Document:

Exhibit 10.48

 

 

 

RESTRICTED STOCK AGREEMENT

NUVEL HOLDINGS, INC.

THIS AGREEMENT ("Agreement") is made effective as of December 1, 2016, by and between Nuvel Holdings, Inc., a Florida corporation (the "Company"), and Richard Resnick, a resident of the state of California ("Grantee").

 

W I T N E S S E T H:

WHEREAS, Grantee and the Company have entered into that certain Employment Agreement, dated December 1, 2016 (the "Employment Agreement"); and

WHEREAS, pursuant to Section 2(a) of Exhibit C to the Employment Agreement, the Company wishes to grant a restricted stock award to Grantee for shares of the Company's Series OH-1 Convertible Preferred Stock.

 

AGREEMENT:

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:

1.          Grant of Restricted Stock Award.  The Company hereby grants to Grantee on the date set forth above a restricted stock award (the "Award") for 4,223 shares (the "Shares") of Series OH-1 Convertible Preferred Stock ("OH-1 Stock") of the Company on the terms and conditions set forth herein and with the powers, preferences, limitations and relative rights set forth in the Certificate of Designation of the OH-1 Stock.  The Company shall make, or cause to be made, a book entry for such Shares of OH-1 in Grantee's name.  The Company will have no obligation to deliver any stock certificate to Grantee representing the Shares or the shares of Company common stock ("Common Stock") into which such Shares convert until such time as the risk of forfeiture and other transfer restrictions set forth in this Agreement have lapsed with respect to the Shares (or shares of Common Stock upon conversion of the Shares).  The Company may also place a legend on any certificates describing the risks of forfeiture and other transfer restrictions set forth in this Agreement providing for the return from Grantee, if applicable, and cancellation of such certificates if the Shares (or Common Stock into which the Shares convert) are forfeited as provided in Section 2 below.  Until such risks of forfeiture have lapsed or the Shares subject to this Award have been forfeited pursuant to Section 2 below, Grantee shall be entitled to vote the Shares (or shares of Common Stock upon conversion of the Shares) and shall receive all dividends attributable to such Shares (or shares of Common Stock upon conversion of the Shares), but Grantee shall not have any other rights as a shareholder with respect to such shares.

2.          Vesting of Restricted Stock.

a.          General.  The Shares of OH-1 Stock subject to this Award shall remain forfeitable until the shares vest and the risks of forfeiture lapse according to the following schedule:

Vesting Schedule

 

1/24 of the Shares will vest on each monthly anniversary of the date of this Award.

For the avoidance of doubt, the conversion of Shares into shares of Common Stock pursuant to the terms of the Certificate of Designation of the OH-1 Stock will have no impact on the vesting schedule of the Shares.  The vesting schedule will continue to apply to the shares of Common Stock issued by the Company after conversion in the same manner as applied to the Shares.

 

 

 

 

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b.          Termination of Relationship.  Except as expressly provided in Section 3.9.2 of the Employment Agreement, if Grantee's employment with the Company (or a subsidiary or affiliate of the Company) ceases at any time prior to the full vesting of all Shares issued under this Award (or shares of Common Stock upon conversion of the Shares) for any reason, including Grantee's voluntary resignation, retirement, death or disability, Grantee shall immediately forfeit all Shares subject to this Award (including shares of Common Stock upon conversion of the Shares) that have not yet vested pursuant to the schedule above.

c.          Acceleration of Vesting.  In the event of a Change of Control (as defined below), all of the Shares subject to this Award shall become fully vested and all risks of forfeiture shall lapse. For the purposes hereof, "Change of Control" means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the events in subsections (i) through (iv) below. For purposes of this definition, a person, entity or group shall be deemed to "Own," to have "Owned," to be the "Owner" of, or to have acquired "Ownership" of securities if such person, entity or group directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares Voting Power (as defined below), which includes the power to vote or to direct the voting, with respect to such securities. "Voting Power" means any and all classes of securities issued by the applicable entity that are entitled to vote in the election of directors of the applicable entity.

(i)          Any person, entity or group becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the combined Voting Power of the Company's then outstanding securities other than by virtue of a merger, consolidation, exchange, reorganization or similar transaction. Notwithstanding the foregoing, a Change of Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other person, entity or group from the Company in a transaction or series of related transactions the primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any person, entity or group (the "Subject Person") exceeds the designated percentage threshold of the Voting Power as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change of Control would occur (but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change of Control shall be deemed to occur;

(ii)          There is consummated a merger, consolidation, exchange, reorganization or similar transaction involving (directly or indirectly) the Company and, immediately after the consummation of such merger, consolidation, exchange, reorganization or similar transaction, the shareholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%) of the combined outstanding Voting Power of the surviving entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding Voting Power of the parent of the surviving entity in such merger, consolidation, exchange, reorganization or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

(iii)          There is consummated a sale, lease, exclusive license or other disposition of all or substantially all of the total gross value of the consolidated assets of the Company and its subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the total gross value of the consolidated assets of the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined Voting Power of the voting securities of which are Owned by shareholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such sale, lease, license or other disposition (for purposes of this subparagraph (iii), "gross value" means the value of the assets of the Company or the value of the assets being disposed of, as the case may be, determined without regard to any liabilities associated with such assets); or

 

 

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(iv)        Individuals who, at the beginning of any consecutive twelve-month period, are members of the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of the members of the Board at any time during that consecutive twelve-month period; provided, however, that if the appointment or election (or nomination for election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Agreement, be considered as a member of the Incumbent Board.

For the avoidance of doubt, the term "Change of Control" shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. To the extent required, the determination of whether a Change of Control has occurred shall be made in accordance with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations, notices and other guidance of general applicability issued thereunder (collectively, the "Code").

3.        General Provisions.

a.        Employment or Other Relationship.  This Agreement shall not confer on Grantee any right with respect to continuance of employment, appointment to the Board of Directors of the Company or other relationship by the Company or any of its affiliates, nor will it interfere in any way with the right of the Company to terminate such employment, directorship or relationship.  Nothing in this Agreement shall be construed as creating an employment, directorship or service contract for any specified term between Grantee and the Company or any of its affiliates.

b.        280G Limitations.  Notwithstanding anything in this Agreement or in any other agreement, plan, contract or understanding entered into from time to time between Grantee and the Company to the contrary (except an agreement that expressly modifies or excludes the application of this Paragraph 3(b)), the lapse of the risks of forfeiture of this Award shall not be accelerated in connection with a Change of Control (as defined above) to the extent that such acceleration, taking into account all other rights, payments and benefits to which Grantee is entitled under any other plan or agreement, would  constitute a "parachute payment" or an "excess parachute payment" for purposes of Code Sections 280G and 4999, or any successor provisions, and the regulations issued thereunder; provided, however, that the Company, in its sole discretion and in accordance with applicable law, may modify or exclude the application of this Paragraph 3(b).

c.         Securities Law Compliance.  Grantee shall not transfer or otherwise dispose of the Shares received pursuant to this Agreement (or shares of Common Stock following conversion of the Shares) until such time as the Company and its counsel shall have determined that such transfer or other disposition will not violate any state or federal securities laws.  Grantee may be required by the Company, as a condition of the effectiveness of this Award, to give any written assurances that are necessary or desirable in the opinion of the Company and its counsel to ensure the issuance complies with applicable securities laws, including that all Shares (and shares of Common Stock following a conversion of the Shares) subject to this Agreement shall be held, until such time that such Shares (or shares of Common Stock following a conversion of the Shares) is registered and freely tradable under applicable state and federal securities laws, for Grantee's own account without a view to any further distribution thereof; that the certificates (or, if permitted, book entries) for such shares shall bear an appropriate legend or notation to that effect; and that such shares will be not transferred or disposed of except in compliance with applicable state and federal securities laws.

d.        Mergers, Recapitalizations, Stock Splits, Etc.  In the event of an increase or decrease in the number of shares of Common Stock resulting from a stock dividend, stock split, reverse split, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of the Common Stock effected without receipt of consideration by the Company, other than due to conversion of the convertible securities of the Company, the Company shall adjust the number of Shares (or shares of Common Stock issued after conversion of the Shares) covered under this Award to reflect such change. Additional shares which may become covered by the Award pursuant to such adjustment shall be subject to the same restrictions as are applicable to the shares with respect to which the adjustment relates.

 

 

 

 

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e.        Shares Reserved.  The Company shall at all times during the term of this Agreement reserve and keep available such number of shares as will be sufficient to satisfy the requirements of this Agreement.

f.        Withholding Taxes.  To permit the Company to comply with all applicable federal and state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that, if necessary, all applicable federal and state payroll, income or other taxes are withheld from any amounts payable by the Company to Grantee.  If the Company is unable to withhold such federal and state taxes, for whatever reason, Grantee hereby agrees to pay to the Company an amount equal to the amount the Company would otherwise be required to withhold under federal or state law prior to the transfer of any Shares (or shares of Common Stock upon a conversion of the Shares)  subject to this Award (whether such transfer evidenced by book entry or certificates).  Notwithstanding the foregoing, to the extent that the receipt of the Shares or the lapse of any restrictions thereon results in income to Grantee for federal or state income tax purposes, in lieu of delivering to the Company at the time of such receipt or lapse, as the case may be, such amount of money as the Company may require to meet its withholding obligation under applicable tax laws or regulations, Grantee may elect to satisfy such tax payment obligations having the Company withhold from the distribution of shares upon the lapse of restrictions thereon such number of shares having a value up to the minimum amount of withholding taxes required to be collected on the transaction (at the optional flat rate for withholding of supplemental wages, if applicable conditions for use thereof are satisfied).  The value of the shares to be withheld shall be based on the fair market value of the shares on the date that the amount of tax to be withheld shall be determined.

g.        Nontransferability.  No portion of this Award for which the risks of forfeiture have not lapsed may be assigned or transferred, in whole or in part, other than by will or by the laws of descent and distribution.

h.        Lockup Period Limitation.  Grantee agrees that in the event the Company advises Grantee that it plans an underwritten public offering of its capital stock in compliance with the Securities Act of 1933, as amended, Grantee will execute any lock-up agreement the Company and/or the underwriter(s) deem necessary or appropriate, in their sole discretion, in connection with such public offering, provided that all officers and directors of the Company execute and deliver similar "lock-up" agreements that provide for the same restrictions.

i.        Blue Sky Limitation.  Notwithstanding anything in this Agreement to the contrary, in the event the Company makes any public offering of its securities and determines, in its sole discretion, that it is necessary to reduce the number of restricted stock awards so as to comply with any state securities or blue sky law limitations with respect thereto, the Board of Directors of the Company shall remove the risks of forfeiture (in full or in part) to which this Award is subject, provided that the Company gives Grantee 15 days' prior written notice of such removal.  Notice shall be deemed given when delivered personally or when deposited in the United States mail, first class postage prepaid and addressed to Grantee at the address of Grantee on file with the Company.

j.        Affiliates.  Grantee agrees that, if Grantee is an "affiliate" of the Company or any of its affiliates (as defined in applicable legal and accounting principles) at the time of a Change of Control (as defined above), Grantee will comply with all requirements of Rule 145 of the Securities Act of 1933, as amended, and the requirements of such other applicable legal or accounting principles, and will execute any documents necessary to ensure such compliance.

k.        Stock Legend.  The Company may require that the certificates (or, if permitted, book entries) for any Shares issued to Grantee (or, in the case of death, Grantee's successors), or shares of commons stock issued to Grantee following a conversion of the Shares,  shall bear an appropriate legend or notation to reflect the restrictions of Paragraph 3(c) and Paragraphs 3(g) through 3(j) of this Agreement; provided, however, that failure to so endorse any of such certificates shall not render invalid or inapplicable Paragraph 3(c) or Paragraph 3(g) through 3(j).

l.        Scope of Agreement.  This Agreement shall bind and inure to the benefit of the Company and its successors and assigns and of Grantee and any successors of Grantee.  This Award is expressly subject to all terms and conditions in this Agreement.

 

 

 

 

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m.        Choice of Law.  The law of the state of Minnesota shall govern all questions concerning the construction, validity, and interpretation of this Agreement, without regard to that state's conflict of laws rules.

n.        Severability.  In the event that any provision of this Agreement shall be held illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if the illegal or invalid provision had not been included.

o.        Arbitration.  Any dispute arising out of or relating to this Agreement or the alleged breach of it, or the making of this Agreement, including claims of fraud in the inducement, shall be discussed between the disputing parties in a good faith effort to arrive at a mutual settlement of any such controversy.  If, notwithstanding, such dispute cannot be resolved, such dispute shall be settled by binding arbitration.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The arbitrator shall be a retired state or federal judge or an attorney who has practiced securities or business litigation for at least 10 years.  If the parties cannot agree on an arbitrator within 20 days, any party may request that the chief judge of the District Court of Hennepin County select an arbitrator.  Arbitration will be conducted pursuant to the provisions of this Agreement, and the commercial arbitration rules of the American Arbitration Association, unless such rules are inconsistent with the provisions of this Agreement.  Limited civil discovery shall be permitted for the production of documents and taking of depositions.  Unresolved discovery disputes may be brought to the attention of the arbitrator who may dispose of such dispute. The arbitrator shall have the authority to award any remedy or relief that a court of this state could order or grant; provided, however, that punitive or exemplary damages shall not be awarded.  The arbitrator may award to the prevailing party, if any, as determined by the arbitrator, all of its costs and fees, including the arbitrator's fees, administrative fees, travel expenses, out-of-pocket expenses and reasonable attorneys' fees.  Unless otherwise agreed by the parties, the place of any arbitration proceedings shall be Hennepin County, Minnesota.

 

 

***Signature Page Follows***

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ACCORDINGLY, the parties hereto have caused this Agreement to be executed on the day and year first above written.

NUVEL HOLDINGS, INC.

By:  ____________________________________

Name:  James Mandel

Its: Chief Executive Officer

GRANTEE

 

 

 

_______________________________________

Richard Resnick

  

[Restricted Stock Agreement Signature Page]

 

 

Page 6 of 6Exhibit 10.70

 

 

INDEMNIFICATION AGREEMENT

THIS AGREEMENT ("Agreement"), which provides for indemnification, expense advancement and other rights under the terms and conditions set forth, is made and entered into this ____ day of ______________, 2016 between Nuvel Holdings, Inc., a Florida corporation (the "Company"), and ___________________________ ("Indemnitee").

RECITALS

WHEREAS, Indemnitee is serving as a ____________________ of the Company, and as such is performing a valuable service for the Company; and

WHEREAS, competent and experienced persons are reluctant to serve corporations as directors or officers or in other fiduciary capacities at the request of their companies unless they are provided with adequate protection from claims and actions against them arising out of their service to the corporation; and

WHEREAS, the Board of Directors has determined that the ability to attract and retain qualified persons to serve as directors and officers is in the best interests of the Company and its stockholders, and that the Company should act to assure such persons that there will be adequate rights to advancement and indemnification in respect of such claims; and

WHEREAS, Section 607.0850 of the Florida Business Corporation Act permits the Company to indemnify and advance defense costs to its officers and directors and to indemnify and advance expenses to persons who serve at the request of the Company as directors, officers, employees, or agents of other corporations or enterprises; and

WHEREAS, the Company desires to have Indemnitee continue to serve in an Official Capacity (as defined below), and Indemnitee desires to continue so to serve the Company, provided, and on the express condition, that Indemnitee is furnished with the indemnity, advancement, and other rights set forth in this Agreement;

AGREEMENT

Now, therefore, in consideration of Indemnitee's continued service to the company in Indemnitee's Official Capacity, the parties hereto agree as follows:

1.      Definitions. For purposes of this Agreement:

(a)      "Applicable Law" means the corporate law governing the affairs of the Company at the time of the events giving rise to the applicable claim for indemnification hereunder.  Such Applicable Law shall initially be the Florida Business Corporation Act; provided, however, such Applicable Law may be the corporate laws of another state should the Company change its state of incorporation (e.g., the Delaware Business Corporation Act should the Company change its state of incorporation to Delaware).

(b)      "Change of Control" means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 5.01 of Current Report on Form 8-K (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934 (the "Act"), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, a Change of Control shall be deemed to have occurred if after the Effective Date (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Act) becomes the "beneficial owner" (as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing thirty percent (30%) or more of the combined voting power of the Company's then outstanding securities without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person attaining such percentage; (ii) the Company is a party to a merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter; or (iii) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors (including for this purpose any new director whose election or nomination for election by the Company's shareholders was approved by a vote of at least a majority of the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute at least a majority of the Board of Directors.

 

 

 

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(c)      "Disinterested Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification or advancement of expenses is sought by Indemnitee.

(d)      "Effective Date" means the date first above written.

(e)      "Expenses" include all direct and indirect costs including, but not limited to, reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, advisory fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, bond premiums, the costs of collecting, processing, producing, and hosting electronic materials and documents, and all other disbursements or expenses of the types customarily incurred in connection with investigating, prosecuting, defending (or preparing to investigate, prosecute, or defend) a Proceeding, or being or preparing to be a witness in a Proceeding.

(f)      "Official Capacity" means Indemnitee's corporate status as an officer or director and any other fiduciary capacity in which Indemnitee serves the Company, its subsidiaries and affiliates, or any other entity or enterprise (including an employee benefit plan) which Indemnitee serves in such capacity at the request of the Company's CEO, its Board of Directors or any committee of its Board of Directors.  "Official Capacity" also refers to actions that Indemnitee takes or does not take while serving in such capacity, including without limitation actions taken or not taken relating to the consideration, approval and execution of the OrangeHook Merger Agreement, and the consummation of the transactions contemplated thereby.

(g)      "OrangeHook Merger Agreement" means that certain Agreement and Plan of Merger, dated as of July 1, 2016 and amended October 14, 2016, by and among OrangeHook, Inc., a Minnesota corporation, the Company, and OH Acquisition Corp., a Minnesota corporation and wholly-owned subsidiary of the Company.

(h)      "Proceeding" includes any actual or threatened inquiry, investigation, action, suit, arbitration or other proceeding, whether civil, criminal, administrative, or investigative, whether or not initiated prior to the Effective Date, except a proceeding initiated by an Indemnitee pursuant to Section 6(a) to enforce his or her rights under this Agreement.  "Proceeding" also includes any corporate internal investigation from and after the time in which the Indemnitee has received or is entitled to receive the warning mandated in Upjohn Co. v. United States, 449 U.S. 383 (1981).

2.      Indemnification.

(a)      General.  Except as otherwise provided in this Agreement, the Company shall indemnify Indemnitee to the fullest extent permitted by the Applicable Law as such law may from time to time be amended.  Indemnitee shall be entitled to the indemnification provided in this Section if, by reason of his or her Official Capacity, Indemnitee is a party or is threatened to be made a party to any Proceeding or by reason of anything done or not done by Indemnitee in his or her Official Capacity. The Company shall indemnify Indemnitee against all costs, judgments, penalties, fines, liabilities, amounts paid in settlement by or on behalf of Indemnitee in any Proceeding, and Expenses actually and reasonably incurred by Indemnitee in connection with such Proceeding.

(b)      Exceptions. Indemnitee is not entitled to indemnification:

i.      to the extent such indemnification is prohibited by the Applicable Law or the public policies of the state of the Applicable Law, the United States of America, or agencies of any governmental authority in any jurisdiction governing the matter in question;

ii.     in connection with any Proceeding, or part thereof (including claims and permissive counterclaims) voluntarily initiated by Indemnitee and not by way of defense, except a judicial proceeding to enforce or interpret rights under this Agreement, unless the Proceeding (or part thereof) was authorized by the Board of Directors of the Company;

 

 

 

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iii.    with respect to any a judicial proceeding to enforce rights under this Agreement or interpret rights under this Agreement, if a court of competent jurisdiction determines that the material assertions made by Indemnitee in such proceeding were not made in good faith or were frivolous;

iv.    for any expenses or liabilities to the extent that such expenses or liabilities have been paid directly to Indemnitee by an insurance carrier under a policy of directors' and officers' liability insurance maintained by the Company; or

v.     for expenses or the payment of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

3.      Advancement of Expenses.

(a)      General. Except as otherwise provided in this Agreement, the Company shall advance Expenses to Indemnitee to the fullest extent permitted by the Applicable Law as such law may from time to time be amended.  Indemnitee shall be entitled to the advancement provided in this Section if by reason of his or her Official Capacity, Indemnitee is a party or is threatened to be made a party to any Proceeding or by reason of anything done or not done by Indemnitee in his or her Official Capacity. The Company shall make advances required by the Agreement within 30 days following written claim for Expenses incurred or paid by an Indemnitee in respect of the Proceeding.

(b)      Undertaking in Connection with Request for Advancement. As a condition precedent to the Company's advancement of Expenses to Indemnitee, Indemnitee shall provide the Company with (a) a written claim for Expenses incurred or paid by an Indemnitee in respect of the Proceeding and (b)  an undertaking, in substantially the form attached as Exhibit 1, by or on behalf of Indemnitee to reimburse such amount if it is finally determined, after all appeals to a court of competent jurisdiction are exhausted, that Indemnitee is not entitled to be indemnified against such Expenses by the Company as provided by this Agreement or otherwise. Indemnitee's undertaking to reimburse any such amounts is not required to be secured.  In making a written claim for advancement, Indemnitee need not submit to the Company information that counsel for Indemnitee deems is privileged and exempt from compulsory disclosure in any proceeding.

4.      Intentionally Omitted.

5.      Indemnification for Expenses Incurred in Serving as a Witness.

Notwithstanding any other provisions of this Agreement, Indemnitee shall be entitled to indemnification and advancement against all Expenses reasonably incurred for serving as a witness by reason of Indemnitee's Official Capacity in any Proceeding with respect to which Indemnitee is not a party.

6.      Indemnification Procedures.

(a)      Procedure.  The Company shall make any indemnification and advances provided under Sections 2, 3 and 5 no later than 30 days after receipt of written request of Indemnitee.  If the Company does not pay in full a claim under this Agreement within 30 days after a written request for payment has first been received by the Company, Indemnitee may, but need not, at any time thereafter bring an action against the Company to recover the unpaid amount of the claim, and Indemnitee will also be entitled to advances by the Company for the expenses (including reasonable attorney fees and expenses) of bringing such claim.  It will be a defense to such action  that Indemnitee has not met the standards of conduct which make it permissible under Applicable Law or this Agreement for the Company to indemnify Indemnitee for the claimed amount, but the burden of proving such defense will be on the Company. Indemnitee will be entitled to receive interim payments of Expenses pursuant to Section 3(a) and expenses pursuant to this Section 6(a) until such defense is adjudicated by court order or judgment.  If it is determined that Indemnitee is not entitled to be indemnified against the unpaid claim, in addition to any reimbursement obligations of the Indemnitee pursuant to Section 3(b) hereof, the Indemnitee will reimburse the Company for any expenses (including reasonable attorney fees and expenses) paid by the Company to Indemnitee with respect to the action, suit or proceeding brought by the Indemnitee against the Company to enforce payment of the unpaid claim.

 

 

 

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(b)      Notice to Insurers. If, at the time of the receipt of a notice of claim pursuant to Section 3(a) and (b) or Section 6(a), the Company has director and officer liability insurance coverage in effect, the Company shall give prompt notice of the commencement of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

7.      Intentionally Omitted.

8.      Continuation of Obligation of Company. All agreements and obligations of the Company contained in this Agreement shall continue during the period of Indemnitee's Official Capacity and shall continue thereafter with respect to any Proceedings based on or arising out of Indemnitee's Official Capacity. This Agreement will be binding upon all successors and assigns of the Company (including any transferee of all or substantially all of its assets and any successor by merger or operation of law).

9.      Notification and Defense of Claim.  Promptly after receipt by Indemnitee of notice of any Proceeding, Indemnitee shall notify the Company in writing of the existence thereof; but Indemnitee's failure so to notify the Company will not relieve the Company from any liability that it may have to Indemnitee.  Notwithstanding any other provision of this Agreement, with respect to any such Proceeding of which Indemnitee notifies the Company:

(a)      Except as otherwise provided in this Section 9(b), to the extent that it may wish, the Company may, separately or jointly with any other indemnifying party, assume the defense of the Proceeding.  After notice from the Company to Indemnitee of its election to assume the defense of the Proceeding, the Company shall not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee except as otherwise provided below.  Indemnitee shall have the right to employ Indemnitee's own counsel in such Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee shall have reasonably determined that there is a conflict of interest between the Company and Indemnitee in the conduct of the defense of the Proceeding, and such determination is supported by an opinion of qualified legal counsel addressed to the Company, or (iii) the Company shall not within sixty (60) calendar days of receipt of notice from Indemnitee in fact have employed counsel to assume the defense of the Proceeding.

(b)      The Company is not entitled to assume the defense of any Proceeding brought by or on behalf of the Company, or as to which Indemnitee shall have made the determination provided for in subparagraph (a)(ii) above.

(c)      Regardless of whether the Company has assumed the defense of a Proceeding, the Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any Proceeding effected without the Company's written consent, and the Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on, or require any payment from, Indemnitee without Indemnitee's written consent.  Neither the Company nor Indemnitee may unreasonably withhold its consent to any proposed settlement.

(d)      Until the Company receives notice of a Proceeding from Indemnitee, the Company shall have no obligation to indemnify or advance Expenses to Indemnitee as to Expenses incurred prior to Indemnitee's notification of Company.

 

 

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10.      Separability; Prior Indemnification Agreements.

(a)      If any provision of this Agreement is held to be invalid, illegal, or unenforceable for any reason whatsoever, (i) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, all portions of any paragraphs of this Agreement containing any such provision held to be invalid, illegal, or unenforceable, that are not by themselves invalid, illegal or unenforceable) will not in any way be affected or impaired thereby, and (ii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, all portions of any paragraph of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) are to be construed so as to give effect to the intent of the parties that the Company provide protection to Indemnitee to the fullest enforceable extent provided for in this Agreement.

(b)      Indemnitee's rights of indemnification and to receive advancement of Expenses under this Agreement are not exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Company's Bylaws, any other agreement, a vote of stockholders or a resolution of directors, or otherwise. The entry by Indemnitee into this Agreement, and the terms of this Agreement do not, change, limit, or affect in any respect, or terminate, any other agreements between Indemnitee and the Company.

11.      Nonattribution of Actions of Any Indemnitee to Any Other Indemnitee.  For purposes of determining whether Indemnitee is entitled to indemnification or advancement of Expenses by the Company under this Agreement or otherwise, no action or inaction of any other indemnitee or group of indemnitees may be attributed to Indemnitee.

12.      Insurance.

(a)      In all policies of director and officer liability insurance purchased by Company, the Company shall cause Indemnitee to be named as an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Company's officers and directors (other than in the case of an independent director liability insurance policy if Indemnitee is not an independent or outside director).  Company shall promptly notify Indemnitee of any good faith determination not to provide such coverage or of any lapse or termination of any such policy.

(b)      Insurance Upon a Change of Control.  In the event of and immediately upon a Change of Control, Company (or any successor to the interests of Company by way of merger, sale of assets, or otherwise) shall be obligated to continue, procure, and otherwise maintain in effect for a period of six (6) years from the date on which such Change of Control is effective a policy or policies of insurance (which may be a "tail" policy) (the "Change of Control Coverage") providing Indemnitee with coverage for losses from alleged wrongful acts occurring on or before the effective date of the Change of Control.   If such insurance is in place immediately prior to the Change of Control, then the Change of Control Coverage shall contain limits,  retentions or deductibles, terms and exclusions that are no less favorable to Indemnitee than those set forth above.  Each policy evidencing the Change of Control Coverage shall be non-cancellable by the insurer except for non-payment of premium.  No such policy shall contain any provision that limits or impacts adversely any right or privilege of Indemnitee given by this Agreement.

13.      Headings; References; Pronouns. The headings of the sections of this Agreement are inserted for convenience only; they do not constitute part of this Agreement or affect the meaning thereof. References herein to section numbers are to sections of this Agreement. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural as appropriate.

14.      Prior Acts.  This Agreement shall not be interpreted to provide indemnification for any past acts of the Indemnitee, except for actions taken or not taken relating to the consideration, approval and execution of the OrangeHook Merger Agreement, and the consummation of the transactions contemplated thereby.

 

 

 

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15.      Other Provisions

(a)      This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced as evidence of the existence of this Agreement.

(b)      This Agreement is not an employment agreement between the Company and Indemnitee, and nothing in this Agreement obligates the Company to continue Indemnitee in Indemnitee's Official Capacity.

(c)      Upon a payment to Indemnitee under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of Indemnitee to recover against any person for such liability, and Indemnitee shall execute all documents and instruments required and shall take such other actions as may be necessary to secure such rights, including the execution of such documents as may be necessary for the Company to bring suit to enforce such rights.

(d)      No supplement, modification, or amendment of this Agreement will be binding unless executed in writing signed by both parties hereto. No waiver of any of the provision of this Agreement shall be deemed or shall constitute a waiver of any other provision hereof (whether or not similar). A waiver made in a signed writing on one occasion is effective only in that instance and does not constitute a waiver on any future occasion or instance.

(e)      The Company agrees to stipulate in any court or before any arbitrator that the Company is bound by all the provisions of this Agreement and is precluded from making any assertions to the contrary.

(f)      Indemnitee's rights under this Agreement shall extend to Indemnitee's spouse, members of Indemnitee's immediate family, and Indemnitee's representative(s), guardian(s), conservator(s), estate, executor(s), administrator(s), and trustee(s), (all of whom are referred to as "Related Parties"), as the case may be, to the extent a Related Party or a Related Party's property is subject to a Proceeding by reason of Indemnitee's Official Capacity.

(g)      To the extent that Indemnitee (i) pays Expenses that the Company is obligated to but does not advance, or (ii) incurs expense, liability, or loss for which the Company is obligated to indemnify Indemnitee, Indemnitee will be subrogated to the Company's rights of recovery against any insurance carrier or other source to the same extent as if the Company had paid such Expense, liability, or loss or advanced such expense under this Agreement.

 

 

 [Signature Page Follows]

 

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and year first above written.

The Company

 

By  _______________________________________

Its  _______________________________________

      _______________________________________

        Indemnitee

 

 

 

 

 

 

 

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EXHIBIT 1

UNDERTAKING TO REPAY INDEMNIFICATION EXPENSES

I ______________________________________, agree to reimburse the Company for all expenses advanced to me or for my benefit by the Company for my defense in any civil or criminal action, suit, or Proceeding, in the event and to the extent that it shall ultimately be determined that I am not entitled to be indemnified by the Company for such expenses.

Signature  ________________________________

Typed Name ______________________________ 

Office ___________________________________

 

  

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