Document:

Document

Exhibit 10.2

Note: Pursuant to Item 601(b)(10)(iv) of Regulation S-K, certain identified information has been excluded from this exhibit because it is both not material and is the type that Dollar Tree, Inc. treats as private or confidential. Such information is marked in the exhibit with an asterisk [*].

Employment Agreement
(Flanigan)

    This Employment Agreement is made and entered into by John Flanigan (“Executive”) and Dollar Tree Distribution, Inc. (together with its parent Dollar Tree and its subsidiaries (collectively, the “Company”). The Executive and the Company hereby agree as follows: 
1.    Effective Date; Term.  This Employment Agreement (the “Agreement”), and Executive’s employment with the Company, shall become effective on May 9, 2022 (the “Effective Date”).  Executive’s employment hereunder will continue for [*] after the Effective Date (the “Original Term”); provided that employment may be extended for up to an additional [*] by mutual agreement of the parties (the original and any extended term of employment, the “Term”), unless terminated earlier in accordance with Section 6.

2.    Position and Duties. 
a.    Executive will serve as Chief Supply Chain Officer of the Company and will report to the Company’s Chief Executive Officer (the “CEO”).  Executive will have those powers and duties assigned to him from time to time by the CEO, which shall include leading the supply chain function for both Dollar Tree and Family Dollar banners, executing on a distinct set of objectives during the Term, and finding a suitable successor for Executive’s role within the Term or such shorter time frame requested by the CEO.
b.    Executive will devote substantially all of Executive’s working time, attention and energies during normal business hours (other than absences due to illness or vacation) to the performance of Executive’s duties for the Company. Executive acknowledges and agrees that Executive will travel to the Company’s principal executive offices in Chesapeake, Virginia and such other locations in the course of Executive’s service with the Company, in each case as reasonably required in order to carry out Executive’s duties for the Company.
3.    Compensation and Related Matters.
a.    Base Salary.  The Company will pay Executive a base salary at the rate of not less than $900,000 per year (“Base Salary”) during the Term. Executive’s Base Salary will be paid in approximately equal installments in accordance with the Company’s customary payroll practices.
b.    Benefits.  During the Term, Executive will be entitled to participate in such employee welfare and benefit plans and programs of the Company as are made available to the Company’s senior level executives and to its employees generally subject to the terms of such plans and programs as may be in effect from time to time, including, without limitation, health, medical, dental, long-term disability and life insurance plans, 401(k) plan, and supplemental deferred compensation plan. During the Term, to the extent not otherwise available under such plans and programs, Executive will be entitled to receive: (i) a car allowance of $1,450.00 per month, (ii) a cell phone allowance of $125.00 per month, (iii) reimbursement of financial planning and tax preparation services up to $3000.00 per year, (iv) one Company-paid executive physical, subject to terms generally applicable to other senior level executives; and (v) in lieu of any other relocation benefit, reimbursement of Executive’s documented out-of-pocket costs for travel to the Company’s principal executive offices in Chesapeake, Virginia and such other locations as described in Section 2.b., with corporate housing or hotel arrangements for such travel to be provided at the Company’s cost. 

c.    Incentive Bonus Opportunity.  If the Performance Objectives (defined below) are met, Executive will be eligible for a cash bonus opportunity of 150% to 200% of annualized Base Salary, payable on the last day of the Term, subject to continued employment through the last day of the Term, unless the Company determines in its sole discretion to pay all or a portion of the cash bonus prior to the end of the Term, subject to continued employment through the payment date, based on progress toward achievement of the Performance Objectives.  The Performance Objectives means those specified performance objectives attached hereto as Exhibit A and incorporated herein.  The level of satisfaction of the Performance Objectives will be determined by the Compensation Committee based on recommendation from the CEO.
d.    Paid Time Off.  During the Term, Executive will be eligible for four (4) weeks of paid time off annually, with the potential for additional time off as approved by the CEO.
e.    Acknowledgement.  Except as otherwise provided in this Section 3, Executive acknowledges and agrees that Executive will not be eligible for any short-term incentive, long-term incentive or equity-based compensation.
4.    Covenants.  The following covenants are several and survive the termination of the other provisions of this Agreement and survive the termination of Executive’s employment for any reason (the final day of Executive’s employment with the Company is the “Separation Date”), whether or not Executive receives severance under this Agreement.

a.    Confidential Information. Executive understands and acknowledges that during the course of Executive’s employment by the Company, Executive will have access to and learn about Confidential Information belonging to the Company.  
For purposes of this Agreement, "Confidential Information" is all information not generally known to the public and developed or maintained by the Company or its agents in spoken, printed, electronic or any other form or medium, relating directly or indirectly to the Company’s: business processes, practices, methods, policies, plans, operations, strategies, agreements, contracts, transactions, potential transactions, know-how, trade secrets, intellectual property, works-in-process, databases, systems, vendor and supplier information, financial information, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, credit information, design information, personnel information, market studies, sales information, revenue, costs, customer information, manufacturing information, transportation and logistics information, and factory lists of the Company or of any other person or entity that has entrusted information to the Company in confidence. 
Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information that is marked or otherwise identified or treated as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used. 

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Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money, and specialized knowledge into developing its resources, creating and developing its vendor base, increasing its customer base, expanding the number of geographic markets in which it operates, training its executives, developing best operational practices, and negotiating highly competitive prices in the discount retail sector so as to provide the best value possible to its customers.  Executive understands and acknowledges that as a result of these ongoing efforts, the Company has created, and continues to use and create, Confidential Information. This Confidential Information provides the Company with a competitive advantage over others in the marketplace, and it is essential to the Company’s success moving forward.  

Confidential Information shall not include information that is generally available to and known by the public at the time of disclosure to Executive, provided that such disclosure is through no direct or indirect fault of Executive or anyone acting on Executive’s behalf.
i.    Disclosure and Use Restrictions.  Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed, published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other executives and employees of the Company not having a need to know such information); (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control of the Company, except as required in the performance of Executive’s authorized employment duties to the Company or with the prior consent of Executive’s supervisor; and (iv) to immediately return and not retain, in any form, any such Confidential Information upon the Separation Date. Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by applicable law or regulation, or pursuant to the valid subpoena or order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation, or subpoena/order. Executive shall promptly provide written notice of any such order to the Company’s Chief Legal Officer, if permitted by law to do so.

Executive understands and acknowledges that Executive’s obligations under this Agreement with regard to any particular Confidential Information shall commence immediately upon Executive’s first having access to such Confidential Information and shall continue during and after Executive’s employment by the Company until such time as such Confidential Information has become public knowledge other than as a result of Executive’s breach of this Agreement or breach by those acting in concert with Executive or on Executive’s behalf.

ii.    Whistleblower Protection and Notice of Immunity under the Economic Espionage Act of 1996, as amended by the Defend Trade Secrets Act of 2016.  Notwithstanding any other provision of this Agreement or any other agreement or Company policy, Executive will not be held liable under this Agreement or any other agreement or Company policy or any federal or state trade secret law for any disclosure of a trade secret or other Confidential Information that is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (iii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.

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b.    Covenant Not to Compete.  

i.    Acknowledgment. Executive understands that the senior nature of Executive’s position gives Executive access to and knowledge of Confidential Information and places Executive in a position of trust and confidence with the Company and, further, that the improper use or disclosure by Executive of Confidential Information is likely to result in unfair or unlawful competitive activity that would substantially harm the Company.  Executive understands and acknowledges that Executive’s experience and expertise relating to the business of a retailer are unique and specialized, and that the Company’s ability to reserve these talents for the exclusive knowledge and use of the Company during Executive’s employment and for a reasonable period thereafter is of great competitive importance and commercial value to the Company.

ii.    Non-Competition. Because of the Company’s legitimate business interest as described herein and the good and valuable consideration offered to Executive herein, during Executive’s employment and for a consecutive [*] period beginning on the Separation Date, Executive agrees and covenants that Executive will not engage in any Prohibited Activity (as defined below) [*] for a Competitor (as defined below) [*].  This restrictive covenant applies whether Executive’s employment is terminated by Executive or by the Company for any reason or no reason.  
1.    For purposes of this non-compete, "Prohibited Activity" is [*].  
2.    A “Competitor” is defined as [*].
3.    “Restricted Area” is defined as [*].
 

iii. Nothing herein shall prohibit Executive from purchasing or owning less than five percent (5%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that Executive is not a controlling person of, or a member of a group that controls, such corporation. 

c.    Non-Piracy of Company Executives.  Executive agrees and covenants that, for a period of  [*] from the Separation Date, Executive shall not directly or indirectly solicit, hire, recruit, or attempt to hire or recruit, any Company Executive, or induce the termination of employment of any Company Executive.  “Company Executive” means any person who at the time of, or within three months immediately prior to, the solicitation, hiring, recruitment, or inducement, was employed by the Company at a Director-level or more senior position.  The types of communication prohibited by this provision explicitly include all forms of oral, written, or electronic communication, including, but not limited to, communications by email, regular mail, express mail, telephone, fax, instant message, and social media, where the purpose of or reasonably anticipated impact or consequence of the communication would be to solicit, hire or recruit such person.  For the avoidance of doubt, this restriction applies regardless of whether the Executive or the Company Executive initiated the first communication.  

d.    Non-Disparagement.  Executive agrees and covenants that, during Executive’s employment and for a period of [*] after the Separation Date, Executive will not make, publish, or communicate to any person or entity or in any public forum any defamatory or disparaging remarks, comments, or statements concerning the Company, or any of its executives, directors, and officers.  This Section does not, in any way, restrict or impede Executive from exercising protected rights to the extent that such rights cannot be waived by agreement, including but not limited to Executive's right to make a complaint or charge with or respond to an inquiry from any government agency, or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency.  
 

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e.    Existing Agreements.  Executive agrees and covenants that Executive does not have any agreement with any third party that would impact his employment or the performance of his duties with the Company, other than agreements that have expired or have been terminated prior to the Effective Date.  In addition, Executive acknowledges and agrees that prior to the Effective Date Executive shall terminate, and will be deemed to have terminated, all agreements between himself and Mantle Ridge LP or any of its affiliates (collectively, “Mantle Ridge”) that relate, directly or indirectly, to Mantle Ridge’s investment in the Company, its securities or to service or potential service with the Company in any capacity; it being understood that Executive may continue to be (i) entitled to the indemnification protections afforded by Mantle Ridge with respect to the period prior to the Effective Date and (ii) subject to confidentiality and non-disclosure obligations set forth therein.

f.    Acknowledgment. Executive acknowledges and agrees that the services Executive will render to the Company are of a special and unique character; that Executive will obtain knowledge and skill relevant to the Company’s industry, methods of doing business, and logistical, operational, merchandising and marketing strategies by virtue of Executive’s employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the legitimate business interests of the Company. 

Executive affirms that Executive will not be subject to undue hardship or an unreasonable restraint on Executive’s ability to earn a livelihood by reason of Executive’s full compliance with the terms and conditions of this Agreement or the Company’s enforcement thereof; and that this Agreement is not a contract of employment and shall not be construed as a commitment by either of the Parties to continue an employment relationship for any certain period of time.

Executive’s obligations under each of Sections 4(a)(i), 4(b)(ii), 4(c), 4(d) and 4(e) above are separable and independently enforceable of each other and of any legal obligations that may exist between the Company and Executive. The real or perceived existence of any claim or cause of action of Executive against the Company, whether predicated on this Agreement or some other basis, will not alleviate Executive of Executive’s obligations under this Agreement and will not constitute a defense to the enforcement by the Company of the restrictions and covenants contained herein.

g.    Remedies. In the event of a breach or threatened breach by Executive of any of the restrictive covenants of this Agreement, Executive hereby consents and agrees that the Company shall be entitled to seek (notwithstanding the Parties’ Mutual Agreement to Arbitrate Claims), in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent jurisdiction, without the necessity of showing any actual damages, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief including without limitation a claim for disgorgement of any severance paid to Executive pursuant to Section 6 below.  

5.    Termination of Employment.  Executive's employment may be terminated by either the Company or the Executive at any time and for any reason, with or without prior notice, and without liability except as set forth herein.

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6.    Severance Opportunity.  Upon termination of Executive's employment during the Original Term by the Company without Cause, in addition to any accrued but unpaid base salary and any vested rights under any Company employee benefit plan, the Executive shall be entitled to receive the following severance benefits, receipt of which is subject to (a) Executive’s full and continued compliance with the covenants set forth in Section 4 of this Agreement; (b) Executive’s execution, and non-revocation, of a separation agreement containing a release of claims in favor of the Company, its affiliates, and their respective officers and directors, and other relevant provisions in a form provided by and acceptable to the Company, which release has become irrevocable within 30 days after the Separation Date (the "Release"); and (c) Executive’s agreement to forego any other severance payment to which Executive may be entitled under any other agreement with the Company: 
a.    Continued Base Salary for the remainder of the Original Term, payable in equal installments in accordance with the Company’s normal payroll practices, which payments shall commence on the next scheduled payroll date after the effective date of the Release, (“Salary Continuation Period”), with the first payment inclusive of any installment delayed pending the effective date of the Release. In the event Executive accepts an offer of employment or an offer to provide services in a consulting or other capacity during the Salary Continuation Period, Executive agrees to so inform the Company within three (3) business days, at which time Salary Continuation payments under this Section 6.a shall cease.  
b.    If Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"), the Company shall reimburse Executive for the monthly COBRA premium paid by Executive for Executive and Executive’s qualified beneficiaries during the Salary Continuation Period.  Such reimbursement shall be paid to Executive on a monthly basis, within ten (10) business days following the month in which Executive timely remits the premium payment.  In the event Executive receives or becomes eligible to receive substantially similar coverage from another employer or other source during the Salary Continuation Period, Executive agrees to so inform the Company within three (3) business days, at which time COBRA reimbursements shall cease.  Executive shall be solely responsible for the tax consequences of any such payments. 
c.    [Reserved.]  
d.    [Reserved.]
e.    For purposes of this Agreement, “Cause” shall mean Executive’s: (i) failure to perform Executive’s duties; (ii) engagement in dishonesty, illegal conduct, or gross misconduct, which is, in each case, injurious to the Company; (iii) embezzlement, misappropriation, or fraud, whether or not related to Executive's employment with the Company; (iv) conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude; (v) willful unauthorized disclosure of Confidential Information; (vi) breach of any material obligation under this Agreement; or (vii) failure to comply with material Company written policies or rules, as they may be in effect from time to time.
f.    The Company intends the amounts payable to Executive upon a termination of employment to be excepted from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) to the maximum extent permissible and that each payment hereunder shall be treated as a separate payment for purposes of Section 409A of the Code.  To the extent that any payment hereunder is subject to Section 409A of the Code, it shall be administered in compliance with the requirements thereof.  To the extent required to avoid a violation of Section 409A of the Code, if the period between Executive’s termination of employment and the date on which the Release may become effective includes two calendar years, no payment under Section 6.a (or otherwise under this Agreement) shall be made until the second calendar year.  Further, to the extent required to avoid a violation of Section 409A of the Code, if Executive is a “specified employee” under Code Section 409A(a)(2)(i) and the regulations promulgated thereunder on the date of Executive’s termination of employment, then any payment under this Agreement shall be accumulated and paid without interest to Executive on the first business day of the seventh month following the date of Executive’s termination of employment.  

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g.    Executive shall not be entitled to severance benefits if the Executive voluntarily resigns for any reason, including reasons that the Executive may assert constitute constructive discharge. 

7.    Governing Law: Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of the State of Delaware, without regard to conflicts-of-law principles. Any action or proceeding by either of the Parties to enforce this Agreement shall be brought in accordance with the requirements of the Parties’ Mutual Agreement to Arbitrate Claims, or any other arbitration agreement between the Parties, except that the Company may seek temporary or permanent injunctive relief or other forms of immediate relief related to a breach by Executive of any of the covenants in this Agreement in the state or federal courts located in Wilmington, Delaware or Norfolk, Virginia. 

8.    Entire Agreement. Unless specifically provided herein, this Agreement and the Mutual Agreement to Arbitrate Claims (or any other arbitration agreement between the Parties) contain all the understandings and representations between Executive and the Company pertaining to the subject matter hereof and supersede all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter. 

9.    Modification and Waiver. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by Executive and by the Chief Executive Officer of the Company. No waiver by either of the Parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition.

10.    Severability. Should any provision of this Agreement be held by a court or arbitral authority of competent jurisdiction to be enforceable only if modified, or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding on the Parties with any such modification to become a part hereof and treated as though originally set forth in this Agreement.  The Parties further agree that any such court or arbitral authority is expressly authorized to modify any unenforceable provision of this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement this 12th day of May, 2022. 

															
	EXECUTIVE		DOLLAR TREE, INC. and its subsidiaries
					
					
	By:	/s/ John Flanigan
		By:	/s/ Jenn Hulett

	Name:	John Flanigan
		Name:	Jenn Hulett

	Title:	Chief Supply Chain Officer		Title:	Chief Human Resources Officer

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Exhibit A

Performance Objectives

[*]

8indemnificationagreement

1  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM   FORM OF INDEMNIFICATION AGREEMENT  (Delaware corporation)  This Indemnification Agreement (this “Agreement”), made and entered  into as of the [●] day of [●], [●], by and between Aspen Technology, Inc., a  Delaware corporation (the “Company”) and [●] (“Indemnitee”).  W I T N E S S E T H:  WHEREAS, the Board of Directors of the Company (the “Board”) has  determined that, in order to attract and retain qualified individuals to serve as  directors, the Company will attempt to maintain on an ongoing basis, at its sole  expense, liability insurance to protect persons serving the Company and its  subsidiaries from certain liabilities;  WHEREAS, the Amended and Restated Certificate of Incorporation of the  Company (the “Charter”) provides that the Company shall indemnify and  advance expenses to all directors of the Company in the manner set forth therein  and to the fullest extent permitted by applicable law, and the Charter provides for  limitation of liability for directors.  The  Charter expressly provides that the  indemnification provisions set forth therein are not exclusive, and thereby  contemplate that contracts may be entered into between the Company and its  directors with respect to indemnification;  WHEREAS, the uncertainties relating to such insurance and to  indemnification have increased the difficulty of attracting and retaining such  persons;  WHEREAS, the Board has determined that the increased difficulty in  attracting and retaining persons to serve as directors of the Company is  detrimental to the best interests of the Company’s stockholders and that the  Company should act to assure such persons that there will be increased certainty  of such protection in the future;  WHEREAS, the Board has determined that it is in the best interests of the  Company to contractually obligate itself to indemnify, and to advance expenses  on behalf of, such directors to the fullest extent permitted by applicable law so  that they will serve or continue to serve the Company free from undue concern  that they will not be so indemnified; and  WHEREAS, this Agreement is a supplement to and in furtherance of the  Charter and any resolutions adopted pursuant thereto and shall not be deemed a  substitute therefor, nor to diminish or abrogate any rights of Indemnitee  thereunder.  Exhibit 10.9 

 

2  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  NOW, THEREFORE, in consideration of the premises and the covenants  contained herein, the Company and Indemnitee do hereby covenant and agree as  follows:  ARTICLE 1  CERTAIN DEFINITIONS  (a) As used in this Agreement:  “Affiliates” has the meaning set forth in the Stockholders Agreement.  “Change of Control” means any one of the following circumstances  occurring after the date hereof: (i) there shall have occurred an event required to  be reported with respect to the Company in response to Item 6(e) of Schedule 14A  of Regulation 14A (or in response to any similar item or any similar schedule or  form) under the Exchange Act, regardless of whether the Company is then subject  to such reporting requirement (unless such event is with respect to Emerson or  one of its Affiliates acquiring control of the Company); (ii) any “person” or  “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act)  shall have become, without prior approval of the Company’s Board by approval  of at least a majority of the Continuing Directors, the “beneficial owner” (as  defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of  securities of the Company representing 15% or more of the combined voting  power of the Company’s then outstanding voting securities (provided that, for  purposes of this clause (ii), the terms “person” and “group” shall exclude (w)  Emerson and its Affiliates, (x) the Company, (y) any trustee or other fiduciary  holding securities under an employee benefit plan of the Company, and (z) any  corporation owned, directly or indirectly, by the stockholders of the Company in  substantially the same proportions as their ownership of stock of the Company);  (iii) there occurs a merger or consolidation of the Company with any other entity,  other than a merger or consolidation (x) which would result in the voting  securities of the Company outstanding immediately prior to such merger or  consolidation continuing to represent (either by remaining outstanding or by being  converted into voting securities of the surviving entity) more than 51% of the  combined voting power of the voting securities of the surviving entity outstanding  immediately after such merger or consolidation and with the power to elect at  least a majority of the board of directors or other governing body of such  surviving entity or (y) with Emerson or one of its Affiliates; (iv) all or  substantially all the assets of the Company are sold or disposed of in a transaction  or series of related transactions (unless such transaction is with Emerson or one of  its Affiliates); (v) the approval by the stockholders of the Company of a complete  liquidation of the Company; or (vi) the Continuing Directors cease for any reason  to constitute at least a majority of the members of the Board; provided that this  clause (vi) shall not apply for so long as Emerson beneficially owns a majority of  the outstanding securities of the Company or has a right to nominate a majority of  

 

3  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  the members of the Board pursuant to the Stockholders Agreement. For the  avoidance of doubt, the consummation of the transactions contemplated by the  Transaction Agreement (as defined in the Stockholders Agreement) shall not  constitute a Change in Control.    “Continuing Director” means (i) each director on the Board on the date  hereof or (ii) any new director whose election or nomination for election by the  Company’s stockholders was approved by a vote of at least a majority of the  directors then still in office who were directors on the date hereof or whose  election or nomination was so approved.  “Corporate Status” means the status of Indemnitee as a director,  fiduciary or board of directors’ committee member of the Company.  “Disinterested Director” means a director of the Company who is not  and was not a party to the Proceeding in respect of which indemnification is  sought by Indemnitee.  “Emerson” has the meaning set forth in the Stockholders Agreement.   “Exchange Act” means the Securities Exchange Act of 1934, as amended.  “Expenses” means all direct and indirect costs (including attorneys’ fees,  retainers, court costs, transcripts, fees of experts, witness fees, travel expenses,  duplicating costs, printing and binding costs, telephone charges, postage, delivery  service fees, and all other disbursements or expenses) reasonably incurred in  connection with (i) prosecuting, defending, preparing to prosecute or defend,  investigating, being or preparing to be a witness in, or otherwise participating in, a  Proceeding or (ii) establishing or enforcing a right to indemnification under this  Agreement, the Charter, applicable law or otherwise.  Expenses also shall include  Expenses incurred in connection with any appeal resulting from any Proceeding,  including the premium, security for, and other costs relating to any cost bond,  supersedeas bond, or other appeal bond or its equivalent.  For the avoidance of  doubt, Expenses, however, shall not include any Liabilities.  “Independent Counsel” means a law firm, or a member of a law firm,  that is experienced in matters of corporate law and neither currently is, nor in the  five years previous to its selection or appointment has been, retained to represent  (i) the Company or Indemnitee in any matter material to either such party (other  than with respect to matters concerning Indemnitee under this Agreement or of  other indemnitees under similar indemnification agreements) or (ii) any other  party to the Proceeding giving rise to a claim for indemnification hereunder.   Notwithstanding the foregoing, the term “Independent Counsel” shall not include  any person who, under the applicable standards of professional conduct then  prevailing, would have a conflict of interest in representing either the Company or  Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  

 

4  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  “Liabilities” means any losses or liabilities, including any judgments,  fines, excise taxes and penalties, penalties and amounts paid in settlement, arising  out of or in connection with any Proceeding (including all interest, assessments  and other charges paid or payable in connection with or in respect of any such  judgments, fines, excise taxes and penalties, penalties or amounts paid in  settlement).  “Proceeding” means any threatened, pending or completed action,  derivative action, suit, claim, counterclaim, cross claim, arbitration, alternate  dispute resolution mechanism, investigation, inquiry, administrative hearing or  any other actual, threatened or completed proceeding, whether civil (including  intentional and unintentional tort claims), criminal, administrative or  investigative, including any appeal therefrom, and whether instituted by or on  behalf of the Company or any other party, or any inquiry or investigation that  Indemnitee in good faith believes might lead to the institution of any such action,  suit or other proceeding hereinabove listed in which Indemnitee was, is or will be  involved as a party, potential party, non-party witness or otherwise by reason of  any Corporate Status of Indemnitee, or by reason of any action taken (or failure to  act) by him or her or of any action (or failure to act) on his or her part while  serving in any Corporate Status.  “Stockholders Agreement” means that certain Stockholders Agreement,  dated as of May 16, 2022, by and among the Company, Emerson Electric Co. and  EMR Worldwide Inc., as amended from time to time.  (b) For the purposes of this Agreement:  References to “Company” shall include, in addition to the resulting or  surviving corporation, any constituent corporation (including any constituent of a  constituent) absorbed in a consolidation or merger which, if its separate existence  had continued, would have had power and authority to indemnify its directors,  officers, employees or agents, so that if Indemnitee is or was a director, officer,  employee, or agent of such constituent corporation or is or was serving at the  request of such constituent corporation as a director, officer, employee, or agent  of another corporation, partnership, joint venture, trust or other enterprise, then  Indemnitee shall stand in the same position under the provisions of this  Agreement with respect to the resulting or surviving corporation as Indemnitee  would have with respect to such constituent corporation if its separate existence  had continued.  Reference to “other enterprise” shall include employee benefit plans;  references to “fines” shall include any excise tax assessed with respect to any  employee benefit plan; references to “serving at the request of the Company”  shall include any service as a director, officer, employee or agent of the Company  which imposes duties on, or involves services by, such director, officer, employee  or agent with respect to an employee benefit plan, its participants or beneficiaries;  

 

5  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  and a person who acted in good faith and in a manner he reasonably believed to  be in the best interests of the participants and beneficiaries of an employee benefit  plan shall be deemed to have acted in a manner “not opposed to the best interests  of the Company” as referred to in this Agreement.  Reference to “including” shall mean “including, without limitation,”  regardless of whether the words “without limitation” actually appear, references  to the words “herein,” “hereof” and “hereunder” and other words of similar  import shall refer to this Agreement as a whole and not to any particular  paragraph, subparagraph, section, subsection or other subdivision.  ARTICLE 2  SERVICES BY INDEMNITEE  Section 2.01.  Services By Indemnitee.  Indemnitee hereby agrees to serve  or continue to serve as a director of the Company, for so long as Indemnitee is  duly elected or appointed or until Indemnitee tenders his or her resignation or is  removed.  ARTICLE 3  INDEMNIFICATION  Section 3.01.  General.  (a) The Company hereby agrees to and shall  indemnify Indemnitee and hold Indemnitee harmless from and against any and all  Expenses and Liabilities, in either case, actually and reasonably incurred by  Indemnitee or on Indemnitee’s behalf by reason of Indemnitee’s Corporate Status,  to the fullest extent permitted by applicable law.  The Company’s indemnification  obligations set forth in this Section 3.01 shall apply (i) in respect of Indemnitee’s  past, present and future service in any Corporate Status and (ii) regardless of  whether Indemnitee is serving in any Corporate Status at the time any such  Expense or Liability is incurred.   For purposes of this Agreement, the meaning of the phrase “to the fullest  extent permitted by applicable law” shall include, but not be limited to:  (i) to the fullest extent permitted by any provision of the  DGCL, or the corresponding provision of any successor statute, and  (ii) to the fullest extent authorized or permitted by any  amendments to or replacements of the DGCL adopted after the date of this  Agreement that increase the extent to which a corporation may indemnify  its officers and directors.  

 

6  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  (b) Witness Expenses.  Notwithstanding any other provision of this  Agreement, to the extent that Indemnitee is, by reason of his or her Corporate  Status, a witness in any Proceeding to which Indemnitee is not a party,  Indemnitee shall be indemnified against all Expenses actually and reasonably  incurred by Indemnitee or on his or her behalf in connection therewith.  (c) Expenses as a Party Where Wholly or Partly Successful.   Notwithstanding any other provision of this Agreement, to the fullest extent  permitted by applicable law, to the extent that Indemnitee is a party to (or a  participant in) and is successful, on the merits or otherwise, in any Proceeding or  in defense of any claim, issue or matter therein, in whole or in part, the Company  shall indemnify Indemnitee against all Expenses actually and reasonably incurred  by him or her in connection therewith.  If Indemnitee is not wholly successful in  such Proceeding, but is successful, on the merits or otherwise, as to one or more  but less than all claims, issues or matters in such Proceeding, the Company shall,  to the fullest extent permitted by applicable law, indemnify Indemnitee against all  Expenses actually and reasonably incurred by Indemnitee or on his or her behalf  in connection with each successfully resolved claim, issue or matter.  For  purposes of this Section and without limitation, the termination of any claim,  issue or matter in such a Proceeding by dismissal, with or without prejudice, shall  be deemed to be a successful result as to such claim, issue or matter.  Section 3.02. Exclusions.  Notwithstanding any provision of this  Agreement and unless Indemnitee ultimately is successful on the merits with  respect to any such claim, the Company shall not be obligated under this  Agreement to make any indemnity in connection with any claim made against  Indemnitee:  (a) for (i) an accounting of profits made from the purchase and sale (or  sale and purchase) by Indemnitee of securities of the Company within the  meaning of Section 16(b) of the Exchange Act or similar provisions of state  statutory law or common law or (ii) any reimbursement of the Company by  Indemnitee of any bonus or other incentive-based or equity-based compensation  or of any profits realized by Indemnitee from the sale of securities of the  Company, as required in each case under the Exchange Act (including any such  reimbursements that arise from an accounting restatement of the Company  pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley  Act”), or the payment to the Company of profits arising from the purchase and  sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley  Act); or  (b) except as otherwise provided in Sections 6.01(e), prior to a Change  of Control, in connection with any Proceeding (or any part of any Proceeding)  initiated by Indemnitee (other than any cross claim or counterclaim asserted by  the Indemnitee), including any Proceeding (or any part of any Proceeding)  initiated by Indemnitee against the Company or its directors, officers, employees  

 

7  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  or other indemnitees unless (i) the Board authorized the Proceeding (or any part  of any Proceeding) prior to its initiation or (ii) the Company provides the  indemnification, in its sole discretion, pursuant to the powers vested in the  Company under applicable law.  ARTICLE 4  ADVANCEMENT OF EXPENSES; DEFENSE OF CLAIMS  Section 4.01.  Advances.  Notwithstanding any provision of this  Agreement to the contrary, the Company shall advance any Expenses actually and  reasonably incurred by Indemnitee in connection with any Proceeding within ten  (10) days after the receipt by the Company of each statement requesting such  advance from time to time, whether prior to or after final disposition of any  Proceeding.  Advances shall be unsecured and interest free.  Advances shall be  made without regard to Indemnitee’s ability to repay such amounts and without  regard to Indemnitee’s ultimate entitlement to indemnification under the other  provisions of this Agreement.  Advances shall include any and all reasonable  Expenses incurred pursuing an action to enforce this right of advancement,  including Expenses incurred preparing and forwarding statements to the Company  to support the advances claimed.    Section 4.02.  Repayment of Advances or Other Expenses.  Indemnitee  agrees that Indemnitee shall reimburse the Company for all Expenses advanced  by the Company pursuant to Section 4.01, in the event and only to the extent that  it shall be determined by final judgment or other final adjudication under the  provisions of any applicable law (as to which all rights of appeal therefrom have  been exhausted or lapsed) that Indemnitee is not entitled to be indemnified by the  Company for such Expenses.  Section 4.03.  Defense of Claims.  The Company shall be entitled to  assume the defense of any Proceeding with counsel consented to by Indemnitee  (such consent not to be unreasonably withheld) upon the delivery by the Company  to Indemnitee of written notice of the Company’s election to do so.  After  delivery of such notice, consent to such counsel by Indemnitee and the retention  of such counsel by the Company, the Company will not be liable to Indemnitee  under this Agreement for any fees or expenses of counsel subsequently incurred  by Indemnitee with respect to such Proceeding; provided that (i) Indemnitee shall  have the right to employ separate counsel in respect of any Proceeding at  Indemnitee’s expense and (ii) if (A) the employment of counsel by Indemnitee  has been previously authorized in writing by the Company or (B) Indemnitee shall  have reasonably concluded upon the advice of counsel that there is a conflict of  interest between the Company and Indemnitee in the conduct of the defense of  such Proceeding, then in each such case the fees and expenses of Indemnitee’s  counsel shall be at the Company’s expense. The Company shall not settle any  action, claim or Proceeding (in whole or in part) which would impose any  

 

8  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  Expense, judgment, fine, penalty or limitation on Indemnitee without  Indemnitee’s prior written consent, such consent not to be unreasonably withheld.   Indemnitee shall not settle any action, claim or Proceeding (in whole or in part)  which would impose any Expense, judgment, fine, penalty or limitation on the  Company without the Company’s prior written consent, such consent not to be  unreasonably withheld.  ARTICLE 5  PROCEDURES FOR NOTIFICATION OF AND DETERMINATION OF ENTITLEMENT TO  INDEMNIFICATION  Section 5.01.  Notification; Request For Indemnification.  (a) As soon as  reasonably practicable after receipt by Indemnitee of written notice that he is a  party to or a participant (as a witness or otherwise) in any Proceeding or of any  other matter in respect of which Indemnitee intends to seek indemnification or  advancement of Expenses hereunder, Indemnitee shall provide to the Company  written notice thereof, including the nature of and the facts underlying the  Proceeding.  The omission by Indemnitee to so notify the Company will not  relieve the Company from any liability which it may have to Indemnitee  hereunder or otherwise.  (b) To obtain indemnification under this Agreement, Indemnitee shall  deliver to the Company a written request for indemnification, including therewith  such information as is reasonably available to Indemnitee and reasonably  necessary to determine Indemnitee’s entitlement to indemnification hereunder.   Such request(s) may be delivered from time to time and at such time(s) as  Indemnitee deems appropriate in his or her sole discretion.  Indemnitee’s  entitlement to indemnification shall be determined according to Section 5.02 of  this Agreement and applicable law.  Section 5.02.  Determination of Entitlement.  (a) Where there has been a  written request by Indemnitee for indemnification pursuant to Section 5.01(b),  then as soon as is reasonably practicable (but in any event not later than 60 days)  after final disposition of the relevant Proceeding, a determination, if required by  applicable law, with respect to Indemnitee’s entitlement thereto shall be made in  the specific case: (i) if a Change of Control shall not have occurred, (A) by a  majority vote of the Disinterested Directors, even though less than a quorum of  the Board, (B) by a committee of Disinterested Directors designated by a majority  vote of the Disinterested Directors, even though less than a quorum of the Board,  (C) if there are no such Disinterested Directors or, if such Disinterested Directors  so direct, by Independent Counsel in a written opinion to the Board, a copy of  which shall be delivered to Indemnitee; or (ii) if a Change of Control shall have  occurred, by Independent Counsel in a written opinion to the Board, a copy of  which shall be delivered to Indemnitee.  If it is so determined that Indemnitee is  entitled to indemnification, payment to Indemnitee shall be made within ten (10)  

 

9  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  days after such determination.  Indemnitee shall reasonably cooperate with the  person, persons or entity making such determination with respect to Indemnitee’s  entitlement to indemnification, including providing to such person, persons or  entity upon reasonable advance request any documentation or information which  is not privileged or otherwise protected from disclosure and which is reasonably  available to Indemnitee and reasonably necessary to such determination.  Any  costs or expenses (including attorneys’ fees and disbursements) actually and  reasonably incurred by Indemnitee in so cooperating with the person, persons or  entity making such determination shall be borne by the Company (irrespective of  the determination as to Indemnitee’s entitlement to indemnification).  (b) If entitlement to indemnification is to be determined by Independent  Counsel pursuant to Section 5.02(a)(ii), such Independent Counsel shall be  selected by Indemnitee, and Indemnitee shall give written notice to the Company  advising it of the identity of the Independent Counsel so selected.  If entitlement  to indemnification is to be determined by Independent Counsel pursuant to  Section 5.02(a)(i)(C) (or if Indemnitee requests that such selection be made by the  Board), such Independent Counsel shall be selected by the Company in which  case the Company shall give written notice to Indemnitee advising him or her of  the identity of the Independent Counsel so selected.  In either event, Indemnitee  or the Company, as the case may be, may, within ten (10) days after such written  notice of selection shall have been received, deliver to the Company or to  Indemnitee, as the case may be, a written objection to such selection; provided,  however, that such objection may be asserted only on the ground that the  Independent Counsel so selected does not meet the requirements of “Independent  Counsel” as defined in Section 1 of this Agreement, and the objection shall set  forth with particularity the factual basis of such assertion.  Absent a proper and  timely objection, the person so selected shall act as Independent Counsel.  If such  written objection is so made and substantiated, the Independent Counsel so  selected may not serve as Independent Counsel unless and until such objection is  withdrawn or a court of competent jurisdiction has determined that such objection  is without merit.  If, within 20 days after the later of submission by Indemnitee of  a written request for indemnification pursuant to Section 5.01(b) hereof and the  final disposition of the Proceeding, no Independent Counsel shall have been  selected and not objected to, either the Company or Indemnitee may petition a  court of competent jurisdiction for resolution of any objection which shall have  been made by the Company or Indemnitee to the other’s selection of Independent  Counsel and/or for the appointment as Independent Counsel of a person selected  by the court or by such other person as the court shall designate, and the person  with respect to whom all objections are so resolved or the person so appointed  shall act as Independent Counsel under Section 5.02(a) hereof. Upon the due  commencement of any judicial proceeding or arbitration pursuant to Section  6.01(a) of this Agreement, the Independent Counsel shall be discharged and  relieved of any further responsibility in such capacity (subject to the applicable  standards of professional conduct then prevailing).  

 

10  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  (c) The Company agrees to pay the reasonable fees and expenses of any  Independent Counsel serving under this Agreement.  Section 5.03.  Presumptions and Burdens of Proof; Effect of Certain  Proceedings.  (a) In making any determination with respect to entitlement to  indemnification hereunder, the person or persons or entity making such  determination shall, to the fullest extent not prohibited by law, presume that  Indemnitee is entitled to indemnification under this Agreement if Indemnitee has  submitted a request for indemnification in accordance with Section 5.01(b) of this  Agreement, and the Company shall, to the fullest extent not prohibited by law,  have the burden of proof to overcome that presumption in connection with the  making by any person, persons or entity of any determination contrary to that  presumption.  Neither the failure of any person, persons or entity to have made a  determination prior to the commencement of any action pursuant to this  Agreement that indemnification is proper in the circumstances because  Indemnitee has met the applicable standard of conduct, nor an actual  determination by any person, persons or entity that Indemnitee has not met such  applicable standard of conduct, shall be a defense to the action or create a  presumption that Indemnitee has not met the applicable standard of conduct.  (b) If the person, persons or entity empowered or selected under Section  5.02 of this Agreement to determine whether Indemnitee is entitled to  indemnification shall not have made a determination within the sixty (60) day  period referred to in Section 5.02(a), the requisite determination of entitlement to  indemnification shall, to the fullest extent not prohibited by law, be deemed to  have been made and Indemnitee shall be entitled to such indemnification.  (c) The termination of any Proceeding or of any claim, issue or matter  therein, by judgment, order, settlement or conviction, or upon a plea of nolo  contendere or its equivalent, shall not (except as otherwise expressly provided in  this Agreement) of itself adversely affect the right of Indemnitee to  indemnification or create a presumption that Indemnitee did not act in good faith  and in a manner which he reasonably believed to be in or not opposed to the best  interests of the Company or, with respect to any criminal Proceeding, that  Indemnitee had reasonable cause to believe that his or her conduct was unlawful.  (d) For purposes of any determination of good faith, Indemnitee shall be  deemed to have acted in good faith if Indemnitee’s action is in good faith reliance  on the records or books of account of the Company, including financial  statements, or on information supplied to Indemnitee by the officers of the  Company in the course of their duties, or on the advice of legal counsel for the  Company or on information or records given or reports made to the Company by  an independent certified public accountant or by an appraiser or other expert  selected by the Company.  The provisions of this Section 5.03(d) shall not be  deemed to be exclusive or to limit in any way the other circumstances in which  

 

11  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  Indemnitee may be deemed or found to have met the applicable standard of  conduct set forth in this Agreement.  (e) The knowledge and/or actions, or failure to act, of any other  director, trustee, partner, managing member, fiduciary, officer, agent or employee  of the Company shall not be imputed to Indemnitee for purposes of determining  any right to indemnification under this Agreement.  ARTICLE 6  REMEDIES OF INDEMNITEE  Section 6.01.  Adjudication or Arbitration.  (a) In the event of any dispute  between Indemnitee and the Company hereunder as to entitlement to  indemnification or advancement of Expenses (including where (i) a determination  is made pursuant to Section 5.02 of this Agreement that Indemnitee is not entitled  to indemnification under this Agreement, (ii) advancement of Expenses is not  timely made pursuant to Section 4.01 of this Agreement, (iii) payment of  indemnification pursuant to Section 3.01 of this Agreement is not made within ten  (10) days after a determination has been made that Indemnitee is entitled to  indemnification, (iv) no determination as to entitlement to indemnification is  timely made pursuant to Section 5.02 of this Agreement and no payment of  indemnification is made within ten (10) days after entitlement is deemed to have  been determined pursuant to Section 5.03(b)) or (v) a contribution payment is not  made in a timely manner pursuant to Section 8.03 of this Agreement, then  Indemnitee shall be entitled to an adjudication by a court of his or her entitlement  to such indemnification, contribution or advancement. Alternatively, in such case,  Indemnitee, at his or her option, may seek an award in arbitration to be conducted  by a single arbitrator pursuant to the Commercial Arbitration Rules of the  American Arbitration Association.  The Company shall not oppose Indemnitee’s  right to seek any such adjudication or award in arbitration.  (b) In the event that a determination shall have been made pursuant to  Section 5.02(a) of this Agreement that Indemnitee is not entitled to  indemnification, any judicial proceeding or arbitration commenced pursuant to  this Section 6.01 shall be conducted in all respects as a de novo trial, or  arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that  adverse determination.  In any judicial proceeding or arbitration commenced  pursuant to this Section 6.01 the Company shall have the burden of proving  Indemnitee is not entitled to indemnification or advancement of Expenses, as the  case may be, and the Company may not refer to or introduce into evidence any  determination pursuant to Section 5.02(a) of this Agreement adverse to  Indemnitee for any purpose.  If Indemnitee commences a judicial proceeding or  arbitration pursuant to this Section 6.01, Indemnitee shall not be required to  reimburse the Company for any advances pursuant to Section 4.02 until a final  

 

12  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  determination is made with respect to Indemnitee’s entitlement to indemnification  (as to which all rights of appeal have been exhausted or lapsed).  (c) If a determination shall have been made pursuant to Section 5.02(a)  of this Agreement that Indemnitee is entitled to indemnification, the Company  shall be bound by such determination in any judicial proceeding or arbitration  commenced pursuant to this Section 6.01.  (d) The Company shall be precluded from asserting in any judicial  proceeding or arbitration commenced pursuant to this Section 6.01 that the  procedures and presumptions of this Agreement are not valid, binding and  enforceable and shall stipulate in any such court or before any such arbitrator that  the Company is bound by all the provisions of this Agreement.   (e) The Company shall indemnify Indemnitee to the fullest extent  permitted by law against all Expenses and, if requested by Indemnitee, shall  (within ten (10) days after the Company’s receipt of such written request) advance  such Expenses to Indemnitee, which are reasonably incurred by Indemnitee in  connection with any judicial proceeding or arbitration brought by Indemnitee for  (i) indemnification or advances of Expenses by the Company (or otherwise for the  enforcement, interpretation or defense of his or her rights) under this Agreement  or any other agreement, including any other indemnification, contribution or  advancement agreement, or any provision of the Charter now or hereafter in effect  or (ii) recovery or advances under any directors’ and officers’ liability insurance  policy maintained by the Company, regardless of whether Indemnitee ultimately  is determined to be entitled to such indemnification, contribution, advancement or  insurance recovery, as the case may be.  ARTICLE 7  DIRECTORS’ AND OFFICERS’ LIABILITY INSURANCE  Section 7.01.  D&O Liability Insurance.  The Company shall obtain and  maintain a policy or policies of insurance (“D&O Liability Insurance”) with  reputable insurance companies providing liability insurance for directors and  officers of the Company in their capacities as such (and for any capacity in which  any director or officer of the Company serves any other enterprise at the request  of the Company), in respect of acts or omissions occurring while serving in such  capacity, on terms with respect to coverage and amount (including with respect to  the payment of Expenses) no less favorable than those of such policy in effect on  the date hereof.  Section 7.02.  Evidence of Coverage.  Upon request by Indemnitee, the  Company shall provide copies of all policies of D&O Liability Insurance obtained  and maintained in accordance with Section 7.01 of this Agreement.  

 

13  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  ARTICLE 8  MISCELLANEOUS  Section 8.01.  Nonexclusivity of Rights.  The rights of indemnification,  contribution and advancement of Expenses as provided by this Agreement shall  not be deemed exclusive of any other rights to which Indemnitee may at any time  be entitled to under applicable law, the Charter, any agreement, a vote of  stockholders or a resolution of directors, or otherwise.  No right or remedy herein  conferred is intended to be exclusive of any other right or remedy, and every other  right and remedy shall be cumulative and in addition to every other right and  remedy given hereunder or now or hereafter existing at law or in equity or  otherwise.  The assertion or employment of any right or remedy hereunder, or  otherwise, shall not prevent the concurrent assertion or employment of any other  right or remedy.  Section 8.02.  Insurance and Subrogation.  (a) Indemnitee shall be  covered by the Company’s D&O Liability Insurance in accordance with its or  their terms to the maximum extent of the coverage available for any director  under such policy or policies.  If, at the time the Company receives notice of a  claim hereunder, the Company has director and officer liability insurance in  effect, the Company shall give prompt notice of such Proceeding to the insurers in  accordance with the procedures set forth in the respective policies.  The Company  shall thereafter take all necessary or desirable action to cause such insurers to pay,  on behalf of Indemnitee, all amounts payable as a result of such Proceeding in  accordance with the terms of such policies.  The failure or refusal of any such  insurer to pay any such amount shall not affect or impair the obligations of the  Company under this Agreement.  (b) In the event of any payment under this Agreement, the Company  shall be subrogated to the extent of such payment to all of the rights of recovery  of Indemnitee, who shall execute all papers required and take all action necessary  to secure such rights, including execution of such documents as are necessary to  enable the Company to bring suit to enforce such rights.  (c) The Company shall not be liable under this Agreement to make any  payment of amounts otherwise indemnifiable (or for which advancement is  provided) hereunder if and to the extent that Indemnitee has actually received  such payment under any insurance policy or other indemnity provision.  Section 8.03.  Contribution.  To the fullest extent permissible under  applicable law, if the indemnification provided for in this Agreement is  unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of  indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee,  whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid  in settlement and/or for Expenses, in connection with any claim relating to an  indemnifiable event under this Agreement, in such proportion as is deemed fair  

 

14  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  and reasonable in light of all of the circumstances of such Proceeding in order to  reflect (i) the relative benefits received by the Company and Indemnitee as a  result of the event(s) and/or transaction(s) giving rise to such Proceeding; and/or  (ii) the relative fault of the Company (and its directors, officers, employees and  agents) and Indemnitee in connection with such event(s) and/or transaction(s).  Section 8.04.  Amendment.  This Agreement may not be modified or  amended except by a written instrument executed by or on behalf of each of the  parties hereto.  No amendment, alteration or repeal of this Agreement or of any  provision hereof shall limit, restrict or reduce any right of Indemnitee under this  Agreement in respect of any act or omission, or any event occurring, prior to such  amendment, alteration or repeal.  To the extent that a change in applicable law,  whether by statute or judicial decision, (i) permits greater indemnification,  contribution or advancement of Expenses than would be afforded currently under  the Charter and this Agreement, it is the intent of the parties hereto that  Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such  change or (ii) limits rights with respect to indemnification, contribution or  advancement of Expenses, it is the intent of the parties hereto that the rights with  respect to indemnification, contribution or advancement of Expenses in effect  prior to such change shall remain in full force and effect to the extent permitted  by applicable law.    Section 8.05.  Waivers.  The observance of any term of this Agreement  may be waived (either generally or in a particular instance and either retroactively  or prospectively) by the party entitled to enforce such term only by a writing  signed by the party against which such waiver is to be asserted. Unless otherwise  expressly provided herein, no delay on the part of any party hereto in exercising  any right, power or privilege hereunder shall operate as a waiver thereof, nor shall  any waiver on the part of any party hereto of any right, power or privilege  hereunder operate as a waiver of any other right, power or privilege hereunder nor  shall any single or partial exercise of any right, power or privilege hereunder  preclude any other or further exercise thereof or the exercise of any other right,  power or privilege hereunder.  Section 8.06.  Entire Agreement.  This Agreement and the documents  referred to herein constitute the entire agreement between the parties hereto with  respect to the matters covered hereby, and any other prior or contemporaneous  oral or written understandings or agreements with respect to the matters covered  hereby are superseded by this Agreement, provided that this Agreement is a  supplement to and in furtherance of the Charter and applicable law, and shall not  be deemed a substitute therefor, nor to diminish or abrogate any rights of  Indemnitee thereunder.  Section 8.07.  Severability.  If any provision or provisions of this  Agreement shall be held to be invalid, illegal or unenforceable for any reason  whatsoever:  (a) the validity, legality and enforceability of the remaining  

 

15  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  provisions of this Agreement (including each portion of any Section of this  Agreement containing any such provision held to be invalid, illegal or  unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any  way be affected or impaired thereby and shall remain enforceable to the fullest  extent permitted by law; (b) such provision or provisions shall be deemed  reformed to the extent necessary to conform to applicable law and to give the  maximum effect to the intent of the parties hereto; and (c) to the fullest extent  possible, the provisions of this Agreement (including each portion of any Section  of this Agreement containing any such provision held to be invalid, illegal or  unenforceable, that is not itself invalid, illegal or unenforceable) shall be  construed so as to give effect to the intent manifested thereby.  Section 8.08.  Notices.  All notices, requests, demands and other  communications under this Agreement shall be in writing (which may be by  facsimile transmission).  All such notices, requests and other communications  shall be deemed received on the date of receipt by the recipient thereof if received  prior to 5:00 p.m. in the place of receipt and such day is a business day in the  place of receipt.  Otherwise, any such notice, request or communication shall be  deemed not to have been received until the next succeeding business day in the  place of receipt.  The address for notice to a party is as shown on the signature  page of this Agreement, or such other address as any party shall have given by  written notice to the other party as provided above.   Section 8.09.  Binding Effect.  (a) The Company expressly confirms and  agrees that it has entered into this Agreement and assumed the obligations  imposed on it hereby in order to induce Indemnitee to serve as a director of the  Company, and the Company acknowledges that Indemnitee is relying upon this  Agreement in serving as a director of the Company.  (b) This Agreement shall be binding upon and inure to the benefit of  and be enforceable by the parties hereto and their respective successors, assigns,  including any direct or indirect successor by purchase, merger, consolidation or  otherwise to all or substantially all of the business and/or assets of the Company,  spouses, heirs, and executors, administrators, personal and legal representatives.   The Company shall require and cause any successor (whether direct or indirect by  purchase, merger, consolidation or otherwise) to all or substantially all, or a  substantial part of the business or assets of the Company, by written agreement in  form and substance satisfactory to Indemnitee, expressly to assume and agree to  perform this Agreement in the manner and to the same extent that the Company  would be required to perform if no such succession had taken place.  (c) The indemnification, contribution and advancement of Expenses  provided by, or granted pursuant to this Agreement shall continue as to a person  who has ceased to be a director and shall inure to the benefit of the heirs,  executors, administrators, legatees and assigns of such a person.  

 

16  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  Section 8.10.  Governing Law.  This Agreement and the legal relations  among the parties shall be governed by, and construed and enforced in accordance  with, the laws of the State of Delaware, without regard to its conflict of laws  rules.  Section 8.11.  Consent To Jurisdiction.  Except with respect to any  arbitration commenced by Indemnitee pursuant to Section 6.01(a) of this  Agreement, the Company and Indemnitee hereby irrevocably and unconditionally  (i) agree that any action or proceeding arising out of or in connection with this  Agreement shall be brought only in the Chancery Court of the State of Delaware  (the “Delaware Court”), and not in any other state or federal court in the United  States of America or any court in any other country, (ii) consent to submit to the  exclusive jurisdiction of the Delaware Court for purposes of any action or  proceeding arising out of or in connection with this Agreement, (iii) waive any  objection to the laying of venue of any such action or proceeding in the Delaware  Court, and (iv) waive, and agree not to plead or to make, any claim that any such  action or proceeding brought in the Delaware Court has been brought in an  improper or inconvenient forum.  Section 8.12.  Headings.  The Article and Section headings in this  Agreement are for convenience of reference only, and shall not be deemed to alter  or affect the meaning or interpretation of any provisions hereof.  Section 8.13.  Counterparts.  This Agreement may be executed in one or  more counterparts, each of which shall for all purposes be deemed to be an  original but all of which together shall constitute one and the same Agreement.   Only one such counterpart signed by the party against whom enforceability is  sought needs to be produced to evidence the existence of this Agreement.  Section 8.14.  Use of Certain Terms.  As used in this Agreement, the  words “herein,” “hereof,” and “hereunder” and other words of similar import refer  to this Agreement as a whole and not to any particular paragraph, subparagraph,  section, subsection, or other subdivision. Whenever the context may require, any  pronoun used in this Agreement shall include the corresponding masculine,  feminine or neuter forms, and the singular form of nouns, pronouns and verbs  shall include the plural and vice versa.  

 

17  #95767123v6  1381841.02-WASSR02A  MSW - Draft May 15, 2022 - 1:24 PM  IN WITNESS WHEREOF, this Agreement has been duly executed and  delivered to be effective as of the date first above written.    ASPEN TECHNOLOGY, INC.  By:    Name:    Title:     Address:  Facsimile:  Attention:    With a copy to:    Address:  Facsimile:  Attention:      [INDEMNITEE]      Address:  Facsimile:    With a copy to:    Address:  Facsimile:  Attention:

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