Document:

EXHIBIT 10.4  

FORM OF

EMPLOYMENT AGREEMENT(1)  

        This Employment Agreement ("Agreement") is made and entered into by and between ExactTarget, Inc., a Delaware corporation ("Company"), and
[NOTE 1] ("Executive"), effective December 14, 2007. 

Background  

        A.    The
Executive currently serves as the Company's [NOTE 2], pursuant to the terms of an Employment Agreement, originally effective
[NOTE 3], and amended, effective September 24, 2007 ("Prior Agreement"). 

        B.    The
Company wishes to the continue the Executive's employment as its [NOTE 2], on the terms and conditions provided herein, and the
Executive wishes to continue in such capacity on such terms and conditions. 

        C.    The
Company is in the business of developing and providing web-based software to its customers, which enables its customers to engage in e-mail
marketing for their businesses. The Company employs the Executive in a position of trust and confidence, and the Executive has become acquainted with the Company's business; employees: strategic and
operating plans; business practices; processes, and relationships, trade secrets; and other confidential and proprietary information. 

        D.    To
provide for the Executive's continued employment, the Company and the Executive wish to enter into this Agreement. 

        In
consideration of the premises and mutual promises and covenants contained in this Agreement, and intending to be legally bound, the parties agree as follows: 

Agreement  

        Section 1.    Continuation of Employment.    The Company agrees to employ the Executive, and the Executive
agrees to be employed by the Company, on the terms and conditions hereof. This Agreement shall supersede the Prior Agreement in its entirety; provided, however, it shall not affect the Executive's
right to incentive compensation payable under the terms of the Prior Agreement with respect to 2007 or any portion thereof. 

        Section 2.    Defined Terms.    Throughout this Agreement, when the first letter of a word (or the first letter
of each word in a phrase) is capitalized, the word or phrase shall have the meaning specified in Appendix A to this Agreement. 

        Section 3.    Term.    The Term of the Executive's employment hereunder shall begin on December 14,
2007, and shall continue until the Termination of Executive's Employment hereunder. Notwithstanding the preceding sentence, the provisions of Sections 11 through 14 shall continue after the Term, as
provided in such Sections. 

        Section 4.    Position and Duties.    At all times during the Term, the Executive shall serve as the Company's
[NOTE 2], and shall have such duties, responsibilities, powers, and authority consistent with such title and position as the Company's President and/or Board may assign
from time to time. In performing these duties, the Executive shall (i) devote his/her working hours on a full-time basis to his/her duties under this Agreement;
(ii) faithfully and loyally serve the Company; (iii) comply in all respects with the lawful and reasonable directions and instructions of the President and/or the Board; and
(iv) use his/her best efforts to promote and serve the interests of the Company. 

	(1)
	Form
Employment Agreement is supplemented by the individual information referenced in the Schedule at the end of this Exhibit 10.4. 

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        Section 5.    Compensation, Benefits, and Expense Reimbursement.    During the Term and through the Executive's
Termination Date, the Company shall compensate the Executive for her/his services as follows: 

        (a)    Base Salary.    The Company shall pay to the Executive, pursuant to its established payroll procedures, as in
effect from time to time, base salary at an annual rate of [NOTE 4] or such greater rate as established by the Board from time to time. 

        (b)    Annual Bonus Opportunity.    The Company shall provide the Executive with an annual bonus opportunity, as
determined by the Board from time to time. 

        (c)    Employee Benefits.    The Executive shall be eligible to participate in such benefit plans as are made
available to, and on such terms and conditions applicable to, other similarly situated employees of the Company. The Company may change or terminate any such benefit plan at any time, in its sole
discretion, subject to applicable legal requirements. 

        (d)    Paid Time Off.    The Executive shall be entitled to not fewer than 20 days of paid time off per year,
which shall accrue and be governed by the terms of the Company's paid time off policies, as in effect from time to time. 

        (e)    Reimbursement of Expenses.    The Company shall reimburse the Executive for reasonable and necessary business
expenses incurred in accordance with its established reimbursement policies and procedures, as in effect from time to time. 

        Section 6.    Termination of Employment.    The Executive is an at-will employee. Her/His
Employment shall automatically Terminate upon her/his death or Disability while an employee. Subject to its payment obligations pursuant to this Section and Section 7 or 8, as applicable, the
Company may
terminate the Executive's employment at any time, with or without cause, and the Executive may resign at any time, with or without cause. Upon Termination of Employment, the Executive shall be
entitled to the following, in addition to any amounts payable under Section 7 or 8: 

        (a)   Any
earned but unpaid base salary, at the Executive's then effective annual rate, through her/his Termination Date, plus any accrued paid days off due to the Executive
under the Company's paid days off program through her/his Termination Date, shall be paid to the Executive not later than the payroll date for the payroll period next following her/his Termination
Date. 

        (b)   Any
reimbursements to which the Executive is entitled under the Company's established reimbursement procedures shall be paid to the Executive as soon as administratively
practicable after the Executive presents the required documentation for such reimbursement (and not later than sixty (60) days after the Executive's Termination Date). 

        (c)   Any
benefits (other than severance) payable to the Executive under any of the Company's incentive compensation or employee benefit plans or programs shall be payable in
accordance with the provisions of those plans or programs. 

        Section 7.    Non-Change of Control Severance Benefit.    

        (a)   If,
during the Term and before the occurrence of a Change of Control, either (i) the Company Terminates the Executive's Employment (other than an automatic
termination on account of death or Disability or pursuant to Section 9 on account of Unacceptable Performance), or (ii) the Executive voluntarily Terminates her/his Employment for
Adequate Reason pursuant to Section 10, the Company shall make a lump sum payment to the Executive as soon as practicable (and not more than thirty (30) working days) after her/his
Termination Date equal to [Note 5] of her/his base salary, at the rate then in effect, but determined without regard to any reduction in base salary that would be an
event of Adequate Reason. Notwithstanding the preceding provisions 

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of
this Subsection, the Executive shall not be entitled to a payment pursuant to this Section if she/he is entitled to a payment pursuant to Section 8. 

        (b)   Notwithstanding
Subsection (a), if the Executive is a "specified employee" within the meaning of Code Section 409A(a)(2)(B)(i), to the extent required by such
Code Section, the payment otherwise required by Subsection (a) shall be delayed to the earliest date on which such payment is permitted. 

        Section 8.    Change in Control Severance Benefit.    

        (a)   If,
during the Term and concurrent with or within twelve (12) months after a Change in Control, either (i) the Company Terminates the Executive's
Employment (other than an automatic termination on account of death or Disability or pursuant to Section 9 on account of Cause), or (ii) the Executive voluntarily Terminates her/his
Employment for Good Reason pursuant to Section 10, the Company shall make a lump sum payment to the Executive as soon as practicable (and not more than thirty (30) working days) after
her/his Termination Date equal to the sum of (i) [Note 6] of her/his base salary, at the rate then in effect, but determined without regard to any reduction in
base salary that would be an event of Good Reason, plus (ii) 50% of her/his bonus for the calendar year immediately preceding the year in which her Termination Date occurs. 

        (b)   Notwithstanding
Subsection (a), if the Executive is a "specified employee" within the meaning of Code Section 409A(a)(2)(B)(i), to the extent required by such
Code Section, the payment otherwise required by Subsection (a) shall be delayed to the earliest date on which such payment is permitted. 

        Section 9.    Termination by Company for Unacceptable Performance or Cause.    The Company, by Board action,
may Terminate the Executive's Employment for Unacceptable Performance or Cause by providing written notice to the Executive (i) informing her/his that the Company has Terminated her Employment
for Unacceptable Performance or Cause, as applicable, (ii) specifying the effective date of such Termination, (iii) specifying in detail the events of Unacceptable Performance or Cause
on which the Termination is based, and (iv) informing the Executive that she/he has the right to be heard by the Board regarding the existence of Unacceptable Performance or Cause by making a
written request to the Board within fifteen (15) days after receiving the Board's notice of Termination. If the Executive requests a hearing pursuant to clause (iv) of the preceding
sentence, the Board shall hold a meeting (which may be held telephonically, at the Board's discretion) as soon as administratively feasible thereafter, at which a quorum shall be present. The
Executive and her/his representative shall be given the opportunity to present evidence regarding the issue of Unacceptable Performance or Cause at such meeting. After considering the Executive's
evidence, the Board shall re-consider its determination of Unacceptable Performance or Cause, and it shall provide the Executive with written notice of its decision as soon as
administratively feasible thereafter. Termination of the Executive's Employment other than as provided in this Subsection shall be deemed a Termination of Employment for reasons other than
Unacceptable Performance or Cause, as applicable. 

        Section 10.    Termination for Adequate Reason or Good Reason by Executive.    The Executive may voluntarily
Terminate her/his Employment for Adequate Reason or Good Reason, as applicable, on the condition that (i) she/he provides the Company at least thirty (30) days' prior written notice
identifying, in reasonable detail, the acts or omissions of the Company constituting Adequate Reason or Good Reason, (ii) such notice is given within ninety (90) days after the first
occurrence of such act or omission, (iii) the Company is given ample opportunity to cure any deficiency stated in such written notice during such thirty-day period, and
(iv) such cure does not occur by the end of the thirty-day cure period. 

        Section 11.    Confidential Information.    The Executive acknowledges that she/he has had or will have access
to, or knowledge of, trade secrets and other Confidential Information. 

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        (a)    Confidential Information Defined.    "Confidential Information" shall include all information, whether or not
originated by the Executive, that (i) is used in the business any ExactTarget Entity and (i) (A) proprietary to or created by or on behalf of any ExactTarget Entity and from which the
ExactTarget Entity derives actual or potential economic value due to its confidential nature, (B) designated as confidential by any ExactTarget Entity in writing, or (C) not generally
available to persons other than personnel of any ExactTarget Entity and that the Company takes reasonable efforts to protect from disclosure, including, but not limited to the following types of
information (whether or not designated as confidential): 

        (1)   Information
regarding any ExactTarget Entity's customers, clients, and their representatives, potential customers, or leads; the content of any contracts to which any
ExactTarget Entity is or was a party or is or was bound; data provided by any ExactTarget Entity; and the type, quantity, and specifications of products and services being sold to, purchased, leased,
licensed, or received by any of ExactTarget Entity; 

        (2)   Information
received by any ExactTarget Entity from third parties (such as vendors) under an obligation of confidentiality, restricted disclosure, or restricted use; 

        (3)   Any
ExactTarget Entity's internal personnel and financial information (including the revenue, costs, or profits associated with any ExactTarget Entity's products);
payroll information, purchasing and internal cost information, internal service and operational manuals, and other information of any ExactTarget Entity and the manner and methods of conducting the
ExactTarget Entity's businesses; 

        (4)   Information
with respect to any ExactTarget Entity's products, facilities, methods, systems, trade secrets, and intellectual property, including but not limited to
design, development, or construction information; 

        (5)   Work
product and other information related to work or projects performed or about to be performed for any ExactTarget Entity or for any of its customers; 

        (6)   Marketing
and developmental plans, price and cost data, price and fee amounts, pricing and billing policies, quotation procedures, marketing techniques, methods of
obtaining business, forecasts, forecast assumptions and volumes, future plans, and potential strategies of any ExactTarget Entity; 

        (7)   Hardware,
software, computer programs, and other technology developed or used by any ExactTarget Entity; and 

        (8)   Any
other proprietary information relating to any ExactTarget Entity that may have been obtained by the Executive before or after the date of this Agreement. 

Information
or documents that are generally available or accessible to the public shall be deemed Confidential Information, if the information was retrieved, gathered, assembled, or maintained by the
Company in a manner not available to the public. From time to time, the Company or another ExactTarget Entity may, for its own benefit, choose to place certain of its Confidential Information or
records in the public domain. The fact that such Confidential Information may be made available to the public in a limited form and under limited circumstances does not change the confidential and
proprietary nature of such information, and does not release the Executive from her/his duties with respect to such Confidential Information, except to the extent of such limited form or limited
circumstance as set forth in this Agreement. 

        (b)    Ownership of Confidential Information.    All Confidential Information is and shall remain the exclusive
property of the ExactTarget Entities, whether or not prepared in whole or in part by the Executive and whether or not disclosed to or entrusted to the custody of the Executive. Upon the Termination of
the Executive's Employment, or upon the request of the Company at any time, 

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the
Executive shall promptly deliver to the Company all documents, tapes, disks, software, or other storage media and any other materials, and all copies thereof in whatever form, in the possession of
the Executive pertaining to the business of the ExactTarget Entities, including, but not limited to, any materials containing Confidential Information, and all other property of an ExactTarget Entity
in the Executive's possession or under the Executive's custody or control. 

        (c)    Non-Disclosure and Non-Use of Confidential Information.    The Executive and the
Company acknowledge and agree that disclosure of any Confidential Information to a third party, especially to any Competitor or unauthorized Vendor of the ExactTarget Entities, would be extremely
detrimental and prejudicial to the ExactTarget Entities. Therefore, the Executive shall hold all Confidential Information in strict confidence and solely for the benefit of the ExactTarget Entities.
The Executive shall use all Confidential Information only as required in the course of the Executive's employment with the Company as provided hereunder and for no other purpose. Except as directed by
a superior officer or the Board, the Executive shall not disclose any Confidential Information to anyone except the ExactTarget Entities, their authorized representatives, and third parties as
required in the ordinary course of the Executive's performance of her/his duties under this
Agreement. The Executive shall follow all Company policies and procedures to protect all Confidential Information and shall take any additional precautions necessary under the circumstances to
preserve and protect the use or disclosure of any Confidential Information. These confidentiality obligations shall continue during the Restricted Period. None of the obligations and restrictions set
forth in this Subsection applies to any part of the Confidential Information that the Executive demonstrates (i) was or became generally available to the public other than as a result of a
direct or indirect disclosure by the Executive, (ii) is required to be disclosed pursuant to an enforceable court order, or (iii) is required to be disclosed by applicable law. 

        Section 12.    Restrictive Covenants.    

        (a)    Non-Competition.    During the Restricted Period, the Executive shall not, directly or indirectly,
perform on behalf of any Competitor, Vendor, or Customer the same or similar services as those performed by the Executive for the Company at any time during the Executive's latest twelve
(12) months of service to the Company, to the extent that such services would be competitive with the Company's Business, and shall not own, manage, operate, join, control, lend money or other
assistance to, participate in, or otherwise be connected with any Competitor in (i) any market served by the Company or any ExactTarget Entity; (ii) any market within a
seventy-five (75) mile radius of Marion County, Indiana; (iii) any market in the State of Indiana; or (iv) any market within the broadest enforceable geographic area,
including, but not limited to, each state and other jurisdiction within the United States of America. Due to the nature of the Company's Business of providing web-based services, the
potential irreparable harm that will occur to the Company as a result of competition by the Executive is not necessarily tied to the physical location or presence of the Company or any Customer. 

        (b)    Non-Solicitation.    During the Restricted Period, the Executive shall not contact or solicit,
either on behalf of the Executive or on behalf of others, any Customer in order to (i) divert or influence or attempt to divert or influence any business of the Company or another ExactTarget
Entity to a Competitor, (ii) market, distribute, sell, or provide any products or services in competition with the Company, or (iii) otherwise interfere in any fashion with the Company's
Business or operations then being conducted by the Company or another ExactTarget Entity. 

        (c)    No Hire.    During the Restricted Period, the Executive shall not, on behalf of the Executive or on behalf of
persons other than the ExactTarget Entities, hire, employ, or attempt to hire or employ any Service Provider who is an employee, or in any way (i) cause or assist or attempt to cause or assist
any Service Provider to leave the Company or any other ExactTarget 

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Entity,
or (ii) directly or indirectly seek to solicit, induce, bring about, influence, promote, facilitate, or encourage any Service Provider to leave the Company or any other ExactTarget
Entity. 

        (d)    Non-Disparagement.    The Executive shall not make any negative or disparaging remarks about the
Company or any other ExactTarget Entity to any Competitor, Vendor, Customer, Service Provider, the media, or any other person. 

        (e)    Exceptions.    The prohibitions in this Section shall apply to any employment with, involvement or engagement
in, or control of another business or entity, whether as an employee, owner, manager, director, officer, agent, sole proprietor, joint venturer, partner, member, stockholder, independent contractor,
or in any other capacity; provided, however, these prohibitions shall not prevent the ownership of stock or other equity interests that are publicly traded, provided that (i) the investment is
passive, (ii) the Executive has no other involvement with the corporation or other entity, and (iii) the Executive's interest is less than five (5%) percent of the outstanding shares or
other equity interests of the company, and (iv) the Executive makes full disclosure to the Company of the ownership of the stock or other equity interests at the time that she/he acquires the
shares of stock or other equity interests. 

        (f)    Reasonable Restrictions.    The Executive agrees that the terms and covenants contained in this Section are
fair, reasonable, and necessary to protect the legitimate interests of the ExactTarget Entities. Notwithstanding anything contained herein to the contrary, if the scope of any restriction or covenant
contained in this Section is found by a court of competent jurisdiction to be too broad to permit enforcement of such restriction or covenant to its full extent, the such restriction or covenant shall
be enforced to the maximum extent permitted by law. The parties hereby acknowledge and agree that a court of competent jurisdiction shall invoke and exercise the blue pencil doctrine to the fullest
extent permitted by law to enforce this Agreement. 

        Section 13.    Remedies.    

        (a)    Damages.    To the extent calculable, the Company and the Executive shall each be liable to the other for any
monetary damages caused by any breach of this Agreement. In the event of the breach by the Executive of Section 11
or 12, the Company shall also be entitled to recover from the Executive its lost profits, and the parties agree that any gross profits earned by
the Executive's new employer as a direct or indirect result of any violation of Section 11
or 12 shall be deemed lost profits of the Company. 

        (b)    Injunctive Relief.    The Executive understands that any violation by the Executive of this Agreement,
including but not limited to any provision of Section 11 or 12, shall cause the Company to suffer
irreparable harm for which the Company will have no adequate remedy at law. Therefore, if the Executive threatens to violate or violates any provision of this Agreement, the Company shall be entitled
to seek injunctive relief, including but not limited to a temporary restraining order and/or a preliminary or permanent injunction to restrain or enjoin any violation or threatened violation of this
Agreement. The Company shall be entitled to seek immediate injunctive relief without notice and without the posting of any bond. The Company's right to injunctive relief shall be in addition to, and
not in lieu of, any other remedy that it may seek. 

        (c)    Attorneys' Fees and Costs.    If Company does not pay amounts due hereunder following a Change in Control, and
the Executive successfully brings an action to enforce her/his rights hereunder, the Company shall promptly reimburse the Executive for all reasonable attorneys' fees and other costs incurred in
bringing such action. 

        Section 14.    Assignment of Inventions.    Any and all inventions, improvements, discoveries, designs, works
of authorship, concepts or ideas, or expressions thereof, whether or not subject to patents, copyrights, trademarks, or service mark protections, and whether or not reduced to practice, that are 

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conceived
or developed by the Executive (whether alone or in conjunction with the efforts of others) while employed with the Company and which relate to or result from the actual or anticipated
business, work, research, or investigation of the Company (collectively, "Inventions"), shall be the sole and exclusive property of the Company. The Executive shall do all things reasonably requested
by the Company to assign to and vest in the Company the entire right, title, and interest to any such Inventions and to obtain full protection therefor. Notwithstanding the foregoing, the provisions
of this Agreement do not apply to an Invention for which no equipment, supplies, facility, or Confidential Information of the Company was used and which was developed entirely on the Executive's own
time, unless (i) the Invention relates to (A) the Company's Business or (B) the Company's actual or demonstrably anticipated research or development, or (ii) the Invention
results from any work performed by the Executive for the Company. 

        Section 15.    Statutory and Common Law Duties.    The duties that the Executive owes to the Company under this
Agreement shall be deemed to include statutory and common law obligations of the Executive and do not in any way supersede or limit any of the obligations or duties that the Executive otherwise owes
to the Company. This Agreement is intended, among other things, to supplement, but not displace, the provisions of the Indiana Uniform Trade Secrets Act, as enacted and amended from time to time. 

        Section 16.    Assignment and Binding Effect.    The Company's rights and obligations hereunder shall inure to
the benefit of and be binding on the Company's successors and assigns. This Agreement shall also be binding on the Executive's heirs and the executor and personal representative of the Executive's
estate. The Executive's obligations hereunder are personal in nature and may not be assigned by the Executive to any other person. 

        Section 17.    Severability.    If a court of competent jurisdiction makes a final determination that any term
or provision of this Agreement is invalid or unenforceable, and all rights to appeal the determination have been exhausted or the period of time during which any appeal of the determination may be
perfected has been exhausted, the remaining terms and provisions shall be unimpaired and shall be deemed valid and enforceable. 

        Section 18.    Entire Agreement and Modifications.    This Agreement constitutes the entire agreement by and
between the Company and the Executive with respect to the terms of the Executive's employment by
the Company (other than any option to purchase securities of the Company or other similar agreement previously, contemporaneously, or subsequently entered into between the Company and the Executive)
and shall supersede all prior and contemporaneous negotiations, agreements, commitments, representations, discussions, and understandings with respect thereto, whether written or oral, except
obligations imposed by law, which shall be deemed a part of this Agreement. Any amendment of, change to, or modification of this Agreement shall be effective only if such amendment, change, or
modification is in writing and signed by an authorized representative of the parties hereto. No agreement or representation, oral or otherwise, express or implied, with respect to the subject matter
hereof has been made by any party which is not expressly set forth in this Agreement. 

        Section 19.    Interpretation.    This Agreement shall be construed as a whole, according to its fair meaning,
and not construed for or against either party. 

        Section 20.    Waiver.    No act or omission by the Company shall be deemed a waiver by the Company of any of
its rights under this Agreement absent a writing to that effect signed by the Company. The waiver by any party of compliance by any other party with any provision of this Agreement shall not operate
or be construed as a waiver of any other provision of this Agreement (whether or not similar), or a continuing waiver or a waiver of any subsequent breach by a party of a provision of this Agreement.
Performance by any party of any act not required of it under the terms and conditions of this Agreement shall not constitute a waiver of the limitations on its obligations under this Agreement, and no
performance shall estop that party from asserting those limitations as to 

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any
further or future performance of its obligations. The Executive acknowledges that every situation is unique, and the Company may need to respond to the actions by one employee, consultant, or
service provider differently from its response to the actions of another employee, consultant, or service provider. Therefore, the failure of the Company to enforce the same, similar, or different
restrictions against another employee or to seek a different remedy shall not be construed as a waiver or estoppel to the enforcement of the restrictions against the Executive. 

        Section 21.    Withholdings.    All compensation paid to the Executive pursuant to this Agreement shall be
subject to required withholdings under federal, state, and local laws and shall be payable in accordance with the Company's standard payroll practices and polices as they are applied to similarly
situated employees. 

        Section 22.    Governing Law, Venue, and Jurisdiction.    The validity, performance, enforcement,
interpretation, and any other aspect of this Agreement shall be governed by the laws of the State of Indiana, notwithstanding the choice of law provisions of any jurisdiction. The Executive hereby
consents to the exclusive jurisdiction of the local, state, and federal courts, as applicable, within Marion County, Indiana, and waives any defense of lack of personal jurisdiction or improper venue
to a claim brought in such court. EACH OF THE PARTIES EXPRESSLY WAIVE ANY RIGHTS TO A JURY TRIAL THAT IT MAY OTHERWISE HAVE IN ANY COURT WITH RESPECT TO THIS AGREEMENT TO THE EXTENT PERMITTED BY LAW. 

        Section 23.    Notices.    All notices and other communications given or made pursuant to this Agreement shall
be in writing and shall be deemed to have been duly given (i) on the date of service, if served personally on the party to whom notice is to be given, (ii) when sent by confirmed
electronic mail or facsimile, if sent during the normal business hours of the recipient to the work facsimile number or e-mail address of the recipient, and if not sent during such normal
business hours, then on the next business day, or (iii) on the third day after mailing, if mailed to the party to whom notice is to be given by registered or certified mail, return receipt
requested, postage prepaid, to the following addresses: 

	(a)
	If
to the Company, to: 

ExactTarget, Inc.

Attn: [NOTE 7]

20 N. Meridian

Suite 200

Indianapolis, IN 46204 

	(b)
	If
to the Executive, to the Executive's last known residential address. 

Either
party hereto may, by giving written notice to the other party hereto as provided above, change the foregoing contact information to which notice shall then be sent. 

        Section 24.    Headings.    Section headings are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect its interpretation. 

        Section 25.    Counterparts.    This Agreement may be executed in two counterparts, each of which shall be
deemed to be an original, but both of which together shall constitute one and the same Agreement. Only one counterpart signed by the party against which enforcement is sought needs to be produced to
evidence the existence of this Agreement. 

        Section 26.    Executive Warranties.    The Executive warrants and represents to the Company that her/his
execution and performance of this Agreement do not and will not violate any express or implied obligations of the Executive to any other individual or entity and that the Executive shall provide a
copy of this Agreement to any person or entity that employs or attempts to employ or otherwise engage the services of the Executive after the Termination of her/his Employment. 

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        Section 27.    Acknowledgment.    THE COMPANY AND THE EXECUTIVE HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND
VOLUNTARILY AGREE TO BE BOUND BY ITS TERMS. THE COMPANY AND THE EXECUTIVE ACKNOWLEDGE THAT THEY HAVE HAD ADEQUATE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL OR OTHER ADVISORS BEFORE SIGNING THIS
AGREEMENT. 

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

	EXECUTIVE	 	EXACTTARGET, INC.
	

 	
 	

 	
 	

 	
 	

 
	By:	 	
 [NOTE 1]	 	By:	 	
 [NOTE 7]
	

 	
 	

 	
 	

 	
 	

 
	Date:	 	
	 	Date:	 	

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Appendix A

Defined Terms  

        For purposes of this Agreement, the following terms, when capitalized, shall be the meanings specified below: 

        "Adequate
Reason" means, without the Executive's written consent, the Company's (i) material breach of this Agreement, (ii) material reduction of the Executive's base
compensation, or (iii) requirement that the Executive perform the principal duties of employment at a location that is more than forty (40) miles from the Company's headquarters in
Indianapolis, Indiana (or such other location as previously agreed to by the Executive). 

        "Board"
or "Board of Directors" means the Company's Board of Directors or the committee of the Company's Board of Directors to which authority to determine a matter has been delegated
(to the extent of such delegation). 

        "Cause"
means the Executive's (i) act or omission constituting fraud that is materially injurious to the Company; (ii) commission of a felony that is materially injurious
to the Company, (iii) intentional disclosure of Confidential Information that is materially injurious to the Company; or (iv) material neglect of duty or serious misconduct that is
materially injurious to the Company; provided, in the case of this clause (iv), that the Executive has failed to correct such neglect or misconduct within thirty (30) days after
receiving a written statement from the Board identifying such neglect and/or misconduct in reasonable detail. "Cause" does not include the Executive's failure or refusal to follow an unreasonable or
unlawful instruction or direction from the Board or the Company's President. 

        "Change
in Control" means (i) the Company's consummation of a merger, consolidation, reorganization, or similar business transaction, unless immediately after such transaction,
more than 50% of the outstanding voting power of the surviving or resulting entity is held by persons who were shareholders of the Company immediately before the transaction; or (ii) the
Company's consummation of a sale of all or substantially all of its assets. 

        "Company's
Business" means the business conducted by the Company, including the development and provision of web-based software to its customers, which enables its customers
to engage in e-mail marketing for their businesses. 

        "Company"
means Exact Target, Inc. and any successor to substantially all of the business of Exact Target, Inc. by merger, consolidation, reorganization, or similar
transaction. 

        "Competitor"
means any person or entity that competes with the Company or any other ExactTarget Entity in a business that is the same as or substantially similar to the Company's
Business. 

        "Confidential
Information" has the meaning specified in Subsection 11(a). 

        "Customer"
means any person or entity that, at any time during the Executive's latest twelve (12) months of service to the Company, used or purchased or contracted to use or
purchase any products or services from the Company or any other ExactTarget Entity or was in discussion with, or being solicited by, the Company or any other ExactTarget Entity with respect to such
use or purchase. 

        "Disability"
means that the Executive is eligible for benefits under the Company's long-term disability program. 

        "ExactTarget
Entities" means, collectively, the Company and its subsidiaries, and "ExactTarget Entity" means the Company or one of its subsidiaries. 

        "Good
Reason" means, without the Executive's prior written consent, the Company's (i) material breach of this Agreement, (ii) material reduction of the Executive's base
compensation, (iii) requirement that the Executive perform the principal duties of employment at a location that is 

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more
than forty (40) miles from the location at which she was required to perform such duties immediately before the Change in Control, (iv) material diminution of the Executive's
authority, duties, or responsibilities, (v) material diminution in the budget over which the Executive retains authority, or (vi) material diminution in the authority, duties,
responsibilities of the supervisor to whom the Executive is required to report. 

        "Restricted
Period" means the period of time during the Executive's employment with the Company and continuing for twelve (12) months after the Executive's Termination Date. If
the Executive breaches Section 12 of the Agreement during the Restricted Period, the Restricted Period shall be extended automatically by the number of days during which the Executive is in
breach of such Section. 

        "Service
Provider" means any person or entity that was, at any time during the Executive's latest twelve (12) months of service to the Company, an employee, consultant, or other
service provider of the Company or any other ExactTarget Entity. 

        "Term"
has the meaning specified in Section 3. 

        "Termination
Date" means the effective date of the Executive's Termination of Employment. 

        "Termination,"
"Termination of Employment," "Terminate the Executive's Employment," or any variation thereof means a separation from service within the meaning of Code
Section 409A(a)(2)(A)(i). If the Company sells all or substantially all of its business assets to an unrelated entity, to the extent permitted by Code Section 409A and the guidance
thereunder, the Company and the purchaser of such assets may agree that such purchaser will stand in place of the Company hereunder, and that a Termination of Employment shall not have occurred with
respect to the Executive, if the Executive becomes an employee of such purchaser immediately after the sale. In the case of such an agreement, the term "Company" shall include such purchaser. 

        "Unacceptable
Performance" means the Executive's (i) act or omission constituting Cause, (ii) willful and material failure to perform the duties of her employment (except
in the case of a Termination of Employment for Adequate Reason or on account of the Executive's physical or mental inability to perform such duties), provided that the Executive does not cure such
failure within five (5) days after receiving written notice from the Board specifying such failure in detail, (iii) willful and material violation of the Company's code of ethics or
written harassment policies, or (iv) intentional breach of a material term or condition of this Agreement, provided that the Executive does not cure such failure within five (5) days
after receiving written notice from the Board specifying such failure in detail. 

        "Vendor"
means any person or entity that, at any time during the Executive's latest twelve (12) months of service to the Company, provided or contracted to provide services or
products to the Company or any other ExactTarget Entity. 

11

SCHEDULE  

        Schedule to Notes in Form of Employment Agreement  

	Note 1

(Name)
	 	Note 2

(Title)
	 	Note 3

(Effective Date)
	 	Note 4

(Base Salary)
	 	Note 5

  
	 	Note 6

  
	 	Note 7

  

	Scott D. Dorsey	 	President and Chief Executive Officer	 	July 15, 2004	 	$	250,000	 	100%	 	150%	 	Compensation Committee Chair
	Traci M. Dolan	 	Chief Financial Officer, Executive Vice President, Finance and Administration	 	October 1, 2004	 	$	175,000	 	50%	 	100%	 	President
	Scott J. Bleczinski	 	Executive Vice President, Sales	 	May 1, 2002	 	$	175,000	 	50%	 	100%	 	President
	Scott S. McCorkle	 	Executive Vice President, Technology and Product	 	August 15, 2005	 	$	200,000	 	50%	 	100%	 	President
	Peter D. McCormick	 	Vice President—Partnerships	 	July 15, 2004	 	$	175,000	 	50%	 	100%	 	PresidentEXHIBIT 10.7  

Portions
of this Exhibit 10.7 have been omitted based upon a request for confidential treatment. This Exhibit 10.7, including the non-public information, has been filed
separately with the Securities and Exchange Commission. "[*]" designates portions of this document that have been redacted pursuant to the request for confidential treatment
filed with the Securities and Exchange Commission. 

PATENT LICENSE AGREEMENT (NONEXCLUSIVE)  

THIS AGREEMENT is made this 24 day of March, 2006, 

BETWEEN:  

HULA HOLDINGS, LLC, an Illinois limited liability company, and. SUBSCRIBERMAIL, LLC, an
Illinois limited liability company, each having an office at 3333 Warrenville Road, Suite 530, Lisle, IL 60532 ("LICENSOR"), 

AND:  

EXACTTARGET, INC., a Delaware corporation, and having an office at 20 North Meridian Street, Suite 200, Indianapolis, IN 46204
("LICENSEE"). 

WHEREAS:  

	(A)
	HULA HOLDINGS, LLC.    is the record owner of U.S. Patent No. 6,769,002 ("the '002 patent"), entitled "System
and Methods for Multilevel Electronic Mail Communication Programs", and the corresponding foreign patent applications pending before the Canadian and European patent offices;

	(B)
	SUBSCRIBERMAIL is a licensing agency, under license from HULA HOLDINGS, LLC for
the '002 patent and for the corresponding foreign patent applications and patent(s) resulting therefrom;

	(C)
	EXACTTARGET, INC.    is the record owner of U.S. Patent Application 10/769,095 (the '095 patent application) entitled
"Dynamic Content Electronic Mail Marking System and Method";

	(D)
	LICENSEE wishes to acquire a paid-up, royalty-free, worldwide, nonexclusive license to practice systems and
methods encompassed by the '002 patent and its corresponding foreign patent applications and patent(s) resulting therefrom; and

	(E)
	LICENSOR wishes to acquire a paid-up, royalty-free, worldwide, nonexclusive license to practice systems and
methods encompassed by the '095 patent application (including continuing patent applications thereof) and its corresponding foreign patent applications and patent(s) resulting therefrom. 

        NOW THEREFORE, in consideration of the mutual covenants and agreements recited herein, the parties agree as follows: 

	I.
	DEFINITIONS 

 
	(A)
	 Business Day means a day that is not a Saturday or a Sunday or a U.S. federal holiday.

	(B)
	Continuing Patent Application means a continuation, divisional or continuation-in-part application filed under
the conditions specified by U.S. patent statutes (particularly 35 U.S.C. § 

1

 

§120,
121 or 365(c)) or by U.S. Patent and Trademark Office rules (particularly 37 C.F.R. §1.78(a)). 

	(C)
	Email Marketing Field means the provision of electronic communication system resources to enable transmission from Person(s) to other
Person(s) (including but not limited to customers, potential customers, members, employees, franchisees, distributors and dealers) of email messages containing information regarding goods and services
offered by those Persons.

	(D)
	Licensor Assignee shall mean a Person to whom LICENSOR has assigned its rights and obligations under this Agreement who also receives
an assignment of all or part of the right, title and interest in the '002 patent and its corresponding foreign patent applications and patent(s) resulting therefrom. Subject to the provisions of
Section VI (Assignability), the LICENSOR ASSIGNEE shall succeed to the rights and obligations of LICENSOR, and with respect to the other provisions of this Agreement shall thereafter be
considered to be and referred to as the LICENSOR.

	(E)
	Licensee Assignee shall mean a Person to whom LICENSEE has assigned its rights and obligations under this Agreement pursuant to a
conveyance of substantially all of LICENSEE's assets pertaining to the making and selling of systems and methods in the Email Marketing Field. Subject to the provisions of Section VI
(Assignability), the LICENSEE ASSIGNEE shall succeed to the rights and obligations of LICENSEE, and with respect to the other provisions of this Agreement shall thereafter be considered to be and
referred to as the LICENSEE.

	(F)
	Person means an individual, corporation, limited liability company, partnership, proprietorship, or other entity engaged in
for-profit and/or not-for-profit endeavors.

 

	II.
	LICENSE FEE 

LICENSEE
shall pay to HULA HOLDINGS, LLC, as LICENSOR, non-refundable license fees [*] of  [*] U.S. dollars (US$[*]), to be made up of  [*] payments, as set forth below. License fees shall each be paid by the LICENSEE to HULA HOLDINGS, LLC, as the
LICENSOR, in the form of a cashier's check, certified check or wire transfer, and shall be paid according to the following schedule: 

	(i)
	Within
five (5) business days from the effective date of this agreement, LICENSEE shall pay to LICENSOR an  [*]; and

	(ii)
	Within
five (5) business days from the first day of calendar years [*], LICENSEE shall
pay to LICENSOR a non-refundable license fee of [*].

 

	III.
	NONEXCLUSIVE LICENSE GRANT 

Upon
timely payment to LICENSOR of the initial license fee set forth in Section II, LICENSEE shall hold a paid-up, royalty-free, worldwide, nonexclusive right and
license, without the right to grant sublicenses, except to wholly owned subsidiaries, to make, have made, use, sell, distribute, and/or offer to sell systems and methods encompassed by the `002
patent, its corresponding foreign patent applications and patent(s) resulting therefrom through the end of calendar year [*].
Upon timely payment to LICENSOR of each of the [*] license fees
([*]) set forth in Section II, LICENSEE shall retain its paid-up, royalty-free, worldwide,
nonexclusive right and license, without the right to grant sublicenses, through the end of the calendar year for which the payment was made. Upon timely payment to LICENSOR of the  [*] (and final) annual
license fee (in year [*]) set
forth in Section II, LICENSEE shall hold a paid-up, royalty-free, worldwide, nonexclusive right and license, without the right to grant sublicenses, except to wholly
owned subsidiaries, to make, have made, use, sell, distribute, and/or offer to sell systems and methods encompassed by the `002 patent, its corresponding foreign patent applications and patent(s)
resulting therefrom, for the 

2

 

remaining
term of the '002 patent, its corresponding foreign patent applications and patent(s) resulting therefrom. Failure to pay the initial and subsequent annual license fees in a timely manner, as
set forth in Section II, shall be considered a material breach of this Agreement, entitling LICENSOR, at its sole discretion, to rescind the foregoing license grant. Such rescission shall not,
however, rescind LICENSOR's other rights under this Agreement, including but not limited to cross-license rights under Section IV. 

	IV.
	CROSS-LICENSE 

LICENSEE
agrees to and does hereby grant to LICENSOR a paid-up, royalty-free, worldwide, nonexclusive right and license, without the right to grant sublicenses, except to
wholly owned subsidiaries, to make, have made, use, sell, distribute, and/or offer to sell systems and practice methods encompassed by the '095 patent application (including continuing patent
applications thereof), its corresponding foreign patent applications and patent(s) resulting therefrom. This provision shall extend to any Person to whom LICENSOR may assign its rights and obligations
under this Agreement pursuant to Section VI hereof. For greater clarity, LICENSOR shall succeed to, and shall automatically be deemed to hold, a paid-up, royalty-free,
worldwide, nonexclusive right and license, without the right to grant sublicenses, except to wholly owned subsidiaries, to make, have made, use, sell, distribute, and/or offer to sell systems and
practice methods encompassed by the '095 patent application (including continuing patent applications thereof), its corresponding foreign patent applications and patent(s) resulting therefrom. 

	V.
	INVALIDITY  

If,
prior to the payment of any license fee set forth in Section II (LICENSE FEE) of this Agreement, as a result of any litigation or re-examination or reissue proceeding involving
the '002 patent, claim 1 of the '002 patent (or claim 1 as amended during re-examination or reissue proceedings if substantially identical with original) is declared to be finally invalid,
no further payments of any remaining license fees due on the total sum set forth in Section II (LICENSE FEE) shall become due and payable to LICENSOR and the cross-license rights granted under
Section IV (CROSS-LICENSE) shall be automatically rescinded as a result of such finding of invalidity. Claim 1 will be considered finally invalid at such time as no further appeal is possible
within the U.S. Patent and Trademark Office or the U.S. Courts from the decision, judgment or decree of invalidity. 

	VI.
	ASSIGNABILITY 

 
	(A)
	 Assignment by LICENSOR 

LICENSOR
may assign its rights and obligations under this Agreement to a LICENSOR ASSIGNEE who also receives an assignment of all or part of the right, title and interest in the '002 patent and its
corresponding foreign patent applications and patent(s) resulting therefrom, unless (1) a patent infringement action involving the patent(s) resulting from the '095 patent application is
pending to which such intended LICENSOR ASSIGNEE is a party, or (2) an administrative proceeding is pending in which the validity of the patent(s) resulting from the '095 patent application is
being challenged and which has been instituted by or on behalf of LICENSOR or LICENSOR ASSIGNEE. 

	(B)
	Assignment by LICENSEE  

LICENSEE
may assign its rights and obligations under this Agreement to a LICENSEE ASSIGNEE that has received a conveyance of substantially all of LICENSEE's assets pertaining to the making and selling
of systems and methods in the Email Marketing Field, unless (1) a patent infringement action involving the '002 patent is pending to which such intended LICENSEE ASSIGNEE is a party, or
(2) an administrative proceeding is pending in 

3

 

which
the validity of the '002 patent is being challenged and which has been instituted by or on behalf of LICENSEE or LICENSEE ASSIGNEE. 

LICENSEE's
right to assign its rights and obligations under this Agreement is contingent upon the immediate payment to LICENSOR, no later than the date of such assignment, of any and all remaining
license fees up through and including the [*]. For greater clarity, a valid assignment of LICENSEE's rights and obligations
under this Agreement to a LICENSEE ASSIGNEE will require the prior payment to LICENSOR of [*]. 

	VII.
	DISPUTE RESOLUTION 

 
	(A)
	 Initiation of Dispute Resolution Process  

If
at any time a dispute between the parties with respect to any issue relating to this Agreement arises, a party wishing that the issue be considered further may give written notice ("Dispute
Notice") to the other. 

	(B)
	Referral to Mediation  

If
Dispute Notice is given, either party may, in the first instance, request to initiate mediation discussions with a view to settling the issue or dispute. The parties' Chief Executive Officers, or
their designees, shall thereafter meet within thirty (30) days of such request to conduct such mediation discussions. 

	(C)
	Submission to Arbitration  

If
the Chief Executive Officers do not reach a decision by within 30 days after an issue or dispute is referred to them for mediation, either party may at any time thereafter submit the issue
or dispute for determination by the Judicial Arbitration and Mediation Service, Inc. ("JAMS") pursuant to the following sections of this Agreement. 

	(D)
	Arbitration 

Except
as otherwise provided in this Agreement, any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be settled by arbitration. 

	(a)
	The
arbitration shall be administered by JAMS in a location to which the parties mutually agree. In the absence of such mutual agreement, the arbitrator shall determine the
arbitration location.

	(b)
	A
single arbitrator shall be appointed who is a former federal or state court judge affiliated with JAMS.

	(c)
	Judgment
upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. The award of the arbitrator shall be binding, final, and nonappealable.

	(d)
	The
parties may obtain discovery in aid of the arbitration to the extent permitted under Illinois law. The arbitrator shall resolve any discovery disputes.

	(e)
	Any
questions regarding the procedures to be followed in conducting the arbitration, as well as the enforceability of this Agreement to arbitrate, shall be resolved according to the
laws of the State of Illinois.

	(f)
	The
costs of the arbitration, including any JAMS administration fee, arbitrator's fee, and costs of the use of facilities during the hearings, shall be borne equally by the parties.
Each party shall bear its own costs and attorneys' fees associated with the arbitration, and the arbitrator shall not be empowered to award such costs and attorneys' fees to a party to the
arbitration. 

4

 

	VIII.
	TERM AND TERMINATION AGREEMENT 

 
	(A)
	 Term of this Agreement  

The
term of this Agreement shall be for the duration of the longest of the terms of the '002 patent, its corresponding foreign patent applications and patent(s) resulting therefrom and the '095 patent
application, its corresponding foreign patent applications and patent(s) resulting therefrom. 

	(B)
	Rights and Obligations of the Parties After Termination  

All
rights and obligations of the parties accruing during the term of this Agreement shall survive any termination of this Agreement, including the cross-licensing rights and obligations of the
parties and their assignees pursuant to Sections IV and VI hereof. 

	IX.
	PATENT MARKING 

 
	(A)
	 Marking by LICENSOR 

Where
applicable, LICENSOR and any LICENSOR ASSIGNEE agree to mark, in a reasonably perceptible manner and in accordance with applicable patent marking statutes, email systems provided to their
customers and for their own internal use, so as to communicate that such systems have been made, used, sold and/or offered for sale by virtue of license under the '095 patent application or continuing
patent applications thereof, its corresponding foreign patent applications and patent(s) resulting therefrom. 

	(B)
	Marking by LICENSEE 

Where
applicable, LICENSEE and any LICENSEE ASSIGNEE agree to mark, in a reasonably perceptible manner and in accordance with applicable patent marking statutes, email systems provided to their
customers and for their own internal use, so as to communicate that such systems have been made, used, sold and/or offered for sale by virtue of license under U.S. Patent No. 6,769,002, its
corresponding foreign patent applications and patent(s) resulting therefrom. 

	X.
	CONFIDENTIALITY 

The
parties agree to keep confidential and not to disclose to third parties the terms of this Agreement, except: 

	(a)
	in
the form of Press Release(s) or as otherwise mutually agreed upon by the parties;

	(b)
	to
the extent necessary to comply with Section IX (Patent Marking) of this Agreement;

	(c)
	in
response to a court order or as otherwise required by law.

 

	XI.
	GENERAL PROVISIONS 

 
	(A)
	 Modifications, Approvals and Consents  

No
amendment. modification, supplement, termination or waiver of any provision of this Agreement shall be effective unless in writing signed by the appropriate party and then only in the specific
instance and for the specific purpose given. 

	(B)
	Entire Agreement  

The
provisions in this Agreement constitute the entire agreement between the parties hereto and supersede all previous expectations, understandings, communications, representations and agreements
whether verbal or written between the parties. 

	(C)
	Notices 

5

 

Every
notice, request, demand, direction or other communication required or permitted to be given pursuant to this Agreement shall be deemed to be sufficiently given if in writing and delivered by
hand (including recognized overnight courier service) or transmitted by facsimile, in each case addressed as follows: 

	(a)
	if
to LICENSOR at: 

Jordan
Ayan, CEO

SubscriberMail, LLC

3333 Warrenville Road

Suite 530

Lisle, IL 60532

Telephone: (630) 717-2400

Facsimile: (630) 717-4900 

	(b)
	if
to LICENSEE at: 

Scott
Dorsey, President

ExactTarget, Inc.

20 North Meridian Street, Suite 200

Indianapolis, IN 46204

Telephone: (317) 423-3928

Facsimile: (317) 396-1592 

Any
notice delivered or transmitted as set forth above shall be deemed given and received on the day such notice was delivered or transmitted as set forth above if it was delivered or transmitted on a
business day or on the next business day if it was delivered or transmitted on a non-business day. 

A
party may at any time, by notice to the other, change its address to some no less convenient address and shall so change its address whenever its address ceases to be suitable for delivery by hand. 

	(D)
	Applicable Law 

The
construction, validity and performance of this Agreement shall be governed in all respects by the laws of State of Illinois and applicable laws of the United States. 

	(E)
	Severability  

If
any provision contained in this Agreement is found by any court or arbitrator for any reason, to be invalid, illegal or unenforceable in any respect in any jurisdiction: 

	(a)
	the
validity, legality and enforceability of such provision of the remaining provisions contained herein shall not be affected or impaired thereby, unless in either case as a result
of such determination this Agreement would fail in its essential purpose, and

	(b)
	the
parties shall use their best efforts to substitute for any provision that is invalid, illegal or unenforceable in any jurisdiction a valid and enforceable provision which achieves
to the greatest extent possible the economic, legal and commercial objectives of such invalid, illegal or unenforceable provision and of this Agreement and, failing the agreement of the parties on
such a substitution within 30 days after the finding of the court or arbitrator, either party may refer the matter for dispute resolution as provided herein.

 

	(F)
	Counterparts  

This
Agreement may be executed in counterparts or by facsimile, each of which shall together, for all purposes, constitute one and the same instrument, binding on the parties, and each of which shall
together be deemed to be an original, notwithstanding that both parties are not signatories to the same counterpart or facsimile. 

*
* * * * 

6

 

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

	SUBSCRIBERMAIL, LLC.

("LICENSOR")	 	EXACTARGET, INC.

("LICENSEE")
	

 	
 	

 
	/s/  JORDAN AYAN      
 Jordan Ayan, CEO	 	/s/  SCOTT DORSEY      
 Scott Dorsey, President
	

 	
 	

 
	3-24-06
 (Date)	 	3-24-06
 (Date)
	

 	
 	

 
	HULA HOLDINGS, LLC	 	 
	

 	
 	

 
	/s/  JORDAN AYAN      
 Jordan Ayan, CEO	 	 
	

 	
 	

 
	3-24-06
 (Date)	 	 

7

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