Document:

First Amended and Restated Aircraft Joint Ownership and Management Agmt

 Exhibit 10.18 
 FIRST AMENDED AND RESTATED 
 AIRCRAFT JOINT OWNERSHIP 
 AND MANAGEMENT AGREEMENT 
 This First Amended and Restated Aircraft Joint
Ownership and Management Agreement (this “Agreement”) is made and entered into this 21st day of June, 2007, by and between Charlie Brown Air Corp., a corporation incorporated under the laws of the State of New York with offices at 1965
Waddle Road, State College, Pennsylvania 16803 (hereinafter referred to as “CBAC”), and Charlie Brown Air II Limited Partnership, a limited partnership organized under the laws of the State of Delaware, having its principal offices at 1965
Waddle Road, State College, Pennsylvania 16803 (hereinafter referred to as “Charlie Brown II”). CBAC and Charlie Brown II are sometimes collectively referred to in this Agreement as the “Owners.” 
 BACKGROUND STATEMENT 
 On
December 18, 2006, the Owners entered into an Aircraft Joint Ownership and Management Agreement (the “Original Management Agreement”). On June 21, 2007, the limited partnership agreement of Charlie Brown II was amended and
restated to reflect the (i) admission of Shaner Hotel Group Limited Partnership, a Delaware limited partnership with an address at 1965 Waddle Road, State College, Pennsylvania16803 (“SHG”), and Rex Energy Operating Corp., a Delaware
corporation with an address at 1975 Waddle Road, State College, Pennsylvania 16803 (“Rex”), as limited partners of Charlie Brown II and (ii) the withdrawal of Lance T. Shaner as a limited partner of Charlie Brown II. As a result of
the amendment and restatement of the limited partnership agreement of Charlie Brown II, the Owners desire to supersede and replace the Original Management Agreement in its entirety by amending and restating the Original Agreement as follows:

 W I T N E S S E T H: 
 WHEREAS, CBAC and Charlie Brown II intend to become the JOINT OWNERS of the following civil aircraft, (hereinafter referred to as “the
Aircraft”): 
  

			
	FAA Registration Number:	  	to be determined
	Serial Number:	  	EA500.000227
	Make:	  	Eclipse Aviation
	Model:	  	500
	Year:	  	2007

 and, 
 WHEREAS, Charlie Brown II, as joint owner, intends to use the Aircraft as an industrial aid for purposes of its business and the business of its owners and entities in which they have an interest, which does not include the transportation
of persons or cargo for compensation or hire; and 
 WHEREAS, CBAC has a lease for a hangar (“the Hangar”) at the University Park
Airport (“UNV”), State College, Pennsylvania (“Lease”) where both parties intend to base the Aircraft, and has handling and maintenance equipment and maintenance services available at the Hangar to support and maintain the
Aircraft; and 

 WHEREAS, CBAC owns one or more other aircraft and has available to its pilots capable of becoming
qualified to operate the Aircraft on behalf of CBAC and Charlie Brown II; and, 
 WHEREAS, CBAC is willing to act as the “Managing
Owner” of the Aircraft on behalf of itself and Charlie Brown II and, as such, is willing to: (a) oversee all routine and scheduled maintenance and inspections on the Aircraft and all unscheduled maintenance, (b) provide pilots for use
of the Aircraft by Charlie Brown II and itself, (c) handle all scheduling of the Aircraft, and (d) handle all other routine and customary matters associated with corporate aircraft management; and 
 WHEREAS, the parties wish to define and regulate their respective benefits and liabilities as joint owners of the Aircraft and to define CBAC’s
responsibilities as Managing Owner, 
 NOW, THEREFORE, in consideration of the mutual promises herein contained and other good and valuable
consideration, the parties agree as follows: 
 AGREEMENT: 
 I. Use and Availability of the Aircraft. The parties agree that the Aircraft shall be available to Charlie Brown II and CBAC for use as an
industrial aid; however, the parties agree that Charlie Brown II shall at all times have priority over CBAC in having the Aircraft available for its use. CBAC may use the Aircraft only if its use will not interfere with the Aircrafts’s use by
Charlie Brown II. Notwithstanding Charlie Brown II’s priority, the parties agree to cooperate in their scheduling of the use of the Aircraft and in the scheduling of maintenance for the Aircraft so as to maximize the Aircraft’s
availability to both parties. When the Aircraft is used by Charlie Brown II, the bill for Direct Costs and Miscellaneous Expenses shall indicate the name of the limited partner of Charlie Brown II (or the limited partner’s affiliate)
(hereinafter referred to as a “Limited Partner”) that used the Aircraft. 
 The parties agree that each party shall be responsible
for dispatching and operating the Aircraft at all times that it is being used for that party’s purposes, and that each party shall thus retain “possession, command and control” of the Aircraft as that phrase is defined by the Internal
Revenue Service in Revenue Ruling 58-215. 
 II. Managing Owner; Duties. CBAC shall act as Managing Owner of the Aircraft on behalf of
both parties. As Managing Owner, CBAC shall be responsible for providing the following services: 
 A. Hangar and Related Services.
CBAC shall provide space for the Aircraft in the Hangar (“the Hangar Space’) (as long as the Lease continues) and shall provide the service of moving the Aircraft from the Hangar Space onto the ramp area and from the ramp area into the
Hangar Space. The term “Hangar Space” is not intended to define any fixed area within the Hangar and the Aircraft may be moved and relocated within the Hangar at any time as CBAC shall determine. 

 B. Fuel. The flight crews shall determine the need for and the amount of fuel to be purchased for
the Aircraft at UNV and at all other airports. The fuel purchased by the flight crews for Charlie Brown II’s operation of the Aircraft shall be covered in the Direct Cost billing to Charlie Brown Air II. 
 C. Flight Crews. Flight crews will be arranged for by CBAC. 
 D. Flight Crew Training. Flight crew training will be arranged for by CBAC. 
 E. Maintenance.

 1. CBAC will perform itself or cause to be performed by outside vendors all scheduled and unscheduled maintenance, including inspections,
on the Aircraft. Routine maintenance shall be defined as all scheduled inspections to be performed under the Eclipse Aviation Maintenance Program (the “EAMP”), and daily maintenance and repairs and any other maintenance that should occur.

 2. In the event CBAC is not equipped, or elects not to perform itself any routine maintenance or inspections, and in the event of any
major inspections, avionics repairs or upgrades and engine overhauls, CBAC shall use its best efforts to ensure that the work is done in the safest, most expeditious and economical manner. 
 3. Charlie Brown II shall make the Aircraft available to CBAC for each inspection at the time intervals specified in the EAMP and for all other
necessary inspections and repairs. In the event Charlie Brown II fails to do so, CBAC shall not be liable for any incidents, occurrences or damages that would pertain to maintenance performed prior to any such circumstance, any other provision of
this Agreement to the contrary notwithstanding. 
 4. As part of its duties to perform or caused to be performed all maintenance on the
Aircraft, CBAC shall be responsible for maintaining the Aircraft in compliance with all FAA airworthiness directives affecting the Aircraft and all manufacturer’s service bulletins affecting the Aircraft whose compliance is mandated by the FAA
and/or by EAMP, and/or the insurance carriers and with all non-mandatory manufacturer’s service bulletins and instructions which CBAC, in its sole discretion, deems necessary for the safe operation of the Aircraft. 
 5. Except in the case of an emergency requiring such items to protect the passengers, crew or the Aircraft itself, CBAC shall notify Charlie Brown II
before incurring any expenditures reasonably anticipated to exceed Ten Thousand and No/100 Dollars ($10,000.00) for any unscheduled or unusual maintenance items pertaining to the Aircraft. Should Charlie Brown II elect not to honor any expenditure
deemed necessary by CBAC, Charlie Brown II agrees to notify CBAC, in writing, of its intent not to honor. Upon receipt of said notification, CBAC may, at its option, cancel this Agreement immediately. 
 F. Cleaning. CBAC shall clean the Aircraft on a regular basis and generally maintain the Aircraft in first class condition, minus any normal wear
and tear. 

 G. Flight Operations and Scheduling. 
 1. The pilots, traffic coordinator (scheduler) and maintenance personnel shall have the sole discretion, which will be used in a reasonable manner, to
cancel, delay or terminate a flight without liability for any loss or delay with respect to said cancellation, due to indicated or actual malfunctions of the Aircraft, weather conditions, acts of God, or other causes beyond their control.

 2. CBAC shall be responsible for providing all charts, maps, navigational tools, maintenance manuals and aids it deems necessary for the
safe operation of the Aircraft. 
 3. CBAC will perform all scheduling functions on behalf of the Owners and Limited Partners of the Owners.
All trip requests will be made to CBAC by Charlie Brown II or any Limited Partners of Charlie Brown II at least 24 business hours in advance in order to avoid the Aircraft being unavailable due to maintenance or pilot duty time conflicts.
CBAC’s performance of the scheduling functions shall not be construed as altering the parties’ agreement that each party, in using and operating the Aircraft, shall be exercising operational control over the Aircraft. 
 4. If there is a conflict in the scheduling of the Aircraft between the Owners, then the Owners shall attempt to resolve the conflict, but if they
cannot, then the conflict shall be resolved by granting preference to Charlie Brown II. If there is a conflict in the scheduling of the Aircraft between any Owner and any Limited Partner of Charlie Brown II, then the parties shall attempt to resolve
the conflict, but if they cannot, then the conflict shall be resolved by granting preference to the Limited Partner of Charlie Brown II. 
 5. If there is a conflict in the scheduling of the Aircraft between Limited Partners of Charlie Brown II, then the Limited Partners shall attempt to resolve the conflict, but if they cannot, then the conflict shall be resolved in the
following manner: 
 a. If there is a conflict in the scheduling of the Aircraft between Bruce Heim, on the one hand, and either SHG or Rex,
on the other hand, then the conflict will be resolved, in the first instance, in favor of Bruce Heim, and in the second instance, in favor of SHG or Rex (as the case may be), and thereafter, any such conflict shall be resolved by alternating in
favor of Bruce Heim, on the one hand, and either SHG or Rex (as the case may be), on the other hand; or 
 b. If there is a conflict in the
scheduling of the Aircraft between SHG and Rex, then the conflict will be resolved, in the first instance, in favor of SHG, and in the second instance, in favor of Rex, and thereafter, any such conflict shall be resolved by alternating in favor of
SHG and Rex. 
 H. Insurance. 
 CBAC, throughout the term of this Agreement, shall arrange for and maintain in full force and effect insurance to be carried and maintained on the Aircraft in the following types and amounts: 

 1. All-risk aircraft hull insurance, including war and allied perils risks, with respect to the Aircraft
against loss, theft, damage to the Aircraft (including any engine or parts while removed from the Aircraft), with an agreed value amount of Two Million Dollars ($2,000,000.00) and no deductible while in motion or not in motion. Such hull coverage
shall remain unchanged by CBAC unless advised in writing by Charlie Brown II of a requested different hull value and subject to acceptance by applicable insurers. 
 2. Liability Insurance for bodily injury, death and property damage in an amount of not less than Two Million Dollars ($2,000,000.00), combined single limit coverage, each occurrence. 
 3. All insurance polices shall name CBAC as the named insured and shall name Charlie Brown II and CBAC’s and Charlie Brown II’s respective
parents, subsidiaries and affiliated companies, and their officers, directors, agents, employees, contractors and partners as additional insureds. (Each party hereto shall be responsible for providing the names of the parties to be insured.)

 4. Charlie Brown II shall be named as “Loss Payee” for the hull coverage. Also, all insurance policies: (a) shall provide
that if any premium is not paid when due, or is cancelled, terminated or materially changed for any reason whatsoever, the insurers will promptly notify each of the parties in writing and such cancellation, termination or change shall not be
effective as of the parties for 60 days, except that the notice period shall be ten (10) days for non-payment of premium and seven (7) days as respects war and allied perils coverage; and (ii) shall contain a waiver by the underwriter
thereof of any right of subrogation against Charlie Brown II. Each liability policy shall be primary without right of contribution from any other insurance which is carried by either Owner or Partner of Charlie Brown II and shall expressly provide
that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there were a separate policy covering each insured. 
 5. In all cases, the parties agree that the proceeds of insurance to which each party is entitled shall be deemed to be accepted as that party’s sole recourse against the other for any loss and/or damage to the
party and/or the Aircraft including, without limitation, consequential losses, any damages for loss of use, loss of profits, diminution in market value and/or any damages claimed by the party, additional interest holders, if any, and/or any other
individual and/or entity upon the theories of negligence and/or strict liability in tort. Each Owner shall also bear the cost of paying any deductible amount under any policy of insurance in the event of a claim or loss occurring during its use or
operation of the Aircraft. Payment of any hull claim will be made to the registered aircraft owner and applicable lien holder, if any, as of the date of loss, and as each owner’s interest would appear. If Charlie Brown II desires additional
insurance coverage protecting Charlie Brown II for whatever peril, Charlie Brown II is required to provide a written request of such coverage desired. CBAC will advise the availability and possible additional cost, if any, of such additional
coverage pending acceptance and approval by Charlie Brown II of such additional cost. 
 6. CBAC shall submit this Agreement for approval to
the insurance carrier for each policy of insurance on the Aircraft. CBAC shall arrange for a Certificate of Insurance evidencing appropriate coverage as to the Aircraft and the satisfaction of the requirements set forth above to be given by its
insurance carriers for each of the parties. 

 7. All aircraft coverages provided shall allow the Aircraft to be operated worldwide. 
 III. Compensation. 
 CBAC shall be
entitled to receive from Charlie Brown II the following compensation and reimbursements for CBAC’s services as Managing Owner of the Aircraft: 
 A. Fixed Costs. Charlie Brown II agrees to pay CBAC the annual total set forth on the Management Program Cost Schedule attached hereto and made a part hereof. The annual total amount is to cover its priority, unrestricted use of the
Aircraft for the term of this Agreement period and shall be paid in monthly installments of 1/12 of the annual total in advance. 
 B.
Direct Costs. Charlie Brown II agrees to reimburse CBAC for all direct operating costs incurred by CBAC on behalf of Charlie Brown II during the term of this Agreement as set forth on the Management Program Cost Schedule attached hereto and
made a part hereof. 
 C. Miscellaneous Expenses. Charlie Brown II agrees to reimburse CBAC as set forth on the Management Program
Cost Schedule attached hereto and made a part hereof for all reasonable miscellaneous expenses incurred by CBAC on behalf of Charlie Brown II including, without limitation, all catering and telephone use, deicing and hangaring as required while away
from the Facility, landing and parking of the Aircraft, International flight planning and handling fees, and for living expenses for the crew incurred by CBAC while on a trip at the specific direction of Charlie Brown II, and/or its authorized
representative. 
 D. Invoices and Notices. 
 1. Invoices and any notices required under this Agreement shall be sent by CBAC to: 
 Charlie Brown Air II
Limited Partnership 
 and will become due in full on the 15th day after receipt by Charlie Brown II. Invoicing will be in three separate parts as follows: 
 a. Fixed costs; 
 b. Direct costs indicating
the Limited Partner using the Aircraft; 
 c. Miscellaneous expenses indicating the Limited Partner using the Aircraft. 
 2. Remittances and any notices required under this Agreement shall be forwarded by Charlie Brown II to: 
 Charlie Brown Air Corp. 

 IV. Miscellaneous. 
 A. This Agreement shall not be assigned or amended unless agreed to in writing by both parties and shall be governed by the laws of the Commonwealth of Pennsylvania. 
 B. The provisions of this Agreement shall be in effect for a period of twelve (12) months commencing on the date of this Agreement and shall
supersede all prior agreements between CBAC and Charlie Brown II. This Agreement shall automatically renew at the expiration of each twelve (12) month term unless terminated by either party as provided in Article IV, subsection C below.

 C. This Agreement may be cancelled by either party by giving one hundred twenty (120) days written notice prior to the expiration of
the then current term. 
 [Remainder of Page Intentionally Left Blank. Signatures Follow.] 

 IN WITNESS WHEREOF, the parties have executed this First Amended and Restated Aircraft Joint Ownership
Agreement as of the date first above written. 
  

			
	CHARLIE BROWN AIR CORP.
		
	By:	 	 /s/ Lance T. Shaner

	Title:	 	President
	Name:	 	Lance T. Shaner
	
	CHARLIE BROWN AIR II LIMITED
	PARTNERSHIP
		
	By:	 	L & B Air LLC, its general partner
		
		 	 /s/ Bruce Heim

		 	Bruce Heim, Manager
		
		 	 /s/ Lance T. Shaner

		 	Lance T. Shaner, Manager
		
		 	 /s/ Benjamin W. Hulburt

		 	Benjamin W. Hulburt, Manager

 2006 Aircraft Joint Ownership and 
 Management Agreement 
 Management Program Cost Schedule 
 Eclipse 500 
  

	I.	Fixed Costs incurred by CBAC on behalf of Charlie Brown II. 

 Crew – Includes proportionate share of salaries, benefits, initial and recurrent training 
 Hangar – includes
proportionate share of hangar leasing costs attributable to the property of Charlie Brown II, as well as proportionate share of cleaning, moving, lav and water service 
 Insurance costs 
 Any financing costs for the Aircraft 
  

	II.	Direct Costs incurred by CBAC on behalf of Charlie Brown II. 

 Labor— Charge per hour of operation of the Aircraft to be determined by CBAC consistent with current local market rates charged by similar companies. Must be uniformly charged to all Owners and Limited Partners of Charlie Brown II

 Parts – The Cost to cover such items as EAMP, manuals and JEPP subscriptions) 
  

	III.	Miscellaneous Expenses incurred by CBAC on behalf of Charlie Brown II. 

 As defined in Article III (c)Form of Indemnification Agreement

 EXHIBIT 10.17 
 INDEMNIFICATION AGREEMENT 
 INDEMNIFICATION AGREEMENT (this “Agreement”)
dated as of                     , 2007 by and between EnteroMedics Inc. (the “Company”), a Delaware corporation, and
                                    
(“Indemnitee”): 
 WHEREAS, competent persons are reluctant to serve a corporation as a director or in another
capacity unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of corporations;

 WHEREAS, the Board of Directors of the Company has determined that the ability to attract and retain such persons is in to the best
interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future; and 
 WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; and 
 WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified; 
 NOW, THEREFORE, in consideration of the premises, the mutual agreements herein set forth below and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 
 1.    Definitions. For
purposes of this Agreement the following terms shall have the meanings set forth below: 
 (a)    “Board” shall mean the Board of Directors of the Company. 
 (b)    “Corporate Status” describes the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise which such person is or was serving at the express written request of the Company. 
 (c)    “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 
 (d)    “Enterprise” shall mean the Company and any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary. 
  

 (e)    “Expenses” shall include all reasonable
attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses
of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in a Proceeding. 
 (f)    “Good Faith” shall mean Indemnitee having 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 Proceeding, having had no reasonable cause to believe Indemnitee’s conduct was unlawful. 
 (g)    “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party or (ii) any other party to the Proceeding giving
rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “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. 
 (h)    “Proceeding” includes any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any other actual, threatened or
completed proceeding whether civil, criminal, administrative or investigative, other than one initiated by Indemnitee. For purposes of the foregoing sentence, a “Proceeding” shall not be deemed to have been initiated by Indemnitee
where Indemnitee seeks pursuant to Section 8 of this Agreement to enforce Indemnitee’s rights under this Agreement. 
 2.    Term of Agreement. This Agreement shall continue until and terminate upon the later of: (a) 10 years after the date that Indemnitee has ceased to serve as a director, officer, employee, agent or
fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which Indemnitee served at the express written request of the Company or (b) the final termination of all pending
Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 8 of this Agreement relating thereto. 
 3.    Services by Indemnitee, Notice of Proceedings. 
 (a)    Services. Indemnitee agrees to serve as a director of the Company. Indemnitee may at any time and for
any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law). 

 (b)    Notice of Proceeding. Indemnitee agrees promptly to
notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter that may be subject to indemnification or advancement of Expenses covered
hereunder. 
  

 4.    Indemnification 
 (a)    In General. In connection with any Proceeding, the Company shall indemnify and advance Expenses to
Indemnitee as provided in this Agreement and to the fullest extent permitted by applicable law in effect on the date hereof and to such greater extent as applicable law may thereafter from time to time permit. 
 (b)    Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to
the rights of indemnification provided in this Section 4(b) if, by reason of Indemnitee’s Corporate Status, Indemnitee is, or is threatened to be made, a party to any Proceeding, other than a Proceeding by or in the right of the Company.
Indemnitee shall be indemnified against Expenses, judgments, penalties, fines and amounts paid in settlements actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or
matter therein, if Indemnitee acted in Good Faith. 
 (c)    Proceedings by or in the Right of the
Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 4(c) if, by reason of Indemnitee’s Corporate Status, Indemnitee is or is threatened to be made a party to any Proceeding brought by or in
the right of the Company to procure a judgment in its favor. Indemnitee shall be indemnified against Expenses, judgments, penalties and amounts paid in settlement, actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in
connection with such Proceeding if Indemnitee acted in Good Faith. Notwithstanding the foregoing, no such indemnification shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be
liable to the Company if applicable law prohibits such indemnification; provided, however, that, if applicable law so permits, indemnification shall nevertheless be made by the Company in such event if and only to the extent that the Court of
Chancery of the State of Delaware, or the court in which such Proceeding shall have been brought or is pending, shall determine. 
 (d)    Indemnification of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a
party to and is successful, on the merits or otherwise, in any Proceeding, Indemnitee shall be indemnified to the maximum extent permitted by law against all Expenses, judgments, penalties, fines and amounts paid in settlement, actually and
reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify Indemnitee to the maximum extent permitted by law, against all Expenses, judgments, penalties, fines and amounts paid in settlement, actually and reasonably incurred by Indemnitee or on
Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section 4(d) and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or
without prejudice, shall be deemed to be a successful result as to such claim, issue or matter, so long as there has been no finding (either adjudicated or pursuant to Section 6) that Indemnitee did not act in Good Faith. 

 (e)    Indemnification for Expenses of a Witness.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness in any Proceeding, Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. 
 (f)    Assumption of
Defense and Settlement. Notwithstanding any other provision of this Agreement, with respect to any such Proceeding as to which the Indemnitee gives notice to the Company of the commencement thereof: 
 (1) the Company will be entitled to participate therein at its own expense; 
 (2) the Company, jointly with any other indemnifying party similarly notified, shall be entitled to assume the defense thereof, with
counsel satisfactory to the Indemnitee. If the Company assumes the defense of the Indemnitee, it shall notify the Indemnitee, and after the Indemnitee receives such notice, the Company shall not be liable to the Indemnitee under this Agreement for
any Expenses incurred by the Indemnitee after the date such notice was received. The Indemnitee shall be entitled to employ Indemnitee’s own counsel at Indemnitee’s own expense. Nevertheless, the Company shall pay for Indemnitee’s own
counsel if (1) the Company agrees to do the same, (2) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee regarding the defense of such action, or (3) the
Company shall not in fact have employed counsel to assume the defense of the Proceeding. 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 the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee regarding the defense of such Proceeding; and 
 (3) the Company shall not be liable to the Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding unless the Company consents to such settlement. The Company shall not settle any
Proceeding in any manner that would impose any penalty or limitation on the Indemnitee without the Indemnitee’s written consent. Neither the Company nor the Indemnitee will unreasonably withhold their consent to any proposed settlement.]

 5.    Advancement of Expenses. Notwithstanding any provision to the contrary in Section 6, the Company
shall advance all reasonable Expenses which, by reason of Indemnitee’s Corporate Status, were incurred by or on behalf of Indemnitee in connection with any Proceeding, within 20 days after the receipt by the Company of a statement or statements
from Indemnitee requesting such advance or advances, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall be preceded or accompanied by
an undertaking by or on behalf of Indemnitee to repay any Expenses if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Any advance and undertakings to repay pursuant to this Section 5
shall be unsecured and interest free. 

 6.    Procedures for Determination of Entitlement to Indemnification

 (a)    Initial Request. To obtain indemnification under this Agreement, Indemnitee shall submit
to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to
indemnification. The Secretary of the Company shall promptly advise the Board in writing that Indemnitee has requested indemnification. 
 (b)    Method of Determination. A determination (if required by applicable law) with respect to Indemnitee’s entitlement to indemnification shall be made by the Board by a majority vote
of Disinterested Directors, even though less than a quorum. In the event that there are no Disinterested Directors or if such Disinterested Directors so direct, the determination shall be made by Independent Counsel in a written opinion to the
Board, a copy of which shall be delivered to Indemnitee. 
 (c)    Selection, Payment, Discharge, of
Independent Counsel. In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 6(b) of this Agreement, the Independent Counsel shall be selected, paid and discharged in the
following manner: 
 (1) The Independent Counsel shall be selected by the Board, and the Company shall give written notice to
Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected. 
 (2) Following the initial selection
described in clause (1) of this Section 6(c), Indemnitee or the Company, as the case may be, may, within seven days after such written notice of selection has been given, deliver to the other party a written objection to such selection.
Such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in this Agreement, and the objection shall set forth with particularity the
factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is made, the Independent Counsel so selected may not serve as Independent Counsel unless and
until a court has determined that such objection is without merit. 
 (3) Either the Company or Indemnitee may petition any
court of competent jurisdiction if the parties have been unable to agree on the selection of Independent Counsel within 20 days after submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) of this Agreement.
Such petition may request a determination whether an objection to the party’s selection is without merit and/or seek the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate.
A person so appointed shall act as Independent Counsel under Section 6(b) of this Agreement. 
 (4) The Company shall pay
any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to this Agreement, and the Company shall pay all reasonable fees and expenses incident to the procedures of this
Section 6(c), regardless of the manner in which such Independent Counsel was selected or appointed. 

 (5) Upon the due commencement of any judicial proceeding or arbitration pursuant to
Section 8(c) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing). 
 (d)    Cooperation. Indemnitee shall cooperate with the person, persons or entity making the determination with
respect to Indemnitee’s entitlement to indemnification under this Agreement, including providing to such person, persons or entity 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. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

 (e)    Payment. If it is determined that Indemnitee is entitled to indemnification, payment to
Indemnitee shall be made within 10 days after such determination. 
 7.    Presumptions and Effect of Certain
Proceedings 
 (a)    Burden of Proof. In making a determination with respect to entitlement to
Indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with
Section 6(a), and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. 
 (b)    Effect of Other Proceedings. The termination of any Proceeding or of any claim, issue or matter therein,
by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or
create a presumption that Indemnitee did not act in Good Faith. 
 (c)    Reliance as Safe Harbor.
For purposes of any determination of Good Faith, 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 Enterprise, including financial statements, or on information
supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public
accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. The provisions of this Section 7(c) 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 set forth in this Agreement. 
 (d)    Actions of
Others. The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. 

 8.    Remedies of Indemnitee 
 (a)    Application. This Section 8 shall apply in the event of a Dispute. For purposes of this article,
“Dispute” shall mean any of the following events: 
 (1) a determination is made pursuant to Section 6 of this
Agreement that Indemnitee is not entitled to indemnification under this Agreement; 
 (2) advancement of Expenses is not
timely made pursuant to Section 5 of this Agreement; 
 (3) if the determination of entitlement to be made pursuant to
Section 6(b) of this Agreement is to be made by the Board and the Board has not made such determination within 60 days after receipt by the Company of the request for indemnification; 
 (4) if the determination of entitlement to be made pursuant to Section 6(b) of this Agreement is to be made by Independent Counsel
and Independent Counsel has not made such determination within 90 days after receipt by the Company of the request for indemnification; 
 (5) payment of indemnification is not made pursuant to Section 4(e) of this Agreement within 10 days after receipt by the Company of a written request therefore; or 
 (6) payment of indemnification is not made within 10 days after a determination has been made that Indemnitee is entitled to
indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement. 
 (b)    Adjudication. In the event of a Dispute, Indemnitee shall be entitled to an adjudication in an appropriate court in the State of Delaware, or in any other court of competent jurisdiction, of
Indemnitee’s entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at Indemnitee’s option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the rules of the American
Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this
Section 8(b). The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration. 
 (c)    De Novo Review. In the event that a determination shall have been made pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration
commenced pursuant to this Section 8 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any such proceeding or
arbitration, the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be. 

 (d)    Company Bound. If a determination shall have been made
or deemed to have been made pursuant to Section 6 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration absent (i) a misstatement by
Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification or (ii) a prohibition of such indemnification under
applicable law. 
 (e)    Procedures Valid. The Company shall be precluded from asserting in any
judicial proceeding or arbitration commenced pursuant to this Section 8 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the
Company is bound by all of the provisions of this Agreement. 
 (f)    Expenses of Adjudication. In
the event that Indemnitee, pursuant to this Section 8, seeks a judicial adjudication of or an award in arbitration to enforce Indemnitee’s rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to
recover from the Company, and shall be indemnified by the Company against, any and all expenses (of the types described in the definition of Expenses in this Agreement) actually and reasonably incurred by Indemnitee in such adjudication or
arbitration, but only if Indemnitee prevails therein. If it shall be determined in such adjudication or arbitration that Indemnitee is entitled to receive part but not all of the indemnification or advancement of expenses sought, the expenses
incurred by Indemnitee in connection with such adjudication or arbitration shall be appropriately prorated. 
 9.    Non-exclusivity, Insurance, Subrogation 
 (a)    Non-Exclusivity. The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration, rescission or replacement of this Agreement or any provision
hereof shall be effective as to Indemnitee with respect to any action taken or omitted by such Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration, rescission or replacement. 
 (b)    Insurance. The Company may maintain an insurance policy or policies against liability arising out of
this Agreement or otherwise. 
 (c)    Subrogation. In the event of any 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 take all action necessary to secure such rights, including execution of such documents
as are necessary to enable the Company to bring suit to enforce such rights. 
 (d)    No Duplicative
Payment. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy,
contract, agreement or otherwise. 

 10.    Miscellaneous Provisions 
 (a)    Entire Agreement. This Agreement contains the entire understanding between the parties hereto with
respect to the subject matter hereof and supersedes any prior understandings, agreements or representations, written or oral, relating to the subject matter hereof. 
 (b)    Counterparts. This Agreement may be executed in separate counterparts, each of which will be an original
and all of which taken together shall constitute one and the same agreement, and any party hereto may execute this Agreement by signing any such counterpart. 
 (c)    Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner
as to be effective and valid under applicable law but if any provision of this Agreement is held to be invalid, illegal or unenforceable under any applicable law or rule, the validity, legality and enforceability of the other provision of this
Agreement will not be affected or impaired thereby. 
 (d)    Successors and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives and successors and assigns. 
 (e)    Modification, Amendment, Waiver or Termination. No provision of this Agreement may be modified, amended,
waived or terminated except by an instrument in writing signed by the parties to this Agreement. No course of dealing between the parties will modify, amend, waive or terminate any provision of this Agreement or any rights or obligations of any
party under or by reason of this Agreement. 
 (f)    Notices. All notices, consents, requests,
instructions, approvals or other communications provided for herein shall be in writing and delivered by personal delivery, overnight courier, mail, electronic facsimile or e-mail addressed to the receiving party at the address set forth herein. All
such communications shall be effective when received. 
 EnteroMedics Inc. 
 2800 Patton Road 
 St. Paul, MN 55113 
 Attn: Chief Executive Officer 
 Any party may change the address set forth above by notice to each other party given as provided herein. 
 (g)    Headings. The headings and any table of contents contained in this Agreement are for reference purposes
only and shall not in any way affect the meaning or interpretation of this Agreement. 

 (h)    Governing Law. ALL MATTERS RELATING TO THE
INTERPRETATION, CONSTRUCTION, VALIDITY AND ENFORCEMENT OF THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW PROVISIONS THEREOF. 
 (i)    Third-Party Benefit. Nothing in this Agreement, express or implied, is intended to confer upon any other
person any rights, remedies, obligations or liabilities of any nature whatsoever. 
 (j)    Jurisdiction and Venue. THIS AGREEMENT MAY BE ENFORCED IN ANY FEDERAL COURT OR STATE COURT SITTING IN DELAWARE, AND EACH PARTY CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY
ARGUMENT THAT VENUE IN SUCH FORUM IS NOT CONVENIENT. IF ANY PARTY COMMENCES ANY ACTION UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT IN ANOTHER JURISDICTION OR VENUE, ANY OTHER PARTY
TO THIS AGREEMENT SHALL HAVE THE OPTION OF TRANSFERRING THE CASE TO THE ABOVE-DESCRIBED VENUE OR JURISDICTION OR, IF SUCH TRANSFER CANNOT BE ACCOMPLISHED, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE. 
 (k)    Remedies. The parties agree that money damages may not be an adequate remedy for any breach of the
provisions of this Agreement and that any party may, in its discretion, apply to any court of law or equity of competent jurisdiction for specific performance and injunctive relief in order to enforce or prevent any violations this Agreement, and
any party against whom such proceeding is brought hereby waives the claim or defense that such party has an adequate remedy at law and agrees not to raise the defense that the other party has an adequate remedy at law. 
 IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement as of the date set forth in the first paragraph. 

 

			
	ENTEROMEDICS INC.
		
	By:	 	  

			
		
	Name: 	 	  

			
		
	Its: 	 	  

			
		
		 	
		
		 	
	
	  
	[Indemnitee]

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