Document:

Exhibit 10.1

September 4, 2007

Mr. Philip L. Rugani

459 Old Wood Roads East

Wyckoff, NJ 07481

Dear Philip:

This letter is to confirm our offer of employment to you under the following terms and conditions to join AXS-One Inc. as Executive Vice President, Field Operations, reporting directly to me, based out of our Rutherford, NJ office, starting employment on Monday, September 10, 2007.

Salary:  Starting salary will be $275,000.00 per year, paid on the 15th and last business day of each month, which equates to 24 pay periods.

Bonus:  You will be eligible for a target bonus of 50% of your base salary prorated for 2007 ($45,833 for 4 months) as determined in the sole discretion of the Compensation Committee of the Board of Directors.

Restricted Stock:  You will be awarded 500,000 shares of the Company’s common stock (“Restricted Stock”). The Restricted Stock will vest over a four year period, with 25% vesting each year on the anniversary of the date of grant and shall otherwise be subject to the terms of the applicable AXS-One equity plan under which the Restricted Stock is issued (including with respect to acceleration upon a change of control as provided in the applicable plan).

Severance Package:  If, at any time, the Company terminates your employment for any reason other than for Cause, the Company will pay you a severance benefit equal to 3 months of your base salary payable in 6 semi-monthly installments. The Company will continue to provide you with employee benefit coverage during the severance period. Additionally, you will be entitled to receive any earned but unpaid salary and any unreimbursed business expenses. For the purposes of this letter, “Cause” shall mean a termination of employment by the Company for any of the following reasons that remains uncured (if curable) for 10 days after your receipt of written notice thereof:  (i) gross misconduct or gross neglect of duties related to the Company; (ii) fraud, embezzlement, or misappropriation of any property or proprietary
information of the Company by you; (iii) your conviction of, or plea of nolo contendere to, a felony or other crime involving morale turpitude (other than as a result of a traffic violation); or (iv) a material breach by you of any provision of this letter or any other material breach of any agreement entered into with the Company. “Cause” shall not include the failure to obtain the objective metrics set forth in the Company’s business plans. If your employment is terminated by the Company for Cause, you shall not be entitled to receive any severance benefits, provided that you shall receive any amount of base salary earned but unpaid, through the date of your termination and any unreimbursed business expenses. 

 

 

AXS-ONE

Mr. Philip L. Rugani

September 4, 2007

Page 2

You shall not be entitled to receive any severance amounts under any provision of this letter agreement unless you execute a customary form of mutual general release presented by the Company and negotiated in good faith of all claims whether known or unknown that you may then have against the Company and its affiliates.

Change of Control:  In the event of a termination of your employment hereunder by the Company without Cause or by you for Good Reason (as defined below) on or within 12 months following a Change of Control, the Company will (i) pay you any earned but unpaid salary and any unreimbursed business expenses and an amount equal to 6 months of your base salary, all such amounts payable within three (3) business days following termination of employment, in a lump sum, and (ii) continue to provide you with health and welfare benefits, excluding 401(k), for 6 months following termination. The foregoing 6 month period shall be included in, and counted as part of, the COBRA period (currently 18 months).

A “Change of Control” of the Company will be deemed to have occurred: (i) upon any person or group (within the meaning of applicable securities laws) acquiring or having beneficial ownership of more than 50% of the voting power (including voting power exercisable on a contingent or deferred basis as well as immediately exercisable voting power) of the Company (excluding only any person or group having greater than 30% beneficial ownership as of the date of this letter agreement), whether as a result of a tender offer or otherwise; or (ii) upon the consummation of a merger or consolidation in which the Company is a constituent corporation and in which the Company’s stockholders immediately prior thereto will beneficially own, immediately thereafter, securities of the Company or any surviving or new corporation resulting therefrom having less than a majority of the
voting power of the Company or any such surviving or new corporation; or (iii) upon the consummation of a sale, lease, exchange or other transfer or disposition by the Company of all or substantially all of its assets to any person or group or related persons.

“Good Reason” means (i) a reduction in your salary or benefits other than an across-the-board reduction affecting all members of senior management, (ii) a material reduction of your duties and significant responsibilities (not including reasonable changes in title or in corporate structure), or (iii) the Company requires you to change the location of your principal office, so that you will be based at a location more than fifty miles from the location of your principal office (i.e. the Company’s current executive offices located at 301 Route 17 North, Rutherford, New Jersey 07070).

 

 

AXS-ONE

Mr. Philip L. Rugani

September 4, 2007

Page 3

If any portion of the payments which you have the right to receive from the Company, or any affiliated entity or successor, hereunder would constitute “excess parachute payments” (as defined in Section 280G of the Internal Revenue Code) subject to the excise tax imposed by Section 4999 of the Internal Revenue Code, such excess parachute payments shall be reduced to the largest amount that will result in no portion of such excess parachute payments being subject to the excise tax imposed by Section 4999 of the Internal Revenue Code as provided in Exhibit A hereto.

Benefits:  During your employment with the Company, you will be entitled to receive all such benefits and perquisites as are routinely provided to other employees of the Company. The Company reserves the right to modify, amend or terminate any such benefits at any time for any reason (provided such modification, amendment or termination is applicable to all employees receiving such benefits) but shall, in any case, provide reasonable health and disability benefits to you while you are a full-time employee of the Company.

Covenant Not to Compete:  You hereby covenant and agree that at no time during your term of employment nor for a period of 6 months immediately following the termination of your employment will for yourself or on behalf of any other person, partnership, company or corporation, directly or indirectly, acquire any financial or beneficial interest in (except as provided in the next sentence), provide consulting or other services to, be employed by, or own, manage, operate or control any entity engaged in the archival data management software business similar to the business engaged in by the Company or its subsidiaries at the time of such termination of employment. Notwithstanding the preceding sentence, you will not be prohibited from owning less than one percent (1%) of any publicly traded corporation, whether or not
such corporation is in competition with the Company.

Non-Solicitation:  You hereby covenant and agree that, at all times during your term of employment and for a period of 6 months immediately following the termination thereof, the you will not directly or indirectly (through an entity controlling, controlled by, or under common control with you) employ or seek to employ any person or entity employed at that time by the Company or any of its subsidiaries, or otherwise encourage or entice such person or entity to leave such employment.

Employment:  AXS-One is an equal opportunity employer. In addition, it is understood that your employment is “at will”, as defined under the laws of New Jersey, and thus such employment can be terminated with or without Cause, at the option of either party.

Confidentiality:  You agree that any confidential information that becomes available to you in the course of employment is the sole property of the Company and shall not be used by you for any purpose other than fulfilling your position’s objectives. This applies while an active or inactive employee. A partial list of items covered by confidentiality include:

 

 

AXS-ONE

Mr. Philip L. Rugani

September 4, 2007

Page 4

	
                        •
 	
                        Employee Lists
 

	
                        •
 	
                        Customer Lists
 

	
                        •
 	
                        Prospect Lists
 

	
                        •
 	
                        Product Materials
 

	
                        •
 	
                        Technical Product Knowledge
 

	
                        •
 	
                        Confidential Financial Data
 

	
                        •
 	
                        Product Price Lists
 

	
                        •
 	
                        Sales/Marketing Strategy
 

The above information and any other confidential material will remain confidential for a period of 6 months after employment at the Company, except for customer lists and possible other technical data, which remains confidential indefinitely, unless the Company makes it available to the public.

Please countersign this offer of employment, Non-Disclosure Agreement and Background Check Authorization Form and return the originals to Human Resources to officially indicate your acceptance. 

This offer is contingent upon your review and acceptance of our Offer Letter, and our review and verification of your identity and employment authorization documents as set forth in the Immigration Reform and Control Act. You must bring these documents with you on your first day of employment. It is understood that legal fees associated with obtaining these documents are solely your responsibility.

Sincerely,

 

	
                        
 /s/ Bill Lyons
 	
                         
 	
                         
 	
                          
 
	
                        Bill Lyons 
 Chairman & Chief Executive Officer
 	
                         
 	
                         
 	
                         
 

 

	
                        I ACCEPT:
 	
                         
 	
                         
 	
                         
 
	
                        
 /s/ Philip L. Rugani
 	
                         
 	
                         
 	
                        
 9/4/07
 
	
                        Philip L. Rugani
 	
                         
 	
                         
 	
                        Date
 

Enclosures

 

 

Exhibit A

Parachute Payments

(a) In the event that you (the “Executive”) shall become entitled to payments and/or benefits provided by this Agreement or any other amounts in the “nature of compensation” (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, any person whose actions result in a change of ownership or effective control covered by Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”) or any person affiliated with the Company or such person) as a result of such change in ownership or effective control (collectively the “Company Payments”), and if such Company Payments will be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the Code (and any similar tax that may hereafter be imposed by any taxing authority) the amounts of any
Company Payments shall be automatically reduced to an amount one dollar less than an amount that would subject the Executive to the Excise Tax; provided, however, that the reduction shall occur only if the reduced Company Payments received by the Executive (after taking into account further reductions for applicable federal, state and local income, social security and other taxes) would be greater than the unreduced Company Payments to be received by the Executive minus (i) the Excise Tax payable with respect to such Company Payments and (ii) all applicable federal, state and local income, social security and other taxes on such Company Payments. In the event that Company Payments must be reduced, the Executive shall have the sole right to determine which Company Payments to reduce, and in what amounts, prior to the effective date of the Change of Control. 

(b)  For purposes of determining whether any of the Company Payments will be subject to the Excise Tax and the amount of such Excise Tax, (x) the Company Payments shall be treated as “parachute payments” within the meaning of Section 280G(b)(2) of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Code Section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless and except to the extent that, in the opinion of the Company’s independent certified public accountants appointed prior to any change in ownership (as defined under Code Section 280G(b)(2)) or tax counsel selected by such accountants (the “Accountants”) such Company Payments (in whole or in part) either do not constitute “parachute payments,” represent reasonable compensation
for services actually rendered within the meaning of Section 280G(b)(4) of the Code in excess of the “base amount” or are otherwise not subject to the Excise Tax, and (y) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the Code. 

(c) For purposes of making the calculation hereunder, the Executive shall be deemed to pay U.S. federal income taxes at the highest marginal rate of U.S. federal income taxation in the calendar year in which the Company Payments are to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive’s residence for the calendar year in which the Company Payments are to be made, net of the maximum reduction in U.S. federal income taxes which could be obtained from deduction of such state and local taxes if paid in such year. 

 

 

(d) In the event of any controversy with the Internal Revenue Service (or other taxing authority) with regard to the Excise Tax, the Executive shall permit the Company to control issues related to the Excise Tax (at its expense), provided that such issues do not potentially materially adversely affect the Executive, but the Executive shall control any other issues. In the event the issues are interrelated, the Executive and the Company shall in good faith cooperate so as not to jeopardize resolution of either issue, but if the parties cannot agree the Executive shall make the final determination with regard to the issues. In the event of any conference with any taxing authority as to the Excise Tax or associated income taxes, the Executive shall permit the representative of the Company to accompany the Executive, and the Executive and the Executive’s
representative shall cooperate with the Company and its representative. 

(e) The Company shall be responsible for all charges of the Accountants. 

(f) The Company and the Executive shall promptly deliver to each other copies of any written communications, and summaries of any verbal communications, with any taxing authority regarding the Excise Tax covered by this Exhibit A.exv4w2

 

Exhibit 4.2

Execution Version

AMENDED AND RESTATED

REGISTRATION RIGHTS AGREEMENT

     THIS AGREEMENT is made as of December 21, 2005, by and among Aprimo, Incorporated, a Delaware
corporation (the “Company”), the Persons listed on Schedule I attached hereto as a
“Investor” (collectively referred to herein as the “Investors” and individually as an “Investor”),
Lighthouse Capital Partners IV, L.P. (“Lighthouse”), Silicon Valley Bank (“SVB”) and ORIX Venture
Finance LLC (“ORIX”). The Investors, Lighthouse, SVB and ORIX shall hereinafter be collectively
referred to as the “Holders.”

     WHEREAS, the Company and certain of the Holders are parties to a Registration Rights
Agreement, dated as of August 28, 2000, as amended (the “Original Agreement”);

     WHEREAS, the Company and certain of the Investors are parties to a Series A2 Stock Purchase
Agreement of even date herewith (the “Purchase Agreement”);

     WHEREAS, in order to induce such Investors to enter into the Purchase Agreement, the Company
has agreed to provide the registration rights set forth in this Agreement;

     WHEREAS, the execution and delivery of this Agreement is a condition to the closing under the
Purchase Agreement; and

     WHEREAS, the parties hereto desire to amend and restate the Original Agreement upon the terms
and conditions set forth herein. Unless otherwise stated, capitalized terms contained herein have
the meanings set forth in the Purchase Agreement.

     The parties hereto agree as follows:

     1. Demand Registrations.

     (a) Requests for Registration. At any time after the Company has completed a public
offering of its Common Stock, $0.001 par value per share (the “Common Stock”), under the Securities
Act, the Holders holding at least sixty percent (60%) of the Registrable Securities (as defined in
this paragraph 1(a) below) may request registration under the Securities Act of all or part of
their Registrable Securities on Form S-1 or any similar long-form registration (“Long-Form
Registration”), and on Form S-2 or S-3 or any similar short-form registration (“Short-Form
Registrations”), if available. Within 10 days after receipt of any such request, the Company will
give written notice of such requested registration to all other Holders and will include in such
registration all Registrable Securities with respect to which the Company has received written
requests for inclusion therein within 15 days after the receipt of the Company’s notice. All
registrations requested pursuant to this paragraph 1(a) are referred to herein as “Demand
Registrations.” “Registrable Securities” means (i) any shares of Common Stock held by the
Investors, (ii) any shares of Common Stock issued or issuable upon conversion of any Series A

 

 

Preferred Stock, $0.001 par value per share (“Series A Preferred”), held by the Investors, (iii)
any shares of Common Stock issued or issuable upon conversion of any Series A1 Preferred Stock,
$0.001 par value (“Series A1 Preferred”), held by the Investors, (iv) any shares of Common Stock
issued or issuable upon conversion of any Series A2 Preferred Stock, $0.001 par value (“Series A2
Preferred”), held by the Investors, (v) all shares of Common Stock now or hereafter held by
Lighthouse or SVB (including, without limitation, any shares of Common Stock issued or issuable
upon exercise of warrants to purchase Common Stock or shares of Common Stock issued or issuable
upon any convertible securities now or hereafter held by Lighthouse or Silicon Valley Bank), (vi)
any Common Stock issuable upon conversion of any Series A1 Preferred or other preferred stock of
the Company issuable upon exercise of the warrant issued to ORIX pursuant to that certain Loan and
Security Agreement dated as of June 13, 2005, and (vii) any Common Stock issued or issuable with
respect to the securities referred to in clauses (i) through (vi) by way of a stock dividend or
stock split or in connection with a combination of shares, recapitalization, merger, consolidation
or other reorganization. As to any particular Registrable Securities, such securities will cease
to be Registrable Securities when they have been distributed to the public pursuant to a offering
registered under the Securities Act or sold to the public through a broker, dealer or market maker
in compliance with Rule 144 under the Securities Act (or any similar rule then in force) or
eligible for resale in compliance with Rule 144(k) under the Securities Act (or any similar rule
then in force). For purposes of this Agreement, a Holder will be deemed to hold Registrable
Securities whenever such Holder has the right to acquire directly or indirectly such Registrable
Securities (upon conversion or exercise in connection with a transfer of securities or otherwise,
but disregarding any restrictions or limitations upon the exercise of such right), whether or not
such acquisition has actually been effected.

     (b) Long-Form Registrations. The Holders holding at least sixty percent (60%) of
Registrable Securities will be entitled to request one Long-Form Registration in which the Company
will pay all Registration Expenses (as defined in paragraph 5(a) below). A registration will not
count as the permitted Long-Form Registration until it has become effective and unless the Holders
are able to register and sell all of the Registrable Securities requested to be included in such
registration; provided that in any event the Company will pay all Registration Expenses in
connection with any registration initiated as a Long-Form Registration whether or not it has become
effective. Notwithstanding the foregoing, the Holders shall have the right to withdraw the request
as set forth in this paragraph 1(b) and shall pay all associated expenses.

     (c) Short-Form Registrations. In addition to the Long-Form Registration provided
pursuant to paragraph 1(b), the Holders holding at least sixty percent (60%) of Registrable
Securities will be entitled to request an unlimited number of Short-Form Registrations in which the
Company will pay all Registration Expenses. Demand Registrations will be Short-Form Registrations
whenever the Company is permitted to use any applicable short form. After the Company has become
subject to the reporting requirements of the Securities Exchange Act, the Company will use its best
efforts to make Short-Form Registrations on Form S-3 available for the sale of Registrable
Securities.

     (d) Priority on Demand Registrations. If a Demand Registration is an underwritten
offering and the managing underwriters advise the Company in writing that in their opinion the
number of Registrable Securities and, if permitted hereunder, other securities

2

 

requested to be included in such offering exceeds the number of Registrable Securities and
other securities, if any, which can be sold therein without adversely affecting the marketability
of the offering, the Company will include in such registration prior to the inclusion of any
securities which are not Registrable Securities the number of Registrable Securities requested to
be included which in the opinion of such underwriters can be sold without adversely affecting the
marketability of the offering, pro rata among the respective Holders thereof on the basis of the
amount of Registrable Securities owned by each such Holder.

     (e) Restrictions on Demand Registrations. The Company will not be obligated to
effect a Demand Registration within six months after the effective date of a registration in which
the Holders were given piggyback rights pursuant to paragraph 2 and in which there was no reduction
in the number of Registrable Securities requested to be included. The Company may postpone for up
to six months the filing or the effectiveness of a registration statement for a Demand Registration
(i) if the Company’s board of directors determines that such Demand Registration would reasonably
be expected to have an adverse effect on any proposal or plan by the Company to engage in any
acquisition of assets (other than in the ordinary course of business), any merger, consolidation,
tender offer, strategic licensing arrangement, joint venture, or similar transaction, or (ii) if,
in the good faith determination of the Company’s board of directors, the Company or any other of
the Company’s act ivies would be adversely affected by such Demand Registration due to premature
disclosure of material information that the Company has a bona fide business purpose for preserving
as confidential; provided that in such event, the Holders holding at least sixty percent (60%) of
Registrable Securities initially requesting such Demand Registration will be entitled to withdraw
such request and, if such request is withdrawn, such Demand Registration will not count as the
permitted Long-Form Registration hereunder and the Company will pay all Registration Expenses in
connection with such registration.

     (f) Selection of Underwriters. The Holders holding at least a majority of the
Registrable Securities initially requesting registration will have the right to select the
investment banker(s) and manager(s) to administer the offering, which parties shall be acceptable
to the Company in its reasonable discretion.

     (g) Other Registration Rights. Except as provided in this Agreement, the Company
will not grant to any Persons the right to request the Company to register any equity securities of
the Company, or any securities convertible or exchangeable into or exercisable for such securities,
without the prior written consent of the Holders holding at least a majority of the Registrable
Securities.

     2. Piggyback Registrations.

     (a) Right to Piggyback. Whenever the Company proposes to register any of its
securities under the Securities Act (other than pursuant to a Demand Registration) and the
registration form to be used may be used for the registration of Registrable Securities (a
“Piggyback Registration”), the Company will give prompt written notice to all Holders of its
intention to effect such a registration and will include in such registration all Registrable
Securities with respect to which the Company has received written requests for inclusion therein
within 15 days after the receipt of the Company’s notice.

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     (b) Piggyback Expenses. The Registration Expenses of the Holders will be paid by the
Company in all Piggyback Registrations.

     (c) Priority on Primary Registrations. If a Piggyback Registration is an
underwritten primary registration on behalf of the Company, and the managing underwriters advise
the Company in writing that in their opinion the number of securities requested to be included in
such registration exceeds the number which can be sold in such offering without adversely affecting
the marketability of the offering, the Company will include in such registration (i) first, the
securities the Company proposes to sell and (ii) second, the Registrable Securities requested to be
included in such registration and other securities of the Company possessing registration rights,
pro rata among the Holders of such Registrable Securities and such other securities on the basis of
the number of shares owned by each such Holder.

     (d) Priority on Secondary Registrations. If a Piggyback Registration is an
underwritten secondary registration solely on behalf of holders of the Company’s securities, and
the managing underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number which can be sold in
such offering without adversely affecting the marketability of the offering, the Company will
include in such registration (i) the securities requested to be included therein by the Holders
requesting such registration, (ii) the Holders holding securities of the Company with registration
rights permitted to be included in such registration and (iii) the Registrable Securities requested
to be included in such registration, pro rata among the Holders of all such securities on the basis
of the number of shares owned by each such Holder, provided that no such reduction shall reduce the
amount of securities of the Holders included in the registration below twenty five percent (25%) of
the total amount of securities include in such registration, unless such offering is the Company’s
initial public offering and does not include shares of any other selling stockholder.

     (e) Other Registrations. If the Company has previously filed a registration
statement with respect to Registrable Securities pursuant to paragraph 1 or pursuant to this
paragraph 2, and if such previous registration has not been withdrawn or abandoned, the Company
will not file or cause to be effected any other registration of any of its equity securities or
securities convertible or exchangeable into or exercisable for its equity securities under the
Securities Act (except on Form S-8 or any successor form or a registration relating to a corporate
reorganization or transaction under Rule 145 of the Securities Act), whether on its own behalf or
at the request of any Holder, until a period of at least six months has elapsed from the effective
date of such previous registration.

     3. Holdback Agreements. The Company agrees to use reasonable best efforts to cause
each Company officer, director and holder of at least 1% (on a fully-diluted basis) of its Common
Stock, or any securities convertible into or exchangeable or exercisable for Common Stock,
purchased from the Company at any time after the date of this Agreement (other than in a registered
public offering) to agree not to effect any public sale or distribution (including sales pursuant
to Rule 144) of any such securities during the 180-day period beginning on the effective date of
any underwritten registration (except as part of such underwritten registration, if

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otherwise permitted), unless the underwriters managing the registered public offering
otherwise agree.

     4. Registration Procedures. Whenever the Holders have requested that any Registrable
Securities be registered pursuant to this Agreement, the Company will use its reasonable best
efforts to effect the registration and the sale of such Registrable Securities in accordance with
the intended method of disposition thereof, and pursuant thereto the Company will as expeditiously
as possible:

     (a) prepare and file with the Securities and Exchange Commission a registration statement
with respect to such Registrable Securities and use its reasonable best efforts to cause such
registration statement to become effective (provided that before filing a registration statement or
prospectus or any amendments or supplements thereto, the Company will furnish to the counsel
selected by the Holders holding a majority of the Registrable Securities covered by such
registration statement copies of all such documents proposed to be filed);

     (b) prepare and file with the Securities and Exchange Commission such amendments and
supplements to such registration statement and the prospectus used in connection therewith as may
be necessary to keep such registration statement effective for a period of not less than six months
and comply with the provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement during such period in accordance with the
intended methods of disposition by the sellers thereof set forth in such registration statement;

     (c) furnish to each seller of Registrable Securities such number of copies of such
registration statement, each amendment and supplement thereto, the prospectus included in such
registration statement (including each preliminary prospectus) and such other documents as such
seller may reasonably request in order to facilitate the disposition of the Registrable Securities
owned by such seller;

     (d) use its reasonable best efforts to register or qualify such Registrable Securities under
such other securities or blue sky laws of such jurisdictions as any seller reasonably requests and
do any and all other acts and things which may be reasonably necessary or advisable to enable such
seller to consummate the disposition in such jurisdictions of the Registrable Securities owned by
such seller (provided that the Company will not be required to (i) qualify generally to do business
in any jurisdiction where it would not otherwise be required to qualify but for this subparagraph,
(ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of
process in any such jurisdiction);

     (e) notify each seller of such Registrable Securities, at any time when a prospectus relating
thereto is required to be delivered under the Securities Act, of the happening of any event as a
result of which the prospectus included in such registration statement contains an untrue statement
of a material fact or omits any fact necessary to make the statements therein not misleading, and,
at the request of any such seller, the Company will prepare a supplement or amendment to such
prospectus so that, as thereafter delivered to the purchasers of such

5

 

Registrable Securities, such prospectus will not contain an untrue statement of a material
fact or omit to state any fact necessary to make the statements therein not misleading;

     (f) cause all such Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed and, if not so listed, to be listed on The
Nasdaq Stock Market and, if listed on The Nasdaq Stock Market, use its reasonable best efforts to
secure designation of all such Registrable Securities covered by such registration statement as a
“national market system security” of The Nasdaq Stock Market within the meaning of Rule 11Aa2-1 of
the Securities and Exchange Commission or, failing that, to secure Nasdaq authorization for such
Registrable Securities and, without limiting the generality of the foregoing, to arrange for at
least two market makers to register as such with respect to such Registrable Securities with the
National Association of Securities Dealers;

     (g) provide a transfer agent and registrar for all such Registrable Securities not later than
the effective date of such registration statement;

     (h) enter into such customary agreements (including underwriting agreements in customary
form) and take all such other actions as the Holder holding at least a majority of the Registrable
Securities being sold or the underwriters, if any, reasonably request in order to expedite or
facilitate the disposition of such Registrable Securities (including, without limitation, effecting
a stock split or a combination of shares);

     (i) make available for inspection by any seller of Registrable Securities, any underwriter
participating in any disposition pursuant to such registration statement and any attorney,
accountant or other agent retained by any such seller or underwriter, all financial and other
records, pertinent corporate documents and properties of the Company, and cause the Company’s
officers, directors, employees and independent accountants to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in connection with such
registration statement;

     (j) otherwise use its reasonable best efforts to comply with all applicable rules and
regulations of the Securities and Exchange Commission, and make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of at least twelve
months beginning with the first day of the Company’s first full calendar quarter after the
effective date of the registration statement, which earnings statement shall satisfy the provisions
of Section 11(a) of the Securities Act and Rule 158 thereunder;

     (k) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any related prospectus
or suspending the qualification of any common stock included in such registration statement for
sale in any jurisdiction, the Company will use its reasonable best efforts promptly to obtain the
withdrawal of such order;

     (l) use its reasonable best efforts to cause such Registrable Securities covered by such
registration statement to be registered with or approved by such other governmental

6

 

agencies or authorities as may be necessary to enable the sellers thereof to consummate the
disposition of such Registrable Securities; and

     (m) obtain a comfort letter from the Company’s independent public accountants in customary
form and covering such matters of the type customarily covered by cold comfort letters as the
Holders holding a majority of the Registrable Securities being sold reasonably request (provided
that such Registrable Securities constitute at least 10% of the securities covered by such
registration statement).

     5. Registration Expenses.

     (a) All expenses incident to the Company’s performance of or compliance with this Agreement,
including without limitation all registration and filing fees, fees and expenses of compliance with
securities or blue sky laws, printing expenses, messenger and delivery expenses, and fees and
disbursements of counsel for the Company and all independent certified public accountants,
underwriters (excluding discounts and commissions) and other Persons retained by the Company (all
such expenses being herein called “Registration Expenses”), will be borne as provided in this
Agreement, except that the Company will, in any event, pay its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit or quarterly review, the expense of any
liability insurance and the expenses and fees for listing the securities to be registered on each
securities exchange on which similar securities issued by the Company are then listed or on The
Nasdaq Stock Market.

     (b) In connection with each Demand Registration and each Piggyback Registration, the Company
will reimburse the Holders holding Registrable Securities covered by such registration for the
reasonable fees and disbursements of one counsel chosen by the Holders holding a majority of the
Registrable Securities initially requesting such registration.

     (c) To the extent Registration Expenses are not required to be paid by the Company, each
holder of securities included in any registration hereunder will pay those Registration Expenses
allocable to the registration of such holder’s securities so included, and any Registration
Expenses not so allocable will be borne by all sellers of securities included in such registration
in proportion to the aggregate selling price of the securities to be so registered.

     6. Indemnification.

     (a) The Company agrees to indemnify, to the extent permitted by law, each Holder, its
officers and directors and each Person who controls such holder (within the meaning of the
Securities Act) against all losses, claims, damages, liabilities and expenses caused by any untrue
or alleged untrue statement of material fact contained in any registration statement, prospectus or
preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same are caused by or contained in any information
furnished in writing to the Company by such Holder expressly for use therein or by such holder’s
failure to deliver a copy of the registration statement or prospectus or any

7

 

amendments or supplements thereto after the Company has furnished such Holder with a
sufficient number of copies of the same. In connection with an underwritten offering, the Company
will indemnify such underwriters, their officers and directors and each Person who controls such
underwriters (within the meaning of the Securities Act) to the same extent as provided above with
respect to the indemnification of the Holders.

     (b) In connection with any registration statement in which a Holder is participating, each
such Holder will furnish to the Company in writing such information and affidavits as the Company
reasonably requests for use in connection with any such registration statement or prospectus and,
to the extent permitted by law, will indemnify the Company, its directors and officers and each
Person who controls the Company (within the meaning of the Securities Act) against any losses,
claims, damages, liabilities and expenses resulting from any untrue or alleged untrue statement of
material fact contained in the registration statement, prospectus or preliminary prospectus or any
amendment thereof or supplement thereto or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not misleading, but only
to the extent that such untrue statement or omission is contained in any information or affidavit
so furnished in writing by such Holder; provided that the obligation to indemnify will be
individual to each Holder and will be limited to the net amount of proceeds received by such Holder
from the sale of Registrable Securities pursuant to such registration statement.

     (c) Any Person entitled to indemnification hereunder will (i) give prompt written notice to
the indemnifying party of any claim with respect to which it seeks indemnification and (ii) unless
in such indemnified party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist with respect to such claim, permit such indemnifying party to assume
the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such
defense is assumed, the indemnifying party will not be subject to any liability for any settlement
made by the indemnified party without its consent (but such consent will not be unreasonably
withheld). An indemnifying party who is not entitled to, or elects not to, assume the defense of a
claim will not be obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in the reasonable
judgment of any indemnified party a conflict of interest may exist between such indemnified party
and any other of such indemnified parties with respect to such claim.

     (d) The indemnification provided for under this Agreement will remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified party or any
officer, director or controlling Person of such indemnified party and will survive the transfer of
securities. The Company also agrees to make such provisions, as are reasonably requested by any
indemnified party, for contribution to such party in the event the Company’s indemnification is
unavailable for any reason.

     7. Participation in Underwritten Registrations. No Person may participate in any
registration hereunder which is underwritten unless such Person (a) agrees to sell such Person’s
securities on the basis provided in any underwriting arrangements approved by the Person or Persons
entitled hereunder to approve such arrangements and (b) completes and executes all

8

 

questionnaires, powers of attorney, indemnities, underwriting agreements and other documents
required under the terms of such underwriting arrangements.

     8. Miscellaneous.

     (a) No Inconsistent Agreements. The Company will not hereafter enter into any
agreement with respect to its securities which is inconsistent with or violates the rights granted
to the Holders in this Agreement.

     (b) Remedies. Any Person having rights under any provision of this Agreement will be
entitled to enforce such rights specifically to recover damages caused by reason of any breach of
any provision of this Agreement and to exercise all other rights granted by law. The parties
hereto agree and acknowledge 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 sole discretion apply to any court of
law or equity of competent jurisdiction (without posting any bond or other security) for specific
performance and for other injunctive relief in order to enforce or prevent violation of the
provisions of this Agreement.

     (c) Amendments and Waivers. Except as otherwise provided herein, the provisions of
this Agreement may be amended or waived only upon the prior written consent of the Company and
Holders holding at least sixty percent (60%) of the Registrable Securities.

     (d) Successors and Assigns. All covenants and agreements in this Agreement by or on
behalf of any of the parties hereto will bind and inure to the benefit of the respective successors
and assigns of the parties hereto whether so expressed or not.

     (e) Incorporation of Purchase Agreement Provisions. The paragraphs entitled
“Severability,” “Counterparts,” “Descriptive Headings; Interpretation,” “Delivery by Facsimile,”
“Notices” and “Governing Law” of the Purchase Agreement are hereby incorporated in this Agreement
by reference and made a part hereof, except that the provisions of such paragraphs shall refer to
this Agreement rather than the Purchase Agreement and shall continue to apply hereto regardless of
whether the Purchase Agreement is no longer in effect.

     (f) Entire Agreement. Except as otherwise expressly set forth herein, this document
embodies the complete agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, which may have related to the subject
matter hereof in any way, including the Original Agreement, which are hereby terminated and no
longer in force or effect.

     (g) Termination of Registration Rights. The rights set forth in Sections 1 and 2
hereof shall terminate on the fifth anniversary of the closing of a Qualified Public Offering (as
defined in the Company’s Certificate of Incorporation).

*     *     *     *

[SIGNATURE PAGE FOLLOWS]

9

 

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

	 	 	 	 	 	 	 
	 	 	APRIMO, INCORPORATED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William M. Godfrey
 

	 	 
	 	 	William M. Godfrey	 	 
	 	 	President and Chief Executive Officer	 	 

Signature Page to Amended and Restated Registration Rights Agreement

 

 

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

	 	 	 	 	 
	 	 	INVESTOR:
	 
	 	 	 	 
	 	 	THE PRODUCTIVITY FUND IV, L.P.
	 

	 	By:
	 	First Analysis Management Company IV,
L.L.C., its General Partner
	 

	 	By:
	 	First Analysis Venture Operations and
Research, L.L.C., Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Koulogeorge
	 

	 	 	 	 
	 	 	Managing Member
	 
	 	 	 	 
	 	 	THE PRODUCTIVITY FUND IV ADVISORS FUND, L.P.
	 

	 	By:
	 	First Analysis Management Company IV,
L.L.C., its General Partner
	 

	 	By:
	 	First Analysis Venture Operations and
Research, L.L.C., Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Koulogeorge
	 

	 	 	 	 
	 	 	Managing Member
	 
	 	 	 	 
	 	 	INFRASTRUCTURE AND ENVIRONMENTAL
PRIVATE EQUITY FUND III, L.P.
	 

	 	By:
	 	Infrastructure and Environmental Private
Equity Management, L.L.C., its General Partner
	 

	 	By:
	 	First Analysis IEPEF Management Company
III, LLC, A Member
	 

	 	By:
	 	First Analysis Corporation, A Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Koulogeorge
	 

	 	 	 	 
	 	 	Member

Signature Page to Amended and Restated Registration Rights Agreement

 

 

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

	 	 	 	 	 
	 	 	INVESTOR:
	 
	 	 	 	 
	 	 	ENVIRONMENTAL & INFORMATION TECHNOLOGY PRIVATE EQUITY FUND III,

a Civil partnership with limitation of liability established
under the laws of the Federal Republic of Germany
	 

	 	By:
	 	Infrastructure and Environmental Private
Equity Management, L.L.C., its General Partner
	 

	 	By:
	 	First Analysis IEPEF Management Company
III, LLC, A Member
	 

	 	By:
	 	First Analysis Corporation, A Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Koulogeorge
	 

	 	 	 	 
	 	 	Member

Signature Page to Amended and Restated Registration Rights Agreement

 

 

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

	 	 	 	 	 
	 	INVESTOR:

 	 
	 	By:  	/s/ Mark Koulogeorge
 	 
	 	 	Mark Koulogeorge 	 
	 	 	 	 
	 

Signature Page to Amended and Restated Registration Rights Agreement

 

 

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

	 	 	 	 	 	 	 
	 	 	INVESTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	SIGMA PARTNERS V, L.P.	 	 
	 

	 	By:
	 	Sigma Management V, L.L.C.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert E. Davoli
 

Its: Managing Director
	 	 
	 
	 	 	 	 	 	 
	 	 	SIGMA ASSOCIATES V, L.P.	 	 
	 

	 	By:
	 	Sigma Management V, L.L.C.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert E. Davoli
 

Its: Managing Director
	 	 
	 
	 	 	 	 	 	 
	 	 	SIGMA INVESTORS V, L.P.	 	 
	 

	 	By:
	 	Sigma Management V, L.L.C.	 	 
	 

	 	 	 	Its: General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert E. Davoli
 

Its: Managing Director
	 	 

Signature Page to Amended and Restated Registration Rights Agreement

 

 

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

	 	 	 	 	 
	 	 	INVESTOR:
	 
	 	 	 	 
	 	 	JEGI INTERNET ECONOMY PARTNERS, L.P.
	 

	 	By:
	 	JEGI Capital LLC, its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Wilma Jordan
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 	 	JEGI INTERNET ECONOMY AFFILIATES LLC
	 

	 	By:
	 	JEGI Capital LLC, its Manager
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Wilma Jordan
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Signature Page to Amended and Restated Registration Rights Agreement

 

 

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

	 	 	 	 	 
	 	 	INVESTOR:
	 
	 	 	 	 
	 	 	FRAZIER TECHNOLOGY VENTURES I, L.P.
	 

	 	By
	 	Frazier Technology Ventures Management I,
L.P., its general partner
	 

	 	By
	 	Frazier Technology Management, LLC, its
general partner
	 
	 	 	 	 
	 

	 	By
	 	/s/ Gary Gigot
	 

	 	 	 	 
	 

	 	 	 	Gary Gigot, Executive Member
	 
	 	 	 	 
	 	 	FRIENDS OF FRAZIER TECHNOLOGY VENTURES I, L.P.
	 

	 	By
	 	Frazier Technology Ventures Management I,
L.P., its general partner
	 

	 	By
	 	Frazier Technology Management, LLC, its
general partner
	 
	 	 	 	 
	 

	 	By
	 	/s/ Gary Gigot
	 

	 	 	 	 
	 

	 	 	 	Gary Gigot, Executive Member

Signature Page to Amended and Restated Registration Rights Agreement

 

 

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

	 	 	 	 	 	 	 
	 	 	INVESTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	BLUE CHIP IV	 	 
	 	 	LIMITED PARTNERSHIP	 	 
	 

	 	By:
	 	Blue Chip Venture Company, Ltd.,
General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Todd Gardner
 

Todd Gardner
	 	 
	 

	 	Title:
	 	Director	 	 

Signature Page to Amended and Restated Registration Rights Agreement

 

 

Schedule I

Investors

The Productivity Fund IV, L.P.

The Productivity Fund IV Advisors Fund, L.P.

Infrastructure and Environmental Private Equity Fund III, L.P.

Environmental & Information Technology Private Equity Fund III

Mark Koulogeorge

Stephen Bowen

Lawrence Hickey

Sigma Partners V, L.P.

Sigma Associates V, L.P.

Sigma Investors V, L.P.

Frazier Technology Partners I, L.P.

Friends of Frazier Technology Ventures I, L.P.

JEGI Internet Economy Partners, L.P.

JEGI Internet Economy Affiliates LLC

Blue Chip IV Limited Partnership

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