Document:

exhibit10-25.htm

    Exhibit
10.25

     

    Severance Plan for Clorox Executive
Committee Members 
Effective as of May 19, 2010

     

    The Severance
Plan for Clorox Executive Committee Members (the “Plan”) provides benefits in
certain instances to Participants who are employed by The Clorox Company, a
Delaware corporation (“Clorox”) or an Affiliate of Clorox (collectively, the
“Company”) and whose employment is involuntarily terminated. 

     

    Article I Definitions 

     

         1.1 “Affiliate” means any corporation or
other entity that, now or hereafter, directly or indirectly owns, is owned by,
or is under common ownership of Clorox. A corporation or other entity shall be
deemed to be “owned” by Clorox where Clorox owns more than fifty percent (50%)
of the equity or other ownership interest in, or has the power to vote on or
direct the affairs of such corporation or other entity. 

     

         1.2 “Base Salary” means the annual base
salary of the Participant immediately prior to termination of employment by the
Company. 

     

         1.3 “Board” means the Board of Directors
of Clorox. 

     

         1.4 “Bonus Target” means the annual
bonus that the Participant would have received in a fiscal year under the
Company’s Annual Incentive Plan (“AIP Plan”) and/or the Company’s Executive
Incentive Compensation Plan (“EIC Plan”), if the target goals had been
achieved.

     

         1.5 “Code” means the Internal Revenue
Code of 1986, as amended.

     

         1.6 “General Release” means a general
release of all claims in the form attached as Exhibit 1, which may be amended by
the Management Development and Compensation Committee of Clorox’s Board (the
“Committee”) at its sole discretion from time to time. 

     

         1.7 “Medical Insurance Coverage” means
any medical, dental, vision and prescription drug insurance coverage offered by
the Company to its salaried employees. 

     

         1.8 “Misconduct” means any act or
omission of the Participant through which he: (i) willfully neglects significant
duties he is required to perform or willfully violates a material Company
policy, and, after being warned in writing, continues to neglect such duties or
continues to violate the specified Company policy; (ii) commits a material act
of dishonesty, fraud, misrepresentation or other act of moral turpitude; (iii)
acts (or omits to act) with gross negligence in the course of employment; (iv)
fails to obey a lawful direction of the Board or a corporate officer to whom he
reports, directly or indirectly; or (v) acts in any other manner inconsistent
with the Company’s best interests and values. 

     

    No act or
failure to act on the part of the Participant shall be considered “willful”
unless it is done, or omitted to be done, by the Participant in bad faith or
without reasonable belief that the Participant’s action or omission was in the
best interests of the Company. Any act or failure to act based upon authority
given pursuant to a resolution duly adopted by the Board, upon the instructions
of the Chief Executive Officer, or upon the advice of counsel for the Company
shall be conclusively presumed to be done or omitted to be done by the
Participant in good faith and in the best interests of the Company. The
Participant shall not be deemed to have committed an act or omission of
Misconduct unless and until the Committee determines that, in its good faith
opinion, the Participant is guilty of conduct described in subparagraphs (i)
through (v) above, and so notifies the Participant specifying the particulars
thereof in detail.

     

    1

     

    

    
    

         1.9 “Participant” means a regular
salaried employee of the Company scheduled to work more than twenty (20) hours
per week who is a member of the Clorox Executive Committee (“CEC Member”). A
Clorox employee who became or becomes a CEC Member on or after June 2, 2009
shall be considered a Participant under this Plan effective immediately. A
Clorox employee who was a CEC Member prior to June 2, 2009, shall be considered
a Participant under this Plan upon termination or expiration of such CEC
Member’s employment agreement with the Company, to the extent that such CEC
Member remains a CEC Member after such termination or expiration.

     

         1.10 “Section 409A” means Section 409A of
the Code, and any related regulations or other guidance promulgated thereunder
by the U.S. Department of the Treasury or the Internal Revenue Service.

     

         1.11 “Separation Date” means the last day
a Participant is employed by the Company. 

     

         1.12 “SERP” means The Clorox Company
Supplemental Executive Retirement Plan, as it may be amended from time to time.

     

         1.13 “Specified Employee” means a
Participant who, for purposes of Section 409A of the Code on the Separation
Date, is classified as:

     

              A. an officer of the Company having
annual compensation greater than the compensation limit in Section
416(i)(1)(A)(i) of the Code, provided that no more than fifty (50) officers of
the Company shall be determined to be Specified Employees as of any Separation
Date;

     

              B. a five percent owner of the Company,
regardless of compensation; or

     

              C. a one percent owner of the Company
having annual compensation from the Company of more than $150,000.

     

         1.14 “Year of Service” means a
consecutive or non-consecutive twelve-month period, including approved leaves of
absence, beginning on the first date that a Participant performs an hour of
service for the Company. If a Participant separates service from the Company and
is rehired within a twelve-month period, any period of less than twelve
consecutive months during which the Participant does not perform an hour of
service will be counted when computing Years of Service. A twelve-month or
longer period of separation will not be counted when computing Years of Service.

     

    2

     

    

    
    

         1.15 Other Definitions. 

     

    
      	     	AIP Plan	Section 1.4
	
            	Bonus	Section 3.1 (B)
	
            	CIC Agreement	Section 3.5
	 	Claimant	Section 4.2
	
            	Clorox	Recital	
            	
            
	
            	COBRA	Section 3.1 (D)
	
            	Committee	Section 1.6
	
            	Company	Recital	
            	
            
	
            	EIC Plan	Section 1.4
	
            	ERISA	Section 5.6
	
            	Other Benefits	Section 3.5
	
            	Plan	Recital	
            	
            
	
            	Plan Administrator	Section 4.1  

    

    Article II Termination of Employment

     

         2.1 By Company for Misconduct. The
Company may terminate the Participant's employment for Misconduct (as defined in
Section 1.8 above) at any time in accordance with such definition. The Company
shall pay the Participant the salary and other amounts (e.g., accrued but unused
vacation) to which he is entitled by law through the Separation Date or under
the terms of another compensation or benefit plan, program or arrangement
sponsored by the Company, and thereafter the Company's obligations shall
terminate. The Participant shall not be entitled to any unpaid AIP Plan and/or
EIC Plan award(s) for the prior fiscal year or the fiscal year in which
termination occurs, and the Participant shall not be entitled to any benefits
under this Plan. 

     

         2.2 By Participant. The Participant may,
after satisfying any obligation to provide advance written notice to the Company
and continuing his employment until the end of such period, terminate his
employment, for any reason or no reason. The Company shall pay the Participant
the salary and other amounts (e.g., accrued but unused vacation) to which he is
entitled by law through the end of the Participant's employment or under the
terms of another compensation or benefit plan, program or arrangement sponsored
by the Company, and thereafter the Company's obligations shall terminate. The
Participant shall not be entitled to any benefits under this Plan. 

     

         2.3 By Company at Will. The Company may,
at any time, with or without notice, and for any reason or no reason, terminate
the Participant's employment. If the Company terminates the Participant’s
employment other than for Misconduct or on account of disability, the severance
payment provisions of Article III shall apply and the Company shall have no
additional liability. The Company’s progressive discipline policy and practice
do not apply to such terminations.

     

    3

     

    

    
    

    Article III Severance Benefits

     

         3.1 A Participant whose employment with
the Company is involuntarily terminated by the Company other than for Misconduct
or on account of disability is entitled to receive the benefits described below:

     

              A. An amount equal to two times the
Participant’s Base Salary. Such amount shall be paid as soon as reasonably
practicable and, subject to Section 3.4, no later than thirty (30) days after
the Separation Date. 

     

              B. An amount equal to: 

     

    
      	  	     	  	     	# of days in the current
      fiscal year	     	  	     	
            	  
	Bonus	 	X	 	through the
      Separation Date	 	X	 	75%	 
	  	
            	  	  	365	
            	  	
            	
            	  

    

    This amount
under 3.1(B) will be paid after the close of the fiscal year at the same time
that AIP and EIC Plan award payments are made to then employed executives;
provided, however, that if the Participant is a Specified Employee (as defined
in Section 1.409A-1(i) of the Treasury Department Regulations) on the Separation
Date, such payments shall be made in accordance with Section 3.4 below. For
purposes of this section, "Bonus" means a percentage of the Participant's Bonus
Target for such fiscal year based upon the application of the overall corporate
results factor and the division and/or functional results factor, if applicable,
of the AIP and/or EIC Plan award calculation matrix. The Bonus will not be based
on any personal objectives factor; thus, the individual modifier to be applied
to the corporate and business and/or functional results, if any, will be
calculated at 100%. 

     

    Provided,
however, that if the Participant meets retirement eligibility on the Separation
Date and thus is eligible to receive a prorated bonus (“Retirement Bonus”) in
the year of separation in accordance with the terms of the Company’s AIP Plan,
EIC Plan or any other plan adopted by the Company, the Company may determine, in
its sole discretion, to either pay such Retirement Bonus or pay the amount calculated in
accordance with this Section 3.1(B), but it shall not be obligated to pay
both.

     

              C. If the Participant as of the
Separation Date is at least age 53 and has at least 8 Years of Service, and
became eligible for participation in the SERP prior to its closure to new
participants in April 2007, but has not reached age 55 and/or has less than 10
Years of Service, then for the purpose of determining early retirement
eligibility and calculating the Early Retirement Benefit (including, but not
limited to, determining the Normal Retirement Benefit, Early Retirement Date and
any reduction factors used in calculating the Early Retirement Benefit) under
the SERP the Participant’s age, if less than 55, will be deemed to be 55 years
and 0 months on the Early Retirement Date and the Participant’s Years of
Service, if less than 10, will be deemed to be 10. Under these circumstances,
the Participant’s Early Retirement Benefit shall be calculated based upon the
Participant’s Compensation (as defined in the SERP) earned on or prior to the
Participant’s Separation Date.

     

    4

     

    

    
    

              D. The Company shall provide the
Participant with the benefits described in either paragraph (i) or (ii) below,
as follows:

     

    
      	      	(i)	      	if the
      Participant participated in a Company self-insured medical plan (which
      does not satisfy the requirements of Section 105(h)(2)) of the Code
      immediately prior to the Separation Date, then (a) the Participant shall
      have the right to continue in such plan for a period of up to two (2)
      years (as determined below) following the date on which his coverage would
      otherwise terminate under such plan on account of termination of
      employment (without for this purpose taking into account any health care
      continuation rights under COBRA (as defined below)) and (b) the Company
      shall pay to the Participant, or cause to have paid on the Participant's
      behalf, an amount equal to the Company's portion of the premiums payable
      for a period of up to two (2) years (as determined below) starting from
      the Separation Date, under the Company's group health plans for providing
      Medical Insurance Coverage to the Participant and to those family members
      covered through Participant under the Medical Insurance Coverage in effect
      at the time of the Separation Date. Such coverage described in (a) above
      shall be provided under the group health plans in which Participant and
      his covered family members are participating at the time of the Separation
      Date or subsequently elect in accordance with the Company's applicable
      established procedures. Subject to Section 3.4, the Company shall pay or
      cause to have paid all amounts due under section 3.1(D)(i)(b) in up to two
      annual installments, with the first installment due or credited within
      thirty (30) days after the Separation Date and a subsequent installment
      being made or credited on the anniversary thereof; provided, however, that
      either installment shall be prorated or eliminated to the extent that the
      Participant becomes eligible for other health coverage through a
      subsequent employer or reaches the age of 65 years during the year covered
      by the installment; or
	
            	 
	
            	(ii)	
            	if
      paragraph (i) above is not applicable (because the Participant
      participated in a health benefit program to which Section 105(h) of the
      Code is not applicable, such as the Company's HMO immediately prior to the
      Separation Date), the Company shall continue to provide benefits under
      such health plan on the same basis as for an employee of the Company, for
      a period of up to two (2) years (as determined below) starting from the
      Separation Date.

    

     

    Each continued
health benefit described herein shall cease upon the earliest of: (i) two years
from the Separation Date; (ii) the Participant’s 65th birthday; or (iii) the Participant’s
eligibility for the same type of health benefit (i.e., medical, dental or vision
coverage) under a subsequent employer’s group health plans. Any period of
participation hereunder shall not be subtracted from the period of months for
which the Participant is eligible for benefits under the Consolidated Omnibus
Budget Reconciliation Act of 1985 ("COBRA"). As such, upon the cessation of
coverage under this Section 3.1(D), the Participant shall be entitled to elect
continued coverage under COBRA (at the Participant's sole expense) for the full
period the Participant would have otherwise been entitled to had the
Participant's qualifying event (within the meaning of COBRA) occurred on the
date of such cessation of coverage. 

     

    5

     

    

    
    

              E. In addition, solely for purposes of
determining eligibility for retiree Medical Insurance Coverage, the Participant
shall be credited with two additional years of age and service as of the
Separation Date. If, taking into account these additional credits, the
Participant would meet the age and service requirements for non-subsidized or
subsidized participation under the Company’s retiree Medical Insurance Coverage
as and if offered to similarly situated former employees, the Participant shall
have the right to continued participation under such retiree Medical Insurance
Coverage on the same terms and conditions as for such former employees,
including applicable retiree premium contributions from the Participant as in
effect from time to time. Such right to participate shall apply from the time
such coverage would otherwise terminate pursuant to Section 3.1(D) above and
shall continue until the Participant attains age 65; thereafter the Participant
may participate in the Company's post-65 retiree Medical Insurance Coverage as
and if it may exist from time to time in the future, if he would be eligible to
participate pursuant to the terms of that plan. The Company reserves the right
to amend or eliminate retiree Medical Insurance Coverage and nothing in this
paragraph guarantees such coverage. 

     

         3.2 A Participant shall not be entitled
to the severance benefits set forth in this Article III if the Participant is
terminated by the Company but continues to be employed by, or is offered
employment with: (i) a third party or related entity in connection with an
outsourcing of such Participant’s position to such third party or related
entity; or (ii) any entity or individual that acquires all or any portion of the
assets or operations of the Company, or that assumes responsibility for the
performance of the obligations of all or any portion of the Company.
Notwithstanding the foregoing, if the continued or offered employment referenced
above in this Section 3.2 is in a location that is more than 50 miles from the
Participant’s current principle work location, and the Participant elects not to
continue or accept such employment, then the Participant shall be deemed to have
been involuntarily terminated by the Company other than for Misconduct or on
account of disability and therefore shall be entitled to severance benefits,
pursuant and subject to the other terms of this Plan. 

     

         3.3 As a condition to receipt of the
severance benefits set forth in this Article III, a Participant must execute a
General Release within the time specified therein. If the Participant does not
execute the General Release within the time provided, or having executed such
General Release, effectively revokes the General Release, or fails to comply
with his obligations and requirements under the General Release, then the
Company will not be obligated to provide any benefits or payments of any kind to
the Participant pursuant to this Plan and the Participant shall be obligated to
return to the Company any payments or benefits previously provided to the
Participant pursuant to this Plan. 

     

         3.4 Notwithstanding the foregoing, if
the Participant is a Specified Employee on the Separation Date, all payments
specified in this Article III that are subject to Section 409A but are not made
by March 15 of the year immediately following the Separation Date, may be made
to the extent that the amount does not exceed two times the lesser of (i) the
sum of the Participant's annualized compensation based upon the annual rate of
pay for services provided to the Company for the taxable year preceding the
termination, or (ii) the maximum amount ($245,000 in 2009) that may be taken
into account pursuant to Section 401(a)(17) of the Code for the year in which
the Participant has terminated. Any amounts exceeding such limit, may not be
made before the earlier of the date which is six (6) months after the Separation
Date or the date of death of
the Participant. Furthermore, any payments pursuant to this Article III shall be
postponed until six (6) months following the end of the consulting period so
long as the Participant continues to work on a consulting basis for the Company
following termination and such consulting requires the Participant to work more
than 20% of his average hours worked during the 36 months preceding his
termination. Any payments that were scheduled to be paid during the six (6)
month period following the Participant's Separation Date, but which were delayed
pursuant to this Section 3.4, shall be paid without interest on, or as soon as
administratively practicable after, the first day following the six (6) month
anniversary of the Participant's Separation Date (or, if earlier, the date of
Participant's death). Any payments that were originally scheduled to be paid
following the six (6) months after the Participant's Separation Date shall
continue to be paid in accordance to their predetermined schedule.

     

    6

     

    

    
    

         3.5 Notwithstanding any other provision
of this Plan to the contrary, any benefits payable to a Participant under this
Plan shall be in lieu of any severance benefits payable by the Company to such
individual under any other arrangement covering the individual, unless expressly
otherwise agreed to by the Company in writing. Further, in the event that the
Participant is entitled to receive severance benefits under any agreement or
contract with the Company, excluding that certain Amended and Restated Change in
Control Agreement for Level 1 Executives entered into between certain
Participants and Clorox ("CIC Agreement"); any plan, policy, program or other
arrangement adopted or established by the Company; under the Worker Adjustment
and Retraining Notification (WARN) Act, 29 U.S.C. § 2101 et seq., or other
applicable law providing for payments from Clorox or its subsidiaries or
affiliates on account of termination of employment, including pay in lieu of
advance notice of termination (“Other Benefits”), any severance benefits payable
hereunder shall be reduced by the Other Benefits. In the event that the
Participant becomes entitled to receive benefits under a CIC Agreement entered
into between such Participant and Clorox, any benefits payable thereunder shall
be in lieu of any severance benefits payable under this Plan. 

     

         3.6 Recoupment in Event of
Subsequently Discovered Misconduct. If, after the Separation Date of a
Participant, the Company discovers the Participant had engaged in acts or
omissions during the course of the Participant’s employment with the Company
that meet the definition of Misconduct (as defined in Section 1.8 above,
excluding any notice, prior written warning and other similar procedural terms
of that definition), then the Plan Administrator may immediately cease the
delivery of any further payments or benefits provided for under this Article III
and shall be entitled to recoup from the Participant for the benefit of the
Company any payments and/or the value of any benefits provided to the
Participant described in this Article III, plus interest at the then prevailing
prime rate. 

     

    Article IV Plan Administration and Claims

     

         4.1 Plan Administration. The Committee
shall serve as the person responsible for administration of this Plan ("Plan
Administrator"). As the Plan Administrator, the Committee has full discretionary
authority to administer and interpret this Plan, including discretionary
authority to determine eligibility for participation and for benefits under this
Plan and to correct errors. The Plan Administrator may delegate administrative
duties to other Company personnel or to any other committee. Any such delegation
will carry with it the full discretionary authority of the Plan Administrator to
carry out these duties. Any determination by the Plan Administrator or its
delegate will be final and conclusive upon all persons and shall be given the
maximum deference allowed by law.

     

    7

     

    

    
    

         4.2 Claims Procedure. If an individual
(“Claimant”) believes that he or she is entitled to a benefit under this Plan
that is greater than the benefit about which the Claimant has received notice
under this Plan, the Claimant may submit a written application to the Plan
Administrator or its delegate within 90 days of having been denied such a
benefit. The Claimant will generally be notified of the approval or denial of
this application within 90 days (180 days if the Plan Administrator (or its
delegate) determines that an extension of time for processing is required and
provides written notice to the Claimant) of the date that the Plan Administrator
(or its delegate) receives the application. If the claim is denied in whole or
in part, the notification will state specific reasons for the denial, reference
this Plan provisions on which the denial is based, include a description of any
additional materials or information necessary for the Claimant to perfect the
claim and an explanation of why such material or information is necessary, and
describe the Plan's claims review procedures. The Claimant will have 60 days to
file an appeal of the denial with the Plan Administrator (or its delegate). This
appeal will include the reasons for requesting an appeal, facts supporting the
appeal and any other relevant comments. The Plan Administrator (or its
delegate), operating pursuant to its discretionary authority to administer and
interpret this Plan and to determine eligibility for benefits under the terms of
this Plan, will generally make a final, written determination of the Claimant’s
appeal within 60 days (120 days if the Plan Administrator (or its delegate)
determines that an extension of time for processing is required and provides
written notice to the Claimant) of receipt of the request for review. If the
appeal is denied in whole or in part, the notification will state specific
reasons for the denial, reference the Plan provisions on which the denial is
based, and notify the Claimant of the right to initiate an arbitration
proceeding in accordance with Section 4.3. The Claimant must exhaust the
procedures set forth in this Section 4.2 before initiating an arbitration
proceeding relating to a claim for benefits under this Plan in accordance with
Section 4.3. Each Participant agrees as a condition of participating in this
Plan that arbitration is the exclusive dispute resolution mechanism with respect
to this Plan following a Claimant's exhaustion of the procedures described in
this Section 4.2. 

     

         4.3 Arbitration. Within one (1) year
following a Claimant's exhaustion of the procedures in Section 4.2, any
remaining controversy relating to this Plan shall be settled by the Claimant and
the Company solely pursuant to final and binding arbitration before a single
arbitrator in accordance with the then current commercial arbitration rules of
the American Arbitration Association, and judgment on the award rendered by the
arbitrator may be entered by any court having jurisdiction thereof. Failure by
the Claimant to initiate arbitration within the one (1) year time period set
forth above shall prevent the Claimant from any pursuit of such claim by any
means, whether through arbitration or otherwise, and the resolution of such
claim upon the completion of the claims procedure set forth in Section 7.2 shall
be final and binding on Claimant and any and all successors in interest. The
arbitrator shall determine whether to affirm or reverse the Plan Administrator's
(or its delegate's) denial of the appeal, and shall reverse such denial if the
Plan Administrator's (or its delegate's) decision was arbitrary or capricious.
The arbitrator shall have no power to alter, add to, or subtract from any
provision of this Plan. The arbitrator’s decision shall be final and binding on
all parties, if warranted on the record and reasonably based on applicable law
and the provisions of this Plan. The arbitrator shall have no power to award any
damages that are not permitted by ERISA, and under no circumstances shall an
award contain any amount that in any way reflects any of such types of damages.
Each party shall bear its own attorney’s fees, but the Company shall bear the
costs and expenses of arbitration (provided that if the Company prevails in the
arbitration, the arbitrator may, in his or her discretion, require the Claimant
to pay or reimburse the Company for all or a portion of such costs and
expenses). The location of the arbitration shall be within fifty (50) miles of
the last place of employment with the Company of the Participant with respect to
whose potential Plan benefit the claim is brought. Service of legal process
should be directed to the Legal Services Department of Clorox. Process may also
be served on the Corporate Secretary of Clorox. Clorox’s employer identification
number is 31-0595760. Clorox’s address and telephone number are: 1221 Broadway,
Oakland, CA 94612, (510) 271-7000.

     

    8

     

    

    
    

    Article V Miscellaneous Provisions

     

         5.1 Assignment. To the fullest extent
permitted by law, Plan benefits are not assignable. 

     

         5.2 Death of Participant. If a
Participant dies after an involuntary termination, the benefit that otherwise
would have been payable to the Participant will be paid, in a single sum
payment, as soon as administratively practicable to the Participant’s surviving
spouse, or if there is no such spouse, to the Participant’s estate.

     

         5.3 Compliance. Plan benefits are
conditioned on a Participant’s compliance with any confidentiality agreement or
release that the Participant has entered into with Clorox and/or with an
Affiliate in addition to any other requirement or obligation set forth in this
Plan or the General Release. 

     

         5.4 Amendment and Termination. The Board
or the Committee, by a signed writing, may amend or terminate this Plan at any
time, with or without notice; provided, however, that this Plan may not be
amended or terminated to reduce or eliminate benefits that would otherwise be
payable under this Plan to Participants who are entitled to benefits under
Article III as of the date such amendment or termination is approved by the
Board or the Committee, as applicable.

     

         5.5 Continued Services. This Plan does
not provide a Participant with any right to continue employment with the Company
or affect the right of the Company to terminate the services of any individual
at any time with or without cause. 

     

         5.6 Governing Law. This Plan is intended
to be an unfunded welfare benefit plan within the meaning of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”). To the extent
applicable and not preempted by ERISA, the laws of the State of California will
govern this Plan. 

     

         5.7 Plan Year. This Plan’s fiscal
records are maintained on a fiscal year basis with a June 30 year end.

     

         5.8 Source of Payments. Benefits payable
under this Plan are not funded and are payable only from the general assets of
Clorox or the appropriate Affiliate. 

     

    9

     

    

    
    

         5.9 Section 409A. To the extent
applicable, it is intended that this Plan and any payment made hereunder shall
comply with the requirements of Section 409A. Any provision that would cause
this Plan or any payment hereunder to fail to satisfy Section 409A shall have no
force or effect until amended to the minimum extent required to comply with
Section 409A, which amendment may be retroactive to the extent permitted by
Section 409A. 

     

         5.10 Gender, Number and References.
Except where otherwise indicated by the context, any masculine term used herein
also shall include the feminine, the plural shall include the singular and the
singular shall include the plural. Any reference in this Plan to a Section of
this Plan or to an act or code or to any section thereof or rule or regulation
thereunder shall be deemed to refer to such Section of this Plan, act, code,
section, rule or regulation, as may be amended from time to time, or to any
successor Section of this Plan, act, code, section, rule or regulation.

     

         5.11 Severability. The provisions of this
Plan are severable and in the event that a court of competent jurisdiction
determines that any provision of this Plan is in violation of any law or public
policy, in whole or in part, only the portions of this Plan that violate such
law or public policy shall be stricken. All portions of this Plan that do not
violate any statute or public policy shall not be affected thereby and shall
continue in full force and effect. Further, any court order striking any portion
of this Plan shall modify the stricken terms as narrowly as possible to give as
much effect as possible to the intent of the Company under this Plan.

     

         5.12 Notices. All notices or other
communications required or permitted hereunder shall be made in writing. Notice
shall be effective on the date of delivery if delivered by hand, on the first
business day following the date of dispatch if delivered utilizing next day
service by a recognized next day courier to the applicable address set forth
below, or if mailed, three business days after having been mailed, postage
prepaid, by certified or registered mail, return receipt requested, and
addressed to the applicable address set forth below. Notice given by facsimile
shall be effective upon written confirmation of receipt of the
facsimile.

     

                   If to the
Participant:

     

    To the residence address for the
Participant last shown on the Company’s payroll records. 

     

                   If to the
Company:

     

    The Clorox Company 
1221 Broadway

Oakland, California 94612 
Attention: General Counsel 
Fax:
510-271-1696 

     

    or to such
other address as either party shall have furnished to the other in writing in
accordance herewith. 

     

    10

     

    

    
    

         5.13 Waiver. No waiver of any breach
of any term or provision of this Plan by the Company shall be construed to be,
nor shall be, a waiver of any other breach of this Plan. No waiver shall be
binding unless in writing and signed by the Company. 

     

         5.14 Tax Withholding. All amounts or
benefits payable pursuant to this Plan shall be subject to such withholding
taxes as may be required by law. 

     

    11

     

    

    
    

    EXHIBIT 1 
GENERAL
RELEASE

     

    This document is an important one.
You should review it carefully and, if you agree to it, sign at the end on the
line indicated. 

     

    You have 21 days to sign this
Release, during which time you are advised to consult with an attorney regarding
its terms. 

     

    After signing this Release, you have
seven days to revoke it. Revocation should be made in writing and delivered so
that it is received by the Corporate Secretary of The Clorox Company, 1221
Broadway, Oakland, CA 94612 no later than 4:30 p.m. on the seventh day after
signing this Release. If you do revoke this Release within that time frame, you
will have no rights under it. This Release shall not become effective or
enforceable until the seven day revocation period has expired.

     

    The agreement for payment of
consideration in paragraph 2 will not become effective until the seven day
revocation period has passed. 

     

         This GENERAL RELEASE is entered into
between The Clorox Company (hereinafter referred to as "Employer") and
_____________________ (hereinafter referred to as "Executive"). Defined terms
used in this General Release not defined herein shall have the meaning set forth
in the Severance Plan (as defined below). Employer and Executive agree as set
forth herein, including as follows: 

     

    1. Executive's regular employment with
Employer will terminate as of _________________, 20_. Executive is ineligible for reemployment or
reinstatement with Employer. 

     

    2. Upon Executive's acceptance of the
terms set forth herein, the Employer agrees to provide the Executive with
compensation and benefits set forth in Article III of the Severance Plan for
Clorox Executive Committee Members (the “Severance Plan”), which compensation
and benefits shall be provided subject to the terms and conditions of the
Severance Plan, a copy of which is attached to this General
Release.

     

    12

     

    

    
    

    3. (a) In consideration of the Employer
providing Executive this compensation, Executive and Executive's heirs,
assignees and agents agree to release the Employer, all affiliated companies,
agents and employees and each of their successors and assigns (hereinafter
referred to as "Releasees") fully and finally from any claims, liabilities,
demands or causes of action which Executive may have or claim to have against
the Releasees at present or in the future, except for the following: (i) claims
for vested benefits under the terms of an employee compensation or benefit plan,
program or arrangement sponsored by the Company, (ii) claims for workers’
compensation benefits under any of the Company’s workers’ compensation insurance
policies or funds, (iii) claims related to Executive’s COBRA rights, and (iv)
claims for indemnification to which Executive is or may become entitled,
including but not limited to claims submitted to an insurance company providing
the Company with directors and officers liability insurance. The claims released
may include, but are not limited to, any tax obligations as a result of the
payment of consideration referred to in paragraph 2, and claims arising under
federal, state or local laws prohibiting discrimination in employment, including
the Age Discrimination in Employment Act (ADEA) or claims growing out of any
legal restrictions on the Employer's right to terminate its employees. Claims of
discrimination, wrongful termination, age discrimination, and any claims other
than for vested benefits are hereby released.

     

         (b) By signing this document,
Executive agrees not to file a lawsuit to assert such claims. Executive also
agrees that if Executive breaches this provision, Executive will be liable for
all costs and attorneys' fees incurred by any Releasee resulting from such
action and shall pay all expenses incurred by a Releasee in defending any
proceeding pursuant to this Section 3(b) as they are incurred by the Releasee in
advance of the final disposition of such proceedings, together with any tax liability
incurred by the Releasee in connection with the receipt of such amounts;
provided, however, that the payment of such expenses incurred in advance of the
final disposition of such proceeding shall be made only upon delivery to the
Executive of an undertaking, by or on behalf of the Releasee, to repay all
amounts so advanced to the extent the arbitrator in such proceeding
affirmatively determines that the Executive is the prevailing party, taking into
account all claims made by any party to such proceeding.

     

    13

     

    

    
    

    4. By signing this document, Executive
is also expressly waiving the provisions of California Civil Code section 1542,
which provides as follows:

     

    "A general release does not extend
to claims which the creditor does not know or suspect to exist in his favor at
the time of executing the release, which if known by him must have materially
affected his settlement with the debtor." 

     

    By signing this document, Executive
agrees and understands that Executive is releasing unknown as well as known
claims related to Executive's employment in exchange for the compensation set
forth above. 

     

    5. Executive agrees to maintain in
complete confidence the terms of this Release, except as it may be necessary to
comply with a legally compelled request for information. It is agreed since
confidentiality of this Release is of the essence, damages for violation being
impossible to assess with precision, that $10,000 is a fair estimate of the
damage caused by each disclosure and is agreed to as the measure of damages for
each violation.

     

    6. Executive agrees that for a period
of two years after termination of his employment, he shall not, for himself or
any third party, directly or indirectly solicit for employment any person
employed by the Employer, or any of its affiliates, during the period of such
person's employment and for a period of one year after the termination of such
person's employment with the Employer.

     

    14

     

    

    
    

    7. Executive's execution of this
General Release and the absence of an effective revocation of such General
Release by Executive shall constitute Executive's resignation from all offices,
directorships and other positions then held with the Employer or any of its
affiliates, and any other position held for the benefit of or at the request of
the Employer or any of its affiliates, and Executive hereby agrees that this
General Release constitutes such resignation. Executive also agree to execute a
confirmatory letter of resignation if requested.

     

    8. Executive hereby acknowledges and
agrees that all personal property and equipment furnished to or prepared by the
Executive in the course of or incident to his employment, belong to the Employer
and shall, if physically returnable, be promptly returned to the Employer upon
termination of his employment. "Personal property" includes, without limitation,
all books, manuals, records, reports, notes, contracts, lists, blueprints, and
other documents, computer media or materials, or copies thereof, and Proprietary
Information. Following
termination, the Executive will not retain any written or other tangible
material containing any Proprietary Information. "Proprietary Information" is
all information and any idea in whatever form, tangible or intangible,
pertaining in any manner to the business of the Employer or any its affiliates,
or to its clients, consultants, or business associates, unless: (i) the
information is or becomes publicly known through lawful means; (ii) the
information was rightfully in the Executive's possession or part of his general
knowledge prior to his employment by the Employer; or (iii) the information is
disclosed to the Executive without confidential or proprietary restriction by a
third party who rightfully possesses the information (without confidential or
proprietary restriction) and did not learn of it, directly or indirectly, from
the Employer.

     

    15

     

    

    
    

    9. Following termination, Executive
will continue to abide by the Employer's policy that prohibits discussing any
aspect of the Employer's business with representatives of the press without
first obtaining the permission of the Employer's Public Relations Department.

     

    10. Nothing in this General Release is
intended to limit any remedy of the Employer under the California Uniform Trade
Secrets Act (California Civil Code Section 3426), or otherwise available under
law.

     

    11. The provisions of this General
Release are severable and in the event that a court of competent jurisdiction
determines that any provision of this General Release is in violation of any law
or public policy, in whole or in part, only the portions of this General Release
that violate such law or public policy shall be stricken. All portions of this
General Release that do not violate any statute or public policy shall not be
affected thereby and shall continue in full force and effect. Further, any court
order striking any portion of this General Release shall modify the stricken
terms as narrowly as possible to give as much effect as possible to the intent
of the Employer and Executive under this General Release.

     

    12. Executive agrees to indemnify and
hold Employer harmless from and against any tax obligations for which Executive
may become liable as a result of this Release and/or payments made pursuant to
the Severance Plan, other than tax obligations of the Employer resulting from
the nondeductibility of any payments made pursuant to this Release or the
Severance Plan.

     

    13. Agreeing to this Release shall not
be deemed or construed by either party as an admission of liability or wrongdoing
by either party.

     

    14. This Release, the Severance Plan and
the plans of The Clorox Company referred to in the Severance Plan set forth
the entire agreement between Executive and the Employer. This Release is not
subject to modification except in writing executed by both of the parties. The
Clorox Company plan documents of plans referred to in the Severance Plans may be
amended in accordance with the provisions of those plans.

     

    16

     

    

    
    

        
Executive acknowledges by signing below that Executive has not relied upon any
representations, written or oral,
not set forth in this Release.

     

    Executive

     

    Dated:

     

    THE CLOROX COMPANY

     

    By: 

     

    Dated:

     

    17exhibit10-1.htm

    EIGHTH LOAN MODIFICATION
AGREEMENT

     

         This Eighth Loan Modification
Agreement (this “Loan Modification
Agreement”) is
entered into as of August 23, 2010, with an effective date as of July 30, 2010
(the “Eighth Loan Modification Effective
Date”), by and
between SILICON VALLEY
BANK, a
California corporation, with its principal place of business at 3003 Tasman
Drive, Santa Clara, California 95054 and with a loan production office located
at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton,
Massachusetts 02462 (“Bank”) and VOXWARE, INC., a Delaware corporation with its
chief executive office located at 300 American Metro Blvd, Suite 155, Hamilton,
NJ 08619 (“Borrower”).

     

    1.
DESCRIPTION OF EXISTING INDEBTEDNESS
AND OBLIGATIONS.
Among other indebtedness and obligations which may be owing by Borrower to Bank,
Borrower is indebted to Bank pursuant to a loan arrangement dated as of January
3, 2007, but effective as of December 29, 2006, evidenced by, among other
documents, a certain Amended and Restated Loan and Security Agreement dated as
of January 3, 2007, but effective as of December 29, 2006, by and between
Borrower and Bank, as amended by a certain First Loan Modification Agreement
dated as of February 2, 2007, as further amended by a certain Second Loan
Modification Agreement, dated as of February 13, 2008 but effective as of
December 27, 2007, as further amended by a certain Waiver and Third Loan
Modification Agreement, dated as of November 14, 2008, as further amended by a
certain Waiver and Fourth Loan Modification Agreement, dated as of February 17,
2009, as further modified by a certain Fifth Loan Modification Agreement, dated
as of March 31, 2009, as further amended by a certain Sixth Loan Modification
Agreement, entered into as of June 24, 2009, with an effective date of June 1,
2009, and as further amended by a certain Seventh Loan Modification Agreement
entered into as of September 9, 2009, in each case by and between Borrower and
Bank (as amended, the “Loan Agreement”). Capitalized terms used but not
otherwise defined herein shall have the same meaning as defined in the Loan
Agreement.

     

    2.
DESCRIPTION OF
COLLATERAL.
Repayment of the Obligations is secured by the Collateral as described in the
Loan Agreement and the Intellectual Property Collateral as described in a
certain Intellectual Property Security Agreement dated as of December 29, 2003
(as amended, the “IP Security
Agreement”)
(together with any other collateral security granted to Bank, the “Security
Documents”).

     

    Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the “Existing Loan
Documents”.

     

    3.
DESCRIPTION OF CHANGE IN
TERMS.

     

         A. Modifications to Loan
Agreement.

     

    
      	          	1	     	The Loan Agreement shall be
      amended by adding the following text at the end of Section 6.2(a)(vi)
      thereof:
	
            	
            	
            	 
	
            	
            	
            	“Notwithstanding the
      foregoing, Borrower may deliver its 2010 year-end financial statements to
      Bank on or before October 28, 2010.”
	
            	
            	
            	 
	
            	2	
            	The Loan Agreement shall be
      amended by deleting the following Section 6.9(a) thereof in its
      entirety:
	
            	
            	
            	 	
            
	
            	
            	
            	“ (a) Minimum
      Liquidity.
      As of the Seventh Loan Modification Effective Date, and at all times
      thereafter (certified monthly by the Borrower), liquidity in an amount
      equal to or greater than Two Million Five Hundred Thousand Dollars
      ($2,500,000), calculated as the sum of (i) Borrower’s unrestricted and
      unencumbered cash in accounts at Bank plus (ii) the aggregate
      Availability Amount.”

    

    

    
    

     

    
      	           
    	 	      	and inserting in lieu thereof
      the following:
	
            	 
	
            	
            	
            	“ (a) Minimum
      Liquidity.
      As of the Eighth Loan Modification Effective Date, and at all times
      thereafter (certified monthly by the Borrower), liquidity in an amount
      equal to or greater than Two Million Dollars ($2,000,000), calculated as
      the sum of (i) Borrower’s unrestricted and unencumbered cash in accounts
      at Bank plus (ii) the
      aggregate Availability Amount.”
	
            	
            	
            	 
	
            	3	
            	The Loan Agreement shall be
      amended by deleting the following definitions from Section 13.1 thereof,
      each in its entirety:
	
            	
            	
            	 
	
            	
            	
            	““Revolving Line Maturity
      Date” is
      July 30, 2010.
	
            	 
	
            	
            	
            	“Streamline
      Period”
      is, on and after the Seventh Loan Modification Effective Date, the period
      (i) commencing on the
      first day of the month following the immediately preceding month (the
      “Measurement
      Month”) in
      which Borrower’s (a) average daily unrestricted and unencumbered cash at
      Bank during such Measurement Month plus (b) the
      Availability Amount, as measured on the last day of the Measurement Month,
      is at least Three Million Five Hundred Thousand Dollars ($3,500,000), as
      determined by Bank, in its sole discretion; and (ii)
      terminating on the
      earlier to occur of (X) the occurrence of a Default or an Event of
      Default; and (Y) the first day in which Borrower fails to maintain (a)
      unrestricted and unencumbered cash in accounts at Bank
      plus (b) the
      aggregate Availability Amount, as determined by Bank, in its sole
      discretion, of at least $3,500,000. Borrower shall give Bank prior written
      notice of Borrower’s intention to enter into any such Streamline
      Period.”
	
            	
            	
            	 
	
            	
            	
            	and inserting in lieu thereof
      the following:
	
            	 
	
            	
            	
            	““Revolving Line Maturity
      Date” is
      July 29, 2011.
	
            	 
	
            	
            	
            	“Streamline
      Period”
      is, on and after the Eighth Loan Modification Effective Date, the period
      (i) commencing on the
      first day of the month following the immediately preceding month (the
      “Measurement
      Month”) in
      which Borrower’s (a) average daily unrestricted and unencumbered cash at
      Bank during such Measurement Month plus (b) the
      Availability Amount, as measured on the last day of the Measurement Month,
      is at least Three Million Dollars ($3,000,000), as determined by Bank, in
      its sole discretion; and (ii) terminating on the
      earlier to occur of (X) the occurrence of a Default or an Event of
      Default; and (Y) the first day in which Borrower fails to maintain (a)
      unrestricted and unencumbered cash in accounts at Bank
      plus (b) the
      aggregate Availability Amount, as determined by Bank, in its sole
      discretion, of at least $3,000,000. Borrower shall give Bank prior written
      notice of Borrower’s intention to enter into any such Streamline
      Period.”
	
            	
            	
            	 
	
            	4	
            	The Compliance Certificate
      appearing as Exhibit C to the Loan Agreement is
      hereby replaced with the Compliance Certificate attached as
      Exhibit A hereto.

    

    4.
FEES. Borrower shall pay to Bank a
renewal fee equal to Five Thousand Dollars ($5,000), which fee shall be due on
the date hereof and shall be deemed fully earned as of the date hereof. Borrower
shall also reimburse Bank for all legal fees and expenses incurred in connection
with this amendment to the Existing Loan Documents.

     

    

    
    

    5. RATIFICATION OF INTELLECTUAL
PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies, confirms
and reaffirms, all and singular, the terms and conditions of the IP Security
Agreement, dated as of December 29, 2003 and acknowledges, confirms and agrees
that said IP Security Agreement contains an accurate and complete listing of all
Intellectual Property Collateral as defined in said IP Security Agreement, and
shall remain in full force and effect. 

     

    6. RATIFICATION OF PERFECTION
CERTIFICATE; ADDITIONAL COVENANTS. Borrower hereby ratifies, confirms
and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of May 24, 2006, executed by Borrower
and delivered to Bank, and acknowledges, confirms and agrees the disclosures and
information above Borrower provided to Bank in the Perfection Certificate has
not changed, as of the date hereof. Borrower is not a party to, nor is bound by,
any license or other agreement with respect to which Borrower is the licensee
(a) that prohibits or otherwise restricts Borrower from granting a security
interest in Borrower’s interest in such license or agreement or any other
property, or (b) for which a default under or termination of could interfere
with the Bank’s right to sell any Collateral. Borrower shall provide written
notice to Bank within ten (10) days of entering or becoming bound by any such
license or agreement (other than over-the-counter software that is commercially
available to the public). Borrower shall take such steps as Bank requests to
obtain the consent of, or waiver by, any person whose consent or waiver is
necessary for (x) all such licenses or contract rights to be deemed “Collateral”
and for Bank to have a security interest in it that might otherwise be
restricted or prohibited by law or by the terms of any such license or agreement
(such consent or authorization may include a licensor’s agreement to a
contingent assignment of the license to Bank if Bank determines that is
necessary in its good faith judgment), whether now existing or entered into in
the future, and (y) Bank to have the ability in the event of a liquidation of
any Collateral to dispose of such Collateral in accordance with Bank’s rights
and remedies under the Loan Agreement and the other Loan Documents. In addition,
the Borrower hereby certifies that no Collateral is in the possession of any
third party bailee (such as at a warehouse). In the event that Borrower, after
the date hereof, intends to store or otherwise deliver the Collateral to such a
bailee, then Borrower shall first receive, the prior written consent of Bank and
such bailee must acknowledge in writing that the bailee is holding such
Collateral for the benefit of Bank. 

     

    7. CONSISTENT
CHANGES. The
Existing Loan Documents are hereby amended wherever necessary to reflect the
changes described above. 

     

    8. AUTHORIZATION TO
FILE. Borrower
hereby authorizes Bank to file UCC financing statements without notice to
Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in
order to further perfect or protect Bank’s security interest in the Collateral,
including a notice that any disposition of the Collateral, by either the
Borrower or any other Person, shall be deemed to violate the rights of the Bank
under the Code. In addition, Borrower hereby authorizes Bank to make such other
filings as Bank shall deem appropriate to further perfect or protect Bank’s
security interest in the Collateral, in each case at Borrower’s sole expense.

     

    9. RATIFICATION OF LOAN
DOCUMENTS.
Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of
all security or other collateral granted to the Bank, and confirms that the
indebtedness secured thereby includes, without limitation, the Obligations.

     

    10. NO DEFENSES OF
BORROWER.
Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses,
claims, or counterclaims against Bank with respect to the Obligations, or
otherwise, and that if Borrower now has, or ever did have, any offsets,
defenses, claims, or counterclaims against Bank, whether known or unknown, at
law or in equity, all of them are hereby expressly WAIVED and Borrower hereby
RELEASES Bank from any liability thereunder. 

     

    

    
    

    11. CONTINUING
VALIDITY.
Borrower understands and agrees that in modifying the existing Obligations, Bank
is relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to
this Loan Modification Agreement, the terms of the Existing Loan Documents
remain unchanged and in full force and effect. Bank’s agreement to modifications
to the existing Obligations pursuant to this Loan Modification Agreement in no
way shall obligate Bank to make any future modifications to the Obligations.
Nothing in this Loan Modification Agreement shall constitute a satisfaction of
the Obligations. It is the intention of Bank and Borrower to retain as liable
parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this Loan
Modification Agreement. 

     

    12. RIGHT OF SET-OFF. In consideration of Bank’s
agreement to enter into this Loan Modification Agreement, Borrower hereby
reaffirms and hereby grants to Bank, a lien, security interest and right of set
off as security for all Obligations to Bank, whether now existing or hereafter
arising upon and against all deposits, credits, collateral and property, now or
hereafter in the possession, custody, safekeeping or control of Bank or any
entity under the control of Silicon Valley Bank (including a Bank subsidiary) or
in transit to any of them. At any time after the occurrence and during the
continuance of an Event of Default, without demand or notice, Bank may set off
the same or any part thereof and apply the same to any liability or obligation
of Borrower even though unmatured and regardless of the adequacy of any other
collateral securing the loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS
RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE
OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH
DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY,
VOLUNTARILY AND IRREVOCABLY WAIVED. 

     

    13. JURISDICTION/VENUE. Borrower accepts for itself and in
connection with its properties, unconditionally, the exclusive jurisdiction of
any state or federal court of competent jurisdiction in the Commonwealth of
Massachusetts in any action, suit, or proceeding of any kind against it which
arises out of or by reason of this Loan Modification Agreement. NOTWITHSTANDING
THE FOREGOING, THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING
AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION
WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE
COLLATERAL OR TO OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER OR ITS
PROPERTY. 

     

    14. COUNTERSIGNATURE. This Loan Modification Agreement
shall become effective only when it shall have been executed by Borrower and
Bank. 

     

    [The remainder of this page is
intentionally left blank]

     

    

    
    

         This Loan Modification Agreement is
executed as a sealed instrument under the laws of the Commonwealth of
Massachusetts as of the date first above written.

    
    

     

    
      	 BORROWER:	
            	BANK:
	  
	 VOXWARE,
      INC.	
            	SILICON VALLEY
      BANK
	  
	By:	/s/ William
      G. Levering	       	By:	/s/ Jay T.
      Tracy
	Name:  	William G.
      Levering	
            	Name:  	Jay T.
      Tracy
	Title:	CFO	
            	Title:	Vice
      President

    

    
     The undersigned,
VERBEX ACQUISITION
CORPORATION, a
Delaware corporation (“Guarantor”) hereby: (i) ratifies, confirms
and reaffirms, all and singular, the terms and conditions of (A) a certain
Unlimited Guaranty of the obligations of Borrower to Bank dated January 27, 2004
(the “Guaranty”), and (B) a certain Security
Agreement by Guarantor in favor of Bank dated January 27, 2004 (the
“Security
Agreement”);
(ii) acknowledges, confirms and agrees that the Guaranty and the Security
Agreement shall remain in full force and effect and shall in no way be limited
by the execution of this Loan Modification Agreement or any other documents,
instruments and/or agreements executed and/or delivered in connection herewith;
and (iii) acknowledges, confirms and agrees that the obligations of Guarantor to
Bank under the Guaranty include, without limitation, all Obligations of Borrower
to Bank under the Loan Agreement, as amended by this Loan Modification
Agreement.

     

    
      	 	
            	VERBEX ACQUISITION
      CORPORATION
	  
	  
	  	 	       	By:	/s/ William
      G. Levering
	          
    	 	
            	Name:  	William G.
      Levering
	 	 	
            	Title:	CFO

    

     

         The undersigned, VOXWARE(UK)
Limited, a
company registered under the laws of England and Wales (“UK Guarantor”) hereby: (i) ratifies, confirms
and reaffirms, all and singular, the terms and conditions of (A) a certain Deed
of Guaranty of the obligations of Borrower to Bank dated as of February 5, 2009
(the “UK Guaranty”), and (B) a certain Mortgage
Debenture by UK Guarantor in favor of Bank dated as of February 5, 2009 (the
“Debenture”); (ii) acknowledges, confirms and
agrees that the UK Guaranty and the Debenture shall remain in full force and
effect and shall in no way be limited by the execution of this Loan Modification
Agreement or any other documents, instruments and/or agreements executed and/or
delivered in connection herewith; and (iii) acknowledges, confirms and agrees
that the obligations of UK Guarantor to Bank under the UK Guaranty include,
without limitation, all Obligations of Borrower to Bank under the Loan
Agreement, as amended by this Loan Modification Agreement.

    
    

     

    
      	 	
            	VOXWARE (UK)
      Limited
	  
	  
	  	 	       	By:	/s/ Scott J.
      Yetter
	          
    	 	
            	Name:  	Scott J.
      Yetter
	 	 	
            	Title:	President
      and CEO

    

    

    
    

    Exhibit A
COMPLIANCE
CERTIFICATE

     

    
      	TO:	SILICON VALLEY BANK	Date:   	 	 
	FROM:  	VOXWARE, INC.	
            

    

    The
undersigned authorized officer of Voxware, Inc. (“Borrower”) certifies that under the terms
and conditions of the Loan and Security Agreement between Borrower and Bank (the
“Agreement”), (1) Borrower is in complete compliance for the period ending
_______________ with all required covenants except as noted below, (2) there are
no Events of Default, (3) all representations and warranties in the Agreement
are true and correct in all material respects on this date except as noted
below; provided, however, that such materiality qualifier shall not be
applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof; and provided, further that those
representations and warranties expressly referring to a specific date shall be
true, accurate and complete in all material respects as of such date, (4)
Borrower, and each of its Subsidiaries, has timely filed all required tax
returns and reports, and Borrower has timely paid all foreign, federal, state
and local taxes, assessments, deposits and contributions owed by Borrower except
as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement,
and (5) no Liens have been levied or claims made against Borrower or any of its
Subsidiaries relating to unpaid employee payroll or benefits of which Borrower
has not previously provided written notification to Bank. Attached are the
required documents supporting the certification. The undersigned certifies that
these are prepared in accordance with generally GAAP consistently applied from
one period to the next except as explained in an accompanying letter or
footnotes. The undersigned acknowledges that no borrowings may be requested at
any time or date of determination that Borrower is not in compliance with any of
the terms of the Agreement, and that compliance is determined not just at the
date this certificate is delivered. Capitalized terms used but not otherwise
defined herein shall have the meanings given them in the
Agreement.
Please indicate compliance status by
circling Yes/No under “Complies” column.

     

    
      	Reporting
      Covenant	Required	Complies
	  Monthly financial statements with	  Monthly within 30 days	Yes  No
	  Compliance Certificate	
            	
            
	  Annual financial statement (CPA Audited) + CC	  FYE within 120 days	Yes  No
	  10-Q, 10-K and 8-K	  Within 5 days after filing with SEC	Yes  No
	  Borrowing Base Certificate A/R Agings	  Monthly within 30 days	Yes  No
	  Transaction Reports	  Weekly and with each request for a	Yes  No
	
            	  Credit Extension (Monthly within 15	
            
	
            	  days during a Streamline Period or if no	
            
	
            	  outstanding Credit Extensions under the	
            
	
            	  Revolving Line)	
            
	  Audit	  Annually	Yes
       No
	  Board approved projections	  Annually	Yes  No
	  The following Intellectual Property was registered after the
      Effective Date (if no registrations, state “None”)
 
      _____________________________________________________________________________
	 	
            

    

    
      	Financial
      Covenant	Required	Actual	Complies
	  Minimum Liquidity (at all
      times)	  $2,000,000	  $________	Yes
       No

    

    
      	Performance
      Pricing	Applies
	Streamline Period	Prime
      + 1.25%	Yes
       No
	Not in Streamline Period	Prime
      + 2.25%	Yes
       No

    

    

    
    

         The following financial covenant
analyses and information set forth in Schedule 1 attached hereto are true and
accurate as of the date of this Certificate.

     

         The following are the exceptions with
respect to the certification above: (If no exceptions exist, state “No
exceptions to note.”)

     

    
      	 
	 
	 

    

    
      	  Voxware, Inc.	  BANK USE
      ONLY
	 	
            
	  	 
      Received by: _____________________________
	  By:
    _________________________________________  	                 
                         
       AUTHORIZED
      SIGNER
	  Name: _______________________________________	  Date:
      ___________________________________
	  Title: ________________________________________	  
	  	 
      Verified: _________________________________
	  	                 
                         
       AUTHORIZED
      SIGNER
	  	  Date:
      ___________________________________
	 	
            
	  	  Compliance Status:      Yes 
       No

    

    

    
    

    Schedule 1 to Compliance
Certificate

     

    Financial Covenants of
Borrower

     

    
      	Dated:
      _________________________________

    

    In the
event of a conflict between this Schedule and the Loan Agreement, the terms of
the Loan Agreement shall control.

     

    I. Section 6.9(a) Minimum
Liquidity.

     

    
      	                 
    	Required: Maintain as of the
      Eighth Loan Modification Effective Date, and at all times thereafter
      (certified monthly by the Borrower), liquidity in an amount equal to or
      greater than Two Million Dollars ($2,000,000), calculated as the sum of
      (i) Borrower’s unrestricted and unencumbered cash in accounts at Bank plus (ii) the
      aggregate Availability Amount.
	
            	 
	
            	Actual:	
            
	
            	 
	
            	 
	
            	A. Borrower’s unrestricted
      and	
            
	
            	unencumbered cash in accounts
      at Bank	$_____________________________
	
            	 
	
            	B. Availability
    Amount	$_____________________________
	
            	 
	
            	C. LIQUIDITY (line A plus line
      B)	$_____________________________
	
            	 
	
            	 
	
            	Is line C equal to or greater
      than $2,000,000?	
            

    

    
      	      	______ No, not in
      compliance	______ Yes, in
      compliance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]