).  The arbitrator may grant injunctions or other
relief in such dispute or controversy. 
The decision of the arbitrator shall be final, conclusive and binding on
the parties to the arbitration.  Judgment
may be entered on the arbitrator’s decision in any court having
jurisdiction.  The arbitrator(s) shall
apply California law to the merits of any dispute or claim, without reference
to conflicts of law rules.  The
arbitration proceedings shall be governed by federal arbitration law and by the
Rules, without reference to state arbitration law.  You hereby consent to the personal
jurisdiction of the state and federal courts located in California for any
action or proceeding arising from or relating to this Agreement or relating to
any arbitration in which the parties are participants.

 

(b)           At-Will Employment.  You understand that nothing in this Section
modifies your at-will employment status. 
Either party can terminate the employment relationship at any time, with
or without Cause.

 

(c)           Acknowledgment.  You have read and understand this Section,
which discusses arbitration.  You
understand that submitting any claims arising out of, relating to, or in
connection with this Agreement, or the interpretation, validity, construction,
performance, breach or termination thereof to binding arbitration, constitutes
a waiver of your right to a jury trial and relates to the resolution of all
disputes relating to all aspects of the employer/employee relationship,
including, but not limited to, the following claims:

 

(i)            Any and all claims for wrongful discharge of employment, breach of
contract, both express and implied, breach of the covenant of good faith and
fair dealing, both express and implied, negligent or intentional infliction of
emotional distress, negligent or intentional misrepresentation, negligent or
intentional interference with contract or prospective economic advantage and
defamation.

 

(ii)           Any and all claims for violation of any federal, state or municipal
statute, including, but not limited to, Title VII of the Civil Rights Act of
1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of
1967, the Americans with Disabilities Act of 1990, the Fair Labor Standards
Act, the California Fair Employment and Housing Act, and Labor Code Section
201, et seq; and

 

(iii)          Any and all claims arising out of any other laws and regulations relating
to employment or employment discrimination.

 

 

6.             Miscellaneous.

 

(a)           Amendments;
Waivers.  No provision of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing.  No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.

 

(b)           Entire
Agreement.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party that are not expressly set
forth in this Agreement and this Agreement shall supersede all prior
agreements, negotiations, correspondence, undertakings and communications of
the parties, oral or written, with respect to the subject matter hereof.

 

(c)           Governing
Law.  The validity, interpretation,
construction and performance of this Agreement shall be governed by the laws of
the State of California.

 

(d)           Validity.  The invalidity or unenforceability of any
provision 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.

 

(e)           Notice.  For the purpose of this Agreement, notices
and all other communications provided for in the Agreement shall be in writing
and shall be deemed to have been duly given when delivered or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed to
Digital Impact, Inc., 177 Bovet Road, Suite 200, San Mateo, CA 94402; Attn.:
General Counsel, or to you at your address as set forth in the records of the
Company, or to such other address as either party may furnish to the other in
writing in accordance herewith, except that notice of change of address shall
be effective only upon receipt.

 

(f)            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 instrument.

 

(g)           No
Contract of Employment.  Nothing in
this Agreement shall be construed as giving you any right to be retained in the
employ of the Company or any subsidiary.

 

(h)           Headings.  The headings contained in this Agreement are
intended solely for convenience and shall not affect the rights of the parties
to this Agreement.

 

 

If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter which will then constitute our agreement on this subject.

 

	
  Sincerely,

  
	
   

  
	
  DIGITAL IMPACT, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
   

  
	
  AGREED:

  
	
   

  
	
   

  	
   

  
	
  Signature

  
	
   

  
	
   

  	
   

  
	
  Print Name

  
	
   

  
	
   

  	
   

  
	
  Date

  
				

 

 

Schedule A

 
Definitions
 
“Cause” shall mean the willful engaging by you in criminal or fraudulent acts or gross misconduct that is demonstrably and materially injurious to the Company, monetarily or otherwise.  No act or failure to act on your part shall be deemed “willful” unless done or omitted to be done by you not in good faith and without reasonable belief that your action or omission was in the best interest of the Company.  Notwithstanding the foregoing, you shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than three quarters (3⁄4) of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice to you and an opportunity for you, together with your counsel, to be heard before the Board), finding that in the good faith opinion of the Board you were guilty of conduct set forth above in the first sentence of this subsection and specifying the particulars thereof in detail.
 
“Change in Control” shall mean the happening of any of the following:
 

(i)            The
acquisition, other than from the Company, by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”))
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 50% or more of the then outstanding shares of common stock of
the Company; provided, however,
that any acquisition by (A) the Company or any of its subsidiaries or (B) any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any of its subsidiaries shall not constitute a Change in Control;

 

(ii)           Individuals
who, as of the date of this Agreement, constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board, provided that any
individual becoming a director subsequent to the date hereof whose election or
nomination for election by the Company’s shareholders was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption
of office is in connection with an actual or threatened election contest
relating to the election of the directors of the Company (as such terms are
used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act);

 

(iii)          Completion
of a reorganization, merger or consolidation (a “Business
Combination”), in each case, with respect to which all or
substantially all of the individuals and entities who were the beneficial
owners of the Company’s common stock immediately prior to such Business
Combination do not own, directly or indirectly, more than 50% of the combined
voting power of the then outstanding voting

 

 

securities entitled to vote generally in the
election of directors of the corporation resulting from such Business
Combination; or

 

(iv)         A
complete liquidation or dissolution of the Company or a sale or other
disposition of all or substantially all of the assets of the Company other than
to a corporation with respect to which, following such sale or disposition,
owns more than 50% of the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors; or

 

“Good Reason” shall mean, without your express written consent, any of the following:
 

(i)            A
material and detrimental alteration in your responsibilities from those in
effect immediately prior to the Change in Control; or

 

(ii)           A
reduction by the Company in your annual base salary as in effect on the date
hereof or as the same may be increased from time to time; a reduction in your
annual bonus target (expressed as a percentage of base salary) below the target
in effect for you immediately prior to the Change in Control; or any adverse
change in your long-term incentive opportunities in comparison to those in
effect prior to the Change in Control; or

 

(iii)          The
relocation of the office of the Company where you are employed at the time of
the Change in Control to a location which is more than 35 miles away from such
office or the Company’s requiring you to be based more than 35 miles away from
such office (except for required travel on the Company’s business to an extent
substantially consistent with your customary business travel obligations in the
ordinary course of business prior to the Change in Control); or

 

(iv)          The
failure by the Company to continue to provide you with benefits at least as
favorable, in the aggregate, as those enjoyed by you under any of the Company’s
retirement, life insurance, medical, health and accident, disability or savings
plans in which you were participating at the time of the Change in Control; or

 

(v)           The
failure of the Company to obtain a satisfactory agreement from any successor to
assume and agree to perform this Agreement, as contemplated in Section 4 hereof
or, if the business of the Company for which your services are principally
performed is sold at any time after a Change in Control, the purchaser of such
business shall fail to agree to provide you with the same or a comparable
duties, compensation and benefits as provided to you by the Company immediately
prior to the Change in Control; or

 

(vi)          Any
purported termination of your employment that is not effected pursuant to a
Notice of Termination satisfying the requirements of Section 1 (and, if
applicable, the requirements set out in the definition of “Cause”); for
purposes of this Agreement, no such purported termination shall be effective.EXHIBIT 10.1

 

ACUSPHERE, INC.

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (the “Agreement”)
is made as of August   , 2003, by and between Acusphere, Inc., a
Delaware corporation (the “Company”), and                       
(the “Indemnitee”).

 

WHEREAS,
in order to continue to attract and retain sophisticated and experienced
individuals to serve as officers of the Company, the Company desires to
provide, independent from the indemnification to which the Indemnitee is
otherwise entitled by law or under the Company’s Certificate of Incorporation,
as amended and in effect from time to time (the “Charter”), and/or
By-Laws, as amended and in effect from time to time (the “By-Laws”),
indemnification to the Indemnitee and advances of expenses, all as set forth in
this Agreement to the maximum extent permitted by law;

 

NOW,
THEREFORE, to induce the Indemnitee to
continue to serve the Company and in consideration of these premises and the
mutual agreements set forth in this Agreement, as well as other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and the 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
of any subsidiary of the Company, 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 or delayed) 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 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, and, with respect
to any criminal action or proceeding, had reasonable cause to believe that
Indemnitee’s conduct was unlawful.

 

(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
suit by or in the right of the Company or of 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 of any subsidiary of
the Company, 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) 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, except
that no indemnification shall be made in respect of any claim, issue or matter
as to which Indemnitee shall have been finally adjudged to be liable to the
Company unless and only to the extent that the Delaware Court of Chancery or
any other court in which such action or suit is or was brought shall determine
upon application that, despite the adjudication of liability but in view of all
the circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for such expenses which the Court of Chancery or other 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 in 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.                                       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
referenced in Section 1(a) or Section 1(b) hereof (but not amounts
actually paid in settlement of any such action or proceeding).  Indemnitee hereby undertakes to repay such
amounts advanced 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.  The advances to be made
hereunder shall be paid by the Company to Indemnitee within twenty (20) days
following receipt by the Company of a written request of the Indemnitee, but
only if the Company has first received an undertaking (the “Undertaking”),
substantially in the form attached hereto as Exhibit 1, by or on
behalf of the Indemnitee to repay the amount of any such advance if and to the
extent that it shall ultimately be determined that the Indemnitee is not
entitled to indemnification for such amount. 
The Undertaking shall be unsecured and shall bear no interest and shall
be accepted without reference to the financial ability of the Indemnitee to
make repayment.

 

(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 is or will be sought
under this Agreement.  Notice to the
Company shall be directed to the Chief Executive Officer of the Company at the
address shown on the signature page of this Agreement (or such other address as
the Company shall designate in writing to Indemnitee).  Notice shall be deemed received three (3)
business days after the date postmarked if sent by domestic certified or
registered mail, properly addressed; otherwise notice shall be deemed received
when such notice shall actually be received by the Company.  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 2 shall be made promptly, and in any
event within forty-five (45) days following receipt by the Company of a written
request of the Indemnitee (or within twenty (20) days in the case of advances
made pursuant to Section 2(a)), unless with respect to such requests the
Company reasonably determines within such applicable period that the Indemnitee
did not meet the applicable standard of conduct or that indemnification is not
required under Section 7 below, or unless otherwise ordered by a court.  Such determination shall be made in each
instance by: (a) the board of directors by a majority vote of a quorum
consisting of directors of the Company who were not parties to such action,
suit or proceeding in question (“disinterested directors”); (b) if such
quorum is not obtainable, or even if obtainable if a quorum of

 

2

 

disinterested directors
so directs, by independent legal counsel (who may be regular counsel to the
Company) in a written opinion; or (c) by the stockholders of the
Company.  If a claim under this
Agreement, under any statute, or under any provision of the Company’s Charter
or By-Laws providing for indemnification, is not paid in full by the Company
within the applicable period, Indemnitee may bring an action against the
Company to recover the unpaid amount of the claim and Indemnitee shall also be
entitled to be paid for the expenses (including attorneys’ fees) of bringing
such action, subject to Section 12 of this Agreement, or unless it shall
ultimately be determined that Indemnitee is not entitled to be indemnified by
the Company as authorized hereby or thereby. It shall be a defense to any such
action that Indemnitee has not met the standards of conduct which make it
permissible under applicable law or this Agreement 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 2(a) unless and until such defense may be
finally adjudged.  It is the parties’
intention that if the Indemnitee brings any such action, the question of
Indemnitee’s right to indemnification shall ultimately 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 2(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)                                  Assumption of
Defense and Selection of Counsel.  In
the event the Company shall be obligated under Section 2(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, which approval shall not be unreasonably withheld, upon
the delivery to Indemnitee of written notice of its election so to do.  Notwithstanding the foregoing, the Company
shall not be permitted to settle any action or claim on behalf of Indemnitee in
any manner which would impose any unindemnified liability or penalty on the
Indemnitee or require any acknowledgment of wrongdoing on the part of
Indemnitee without Indemnitee’s written consent, which consent shall not be
unreasonably withheld.  After delivery of
such notice, approval of such counsel by Indemnitee and the retention of such
counsel by the Company, and notwithstanding anything to the contrary contained
herein, 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 his or her counsel in any such proceeding at Indemnitee’s expense; and
(ii) if (A) the employment of separate 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.  The Company shall not be
entitled, without the consent of the Indemnitee, to assume the defense of any
claim brought by or in the right of the Company or as to which counsel for the
Indemnitee shall have reasonably made the conclusion provided for in
clause (ii)(B) above.

 

3

 

3.                                       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
the General Corporation Law of the State of Delaware (the “DGCL”),
notwithstanding that such indemnification is not specifically authorized by the
other provisions of this Agreement or the Company’s Charter or By-Laws.  In the event of any change, after the date of
this Agreement, under the DGCL which expands the right of a Delaware
corporation to indemnify a member of its board of directors or an officer, such
changes shall be, ipso facto, within the purview of
Indemnitee’s rights and the Company’s obligations under this Agreement.  In the event of any change under the DGCL
which narrows the right of a Delaware corporation to indemnify a member of its
Board of Directors or an officer, such changes, to the extent not otherwise
required by such Section or any successor section 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
Charter, its By-Laws, any agreement, any vote of stockholders or disinterested
directors, the DGCL, 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 s/he may have ceased to
serve in any such capacity at the time of any action, suit or other covered
proceeding.

 

4.                                       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 by
him in the investigation, defense, appeal or settlement of any civil or
criminal action 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.

 

5.                                       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 5. 
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 fullest 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.

 

6.                                       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

 

4

 

limited by exclusions so
as to provide an insufficient benefit, or if Indemnitee is covered by similar
insurance maintained by a subsidiary or parent of the Company.

 

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

 

(a)                                  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 Section 145 of the DGCL, but such
indemnification or advancement of expenses may be provided by the Company in
specific cases if the Board of Directors has approved the initiation or
bringing of the suit; or

 

(b)                                 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; or

 

(c)                                  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), but such exception shall only apply
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; or

 

(d)                                 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; or

 

(e)                                  To
indemnify Indemnitee for any acts, omissions or transactions from which a
director may not be relieved of liability under the Company’s Charter or
By-Laws, or from which a court of competent jurisdiction determines a director
may not be relieved of liability under the DGCL.

 

8.                                       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 “other enterprises” shall
include employee benefit plans; 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

 

5

 

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.

 

9.                                       Effectiveness of Agreement.  This Agreement shall be effective as of the
date set forth on the first page and may apply to acts or omissions of Indemnitee
which occurred prior to such date if Indemnitee was an officer, director,
employee or other agent of the Company, 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, as the time such act or
omission occurred.

 

10.                                 No Rights of Continued Service.  This Agreement shall not impose any
obligation of the Company to continue Indemnitee’s service to the Company
beyond any period otherwise required by law or by other agreements or
commitments of the parties, if any.

 

11.                                 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 Delaware, without giving effect to principles of conflict of
law.

 

(b)                                 Consent
to Jurisdiction.                 The
Company and the Indemnitee each hereby irrevocably consent to the exclusive
jurisdiction of the Court of Chancery of Delaware for any purpose in connection
with any actions or proceedings which arise out of or relate to this Agreement.

 

(c)                                  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.

 

(d)                                 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.

 

(e)                                  Notices.  Unless otherwise provided in this Agreement,
any notice, demand or request required or permitted to be given under this
Agreement shall be in writing and shall be deemed sufficient when directed to
the Chief Executive Officer of the Company at the address shown on the
signature page of this Agreement (or such other address as the Company shall
designate in writing) and when delivered personally or three business days
after being postmarked, 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.

 

(f)                                    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.

 

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

 

6

 

(h)                                 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.

 

(i)                                     Term.                  All agreements
and obligations of the Company contained herein shall continue during the
period that the Indemnitee is a director, officer or agent of the Company 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, criminal, administrative or investigative, by reason of the fact
that Indemnitee was serving in the capacity referred to herein.

 

12.                                 Attorneys’ Fees.  In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms
hereof, and in the event Indemnitee is ultimately successful in such action, Indemnitee shall be entitled to be paid all court costs and
expenses, including reasonable attorneys’ fees, actually and reasonably
incurred by Indemnitee with respect to such action.  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 reasonable attorneys’ fees, actually and
reasonably incurred by Indemnitee in defense of such action (including with
respect to Indemnitee’s counterclaims and cross-claims made in such action),
unless the Company is ultimately successful in such action.

 

[Remainder of this page left intentionally blank]

 

7

 

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

 

 

	
  ACUSPHERE,
  INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Indemnitee

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address: 

  	
  Acusphere, Inc.

  	
  Address:

  	
   

  	
   

  
	
   

  	
  500 Arsenal
  Street

  	
   

  	
   

  	
   

  
	
   

  	
  Watertown, MA
  02472

  	
   

  	
   

  	
   

  
	
   

  	
  (617) 648-8800
  (phone)

  	
   

  	
   

  
	
   

  	
  (617) 926-4750
  (fax)

  	
   

  	
   

  
										

 

8

 

Exhibit 1

UNDERTAKING

 

1.                                       This
Undertaking is submitted pursuant to the Indemnification Agreement dated as of                         
between Acusphere, Inc., a Delaware corporation (the “Company”), and the
undersigned (the “Agreement”). 
Capitalized terms used but not defined herein shall have the respective
meanings set forth in the Agreement.

 

2.                                       I
am requesting certain Expense Advances in connection with a Claim.

 

3.                                       I
hereby undertake to repay such Expense Advances if it shall ultimately be
determined that I am not entitled to be indemnified by the Company therefor
under the Agreement or otherwise.

 

4.                                       The
Expense Advances are, in general, all related to:

 

 

	
   

  	
  Signed:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Dated:

  	
   

  	
   

  

 

 

SCHEDULE OF INDEMNITEES

 

Sherri C. Oberg

Howard Bernstein, M.D.,
Ph.D.

Michael R. Slater

John F. Thero

Thomas M. Hanlon III

Richard Walovitch, Ph.D

Nancy Wetherbee

Kristin Rydzewski

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