Document:

EX-10.21

   

  Exhibit 10.21

  Contract ID: [*****]

   

  Certain identified information has been excluded from this exhibit because (i) it is both not material and would be competitively harmful if disclosed and (ii) it is personal information that may be redacted in accordance with Item 601(a)(6) of Regulation S-K. Information that was omitted has been noted in this document with a placeholder identified by the mark “[*****]”.

   

  Revenue Share Agreement

   

   

  This Revenue Share Agreement (the “Agreement”) is entered into by:

   

  (1)Google LLC, a Delaware limited liability company whose principal place of business is 1600 Amphitheatre Parkway, Mountain View, CA 94043 (“Google”); and

   

  (2)Marin Software Incorporated, a Delaware corporation whose principal place of business is at 123 Mission Street, 27th Floor, San Francisco, CA 94105 (“Company”),

   

  each a “party” and together the “parties”. 
 

  INTRODUCTION

   

  (A)The revenue share payments described in this Agreement are intended to encourage Company to develop its search advertising platforms, products and expertise generally in order to improve the services it provides to its advertiser clients.

   

  (B)Company wishes to develop its search advertising platforms, products and expertise and Google will make available the revenue share payments described in this Agreement, subject to the terms and conditions of this Agreement.

   

  (C)This Agreement governs the commercial relationship between Google and Company insofar as it relates to the benefits expressly provided by this Agreement. This Agreement does not govern Company’s use of any product or service provided by Google or a Google Affiliate.

  
The parties agree as follows.
 

  1.Definitions  

   

  In this Agreement, the following definitions apply unless expressly stated otherwise.

   

  1.1.“Affiliate” means with respect to a party, an entity that directly or indirectly Controls, is Controlled by or is under common Control with such party.

   

  1.2.“Agreement Expiry Date” means 30 September 2024.
 

  1.3.“Auditor” means an independent third-party auditor appointed by Google, as notified to Company by Google from time to time.

   

  1.4.“Baseline Revenue Share Payment” means the payment to Company by Google of a percentage of Eligible Google Search Revenue for the relevant Calendar Quarter, as set out in the columns titled “Baseline Revenue Share Payments” in the tables in Exhibit A.

   

  1.5.“Calendar Quarter” means a three-month period, ending on either 31 March, 30 June, 30 September or 31 December during the Term.
 

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  1.6. “Confidential Information” means this Agreement, the Revenue Share Payments, and any information that one party (or an Affiliate) discloses to the other party under this Agreement, and that is marked as confidential or would normally be considered confidential information under the circumstances. It does not include information that is independently developed by the recipient, is rightfully given to the recipient by a third party without confidentiality obligations, or becomes public through no fault of the recipient.

   

  1.7.“Contract Year” means a 1 year period starting on the Effective Date or an anniversary of the Effective Date. 

   

  1.8.“Control” means (i) the beneficial ownership of more than 50% of the issued share capital of a company; or (ii) the direct or indirect power to control a company’s management and policies, including through ownership of voting securities or by contract.
 

  1.9.“Currency” means US dollars.

   

  1.10.“Effective Date” means 1 October 2021.

   

  1.11.“Eligible Search Engines” means [*****].

   

  1.12.“Eligible Google Search Revenue” means, subject to section 6, revenue generated on Company’s search platform in connection with its clients’ spend on Search Ads appearing on Google Search only, during the relevant Calendar Quarter.
 

  1.13.“Eligible Non-Google Search Revenue” means, subject to section 6, revenue generated on Company’s search platform in connection with its clients’ spend on Search Ads appearing on the Eligible Search Engines, excluding Google Search, during the relevant Contract Year.
 

  1.14.“Eligible Search Revenue Baseline” means the minimum amount against which a Revenue Share Payment will be calculated, as set out in the column titled “Eligible Search Revenue Baseline” in the tables in Exhibit A.
 

  1.15.“Eligible Search Revenue Cap” means the applicable amount for a given Contract Year set out in the column titled “Eligible Search Revenue Cap” in the tables in Exhibit A.
 

  1.16.“Incremental Revenue Share Payment” means the payment to Company by Google of a percentage of Eligible Google Search Revenue or Eligible Non-Google Search Revenue (as applicable) that is in excess of the Eligible Search Revenue Baseline for the relevant Contract Year, as set out in the in the columns titled “Incremental Revenue Share Payments” in the tables in Exhibit A.
 

  1.17.“Program Manager” means the named contacts for Google and Company as set out in Exhibit B. 
 

  1.18.“Revenue Share Payment” means, collectively, Baseline Revenue Share Payments and Incremental Revenue Share Payments.  

   

  1.19.“Search Ads” means advertisements managed by Company for and on behalf of its clients via its own platform which appear on the Eligible Search Engines only, and in respect of Google Search specifically, that run through Google Ads (f/k/a AdWords) via 

   

  	
	pg. 2

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  Search or Shopping campaigns (and not, for the avoidance of doubt, Hotel Ads), including through Google Search partners.

   

  1.20.“Term” has the meaning given in section 10.1.
 

  1.21.The words "include" and "including" will not limit the generality of any words preceding them.

   

  2.Eligible Google Search Revenue 

   

  2.1.All Eligible Google Search Revenue will be determined by Google (acting reasonably, but in its sole discretion), in accordance with internal data sources available to Google.

   

  2.2.As soon as is reasonably practicable following Alphabet Inc.’s public confirmation of its earnings for each Calendar Quarter, Google will give notice to Company’s Program Manager by email of its Eligible Google Search Revenue for each Calendar Quarter (and, following the final Calendar Quarter of the relevant Contract Year, Company’s Eligible Google Search Revenue for that Contract Year).
 

  2.3.Following notification to the Company in accordance with section 2.2, Google will make the applicable Revenue Share Payment to Company in accordance with Exhibit A and section 4.
 

  3.Eligible Non-Google Search Revenue 

   

  3.1.Following the end of each Contract Year to which the financial report relates, Company will submit to Auditor a financial report which states its Eligible Non-Google Search Revenue for the previous Contract Year.
 

  3.2.In submitting a financial report for assessment by Auditor, Company will send Auditor a summary of its Eligible Non-Google Search Revenue in the Currency, which shows the amounts spent on Search Ads on the Eligible Search Engines in aggregate (excluding Google Search), together with sufficient information and materials to enable such Auditor to verify the level of Eligible Non-Google Search Revenue achieved.   

   

  3.3.If Auditor reasonably requests additional information or assistance in relation to a financial report submitted by Company for assessment, then Company will provide such additional information or assistance as the Auditor may reasonably require, or an explanation as to why such information is not available.  Company will provide Auditor with all reasonable access to all relevant Company records and facilities to enable it to verify the level of Eligible Non-Google Search Revenue achieved. The Auditor will complete its assessment within a reasonable timeframe following receipt of information required from Company. 

   

  3.4.If the Auditor determines that Company has accurately reported its Eligible Non-Google Search Revenue for the relevant Contract Year, then Google will (a) give notice to Company’s Program Manager by email, and (b) make the applicable Revenue Share Payment in accordance with Exhibit A and section 4.

   

  3.5.If Auditor determines that Company has inaccurately reported its Eligible Non-Google Search Revenue for the relevant Contract Year, then Google will give notice to Company’s Program Manager by email.  Google is under no obligation to make any 

   

  	
	pg. 3

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  Revenue Share Payments with respect to Eligible Non-Google Search Revenue for a given Contract Year until the Auditor determines that Company has accurately reported its Eligible Non-Google Search Revenue for the relevant Contract Year.
 

  3.6.In the event that Company, having used reasonable endeavors to do so, is unable to appoint a Google approved Auditor to carry out the assessment of Eligible Non-Google Search Revenue in accordance with this section 3, then Company will notify Google, and Company will submit a financial report to Google for assessment (instead of the Auditor) on an annual basis, provided that:

   

  3.6.1.Company will provide Google with the same information and assistance as it is obliged to provide the Auditor pursuant to this section 3;

   

  3.6.2.Company will only submit a financial report to Google for assessment at least 3 months after the end of the Contract Year in which the Eligible Non-Google Search Revenue was accrued, and to which the financial report relates; and

   

  3.6.3.the financial report is in an aggregated format, and does not identify any of the Eligible Search Engines, or the level of Eligible Non-Google Search Revenue attributable to any individual Eligible Search Engine.

   

  3.7.For the avoidance of doubt, in no circumstances will Company provide a financial report to Google which identifies any of the Eligible Search Engines, or the level of Eligible Non-Google Search Revenue attributable to any individual Eligible Search Engine.

   

  4.Payment

   

  4.1.Google will pay Company the Revenue Share Payment for the previous Calendar Quarter or Contract Year (as applicable) within 30 days from the date on which (as applicable):
 

  4.1.1.Company provides Google with an invoice for the applicable Revenue Share Payment following Google’s notification to Company of its Eligible Google Search Revenue for the relevant Calendar Quarter or Contract Year pursuant to section 2.2; or
 

  4.1.2.Google’s Program Manager notifies Company pursuant to section 3.4 that Auditor (or Google, as applicable) has completed its assessment of Company’s financial reports pursuant to section 3, and that Company has accurately reported its Eligible Non-Google Search Revenue for the relevant Contract Year.

   

  4.2.Revenue Share Payments will be made in the Currency.  

   

  4.3.Google will not be obliged to make Revenue Share Payments for Eligible Google Search Revenue and Eligible Non-Google Search in excess of the Eligible Search Revenue Cap for the relevant Contract Year.

   

  4.4.Google will apply an exchange rate to all Eligible Google Search Revenue or Eligible Non-Google Search Revenue (as applicable) reported in a currency other than the Currency in order to verify Eligible Google Search Revenue or Eligible Non-Google Search Revenue (as applicable) and assess any Revenue Share Payment due to 

   

  	
	pg. 4

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  Company. Such exchange rate will be the average daily rate of exchange quoted by a reputable third party selected by Google.

   

  4.5.Any payments by Google pursuant to this Agreement are exclusive of taxes imposed by any governmental entity. Company will pay any applicable taxes including sales, use, personal property, VAT, excise, customs fees, import duties or other similar taxes and duties imposed by governmental entities of whatever kind and imposed with respect to the transactions for services provided under the Agreement, including penalties and interest, but specifically excluding taxes based upon Google's net income. If Google has a legal obligation to withhold any taxes from its payments to Company, Google will remit such taxes to the appropriate government authority, and reduce its payment to Company by the amount of the taxes withheld.    

   

  4.6.Google will make any payment due under this Agreement by wire transfer. Google will use the wire transfer information provided by Company in writing (which may include e-mail), and Company will provide on request such instructions, information and documentation required by Google to enable Google to complete the transfer to the appropriate account.  
 

  5.Reinvestment of Revenue Share Payments

   

  5.1.Company will reinvest [*****]% of Baseline Revenue Share Payments received during the Term exclusively into the growth, development, innovation and expansion of its Search Ads business.  This includes: (a) the continued development of support for new and existing [*****]; and (b) investment in Company’s platform, research, partnerships, acquisitions, media mix planning, measurement, testing, client success, and sales and marketing in connection with the use of the [*****], provided that the primary purpose of such development and investment referred to in (a) and (b) is to improve the planning, implementation and measurement of [*****].  Company may not enter into any type of arrangement with a third party where either party receives a financial benefit in connection with any Eligible Google Search Revenue, Eligible Non-Google Search Revenue or Revenue Share Payments, including any arrangement where Company transfers or shares the value of the Revenue Share Payments to its clients, or uses the Revenue Share Payments to subsidize discounted rates for its clients.  

   

  5.1.1.For any Incremental Revenue Share Payments made to the Company, the following reinvestment will be required: 

   

  5.1.1.1.Contract Year 1: [*****]%

  5.1.1.2.Contract Year 2: [*****]%

  5.1.1.3.Contract Year 3: 100%
 

  5.2.In addition to the reinvestment of all Revenue Share Payments received during the Term in accordance with section 5.1, Company will also invest at least the following additional amounts of its own funds in each Contract Year into the growth, development, innovation and expansion of its Search Ads business (the “Search Investment Amounts”):

   

  5.2.1.Contract Year 1 (1 October 2021 - 30 September 2022) - $[*****].
 

  5.2.2.Contract Year 2 (1 October 2022 - 30 September 2023) - an amount agreed by the parties in writing (both acting reasonably) within 30 days of completion of Auditor’s assessment of Company’s investment of the Revenue Share Payments 

   

  	
	pg. 5

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  and Search Investment Amounts for Contract Year 1.  If the parties are unable to agree the Contract Year 2 Search Investment Amount within such 30 day period, the Search Investment Amount for Contract Year 2 will be $[*****].
 

  5.2.3.Contract Year 3 (1 October 2023 - 30 September 2024) - an amount agreed by the parties in writing (both acting reasonably) within 30 days of completion of Auditor’s assessment of Company’s investment of the Revenue Share Payments and Search Investment Amounts for Contract Year 2.  If the parties are unable to agree the Contract Year 3 Search Investment Amount within such 30 day period, the Search Investment Amount for Contract Year 3 will be $[*****].  
 

  5.3.To verify that the Company is investing all Revenue Share Payments and Search Investment Amounts into the growth, innovation and expansion of its Search Ads business in accordance with sections 5.1 and 5.2, the following will apply not more than once for each Contract Year of the Term, including if such right is exercised in the 12 months after the expiration or termination of the Agreement:

   

  5.3.1.Within 10 days of Google’s written request, Company will provide Google with a certification signed by a Company officer verifying that (a) all Revenue Share Payments are being reinvested by Company in accordance with section 5.1; and (b) all Search Investment Amounts are being invested by Company in accordance with section 5.2.

   

  5.3.2.Google may appoint an Auditor to examine and verify that (a) all Revenue Share Payments are being reinvested by Company in accordance with section 5.1; and (b) all Search Investment Amounts are being invested by Company in accordance with section 5.2.

   

  5.3.3.Company will provide Auditor with all reasonable access to the relevant Company records and facilities, and such additional information or assistance as the Auditor may reasonably require to carry out an assessment pursuant to this section 5. 

   

  5.3.4.Assessments will be conducted during regular business hours at Company’s facilities, where reasonably necessary, and will not unreasonably interfere with Company’s business activities. 

   

  5.3.5.If an assessment reveals that either: (a) Company has not reinvested all Revenue Share Payments by Google during the assessment period; or (b) Company has not invested at least the Search Investment Amounts during the assessment period, then Google will notify Company’s Program Manager by email, and unless Company can demonstrate to the Auditor’s reasonable satisfaction that it has reinvested all outstanding amounts within 90 days of notification from Google, Google will be entitled to terminate this Agreement immediately on written notice to Company.  In the event of such termination by Google, Google will cease making Revenue Share Payments to Company, other than Revenue Share Payments (i) due and payable to Company for the Calendar Quarter(s) and/or Contract Year(s) preceding the Calendar Quarter in which this Agreement is terminated; and (ii) applicable to Eligible Google Search Revenue and Eligible Non-Google Search Revenue accrued during the Calendar Quarter and/or Contract Year in which the Agreement is terminated, on a pro-rata basis up to the date of termination.

   

   

  	
	pg. 6

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  6.Acquisitions; Review of Eligible Google/Non-Google Search Revenue, Revenue Share Payments and the Eligible Search Revenue Cap

   

  6.1.If Company enters into a definitive agreement to obtain Control of an entity (for example, through a stock purchase or sale, merger, or other form of corporate transaction) (an “Acquisition”) during the Term it will notify Google within 30 days of entering into such agreement.   Any revenue which may be generated by Company through Search Ads as a result of an Acquisition for which Company entered into a definitive agreement for such Acquisition will not count towards the calculation of Eligible Google Search Revenue or Eligible Non-Google Search Revenue, unless otherwise agreed in writing by Google. 
 

  6.2.Within a reasonable time following (i) completion of an Acquisition or (ii) at the end of each Contract Year, Google and Company will meet to discuss whether to make any changes to the Eligible Search Revenue Cap, the Revenue Share Payments, or how Eligible Google Search Revenue is calculated. Moreover, at such time the parties may also discuss whether or not to include other revenue streams (i.e., beyond Eligible Google Search Revenue) in connection with future Revenue Share Payments, and to the extent the parties agree on any such change, it will be memorialized in a written and signed agreement (such as an amendment to this Agreement). 
 

  6.3.In order to be legally binding, any agreement to: (a) include additional revenue generated by Company as a result of an Acquisition within the calculation of Eligible Google Search Revenue or Eligible Non-Google Search Revenue; (b) to amend the Eligible Search Revenue Cap or the Revenue Share Payments; or (c) to change how Eligible Google Search Revenue is calculated, must be made in accordance with section 11.6.

   

  7.Confidentiality and Publicity

   

  7.1.The recipient will not disclose the other party’s Confidential Information, except to employees, Affiliates, agents, professional advisors, or prospective investors (“Delegates”) who need to know it and who have a legal obligation to keep it confidential. The recipient will use the other party’s Confidential Information only to exercise rights and fulfil obligations under this Agreement. The recipient will ensure that its Delegates are also subject to no less restrictive non-disclosure and use obligations. The recipient may disclose Confidential Information when required by law after giving reasonable notice to the discloser, if permitted by law.

   

  7.2.Neither party may make any public statement regarding this Agreement without the other’s written approval.

   

  7.3.Notwithstanding anything to the contrary in this Section 7 or otherwise, either party shall be permitted to disclose the existence and terms of this Agreement pursuant to the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Nasdaq Stock Market Rules (the “Permitted Disclosures”) and following such disclosures, make public statements regarding this Agreement consistent with such disclosures; provided that, to the extent reasonably practicable and permitted by law, (i) Company shall provide Google with prior notice of and an opportunity to review (1) any Form 8-K to be filed by Company in connection with the entry into this Agreement, (2) any copy of this Agreement to be filed by Company as an exhibit to a current or periodic report pursuant to the Securities Exchange Act of 1934, as amended, and (3) any subsequent current or periodic report that contains new disclosure of the terms of this Agreement (it being understood that the foregoing obligation shall not apply to revenue or 

   

  	
	pg. 7

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  other financial information relating to the Company’s performance under this Agreement, or any information that Company deems to be commercially sensitive or material non-public information), and (ii) Company shall submit a confidential treatment request (“CTR”) seeking to obtain confidential treatment of certain commercially-sensitive information in the Agreement and Company shall consider in good faith, as part of that CTR submission, any reasonable requests from Google to redact additional commercially-sensitive portions of the Agreement.

   

  8.Representations, Warranties, Compliance with Law

   

  8.1.Each party warrants and represents that: 

  	 

  8.1.1.it has full power and authority to enter into this Agreement and to carry out all of its obligations set out in this Agreement; and

   

  8.1.2.execution, delivery and consummation of the transactions contemplated by this Agreement will not conflict with, or result in any violation or breach of, any provision of any other contract or other agreement between such party and any third party.

   

  8.2.Notwithstanding its obligations under section 8.1, and for the avoidance of doubt, Company warrants and represents to Google that it will not disclose the existence of this Agreement, or the payment or amount of any Revenue Share Payments paid or payable under this Agreement, to its clients or partners except where required by law, including the Permitted Disclosures and after giving reasonable notice to Google, if permitted by law. Any such disclosure to clients or partners shall be subject to such clients or partners being bound by confidentiality obligations no less restrictive than the confidentiality obligations set out in this Agreement.

   

  9.Limitation of Liability

   

  9.1.Nothing in this Agreement will exclude or limit either party’s liability:

   

  9.1.1.for death or personal injury resulting from its negligence or the negligence of its employees or agents;

  9.1.2.for fraud or fraudulent misrepresentation;

  9.1.3.for payment of Revenue Share Payments properly due and owing to Company in accordance with the criteria and requirements of this Agreement; 

  9.1.4.for misuse of Confidential Information; or

  9.1.5.for anything which cannot be excluded or limited under applicable law. 

   

  9.2.Subject to section 9.1, neither party will be liable under this Agreement (whether in contract, tort, including negligence, or otherwise) for any:

   

  9.2.1.loss of revenues;

  9.2.2.loss of profits;

  9.2.3.loss of contracts;

  9.2.4.loss of or corruption of data;

  9.2.5.loss of business opportunity;

  9.2.6.loss of anticipated savings;

   

  	
	pg. 8

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  9.2.7.loss of goodwill or reputation; or

  9.2.8.indirect or consequential losses.

   

  9.3.Subject to sections 9.1 and 9.2, in no event will either party’s total aggregate liability under or in relation to this Agreement (whether in contract, tort, including negligence, or otherwise) exceed $[*****] USD.

   

  10.Term and Termination 

   

  10.1.The Agreement shall commence on the Effective Date and will continue until the Agreement Expiry Date unless terminated earlier in accordance with this Agreement (the period during which this Agreement is in full force and effect being the “Term”).  

   

  10.2.At least 3 months before the Agreement Expiry Date, the parties will meet to discuss the possibility of extending or renewing this Agreement.  In order to be binding, any agreement to extend or renew this Agreement must be made in accordance with section 11.6 (Amendments).

   

  10.3.Termination by Google: Google may terminate this agreement with immediate effect at any time by giving notice in writing to Company (including by email) if: 

   

  10.3.1.Company is in material breach of this Agreement where the breach is incapable of remedy;

  10.3.2.Company is in material breach of this Agreement where the breach is capable of remedy and Company fails to remedy the breach within thirty (30) days after receiving written notice of the breach from Google; 

  10.3.3.regardless of whether the breach would be considered material or is capable of remedy, Company is in breach of section 7 or 8 of this Agreement 

  10.3.4.Google reasonably suspects or discovers that Company has committed a fraudulent act or acts in the nature of fraud upon Google or any Google Affiliate;

  10.3.5.(i) Company is, or is deemed for the purposes of any applicable law to be, unable to pay its debts as they fall due for payment; (ii) a petition is presented or documents filed with a court or any registrar or any resolution is passed for Company’s winding–up, administration or dissolution or for the seeking of any relief under any applicable bankruptcy, insolvency, Company or similar law; (iii) any liquidator, trustee in bankruptcy, judicial custodian, compulsory manager receiver, supervisor, administrative receiver, administrator or similar officer is appointed in respect of any of Company’s assets; or (iv) any event analogous to the events listed in (i) to (iii) above takes place in respect of Company in any jurisdiction;

  10.3.6.the conduct of Company is, in the reasonable opinion of Google, prejudicial to Google’s legitimate interests;

  10.3.7.if the effect of any legislation, regulation, judgment, order or decree is likely (as determined by Google, acting reasonably) to adversely affect (i) the relationship between the parties under this Agreement or (ii) the ability of Google to make or the Company to receive the payments provided for under this Agreement; 

  10.3.8.the arrangements between the parties under this Agreement breaches any third-party rights (including rights under contract); or

  10.3.9.Google believes, in good faith, that Company has violated or caused Google to violate any Anti-Bribery Laws (as defined in section 11.3) below), or that such a 

   

  	
	pg. 9

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  violation is reasonably likely to occur.

  .

   

  10.4.Termination by Company: Company may terminate this Agreement at any time for any reason by giving at least 7 days’ notice in writing to Google.

   

  10.5.Subject to section 10.6, any provision of this Agreement which expressly or by implication is intended to come into or continue in force on or after termination of this Agreement will remain in full force and effect, including Company’s obligations in sections 5.1 and 5.2, and the assessment rights in section 5.3.

   

  10.6.For the avoidance of doubt, the expiry or termination of this Agreement will not of itself give rise to any claim against Google for indemnification or compensation, whether for loss of income or revenue, loss of agency rights, loss of goodwill or any analogous loss, other than a claim for damages if and to the extent that the termination was a breach of contract by Google.

   

  10.7.If the Agreement is terminated by Google pursuant to section 10.3 or by the Company pursuant to section 10.4, Google will not be required to pay any further Revenue Share Payments due under the Agreement, including any Revenue Share Payments that may have been payable to Company for the Calendar Quarter in which this Agreement is terminated. 
 

  11.General 

   

  11.1.Notices.  All notices of termination or breach must be in English, in writing and addressed to the other party’s Legal Department. The email address for notices being sent to Google’s Legal Department is legal-notices@google.com. All other notices must be in English, in writing and addressed to the other party’s primary contact. Notice will be treated as given on receipt, as verified by written or automated receipt or by electronic log (as applicable). 

   

  11.2.Assignment.  Google may assign any part of this Agreement to an Affiliate provided that Google notifies Company of such assignment. Company may assign any part of this Agreement to an Affiliate provided that: (a) the assignee has agreed in writing to be bound by the terms of this Agreement; (b) the Company remains liable for obligations under the Agreement if the assignee defaults on them; and (c) the Company notifies Google of the assignment. Any other attempt to assign is void. 

   

  11.3.Compliance with Anti-Bribery Laws. In connection with this Agreement, Company will comply with all applicable commercial and public anti-bribery laws (“Anti-Bribery Laws”), including, the U.S. Foreign Corrupt Practices Act of 1977 and the UK Bribery Act of 2010, which prohibit corrupt offers of anything of value, either directly or indirectly to anyone, including government officials, to obtain or keep business or to secure any other improper commercial advantage. “Government officials” include any government employee; candidate for public office; and employee of government-owned or government-controlled companies, public international organizations, and political parties. Furthermore, Company will not make any facilitation payments, which are payments to induce officials to perform routine functions they are otherwise obligated to perform.

   

  11.4.Change of Control.  During the Term, if a party experiences a change of Control (for example, through a stock purchase or sale, merger, or other form of corporate 

   

  	
	pg. 10

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  transaction): (a) the party experiencing the change of Control will give written notice to the other party within 30 days after the change of Control, and (b) the other party may immediately terminate this Agreement any time between the change of Control and 30 days after it receives the written notice of this.

   

  11.5.Equitable Relief.  Nothing in this Agreement will limit either party’s ability to seek equitable relief.  

   

  11.6.Amendments.  Any amendment must be in writing, expressly state that it is amending this Agreement, and be signed by both parties..

   

  11.7.No Waiver.  A party’s delay or omission in exercising any right under this Agreement will not be treated as a waiver of that right.  To be effective, a waiver must expressly state the right being waived under this Agreement and be signed by the waiving party.

   

  11.8.Severability.  If any part of this Agreement is invalid, illegal or unenforceable, the rest of the Agreement will remain in effect.

   

  11.9.Independent Contractors; No Agency.  The parties are independent contractors.  This Agreement does not create any agency, partnership, joint venture or employment relationship.

   

  11.10.No Third Party Beneficiaries.  There are no third-party beneficiaries under this Agreement unless the Agreement expressly states that there are.  The parties can amend, rescind, or terminate this Agreement without any third-party beneficiary’s consent.

   

  11.11.Force Majeure.  Neither party will be liable for failure or delay in performance to the extent caused by circumstances beyond its reasonable control.

   

  11.12.Signatures.  The parties may sign this Agreement using counterparts and electronic copies as originals.  The parties may sign this Agreement electronically if permitted by applicable law.

   

  11.13.Company agrees to comply with all relevant export laws and trade sanctions regulations.
 

  11.14.Entire Agreement.  This Agreement states all terms agreed between the parties and supersedes all other agreements between the parties relating to its subject matter. In entering into this Agreement, the parties have relied solely on the express statements in this Agreement.  Neither party has relied on, and neither party will have any right or remedy based on, any other statement, representation, or warranty (whether made negligently or innocently).

   

  11.15.Governing Law. ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY RELATED GOOGLE PRODUCTS OR SERVICES WILL BE GOVERNED BY CALIFORNIA LAW, EXCLUDING CALIFORNIA'S CONFLICT OF LAWS RULES, AND WILL BE LITIGATED EXCLUSIVELY IN THE FEDERAL OR STATE COURTS OF SANTA CLARA COUNTY, CALIFORNIA, USA; THE PARTIES CONSENT TO PERSONAL JURISDICTION IN THOSE COURTS.

   

   

   

  	
	pg. 11

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

   

  Signed by the parties’ authorized representatives on the dates below.

   

  		
	Google LLC
	Marin Software Incorporated

	By: /s/ Philipp Schindler
	By:  /s/ Mike Coleman

	Name: Philipp Schindler
	Name:  Mike Coleman

	Title: Authorized Signatory
	Title:  General Counsel

	Date:  September 17, 2021
	Date:   September 17, 2021

   

   

   

   

  	
	pg. 12

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  Exhibit A – Revenue Share Payments

   

   

  Table 1 - Revenue Share Payments applicable from the Effective Date

   

  							
	 
Contract Year
	 
Calendar Quarter
	 
Dates
	 
Eligible Search Revenue Baseline ($1.1B per Contract Year)*
	Baseline Revenue Share Payment (per Calendar Quarter)
	Incremental Revenue Share above Baseline (applied per Contract Year)
	 
Eligible Search Revenue Cap**
(per Contract Year)

	1
	1
	1 October 2021 – 31 December 2021
	$[*****]
	[*****]%
	 
[*****]%
	 
$[*****]

	2
	1 January 2022 – 31 March 2022
	$[*****]
	[*****]%

	3
	1 April 2022 – 30 June 2022
	$[*****]
	[*****]%

	4
	1 July 2022 – 30 September 2022
	$[*****]
	[*****]%

	2
	5
	1 October 2022 – 31 December 2022
	$[*****]
	[*****]%
	 
[*****]% 
	 
$[*****]

	6
	1 January 2023 – 31 March 2023
	$[*****]
	[*****]%

	7
	1 April 2023 – 30 June 2023
	$[*****]
	[*****]%

	8
	1 July 2023 – 30 September 2023
	$[*****]
	[*****]%

	3
	9
	1 October 2023 – 31 December 2023
	$[*****]
	[*****]%
	 
[*****]%
	 
$[*****]

   

   

  	
	pg. 13

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  							
	10
	1 January 2024 – 31 March 2024
	$[*****]
	[*****]%

	11
	1 April 2024 – 30 June 2024
	$[*****]
	[*****]%

	12
	1 July 2024– 30 September 2024
	$[*****]
	[*****]%

   

  *NB: The Eligible Search Revenue Baseline for each Contract Year is $[*****] (i.e. $[*****] x 4)

   

  **NB: The Eligible Search Revenue Cap for each Contract Year is $[*****].

   

   

  1.Table 1 sets out the Revenue Share Payments which are payable to Company from the Effective Date.

   

  2.Revenue Share Payments consist of Baseline Revenue Share Payments and, to the extent applicable, Incremental Revenue Share Payments: 
 

  a.Baseline Revenue Share Payments are payable by Google to Company each Calendar Quarter.

   

  b.Incremental Revenue Share Payments are payable per Contract Year on Eligible Google Search Revenue and Eligible Non-Google Search Revenue in the Contract Year in excess of the Eligible Search Revenue Baseline, subject always to the Eligible Search Revenue Cap.  

   

  3.When calculating Incremental Revenue Share Payments for each Contract Year, Google will carry out a true-up against Baseline Revenue Share Payments already paid by Google to Company for the previous Calendar Quarters in that Contract Year, and will make a payment to the Company which represents the outstanding balance due.

   

  4.Subject to the provisions of this Agreement, and in particular paragraphs 7 and 8 of this Exhibit A, Google will make a Baseline Revenue Share Payment to Company each Calendar Quarter, and if applicable, Incremental Revenue Share Payments each Contract Year during the Term.  
 

  5.Incremental Revenue Share Payments will be calculated as a percentage of Company’s (a) Eligible Google Search Revenue for the relevant Contract Year (calculated in accordance with internal data sources available to Google); and (b) Eligible Non-Google Search Revenue for the relevant Contract Year (calculated in accordance with the Auditor’s determination pursuant to section 3 of this Agreement), (as applicable).  The applicable percentages that will be applied are as set out in the tables above. For the avoidance of doubt, an Incremental Revenue Share Payment is only payable as a percentage of the Eligible Google Search Revenue and Eligible Non-Google Search Revenue in excess of the Eligible Search Revenue Baseline for that Contract Year.

   

   

  	
	pg. 14

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  6.Where the Company’s Eligible Google Search Revenue and Eligible Non-Google Search Revenue in a Calendar Quarter or the Contract Year (as applicable) is less than or equal to the Eligible Search Revenue Baseline, the only Revenue Share Payments due to Company for that Calendar Quarter or Contract Year (as applicable) will be the applicable percentage of the Eligible Search Revenue Baseline as set out in the column titled “Baseline Revenue Share Payments in the tables above.

   

  7.Google will only make Incremental Revenue Share Payments to Company on Eligible Google Search Revenue and Eligible Non-Google Search Revenue up to the Eligible Search Revenue Cap for the relevant Contract Year.  No Revenue Share Payments will be due to Company with respect to Eligible Google Search Revenue and Eligible Non-Google Search Revenue achieved by Company in excess of the Eligible Search Revenue Cap.

   

  8.The following worked example demonstrates how the applicable Revenue Share Payment will be calculated.  The figures used for the Eligible Google Search Revenue, Eligible Non-Google Search Revenue and Revenue Share Payments are examples only:

   

  	From the Effective Date 

   

  e.g., Contract Year 1 

   

  If:

  ●Calendar Quarter 1 - Eligible Google Search Revenue = $[*****]

  ○The Baseline Revenue Share Payment will be $[*****] (i.e. [*****]% x $[*****])

  ●Calendar Quarter 2 - Eligible Google Search Revenue = $[*****]

  ○The Baseline Revenue Share Payment will be $[*****] (i.e. [*****]% x $[*****])

  ●Calendar Quarter 3 - Eligible Google Search Revenue = $[*****]

  ○The Baseline Revenue Share Payment will be $[*****] (i.e. [*****]% x $[*****])

  ●Calendar Quarter 4 - Eligible Google Search Revenue = $[*****]

  ○The Baseline Revenue Share Payment will be $[*****] (i.e. [*****]% x $[*****])

   

  Total Baseline Revenue Share Payments paid to Company = $[*****]

   

  Total Eligible Google Search Revenue for Contract Year 1: $[*****]

   

  Total Eligible Non-Google Search Revenue for Contract Year 1: $[*****]

   

  Total Actual spend for Contract Year 1: $[*****], which is $[*****] above the Eligible Revenue Baseline (($[*****] + $[*****]) – $[*****]).  

   

  True-Up:

  ●Eligible Search Revenue Baseline = $[*****]

  ○$[*****] x [*****]% = $[*****]

  ●Incremental Revenue Payments

  ○ $[*****] x [*****]% = $[*****]

  ●TOTAL DUE TO COMPANY FOR CONTRACT YEAR 1 =  $[*****]

  ●Baseline Revenue Payments already paid to Company =  $[*****]

   

  	
	pg. 15

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  ●Outstanding true-up payment due to Company at the end of Contract Year 1 = $[*****] (i.e., $[*****] - $[*****]) 

   

   

   

   

  	
	pg. 16

   

  

   

   

  Contract ID: [*****]

   

  	                                                                                           

  		 

  Exhibit B

   

  Program Managers

   

   

  Google:

   

  Name: 			[*****]

  	 

  Email:			[*****]Telephone:		[*****]

   

   

   

   

  Company:

   

  Name:			[*****]

   

  Email:			[*****]

   

  Telephone:		[*****]

   

   

  Google and Company may update the contact details for the Program Managers from time to time by giving notice to the other party (email sufficient).

   

  	
	pg. 17ex_286211.htm

Exhibit 10.1

 

 

 

Failure to accurately document your arrangement could result in significant losses, from claims of those participating in the arrangement, from their heirs and beneficiaries, or from federal or state governmental bodies including the Internal Revenue Service, the Department of Labor or bank examiners.

 

For companies subject to SEC regulation, implementation of an executive or director compensation program may trigger rules requiring disclosures on Form 8-K within four days of implementing the program. Consult with your SEC attorney to determine your responsibilities under those rules.

 

 

 

 

 

 

SALARY CONTINUATION AGREEMENT

 

This Salary Continuation Agreement (the “Agreement”), by and between Opportunity Bank of Montana, located in Helena Montana (the “Employer”), and Alana Binde (the “Executive”), made this 20th day of August, 2021, formalizes the agreements and understanding between the Employer and the Executive.

 

WITNESSETH:

 

WHEREAS, the Executive is employed by the Employer;

 

WHEREAS, the Employer recognizes the valuable services the Executive has performed for the Employer and wishes to encourage the Executive’s continued employment and to provide the Executive with additional incentive to achieve corporate objectives;

 

WHEREAS, the Employer wishes to provide the terms and conditions upon which the Employer shall pay additional retirement benefits to the Executive;

 

WHEREAS, the Employer and the Executive intend this Agreement shall at all times be administered and interpreted in compliance with Code Section 409A; and

 

WHEREAS, the Employer intends this Agreement shall at all times be administered and interpreted in such a manner as to constitute an unfunded nonqualified deferred compensation arrangement, maintained primarily to provide supplemental retirement benefits for the Executive, a member of select group of management or highly compensated employee of the Employer.

 

NOW THEREFORE, in consideration of the premises and of the mutual promises herein contained, the Employer and the Executive agree as follows:

 

ARTICLE 1

DEFINITIONS

 

For the purpose of this Agreement, the following phrases or terms shall have the indicated meanings:

 

1.1    “Accrued Benefit” means the dollar value of the liability that should be accrued by the Employer, under Generally Accepted Accounting Principles, for the Employer’s obligation to the Executive under this Agreement, calculated by applying Accounting Standards Codification 710-10 and the Discount Rate.

 

1.2    “Administrator” means the Board or its designee.

 

1.3    “Affiliate” means any business entity with whom the Employer would be considered a single employer under Section 414(b) and 414(c) of the Code. Such term shall be interpreted in a manner consistent with the definition of “service recipient” contained in Code Section 409A.

 

 

2

 

 

1.4    “Beneficiary” means the person or persons designated in writing by the Executive to receive benefits hereunder in the event of the Executive’s death.

 

1.5    “Board” means the Board of Directors of the Employer.

 

1.6    “Cause” means any of the following acts or circumstances: gross negligence or gross neglect of duties to the Employer; conviction of a felony or of a gross misdemeanor involving moral turpitude in connection with the Executive’s employment with the Employer; or fraud, disloyalty, dishonesty or willful violation of any law or significant Employer policy committed in connection with the Executive's employment and resulting in a material adverse effect on the Employer.

 

1.7    “Change in Control” means a change in the ownership or effective control of the Employer, or in the ownership of a substantial portion of the assets of the Employer, as such change is defined in Code Section 409A and regulations thereunder.

 

1.8    “Claimant” means a person who believes that he or she is being denied a benefit to which he or she is entitled hereunder.

 

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

 

1.10    “Disability” means a condition of the Executive whereby the Executive either: (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of the Employer. The Administrator will determine whether the Executive has incurred a Disability based on its own good faith determination and may require the Executive to submit to reasonable physical and mental examinations for this purpose. The Executive will also be deemed to have incurred a Disability if determined to be totally disabled by the Social Security Administration or in accordance with a disability insurance program, provided that the definition of disability applied under such disability insurance program complies with the initial sentence of this Section.

 

1.11    “Discount Rate” means the rate used by the Administrator for determining the Accrued Benefit. The Administrator may adjust the Discount Rate to maintain the rate within reasonable standards according to Generally Accepted Accounting Principles and applicable bank regulatory guidance.

 

1.12    “Early Retirement” means Separation from Service after Early Retirement Age and before Normal Retirement Age.

 

1.13    “Early Retirement Age” means the date the Executive attains age sixty (60) and completes twenty (20) Years of Service.

 

3

 

 

1.14    “Early Involuntary Termination” means a Separation from Service (other than a termination for Cause) prior to Early Retirement Age due to the independent exercise of the unilateral authority of the Employer to terminate the Executive’s employment, other than due to the Executive’s implicit or explicit request, where the Executive was willing and able to continue performing services.

 

1.15    “Effective Date” means September 1, 2021.

 

1.16    “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

 

1.17    “Normal Retirement Age” means the date the Executive attains age sixty-five (65).

 

1.18    “Plan Year” means each twelve (12) month period commencing on September 1 and ending on August 31 of each year. The initial Plan Year shall commence on the Effective Date and end on the following August 31.

 

1.19    “Schedule A” means the schedule attached hereto and made a part hereof. Schedule A shall be updated upon a change to any of the benefits described in Article 2 hereof.

 

1.20    “Separation from Service” means a termination of the Executive’s employment with the Employer and its Affiliates for reasons other than death or Disability. A Separation from Service may occur as of a specified date for purposes of the Agreement even if the Executive continues to provide some services for the Employer or its Affiliates after that date, provided that the facts and circumstances indicate that the Employer and the Executive reasonably anticipated at that date that either no further services would be performed after that date, or that the level of bona fide services the Executive would perform after such date (whether as an employee or as an independent contractor) would permanently decrease to no more than twenty percent (20%) of the average level of bona fide services performed over the immediately preceding thirty-six (36) month period (or the full period during which the Executive performed services for the Employer, if that is less than thirty-six (36) months). A Separation from Service will not be deemed to have occurred while the Executive is on military leave, sick leave, or other bona fide leave of absence if the period of such leave does not exceed six (6) months or, if longer, the period for which a statute or contract provides the Executive with the right to reemployment with the Employer. If the Executive’s leave exceeds six (6) months but the Executive is not entitled to reemployment under a statute or contract, the Executive incurs a Separation from Service on the next day following the expiration of such six (6) month period. In determining whether a Separation from Service occurs the Administrator shall take into account, among other things, the definition of “service recipient” and “employer” set forth in Treasury regulation §1.409A-1(h)(3). The Administrator shall have full and final authority, to determine conclusively whether a Separation from Service occurs, and the date of such Separation from Service.

 

4

 

 

1.21    “Specified Employee” means an individual that satisfies the definition of a “key employee” of the Employer as such term is defined in Code §416(i) (without regard to Code §416(i)(5)), provided that the stock of the Employer is publicly traded on an established securities market or otherwise, as defined in Code §1.897-1(m). If the Executive is a key employee at any time during the twelve (12) months ending on December 31, the Executive is a Specified Employee for the twelve (12) month period commencing on the first day of the following April.

 

ARTICLE 2

PAYMENT OF BENEFITS

 

2.1         Normal Retirement Benefit. Upon Separation from Service after Normal Retirement Age, the Employer shall pay the Executive an annual benefit of Thirty-Eight Thousand Five Hundred Dollars ($38,500) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.

 

2.2         Early Retirement Benefit. If Early Retirement occurs, the Employer shall pay the Executive the annual benefit shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death.

 

2.3         Early Involuntary Termination Benefit. If Early Involuntary Termination occurs, the Employer shall pay the Executive the amount shown on Schedule A for the Plan Year ending immediately prior to Separation from Service in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Separation from Service and continuing until the Executive’s death. If a Separation from Service other than an Early Involuntary Termination occurs prior to Early Retirement Age, the Executive shall not be entitled to any benefit hereunder.

 

2.4         Disability Benefit. In the event the Executive suffers a Disability prior to Early Retirement Age the Employer shall pay the Executive the annual benefit shown on Schedule A for the Plan Year ending immediately prior to Disability in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following Disability and continuing until the Executive’s death.

 

2.5         Death Prior to Commencement of Benefit Payments. In the event the Executive dies prior to Separation from Service and Disability, the Employer shall pay the Beneficiary an annual benefit of Thirty-Eight Thousand Five Hundred Dollars ($38,500) in lieu of any other benefit hereunder. The annual benefit will be paid in equal monthly installments commencing the month following the Executive’s death and continuing for fifteen (15) years.

 

2.6         Death Subsequent to Commencement of Benefit Payments. If the Executive dies after benefit distributions have begun and the Executive has received less than one hundred eighty (180) monthly benefit installments, the Beneficiary shall continue to receive the same amounts the Executive would have received at the same times the Executive would have received them until the sum of the number of installments to the Beneficiary and the Executive totals one hundred eighty (180).

 

5

 

 

2.7         Termination for Cause. If the Employer terminates the Executive’s employment for Cause, then the Executive shall not be entitled to any benefits under the terms of this Agreement.

 

2.8         Restriction on Commencement of Distributions.  Notwithstanding any provision of this Agreement to the contrary, if the Executive is considered a Specified Employee at the time of Separation from Service, the provisions of this Section shall govern all distributions hereunder. Distributions which would otherwise be made to the Executive due to Separation from Service shall not be made during the first six (6) months following Separation from Service. Rather, any distribution which would otherwise be paid to the Executive during such period shall be accumulated and paid to the Executive in a lump sum on the first day of the seventh month following Separation from Service, or if earlier, upon the Executive’s death. All subsequent distributions shall be paid as they would have had this Section not applied.

 

2.9         Acceleration of Payments. Except as specifically permitted herein, no acceleration of the time or schedule of any payment may be made hereunder. Notwithstanding the foregoing, payments may be accelerated, in accordance with the provisions of Treasury Regulation §1.409A-3(j)(4) in the following circumstances: (i) as a result of certain domestic relations orders; (ii) in compliance with ethics agreements with the federal government; (iii) in compliance with the ethics laws or conflicts of interest laws; (iv) in limited cashouts (but not in excess of the limit under Code §402(g)(1)(B)); (v) to pay employment-related taxes; or (vi) to pay any taxes that may become due at any time that the Agreement fails to meet the requirements of Code Section 409A.

 

2.10         Delays in Payment by Employer. A payment may be delayed to a date after the designated payment date under any of the circumstances described below, and the provision will not fail to meet the requirements of establishing a permissible payment event. The delay in the payment will not constitute a subsequent deferral election, so long as the Employer treats all payments to similarly situated participants on a reasonably consistent basis.

 

(a)         Payments that would violate Federal securities laws or other applicable law. A payment may be delayed where the Employer reasonably anticipates that the making of the payment will violate Federal securities laws or other applicable law provided that the payment is made at the earliest date at which the Employer reasonably anticipates that the making of the payment will not cause such violation. The making of a payment that would cause inclusion in gross income or the application of any penalty provision of the Internal Revenue Code is not treated as a violation of law.

 

(b)         Solvency. Notwithstanding the above, a payment may be delayed where the payment would jeopardize the ability of the Employer to continue as a going concern.

 

6

 

 

2.11         Treatment of Payment as Made on Designated Payment Date. Solely for purposes of determining compliance with Code Section 409A, any payment under this Agreement made after the required payment date shall be deemed made on the required payment date provided that such payment is made by the latest of: (i) the end of the calendar year in which the payment is due; (ii) the 15th day of the third calendar month following the payment due date; (iii) if Employer cannot calculate the payment amount on account of administrative impracticality which is beyond the Executive’s control, the end of the first calendar year which payment calculation is practicable; and (iv) if Employer does not have sufficient funds to make the payment without jeopardizing the Employer’s solvency, in the first calendar year in which the Employer’s funds are sufficient to make the payment.

 

2.12         Facility of Payment. If a distribution is to be made to a minor, or to a person who is otherwise incompetent, then the Administrator may make such distribution: (i) to the legal guardian, or if none, to a parent of a minor payee with whom the payee maintains his or her residence; or (ii) to the conservator or administrator or, if none, to the person having custody of an incompetent payee. Any such distribution shall fully discharge the Employer and the Administrator from further liability on account thereof.

 

2.13         Excise Tax Limitation. Notwithstanding any provision of this Agreement to the contrary, if any benefit payment hereunder would be treated as an “excess parachute payment” under Code Section 280G, the Employer shall reduce such benefit payment to the extent necessary to avoid treating such benefit payment as an excess parachute payment. The Executive shall be entitled to only the reduced benefit and shall forfeit any amount over and above the reduced amount.

 

2.14         Changes in Form or Timing of Benefit Payments. The Employer and the Executive may, subject to the terms hereof, amend this Agreement to delay the timing or change the form of payments. Any such amendment:

 

(a)         must take effect not less than twelve (12) months after the amendment is made;

(b)         must, for benefits distributable due solely to the arrival of a specified date, or on account of Separation from Service or Change in Control, delay the commencement of distributions for a minimum of five (5) years from the date the first distribution was originally scheduled to be made;

(c)         must, for benefits distributable due solely to the arrival of a specified date, be made not less than twelve (12) months before distribution is scheduled to begin; and

(d)         may not accelerate the time or schedule of any distribution.

 

ARTICLE 3

BENEFICIARIES

 

3.1         Designation of Beneficiaries. The Executive may designate any person to receive any benefits payable under the Agreement upon the Executive’s death, and the designation may be changed from time to time by the Executive by filing a new designation. Each designation will revoke all prior designations by the Executive, shall be in the form prescribed by the Administrator, and shall be effective only when filed in writing with the Administrator during the Executive’s lifetime. If the Executive names someone other than the Executive’s spouse as a Beneficiary, the Administrator may, in its sole discretion, determine that spousal consent is required to be provided in a form designated by the Administrator, executed by the Executive’s spouse and returned to the Administrator. The Executive’s beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Executive or if the Executive names a spouse as Beneficiary and the marriage is subsequently dissolved.

 

7

 

 

3.2         Absence of Beneficiary Designation. In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly named by the Executive, the Employer shall pay the benefit payment to the Executive’s spouse. If the spouse is not living then the Employer shall pay the benefit payment to the Executive’s living descendants per stirpes, and if there are no living descendants, to the Executive’s estate. In determining the existence or identity of anyone entitled to a benefit payment, the Employer may rely conclusively upon information supplied by the Executive’s personal representative, executor, or administrator.

 

ARTICLE 4

ADMINISTRATION

 

4.1         Administrator Duties. The Administrator shall be responsible for the management, operation, and administration of the Agreement. When making a determination or calculation, the Administrator shall be entitled to rely on information furnished by the Employer, Executive or Beneficiary. No provision of this Agreement shall be construed as imposing on the Administrator any fiduciary duty under ERISA or other law, or any duty similar to any fiduciary duty under ERISA or other law.

 

4.2         Administrator Authority. The Administrator shall enforce this Agreement in accordance with its terms, shall be charged with the general administration of this Agreement, and shall have all powers necessary to accomplish its purposes.

 

4.3         Binding Effect of Decision. The decision or action of the Administrator with respect to any question arising out of or in connection with the administration, interpretation or application of this Agreement and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in this Agreement.

 

4.4         Compensation, Expenses and Indemnity. The Administrator shall serve without compensation for services rendered hereunder. The Administrator is authorized at the expense of the Employer to employ such legal counsel and/or recordkeeper as it may deem advisable to assist in the performance of its duties hereunder. Expense and fees in connection with the administration of this Agreement shall be paid by the Employer.

 

4.5         Employer Information. The Employer shall supply full and timely information to the Administrator on all matters relating to the Executive’s compensation, death, Disability or Separation from Service, and such other information as the Administrator reasonably requires.

 

8

 

 

4.6         Termination of Participation. If the Administrator determines in good faith that the Executive no longer qualifies as a member of a select group of management or highly compensated employees, as determined in accordance with ERISA, the Administrator shall have the right, in its sole discretion, to cease further benefit accruals hereunder.

 

4.7         Compliance with Code Section 409A. The Employer and the Executive intend that the Agreement comply with the provisions of Code Section 409A to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year prior to the year in which amounts are actually paid to the Executive or Beneficiary. This Agreement shall be construed, administered and governed in a manner that affects such intent, and the Administrator shall not take any action that would be inconsistent therewith.

 

ARTICLE 5

CLAIMS AND REVIEW PROCEDURES

 

5.1         Claims Procedure. A Claimant who has not received benefits under this Agreement that he or she believes should be distributed shall make a claim for such benefits as follows.

 

(a)         Initiation – Written Claim. The Claimant initiates a claim by submitting to the Administrator a written claim for the benefits. If such a claim relates to the contents of a notice received by the Claimant, the claim must be made within sixty (60) days after such notice was received by the Claimant. All other claims must be made within one hundred eighty (180) days of the date on which the event that caused the claim to arise occurred. The claim must state with particularity the determination desired by the Claimant.

(b)         Timing of Administrator Response. The Administrator shall respond to such Claimant within forty-five (45) days after receiving the claim. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional thirty (30) days by notifying the Claimant in writing, prior to the end of the initial forty-five (45) day period, that an additional period is required. The extension notice shall specifically explain the standards on which entitlement to a disability benefit is based, the unresolved issues that prevent a decision on the claim and the additional information needed from the Claimant to resolve those issues, and the Claimant shall be afforded at least forty-five (45) days within which to provide the specified information.

 

9

 

 

(c)         Notice of Decision. If the Administrator denies all or a part of the claim, the Administrator shall notify the Claimant in writing of such denial in a culturally and linguistically appropriate manner. The Administrator shall write the notification in a manner calculated to be understood by the Claimant. The notification shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a notice that the Claimant has a right to request a review of the claim denial and an explanation of the Plan’s review procedures and the time limits applicable to such procedures; (iv) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review, and a description of any time limit for bringing such an action; (v) for any Disability claim, a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (A) the views presented by the Claimant of health care professionals treating the Claimant and vocational professionals who evaluated the Claimant; (B) the views of medical or vocational experts whose advice was obtained on behalf of the Employer in connection with a Claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or (C) a disability determination regarding the Claimant presented by the Claimant made by the Social Security Administration (vi) for any Disability claim, the specific internal rules, guidelines, protocols, standards or other similar criteria relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria do not exist; and (viii) for any Disability claim, a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits. Whether a document, record, or other information is relevant to a claim for benefits shall be determined by Department of Labor Regulation Section 2560.503-1(m)(8).

 

5.2         Review Procedure. If the Administrator denies all or a part of the claim, the Claimant shall have the opportunity for a full and fair review by the Administrator of the denial as follows.

 

(a)         Additional Evidence. Prior to the review of the denied claim, the Claimant shall be given, free of charge, any new or additional evidence considered, relied upon, or generated by the Administrator, or any new or additional rationale, as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided, to give the Claimant a reasonable opportunity to respond prior to that date.

(b)         Initiation – Written Request. To initiate the review, the Claimant, within sixty (60) days after receiving the Administrator’s notice of denial, must file with the Administrator a written request for review.

(c)         Additional Submissions – Information Access. After such request the Claimant may submit written comments, documents, records and other information relating to the claim. The Administrator shall also provide the Claimant, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits.

 

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(d)         Considerations on Review. In considering the review, the Administrator shall consider all materials and information the Claimant submits relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination. Additional considerations shall be required in the case of a claim for Disability benefits. The claim shall be reviewed by an individual or committee who did not make the initial determination that is subject of the appeal and who is not a subordinate of the individual who made the determination. Additionally, the review shall be made without deference to the initial adverse benefit determination. If the initial adverse benefit determination was based in whole or in part on a medical judgment, the Administrator will consult with a health care professional with appropriate training and experience in the field of medicine involving the medical judgment. The health care professional who is consulted on appeal will not be the same individual who was consulted during the initial determination and will not be the subordinate of such individual. If the Administrator obtained the advice of medical or vocational experts in making the initial adverse benefits determination (regardless of whether the advice was relied upon), the Administrator will identify such experts.

(e)         Timing of Administrator Response. The Administrator shall respond in writing to such Claimant within forty-five (45) days after receiving the request for review. If the Administrator determines that special circumstances require additional time for processing the claim, the Administrator can extend the response period by an additional forty-five (45) days by notifying the Claimant in writing, prior to the end of the initial forty-five (45) day period, that an additional period is required. The notice of extension must set forth the special circumstances and the date by which the Administrator expects to render its decision.

(f)         Notice of Decision. The Administrator shall notify the Claimant in writing of its decision on review. The Administrator shall write the notification in a culturally and linguistically appropriate manner calculated to be understood by the Claimant. The notification shall set forth: (i) the specific reasons for the denial; (ii) a reference to the specific provisions of this Agreement on which the denial is based; (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant (as defined in applicable ERISA regulations) to the Claimant’s claim for benefits; (iv) a statement of the Claimant’s right to bring a civil action under ERISA Section 502(a); (v) for any Disability claim, a discussion of the decision, including an explanation of the basis for disagreeing with or not following: (A) the views presented by the Claimant of health care professionals treating the Claimant and vocational professionals who evaluated the Claimant; (B) the views of medical or vocational experts whose advice was obtained on behalf of the Employer in connection with a Claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination; or (C) a disability determination regarding the Claimant presented by the Claimant made by the Social Security Administration; and (vi) for any Disability claim, the specific internal rules, guidelines, protocols, standards or other similar criteria relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria do not exist;.

 

5.3         Exhaustion of Remedies. The Claimant must follow these claims review procedures and exhaust all administrative remedies before taking any further action with respect to a claim for benefits.

 

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5.4         Failure of Plan to Follow Procedures. In the case of a claim for Disability benefits, if the Administrator fails to strictly adhere to all the requirements of this claims procedure with respect to a Disability claim, the Claimant is deemed to have exhausted the administrative remedies available under the Agreement, and shall be entitled to pursue any available remedies under ERISA Section 502(a) on the basis that the Administrator has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim, except where the violation was: (a) de minimis; (b) non-prejudicial; (c) attributable to good cause or matters beyond the Administrator’s control; (d) in the context of an ongoing good-faith exchange of information; and (e) not reflective of a pattern or practice of noncompliance. The Claimant may request a written explanation of the violation from the Administrator, and the Administrator must provide such explanation within ten (10) days, including a specific description of its basis, if any, for asserting that the violation should not cause the administrative remedies to be deemed exhausted. If a court rejects the Claimant’s request for immediate review on the basis that the Administrator met the standards for the exception, the claim shall be considered as re-filed on appeal upon the Administrator’s receipt of the decision of the court. Within a reasonable time after the receipt of the decision, the Administrator shall provide the claimant with notice of the resubmission.

 

ARTICLE 6

AMENDMENT AND TERMINATION

 

6.1         Agreement Amendment Generally. Except as provided in Section 6.2, this Agreement may be amended only by a written agreement signed by both the Employer and the Executive.

 

6.2         Amendment to Ensure Proper Characterization of Agreement. Notwithstanding anything in this Agreement to the contrary, the Agreement may be amended by the Employer at any time, if found necessary in the opinion of the Employer, (i) to ensure that the Agreement is characterized as plan of deferred compensation maintained for a select group of management or highly compensated employees as described under ERISA, (ii) to conform the Agreement to the requirements of any applicable law or (iii) to comply with the written instructions of the Employer’s auditors or banking regulators.

 

6.3         Agreement Termination Generally. The Employer may terminate this Agreement at any time by providing written notice of such termination to the Executive. The benefit upon such termination shall be the Accrued Benefit as of the date of termination. Except as provided in Section 6.4, such termination shall not cause a distribution of benefits under this Agreement. Rather, benefit distributions will be made at the earliest distribution event permitted under Article 2.

 

6.4         Effect of Complete Termination. Notwithstanding anything to the contrary in Section 6.3, and subject to the requirements of Code Section 409A and Treasury Regulations §1.409A-3(j)(4)(ix), at certain times the Employer may completely terminate and liquidate the Agreement. In the event of such a complete termination, the Employer shall pay the Accrued Benefit to the Executive. Such complete termination of the Agreement shall occur only under the following circumstances and conditions.

 

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(a)         Corporate Dissolution or Bankruptcy. The Employer may terminate and liquidate this Agreement within twelve (12) months of a corporate dissolution taxed under Code Section 331, or with the approval of a bankruptcy court pursuant to 11 U.S.C. §503(b)(1)(A), provided that all benefits paid under the Agreement are included in the Executive’s gross income in the latest of: (i) the calendar year which the termination occurs; (ii) the calendar year in which the amount is no longer subject to a substantial risk of forfeiture; or (iii) the first calendar year in which the payment is administratively practicable.

(b)         Change in Control. The Employer may terminate and liquidate this Agreement by taking irrevocable action to terminate and liquidate within the thirty (30) days preceding or the twelve (12) months following a Change in Control. This Agreement will then be treated as terminated only if all substantially similar arrangements sponsored by the Employer which are treated as deferred under a single plan under Treasury Regulations §1.409A-1(c)(2) are terminated and liquidated with respect to each participant who experienced the Change in Control so that the Executive and any participants in any such similar arrangements are required to receive all amounts of compensation deferred under the terminated arrangements within twelve (12) months of the date the Employer takes the irrevocable action to terminate the arrangements.

(c)         Discretionary Termination. The Employer may terminate and liquidate this Agreement provided that: (i) the termination does not occur proximate to a downturn in the financial health of the Employer; (ii) all arrangements sponsored by the Employer and Affiliates that would be aggregated with any terminated arrangements under Treasury Regulations §1.409A-1(c) are terminated; (iii) no payments, other than payments that would be payable under the terms of this Agreement if the termination had not occurred, are made within twelve (12) months of the date the Employer takes the irrevocable action to terminate this Agreement; (iv) all payments are made within twenty-four (24) months following the date the Employer takes the irrevocable action to terminate and liquidate this Agreement; and (v) neither the Employer nor any of its Affiliates adopt a new arrangement that would be aggregated with any terminated arrangement under Treasury Regulations §1.409A-1(c) if the Executive participated in both arrangements, at any time within three (3) years following the date the Employer takes the irrevocable action to terminate this Agreement.

 

ARTICLE 7

MISCELLANEOUS

 

7.1         No Effect on Other Rights. This Agreement constitutes the entire agreement between the Employer and the Executive as to the subject matter hereof. No rights are granted to the Executive by virtue of this Agreement other than those specifically set forth herein. Nothing contained herein will confer upon the Executive the right to be retained in the service of the Employer nor limit the right of the Employer to discharge or otherwise deal with the Executive without regard to the existence hereof.

 

7.2         State Law. To the extent not governed by ERISA, the provisions of this Agreement shall be construed and interpreted according to the internal law of the State of Montana without regard to its conflicts of laws principles.

 

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7.3         Validity. In case any provision of this Agreement shall be illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Agreement shall be construed and enforced as if such illegal or invalid provision had never been inserted herein.

 

7.4         Nonassignability. Benefits under this Agreement cannot be sold, transferred, assigned, pledged, attached or encumbered in any manner.

 

7.5         Unsecured General Creditor Status. Payment to the Executive or any Beneficiary hereunder shall be made from assets which shall continue, for all purposes, to be part of the general, unrestricted assets of the Employer and no person shall have any interest in any such asset by virtue of any provision of this Agreement. The Employer’s obligation hereunder shall be an unfunded and unsecured promise to pay money in the future. In the event that the Employer purchases an insurance policy insuring the life of the Executive to recover the cost of providing benefits hereunder, neither the Executive nor the Beneficiary shall have any rights whatsoever in said policy or the proceeds therefrom.

 

7.6         Life Insurance. If the Employer chooses to obtain insurance on the life of the Executive in connection with its obligations under this Agreement, the Executive hereby agrees to take such physical examinations and to truthfully and completely supply such information as may be required by the Employer or the insurance company designated by the Employer.

 

7.7         Unclaimed Benefits. The Executive shall keep the Employer informed of the Executive’s current address and the current address of the Beneficiary. If the location of the Executive is not made known to the Employer within three years after the date upon which any payment of any benefits may first be made, the Employer shall delay payment of the Executive’s benefit payment(s) until the location of the Executive is made known to the Employer; however, the Employer shall only be obligated to hold such benefit payment(s) for the Executive until the expiration of three (3) years. Upon expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Beneficiary. If the location of the Beneficiary is not made known to the Employer by the end of an additional two (2) month period following expiration of the three (3) year period, the Employer may discharge its obligation by payment to the Executive’s estate. If there is no estate in existence at such time or if such fact cannot be determined by the Employer, the Executive and Beneficiary shall thereupon forfeit all rights to any benefits provided under this Agreement.

 

7.8         Suicide or Misstatement. No benefit shall be distributed hereunder if the Executive commits suicide within two (2) years after the Effective Date, or if an insurance company which issued a life insurance policy covering the Executive and owned by the Employer denies coverage (i) for material misstatements of fact made by the Executive on an application for life insurance, or (ii) for any other reason.

 

7.9         Removal. Notwithstanding anything in this Agreement to the contrary, the Employer shall not distribute any benefit under this Agreement if the Executive is subject to a final removal or prohibition order issued pursuant to Section 8(e) of the Federal Deposit Insurance Act. Furthermore, any payments made to the Executive pursuant to this Agreement shall, if required, comply with 12 U.S.C. 1828, FDIC Regulation 12 CFR Part 359 and any other regulations or guidance promulgated thereunder.

 

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7.10         Notice. Any notice, consent or demand required or permitted to be given to the Employer or Administrator under this Agreement shall be sufficient if in writing and hand-delivered or sent by registered or certified mail to the Employer’s principal business office. Any notice or filing required or permitted to be given to the Executive or Beneficiary under this Agreement shall be sufficient if in writing and hand-delivered or sent by mail to the last known address of the Executive or Beneficiary, as appropriate. Any notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark or on the receipt for registration or certification.

 

7.11         Headings and Interpretation. Headings and sub-headings in this Agreement are inserted for reference and convenience only and shall not be deemed part of this Agreement. Wherever the fulfillment of the intent and purpose of this Agreement requires and the context will permit, the use of the masculine gender includes the feminine and use of the singular includes the plural.

 

7.12         Alternative Action. In the event it becomes impossible for the Employer or the Administrator to perform any act required by this Agreement due to regulatory or other constraints, the Employer or Administrator may perform such alternative act as most nearly carries out the intent and purpose of this Agreement and is in the best interests of the Employer, provided that such alternative act does not violate Code Section 409A.

 

7.13         Coordination with Other Benefits. The benefits provided for the Executive or the Beneficiary under this Agreement are in addition to any other benefits available to the Executive under any other plan or program for employees of the Employer. This Agreement shall supplement and shall not supersede, modify, or amend any other such plan or program except as may otherwise be expressly provided herein.

 

7.14         Inurement. This Agreement shall be binding upon and shall inure to the benefit of the Employer, its successor and assigns, and the Executive, the Executive’s successors, heirs, executors, administrators, and the Beneficiary.

 

7.15         Tax Withholding. The Employer may make such provisions and take such action as it deems necessary or appropriate for the withholding of any taxes which the Employer is required by any law or regulation to withhold in connection with any benefits under the Agreement. The Executive shall be responsible for the payment of all individual tax liabilities relating to any benefits paid hereunder.

 

7.16         Aggregation of Agreement. If the Employer offers other non-qualified deferred compensation plans, this Agreement and those plans shall be treated as a single plan to the extent required under Code Section 409A.

 

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IN WITNESS WHEREOF, the Executive and a representative of the Employer have executed this Agreement document as indicated below:

 

	Executive:	Employer:

 

 

 

	/s/ Alana Binde	 	By:	/s/ Peter J. Johnson	 
	Alana Binde	 	 	Peter J. Johnson	 
	 	 	Its:	President/CEO	 

 

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SALARY CONTINUATION AGREEMENT

 

Beneficiary Designation

 

I, Alana Binde , designate the following as Beneficiary under this Agreement:

 

Primary

 

____________________________________________________________________________________         _______%

 

____________________________________________________________________________________         _______%

 

Contingent

 

____________________________________________________________________________________         _______%

 

____________________________________________________________________________________         _______%

 

 

 

I understand that I may change this beneficiary designation by delivering a new written designation to the Administrator, which shall be effective only upon receipt by the Administrator prior to my death. I further understand that the designation will be automatically revoked if the Beneficiary predeceases me or if I have named my spouse as Beneficiary and our marriage is subsequently dissolved.

 

Signature:         _______________________________                  Date:         _______

 

	
			 

			SPOUSAL CONSENT (Required only if Administrator requests and someone other than spouse is named Beneficiary)

			 

			I consent to the beneficiary designation above. I also acknowledge that if I am named Beneficiary and my marriage is subsequently dissolved, the beneficiary designation will be automatically revoked.

			 

			Spouse Name:         _______________________________

			 

			Signature:         _______________________________         Date:  ________

			 

			

 

                

 

 

Received by the Administrator this ________ day of ___________________, 20__

 

	By:	 	 
	Title:

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