Document:

Exhibit

Exhibit 10.20
Compensation Program for Non-Employee Directors
of Trupanion, Inc. (the “Company”)
(Adopted on February 6, 2018, as amended on September 5, 2018, and on December 27, 2018)

Compensation.  
		
	1.
	Value of Compensation (“Award Values”)

		
	a.
	Non-Employee Board of Director Compensation:

		
	i.
	Annual value of compensation for all Non-Employee Board of Directors (“Board”) members:  $75,000

		
	b.
	Additional Committee Compensation (to be granted separate from Non-Employee Board of Director Compensation):

		
	i.
	Audit Committee chair:  Annual value of $15,000

		
	ii.
	Compensation Committee chair:  Annual value of $10,000

		
	iii.
	Combination of Governance Committee chair and Board of Directors chairman:  Annual value of $10,000

		
	2.
	Cash and Equity Awards

		
	a.
	Non-Employee Board members generally will be compensated in either cash or equity each year, at their election.  Directors will receive 120% of the Award Value of his or her compensation under this Compensation Program for Non-Employee Directors (this “Compensation Program”) pursuant to the Company’s 2014 Equity Incentive Plan (the “Plan”), in the form of stock options (“Options”) or restricted stock units (“RSUs”, and together with Options, “Awards”); provided, however, that on an annual basis each such Board member may elect to take 50% of the Award Value of his or her compensation as cash compensation by submitting an election form and 60% of the Award Value of his or her compensation in the form of Awards (“Election Form”), attached hereto as Exhibit A (subject to the Board’s ownership guidelines). Such Election Form must be submitted to the Compensation Committee chairperson and Company’s General Counsel and must be made prior to the beginning of any calendar year with respect to which such compensation is first payable (regardless of when paid) and, in the case of Awards, first granted, and cannot be changed during the year (the actual date of such election, if any, the “Election Date”).  In the absence of such an election, Awards will be issued entirely in equity at 120% of such Board member’s Award Value under this Compensation Program.

		
	b.
	Any cash compensation under this Compensation Program will be paid quarterly.  

		
	c.
	Award Values will be approved at the first regularly scheduled Board meeting in any calendar year, or in the case of a new member of the Board, at the Board meeting in which such member is elected or on the first regularly scheduled meeting that follows such member’s election (the “Award Approval”).  Awards will be granted in the next open trading window following the Award Approval (“Annual Grant Date”).  

		
	d.
	Annual Awards will vest in four quarterly installments on March 31st, June 30th, September 30th, and December 31st (each a “Vest Date”).  

		
	e.
	Members of the Board and committee chairpersons will be entitled to compensation granted under this Compensation Program at the end of the quarter following the grant date and for complete quarters of service thereafter.    

		
	f.
	Awards granted under this Compensation Program that are unvested at the time of resignation or other termination from the Board will be forfeited.  Similarly, no cash compensation will be paid following the effective date of a directors’ resignation or other termination from the Board.

Calculation of Value.
RSUs: RSUs will be equal to the Award Values set forth above.  The number of shares of Common Stock underlying the RSUs shall be determined using the Award Values based on the closing price of the Common Stock on the NASDAQ stock market on the first day of the respective open trading window for which the grant will be made.
Options: Options will be equal to the Award Values set forth above and shall be valued using the Black-Scholes valuation method on the Annual Grant Date.
Other.
To the extent a given Board member is also a consultant of the Company (providing services unrelated to their Board service), such Board member’s compensation under the applicable consulting agreement will be separate from and in addition to such Board member’s compensation under this Compensation Program.

Exhibit A
Election Form

Trupanion, Inc.
Compensation Program for Non-Employee Directors
Election Form

This Election Form is being delivered pursuant to the Compensation Program for Non-Employee Directors, as amended. 

Instructions: Select a box below, date, and sign.  Return the signed form to the Company’s Compensation Committee Chairperson and Company’s General Counsel by December 31st for Awards being approved for the upcoming fiscal year. 
□ DEFAULT: 120% of the Award Value in the form of stock options or restricted stock units, as applicable.
□ COMBINATION EQUITY/CASH ELECTION: 60% of the Award Value in the form of stock options or restricted stock units, and 50% of the Award Value in cash.

The undersigned hereby elects as above for the upcoming fiscal year.

By: ______________________________________

Print Name: _______________________________

Date: _____________________________________Exhibit

Exhibit 10.21
Trupanion Compensation Policies
Compensation Clawback Policy
Each team member who earns incentive awards, including equity grants, should do so based on an accurate accounting of our performance results and in a way that is consistent with Company policies.  Consistent with this objective, the Compensation Committee has established this Clawback Policy, which provides the Compensation Committee and the Company the ability to recover Incentive Compensation that was inappropriately delivered due to an accounting restatement, recalculation of any of the performance measures in the Company’s incentive plan, or team member misconduct. Incentive Compensation is all variable compensation, which includes any bonus compensation, equity-based awards, or other incentive plans.
The Company has adopted this Clawback Policy which gives the Company the discretion to clawback Incentive Compensation awarded to any team member in the event of certain adverse impacts from which the team member unduly benefitted.  The Company may in its discretion require any team member who has been unduly awarded Incentive Compensation to forfeit, disgorge, return or adjust such compensation to the Company, and if so required any team member shall forfeit, disgorge, return or adjust such compensation in the manner directed by the Committee, in the following circumstances: 

		
	•
	As required by Section 304 of the Sarbanes Oxley Act of 2002, which generally provides that, if the Company is required to prepare an accounting restatement due to material noncompliance as a result of misconduct, with financial reporting requirements under the securities laws, then the CEO and CFO must reimburse the Company for any incentive compensation or equity compensation and profits from the sale of the Company’s securities during the 12-month period following initial publication of the financial statements that had been restated; 

		
	•
	As required by Section 954 of the Dodd-Frank Act, which indirectly provides that, in the event the Company is required to prepare an accounting restatement due to its material noncompliance with financial reporting requirements under the securities laws, the Company may recover from any of its current or former executive officers who received incentive compensation during the three-year period preceding the date on which the Company is required to prepare a restatement based on the erroneous financial reporting, any amount that exceeds what would have been paid to the executive officer after giving effect to the restatement; 

		
	•
	As required by any other applicable law, regulation or regulatory requirement; 

		
	•
	If the Company suffers extraordinary financial loss, reputational damage or similar adverse impact as a result of actions taken or decisions made by the team member in circumstances constituting illegal or intentionally wrongful conduct, gross negligence or seriously poor judgment; or 

		
	•
	If the team member is awarded or is paid out under incentive compensation plans on the basis of significantly incorrect financial calculations, including miscalculations in the intrinsic value model, or information or if events coming to light after the award or payout would have significantly reduced the amount of the award or payout if known at the time of the award or payout. 

The clawback may be effectuated through the reduction or forfeiture of awards, the return of paid-out cash or exercised or released shares, adjustments to future incentive compensation opportunities or in such other manner as the Company in its discretion determines to be appropriate. In exercising its discretion under this clawback, the Company shall, to the extent permitted by law or regulation, consider the degree of harm suffered by the Company, the team member’s responsibility for the harm and his or her state of mind relative to the acts or decisions giving rise to the harm, the extent to which the team member was acting in accordance with Company policies, procedures and processes, the extent to which others were responsible for the acts or decisions giving rise to the harm, the position and responsibilities of the team member relative to the magnitude of harm suffered by the Company, the long-term value of the team member to the Company and such other factors as the Company deems to be appropriate. 

Any determinations by the Committee are final. The discretion to clawback incentive compensation and to make the determinations in the circumstances described above shall be exercised by Committee in the case of executive officers and by the Committee or the Chief Executive Officer in all other cases. The Committee may amend this policy from time to time in its discretion.Exhibit

Exhibit 10.22
Trupanion Compensation Policies
On-Going Severance Policy for CEO and Key Senior Leaders
This Severance Policy creates a fair framework for situations when a covered executive leaves the Company involuntarily (termination without cause). The roles that this policy covers are included in the Appendix A and may change from time to time.
The catalog of covered and non-covered termination events is set forth in Appendix B.
Upon a covered termination, those covered by this policy are entitled to the following post-exit benefits: 1) a salary continuation severance payment, and 2) continued welfare benefits. All other benefits are terminated on the covered executive’s last day, other than pet insurance benefit which will continue until the end of the month.
Related to the severance payments, CEO and key senior leaders will receive 6 months of salary. 
Upon separation, covered executives will receive 100% of their base salary on each regular payroll date for the length of the severance period. All bonuses earned would be paid within sixty (60) days of separation.
Related to welfare benefits, the Company will provide the covered executives with continued coverage under the Company’s group health insurance plan (or its cash equivalent) at no cost to the covered executive for the duration of the salary continuation period. These payments will cease if the covered executive starts another job prior to end of salary continuation period. However, if the new job has a lower salary than the salary continuance pay, the Company would continue to pay the difference through the salary continuation period.
These benefits are subject to the covered executive executing a valid separation agreement containing a full and unconditional release of Trupanion of any claims by the covered executive. 

Appendix A (Covered Executives)
Chief Executive Officer
Chief Financial Officer
Chief Strategy Officer
Chief Revenue Officer
Chief Member Experience Officer 
General Counsel
Head of Veterinary Business
Head of People Operations 

Appendix B (Covered and Non-Covered Termination Events)
The types of terminations that are covered by this policy are “involuntary” terminations without cause (meaning it is Trupanion’s decision to terminate). 
Other types of termination are not covered by this policy, including: voluntary termination with good reason, voluntary termination (executive decision without a good reason), termination for cause (willful or gross neglect of job duties, willful disregard for the code of conduct or willful disregard for the team member handbook), separation following a change of control (covered separately), death, disability, and retirement.

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