Document:

focs_Ex10_19

		
			Exhibit 10.19
		

		
			AMENDED AND RESTATED EMPLOYMENT AGREEMENT
		

		
			This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”),  entered into as of April 12, 2017,  is made by and between FOCUS FINANCIAL PARTNERS, LLC., a Delaware limited liability company  (the “Company”), having a principal place of business of 825 Third Avenue,  27th Floor, New York, New York 10022, and John Russell McGranahan (“Executive”).
		

		
			WHEREAS, the Company and Executive entered into that certain Employment Agreement dated August 5, 2015 (the “Original Employment Agreement”);
		

		
			WHEREAS, the Company and Executive hereby desire to amend and restate the Original Employment Agreement;
		

		
			WHEREAS,  the Company and Executive hereby agree that any prior agreements with respect to the employment of Executive with and by the Company and its affiliates, including the Original Employment Agreement, shall be terminated upon the consummation of the transactions contemplated by that certain Securities Purchase Agreement, dated as of even date herewith, by and among the Company, the Investor (as defined therein) and the other parties thereto (such date, the “Effective Date”) and replaced in their entirety with this Agreement;
		

		
			WHEREAS,  the Company and its affiliates desire to continue to employ Executive on the terms and conditions, and for the consideration, hereinafter set forth and Executive desires to continue to be employed on such terms and conditions and for such consideration;
		

		
			NOW, THEREFORE, in consideration of the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
		

		
			1.         Employment and Term.  The Agreement shall become effective upon the Effective Date and shall supersede and replace the Original Employment Agreement.  At and as of the Effective Date, the Company shall employ, or shall cause a Company subsidiary to employ, Executive and Executive hereby accepts employment with the Company (on behalf of itself and certain of its affiliates, as directed by the Company) as the Company’s General Counsel subject to all of the terms and conditions of this Agreement, effective as of the Effective Date, for the period commencing on the Effective Date and ending on the third anniversary of the Effective Date, unless sooner terminated in accordance with the other provisions hereof (the “Initial Term”). Subject to Section 4, this Agreement shall be automatically renewed as of the last day of the term for successive one-year (1) terms (each, a  “Renewal Term”) unless, not later than ninety (90)  days prior to the end of the Initial Term or a Renewal Term, as the case may be, the Company provides Executive with written notice of its intent not to renew the Agreement.  The Initial Term and any Renewal Term shall be referred to as the “Term.”  In the event that Executive is employed by a Company subsidiary, Executive shall have such titles, duties and comparable positions at the Company as set forth herein.
		

		
			2.         Duties.  Executive shall be subject to the direction and control of the Chief Executive Officer of the Company  (the “CEO”).  Executive duties and responsibilities shall be those generally performed by a General Counsel of a Company of a similar size and in a similar
		

		
			 
		

		
			 
		

		
			

		 

		

		
			industry as the Company and Executive shall report directly to the CEO.  Executive shall perform such other duties and functions for and on behalf of the Company, consistent with his position and experience, as are reasonably requested of Executive from time to time by the CEO.  Executive shall use reasonable best efforts to devote all of his working time, skill and efforts to the performance of Executive’s duties under this Agreement in a manner that will faithfully and diligently further the business and interests of the Company; provided,  however,  that Executive shall in any event be permitted (a) to be a member of the boards of directors (or similar governing bodies) of other entities and (b) to be involved in charitable activities, so long as, in each case, such memberships and activities (x) do not unreasonably interfere with Executive’s duties as set forth herein and (y) with respect to membership on any board of directors (or similar governing body),  such membership is approved by the CEO, with such approval not to be unreasonably withheld, it being understood that any such memberships and activities existing as of the date hereof and disclosed on Exhibit A shall be deemed conclusively approved.  Except as set forth on Exhibit A hereto, Executive represents and warrants as of the date hereof and as of the Effective Date that he is not a member of any board of directors or similar governing bodies of any entity other than the Company or its subsidiaries.  Executive, in the performance of Executive’s duties hereunder, shall use good faith, reasonable efforts to cause the activities of the Company to be conducted substantially in accordance with the terms of the limited liability company operating agreement of the Company as amended and in effect from time to time and applicable laws, and will, in all material respects, observe and adhere to the Company’s code(s) of conduct and ethics and other corporate governance codes and policies as now existing or which may hereafter be adopted by the Company.
		

		
			3.         Compensation, Benefits and Expenses.
		

		
			3.1       Salary and Incentive Compensation.  The Company shall pay to Executive a salary from and after the Effective Date at the annual rate of $425,000 (the “Salary”).  The Salary shall be paid in such installments and at such times in accordance with the Company’s standard payroll practices.  The Salary shall be reviewed by the Board or, if applicable, the Compensation Committee (the “Committee”) of the Board of Managers of the Company (the “Board”) periodically in accordance with the Company’s normal compensation review practices for executive officers,  in connection with which the Salary shall be subject to increases, but not decreases, at such times as shall be determined by the Committee in its discretion.  Executive shall also be entitled to participate in the Focus Financial Partners, LLC Annual Cash Bonus Plan or any successor annual incentive plan (with annual target bonus opportunity to be set at 125% to 150% of Salary) and the Company’s Incentive Unit Plan or any successor equity-based compensation plan (with annual target equity incentive opportunities to be set at 125% to 150% of Salary, and the value of such Incentive Units to which Executive is entitled shall equal the cash bonus awarded to the Executive pursuant to the Company’s Annual Cash Bonus Plan (or a successor plan), applying the Black Scholes method consistent with the Company’s past practice to determine the corresponding number of Incentive Units to be issued to Executive for that annual period) adopted for each fiscal year for executive officers as determined by the Committee, subject to the normal review practices and procedures of the Committee.  As of the Effective Date, the Incentive Units previously granted to Executive and identified on Exhibit B shall be deemed fully vested notwithstanding the terms of any of the respective Incentive Unit Agreements governing any of the Incentive Units.  The Company shall deduct or cause to be deducted from the Salary, bonuses and other compensation payable to Executive all taxes and amounts required by law to be withheld.
		

		
			
		

		
			

		 

		

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			3.2       Retention Pool.  On the Effective Date, Executive shall be awarded 250,000 units pursuant to the Company’s Retention Pool Plan.
		

		
			3.3       Vacation.  Executive shall be entitled to four (4) weeks of vacation during each calendar year, excluding the Company’s paid holidays.
		

		
			3.4       Other Benefits.  Subject to the terms of any applicable plans, policies or programs,  Executive shall be entitled to receive such employee benefits including any and all deferred compensation, pension, disability, group life, sickness, accident and health insurance as the Company may provide from time to time to its salaried employees generally, and such other benefits as the Committee may from time to time establish for the Company’s executives.
		

		
			3.5       Expenses.   Executive shall be reimbursed by the Company for all ordinary and reasonable expenses incurred by Executive in the course of the performance of services under this Agreement in accordance with the Company policies approved by the Committee.  Executive shall keep an itemized account of such expenses, which shall be submitted to the Company monthly together with supporting documentation,  provided,  however that: (a) reimbursements in one tax year may not affect expenses or in-kind benefits to be provided in another tax year; (b) reimbursement must be before the last day of the tax year following the year the expense is incurred; and (c) right to reimbursement hereunder is not subject to liquidation or exchange for another benefit.
		

		
			3.6       Life Insurance.  During the Term, Executive may acquire and maintain term life insurance coverage on the life of Executive in the amount of five times (5X) Executive’s Salary (the “Policy”), the proceeds of which shall be payable to the beneficiary or beneficiaries or an applicable trust designated by Executive under such Policy.  The Company will reimburse Executive for the costs of acquiring and maintaining the Policy, including all premium payments, with reimbursements to occur in accordance with the Company’s policies and procedures applicable to expense reimbursements. The Company will also provide Executive with a tax gross-up payment equal to the amount of any taxes (federal, state, local or otherwise) Executive may incur with respect to the Company’s reimbursement of the Policy costs, including any taxes upon the taxes Executive incurs due to the Company’s reimbursement of Policy costs. Calculations of the gross-up amounts owed to Executive pursuant to this Section 3.6 will assume that Executive paid the highest marginal tax rate for purposes of all federal, state, local or other applicable taxes. Notwithstanding the foregoing or any provision of this Agreement to the contrary, in no event shall the Company’s reimbursement obligation (including any tax gross-up) pursuant to this Section 3.6 exceed $101,248 in any calendar year.
		

		
			3.7       D&O Insurance.  During such time as Executive serves as a manager or officer of the Company (and/or its affiliates) and for a period of six (6) years thereafter, Executive shall be covered as a manager or ex-manager and as an officer or ex-officer, as applicable, under all policies of insurance covering risk associated with acting as a manager or officer of the Company in the same manner as all other managers, ex-managers, officers and ex-officers, as applicable, of the Company are covered, except that damages incurred as a result of Executive’s fraud, gross negligence or intentional misconduct (as determined by a final and non-appealable order), shall not be covered by such insurance policies.  The Company shall use all commercially reasonable efforts to ensure that any such policy that covers any current officer or manager
		

		
			
		

		
			

		 

		

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			(determined at the time of such policy’s application) shall cover former officers and managers (determined at the time of such policy’s application) in the same manner and in the same amounts as the then current officers and directors.  The Company shall use commercially reasonable efforts to ensure that the policies in place or to be adopted as described herein shall have such coverage amounts and limits no less favorable than similarly-sized publicly-traded companies operating in the financial services industry generally, as determined in good faith by the Board.
		

		
			4.         Termination; Compensation Continuation.
		

		
			4.1       Termination upon Death.  If Executive dies, then Executive’s employment with the Company shall terminate as of the date of Executive’s death, at which time all of Executive’s rights to compensation and benefits under Section 3 or otherwise shall immediately terminate, except that Executive’s heirs, personal representatives or estate shall be entitled to the following: (a) any unpaid portion of Executive’s Salary for periods up to the date of termination, (b) any accrued benefits up to the date of termination, (c) reimbursable business expenses accrued but unpaid through the date of termination (subject to the Company’s applicable expense policies, including submission of all required documentation),  and (d) accrued but unused paid time off (the “Accrued Rights”).  In addition, the Company shall be obligated to provide (i)  a lump sum payment equal to the target annual cash bonus opportunity of Executive based on the mid-point of the range set forth in Section 3.1, in each case, pro-rated to reflect the number of days that have elapsed in the calendar year in which such termination occurs (the “Pro-Rata Bonus”), (ii) any cash bonus (or the value of any noncash bonus that was paid in lieu of all or any portion of a cash bonus that was to be paid pursuant to Section 3.1 under the Company’s Annual Cash Bonus Plan) awarded to Executive for the calendar year prior to the year in which the termination of employment occurs but unpaid as of the date of termination (the “Prior Year Bonus”), (iii) provided that Executive (or his personal representative) elects continuation coverage of health insurance in accordance with COBRA, the Company shall pay the premiums for such coverage for Executive and his dependents until the earlier of eighteen (18) months following the date of termination and the date Executive becomes eligible to be covered under another group health insurance plan (the “Continued Health Insurance”), and (iv) notwithstanding anything in any plan, Incentive Unit Agreement, award agreement, omnibus agreement, or any similar agreement or other document between the Company and Executive to the contrary, as of the effective date of termination, accelerated vesting of any unvested equity awards or equity interests held by Executive scheduled to vest or that do vest at any time on or before the last day of the calendar year in which such termination occurs because of time or if any performance conditions are met during the period from termination to the last day of the calendar year in which such termination occurs with any valuation based on Fair Market Value during such period but without regard to any liquidity condition that may be built into such performance condition, with any settlement that may be due to Executive made in accordance with the terms and conditions of the applicable plan, Incentive Unit Agreement, award agreement, omnibus agreement and/or other document or agreement.
		

		
			4.2       Termination upon Disability.  “Disability” means any physical or mental incapacity, illness or infirmity that the Committee reasonably determines prevents or significantly restricts Executive from performing his duties.  If Executive suffers a Disability and the Disability continues for periods aggregating more than ninety (90) days during any 180-day period, then the Company shall have the right to terminate Executive’s employment upon written notice to
		

		
			
		

		
			

		 

		

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			Executive, at which time all of Executive’s rights to compensation and benefits under Section 3 or otherwise shall immediately terminate, except that Executive shall be entitled to the following: (a) the Accrued Rights, (b) continuation of the Salary (in effect as of the date of such termination), payable in equal monthly installments in accordance with the customary payroll practices of the Company (the “Salary Continuation Payments”), for a period of twelve (12) months following the date of termination, (c) the Annual Cash Bonus Payment (as defined below), using in such calculation the mid-point of the target bonus opportunity if the target is a range, (d) the Continued Health Insurance, and (e) the Accelerated Vesting (as defined below).
		

		
			4.3       Termination by the Company for Cause.  The Company may, upon written notice to Executive, immediately terminate Executive’s employment for Cause.  For purposes of this Agreement, “Cause” shall mean any of the following:
		

		
			4.3.1    the gross negligence or willful failure or refusal of Executive to perform Executive’s duties hereunder (other than any such failure resulting from Executive being Disabled) that is not cured within thirty (30) days after a written demand for substantial performance is delivered to Executive by the Committee which specifically identifies the manner in which the Committee believes Executive has not substantially performed Executive’s duties;
		

		
			4.3.2    the engaging by Executive in (a)  willful misconduct that is materially detrimental to the Company, monetarily, reputationally or otherwise or (b) a violation of any United States securities or commodities law or regulation that results in the suspension of Executive’s ability to engage in any regulated activity;
		

		
			4.3.3    the commitment by Executive of any act of fraud, embezzlement or misappropriation of funds;
		

		
			4.3.4    the conviction by Executive of, or the plea by Executive of guilty or nolo contendere to, any serious misdemeanor involving moral turpitude or any felony;  or the suspension of Executive’s ability to engage in any regulated activity related to securities or commodities; or
		

		
			4.3.5    a material breach by Executive of any of the material provisions of this Agreement that is not cured by Executive within thirty (30) days of written notice of such breach by the Committee (to the extent such breach is capable of cure as reasonably determined by the Committee).
		

		
			For purposes hereof, an act or omission shall not be deemed to be willful if the Executive can reasonably demonstrate or it is reasonably apparent that it was taken or omitted in the Executive’s good faith belief that such act or omission was in, or not opposed to, the best interests of the Company or any of its affiliates.  Upon a termination of Executive’s employment for Cause, all of Executive’s rights to compensation and benefits under Section 3 or otherwise shall immediately terminate, except that Executive shall be entitled to any Accrued Rights.
		

		
			4.4       Failure to Renew or Termination without Cause.  In addition to the Company’s right not to renew the Term as contemplated under Section 1,  the Company may terminate Executive’s  employment immediately at any time without Cause upon written notice to Executive.
		

		
			
		

		
			

		 

		

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			4.4.1    If the Company terminates Executive’s employment during any Term without Cause or the Company elects not to enter into any Renewal Term, Executive shall receive the following: (a) the Salary Continuation Payments, for a period of twelve (12) months following the date of termination, (b) an amount equal to one times (1X) the target annual cash bonus opportunity of Executive based on the high-point of the range set forth in Section 3.1, payable in a lump sum in cash on the date of termination (the “Annual Cash Bonus Payment”), (c) the Prior Year Bonus, if any, (d) the Pro-Rata Bonus, based on the high-point of the range set forth in Section 3.1, (e) the Continued Health Insurance, and (f) notwithstanding anything in any plan, Incentive Unit Agreement, award agreement, omnibus agreement, or any similar agreement or other document between the Company and Executive to the contrary, as of the effective date of termination, accelerated vesting of any unvested equity awards or equity interests held by Executive scheduled to vest or that do vest at any time within the twelve (12) month period from and after the effective date of termination because of time or if any performance conditions are met during the period from termination to the last day of the twelve (12) month period following termination with any valuation based on Fair Market Value during such period but without regard to any liquidity condition that may be built into such performance condition, with any settlement that may be due to Executive made in accordance with the terms and conditions of the applicable plan, Incentive Unit Agreement, award agreement, omnibus agreement and/or other document or agreement (the “Accelerated Vesting”).
		

		
			4.4.2    Upon a termination of Executive’s employment without Cause under this Section 4.4, except as specifically set forth in subsection 4.4.1 above, all of Executive’s rights to compensation and benefits under Section 3 or otherwise shall immediately terminate, except that Executive shall be entitled to the Accrued Rights.
		

		
			4.5       Termination by Executive.  Executive may terminate his employment for any reason or no reason upon thirty (30)  days’ written notice to the Company.  Upon delivery of such notice, the Company may modify, reduce, or eliminate Executive’s title, duties, authority, and responsibilities, and any such modification, reduction or elimination shall not constitute Good Reason.  Upon a termination of Executive’s employment by Executive under this Section 4.5, all of Executive’s rights to compensation and benefits under Section 3 or otherwise shall immediately terminate, except that Executive shall be entitled to the Accrued Rights.
		

		
			4.6       Termination for Good Reason.  Executive may terminate his employment with the Company effective upon thirty (30) days’ written notice to the Company for Good Reason (as defined below);  provided that Executive delivered written notice to the Company within one hundred eighty (180) days following the later of (i) the date it is reasonably apparent an event giving rise to Good Reason has occurred or (ii) the date the Company and the Executive are no longer actively pursuing the resolution of any event giving rise to Good Reason.  Such notice must provide a reasonably detailed explanation of the circumstances constituting Good Reason.  Any such termination shall be treated for purposes of this Agreement as a termination by the Company without Cause (as contemplated in Section 4.4).  For purposes of this Agreement, the term “Good Reason” shall mean, without Executive’s consent:
		

		
			4.6.1    a reduction in Executive’s Salary or a material reduction or discontinuance of any material benefit to which Executive is entitled under this Agreement;
		

		
			
		

		
			

		 

		

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			4.6.2    a material diminution in Executive’s duties, responsibilities or title, including for the avoidance of doubt, if Executive is no longer General Counsel or no longer reports directly to the CEO;
		

		
			4.6.3    a change by the Company in Executive’s principal place of employment, without Executive’s consent, to a location that is greater than twenty-five (25) miles from Executive’s principal place of employment on the Effective Date;
		

		
			4.6.4    the Company’s breach of a material provision of this Agreement (including, without limitation, any failure of the Company to comply with the provisions of Section 13); or
		

		
			4.6.5    the Company’s breach of a material provision of an agreement governing Executive’s equity awards or equity interests, the result of which is a material negative change in Executive’s employment relationship with the Company or its affiliates.
		

		
			Notwithstanding the foregoing, in the event that Executive provides written notice of termination for Good Reason in reliance upon this Section 4.6,  the Company shall have the opportunity to cure such circumstances within thirty (30) days of receipt of such notice and, if so cured, Good Reason shall be deemed not to exist.
		

		
			4.7       Unvested Equity.  All equity interests that are unvested at the time Executive’s employment with the Company is terminated for any reason (after giving effect to the accelerated vesting provisions set forth herein whether applicable upon termination or within the time periods set forth herein) shall be forfeited and cancelled without consideration at the time Executive’s employment with the Company is terminated for any reason.
		

		
			4.8       Change in Control Events; Initial Public Offering.
		

		
			4.8.1    Change in Control and Company Sale.  Upon the occurrence, after the Effective Date of a Change in Control in one (1) or more transactions to any person or group of persons (a “Company Sale”), and notwithstanding anything in any plan, Incentive Unit Agreement, award agreement, omnibus agreement, or any similar agreement or other document between the Company and Executive to the contrary, as of the effective date of such event, Executive shall receive accelerated vesting of Executive’s unvested time based equity awards or equity interests held by Executive at the time of such event, with any settlement that may be due to Executive as a result of such accelerated vesting being made in accordance with the terms and conditions of the applicable plan, award agreement, omnibus agreement and/or other document or agreement; provided,  however, that an initial underwritten public offering (an “IPO”) and sale of equity interests of the Company (or any parent, subsidiary or successor entity of the Company) after which such equity interests are listed for trading on a national securities exchange registered under section 6(a) of the Securities Exchange Act of 1934, as amended, shall not constitute a Change in Control or Company Sale for the purpose of this Section 4.8.  All equity interests that remain unvested in connection with a Change in Control (after giving effect to the accelerated vesting provisions set forth in this Section 4.8.1 or the vesting provisions of such equity interests) shall be forfeited and cancelled without consideration at the time of such Change in Control.
		

		
			4.8.2    Impact on Equity Due to Terminations of Employment In Connection with a Change in Control.  Notwithstanding anything in any plan, Incentive Unit Agreement, award
		

		
			
		

		
			

		 

		

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			agreement, omnibus agreement, or any similar agreement or other document between the Company and Executive to the contrary, if Executive’s employment is terminated by the Company without Cause or by Executive for Good Reason or the Company elects not to enter into a Renewal Term within the nine (9)-month period immediately prior to the consummation of a Change in Control, then Executive shall be deemed to be employed on the date of the Change in Control, and all of Executive’s unvested equity awards or equity interests held by Executive immediately prior to the time of such cessation of employment shall vest in full as of the date of the Change in Control (with performance vesting determined by reference to the Company’s valuation in the Change in Control), with any settlement that may be due to Executive as a result of such accelerated vesting being made in accordance with the terms and conditions of the applicable plan, Incentive Unit Agreement, award agreement, omnibus agreement and/or other document or agreement.
		

		
			4.8.3    Initial Public Offering.  Upon the occurrence of an IPO, the Company intends in good faith to implement an equity incentive compensation plan for the purpose of post-IPO retention and motivation of key employees (such as Executive).  Executive shall be entitled to participate in such a plan, as and when established.  The Company therefore agrees to negotiate in good faith with Executive the terms of Executive’s participation in such plan.
		

		
			4.8.4    Definition of Change in Control. For purposes of this Agreement, a “Change in Control” shall be defined as (a) a sale, merger or similar transaction or series of related transactions involving the Company or any of its subsidiaries, as a result of which those persons who (together with their affiliates) held 100% of the voting power of the Company immediately prior to such transaction do not hold (either directly or indirectly) more than 50% of the voting power of the Company (or the surviving or resulting entity thereof) after giving effect to such transaction, or (b) the sale of all or substantially all of the assets of the Company and its subsidiaries, taken as a whole, in a transaction or series of related transactions.
		

		
			4.9       Release of Claims.  Notwithstanding any other provision of this Agreement to the contrary, Executive acknowledges and agrees that any and all severance payments and benefits described in Sections 4.1,  4.2,  4.4,  4.6 and 4.8, other than payment of any Accrued Rights, are conditioned upon and subject to Executive’s execution and delivery of a release of claims in substantially the form attached hereto as Exhibit C, within fifty (50) days following Executive’s termination of employment.  Payments and benefits under Sections 4.1,  4.2,  4.4,  4.6 and 4.8 (but not Section 4.11 which shall be governed by its terms) shall commence no later than the sixtieth (60th) day after termination of employment (provided that if such sixty (60)-day period commences in one calendar year and terminates in the immediately following calendar year, the payments and benefits shall commence in such immediately following calendar year), provided that the release has been executed, delivered and not revoked, with the first payment also containing any payments which would have been made prior to such payment date, but were not in fact made.
		

		
			
		

		
			

		 

		

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			4.10     Other Rights With Respect to Equity Interests.  The Executive will have such rights and obligations as an equity holder of the Company as provided in the Company’s limited liability company operating agreement as amended and in effect from time to time.
		

		
			4.11     Executive Put Right.
		

		
			4.11.1  Executive’s Put Right Upon Certain Terminations of Employment.  In the event Executive’s employment with the Company is terminated due to Executive’s death or Disability, Executive (or his or her heirs, personal representatives or estate) will have the option to require the Company to repurchase any or all of the remaining equity interests held by Executive at the time of the applicable termination of employment that are vested or become vested in connection with such termination pursuant to this Agreement, by Executive notifying the Company of his election to exercise his put option in writing.  Notwithstanding any provision of this Agreement to the contrary, the Executive’s put right shall not apply in connection with any termination or cessation of employment with the Company other than due to Executive’s death or Disability.
		

		
			4.11.2  Purchase Price and Closing.  The purchase price of any  equity interests to be repurchased pursuant to this Section 4.11 shall be the Fair Market Value thereof The closing of any purchase and sale contemplated by this Section 4.11 shall be as promptly as practicable following the date written notice of exercise of a repurchase or put option, as applicable, is received or such other date that is mutually agreed to by the parties, but in no event later than the sixtieth (60th) day from the notice date or twenty (20) business days following resolution of any disputes pursuant to Section 4.11.4, whichever is later.  Once the put notice is delivered, it shall be irrevocable and such equity interests shall become solely economic rights to receive the put proceeds only.  The Company shall pay the purchase price for the equity interests repurchased at the closing thereof in a lump sum in cash or, at the Company’s election, in three equal installments in cash on the closing date and each of the first and second anniversaries of the closing date, subject, in each case, to a three (3)-month extension solely if the Board determines that making such payment would cause the Company to be in violation of its then-existing credit facility or otherwise would place the Company in financial distress; provided, however, that if at the end of any such three (3)-month extension, the Board determines in good faith after pursuing commercially reasonable financing alternatives that making such payment would cause the Company to be in violation of its then-existing credit facility or otherwise would place the Company in financial distress, the Company may issue a promissory note to Executive for the balance then due, which note shall be payable in full (principal and interest) at maturity in three years from the date of issuance and accrue interest at five percent (5%) per annum on the unpaid balance (compounded annually).  Executive shall enter into customary agreements to give effect to the put transaction, including a customary release in favor of the Company, its affiliates and their related persons.
		

		
			4.11.3  Definition of Fair Market Value.  For purposes of this Agreement, “Fair Market Value” means, as of any specified date, (i) if the equity interests are listed on a national securities exchange, the closing sales price of the equity interests, as reported on the stock exchange composite tape on such date (or if no sales occur on that date, on the last preceding date on which such sales of the equity interests are so reported); (ii) if the equity interests are not traded on a national securities exchange but are traded over the counter at the time a determination of its Fair Market Value is required to be made, the average between the reported high and low bid and
		

		
			
		

		
			

		 

		

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			asked prices of the equity interests on the most recent date on which equity interests were publicly traded; or (iii) in the event the equity interests are not publicly traded at the time a determination of value is required to be made, the determination of Fair Market Value shall be determined by averaging (using a weighted-average based upon the total upfront consideration paid in each such acquisition) the issuance prices used in the three most recent acquisition transactions completed by the Company and in which equity was used as consideration (as adjusted by the Board if the Board determines in good faith and can reasonably demonstrate that there have been material and sustained changes to the Company’s business or prospects and that such changes should be factored into determining such valuation), provided that, where applicable, such a determination will also take into consideration the rules of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and any regulations promulgated thereunder (together, “Section 409A”).
		

		
			4.11.4  Disputes.  If applicable and in the event that Executive (or Executive’s executor) does not agree with the Company’s determination of the Fair Market Value, Executive (or his or her heirs, personal representatives or estate) shall, prior to the closing of such purchase, notify the Company in writing of the existence of a dispute.  Executive (or his or her heirs, personal representatives or estate) and the Company shall seek to resolve the dispute for twenty (20) business days.  In the event that no resolution is reached, the Company shall promptly select three (3) nationally-recognized investment banking firms that have not had a direct or indirect substantial relationship with the Company or its affiliates within the last two (2) years and notify Executive (or his or her heirs, personal representatives or estate) thereof.  Executive (or his or her heirs, personal representatives or estate) shall promptly select one (1) of the three (3) investment banking firms and notify the Company thereof.  If the Company has not received notice of selection of one (1) of the investment banking firms within twenty (20) business days of the date it gave notice to Executive (or his or her heirs, personal representatives or estate) of the three (3) investment banking firms, then the Company shall select one (1) of such three (3).  The investment banking firm selected as provided above (the “Independent Advisor”) shall promptly determine the Fair Market Value of the applicable securities in accordance with this Agreement.  The Independent Advisor shall render its decision within twenty (20) business days after its selection and such decision shall be final and binding upon the parties.  The purchase shall close promptly, but in no case more than twenty (20) business days, after such determination.  In the event that the Independent Advisor’s determination of Fair Market Value is more than ten percent (10%) higher than the original determination made by the Company, the Company shall pay 100% of the cost of retaining the Independent Advisor, in the event that the Independent Advisor’s determination of Fair Market Value is more than ten percent (10%) lower than the original determination made by the Company, Executive (or his or her heirs, personal representatives or estate) shall pay 100% of the cost of retaining the Independent Advisor; and in all other instances the Company and Executive (or his or her heirs, personal representatives or estate) shall each pay fifty percent (50%) of the cost of retaining the Independent Advisor.
		

		
			4.12     Return of Materials upon Termination.  Upon termination of Executive’s employment with the Company, regardless of the reason,  Executive (or Executive’s heirs, personal representatives or estate) shall promptly return to the Company all documents (including all copies thereof) and other materials and property of the Company, or which pertains to any of the Company’s businesses, including all correspondence files, customer and prospect lists, price lists, contracts, software, manuals, technical data, forecasts and budgets, in Executive’s possession or control, no matter from whom or in what manner acquired.
		

		
			
		

		
			

		 

		

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			5.         Section 409A.  The parties intend that this Agreement will be administered in accordance with Section 409A.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that all payments hereunder are either exempt or comply with Section 409A.  The parties agree that this Agreement may be amended, as reasonably requested by either party, as may be necessary to be exempt from or fully comply with Section 409A in order to preserve the payments and benefits provided hereunder without additional cost to either party.  The Company makes no representation or warranty and shall have no liability to Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A but do not satisfy an exemption from, or the conditions of, Section 409A.  Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Section 409A, Executive shall not be considered to have terminated employment with the Company or any subsidiary or affiliate thereof for purposes of this Agreement unless Executive would be considered to have incurred a “separation from service” within the meaning of Section 409A,  from the Company or any of its subsidiaries or affiliates.  Each amount to be paid or benefit to be provided under this Agreement shall be construed as a separate identified payment for purposes of Section 409A, and any payments described in this Agreement that are due within the “short term deferral period” as defined in Section 409A shall not be treated as deferred compensation unless applicable law requires otherwise.  Without limiting the foregoing and notwithstanding anything contained herein to the contrary, if Executive is deemed by the Company at the time of Executive’s separation from service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid the imposition of additional taxes and interest on Executive under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (a) the expiration of the six-(6) month period measured from the date of Executive’s separation from service or (b)  the date of Executive’s death.
		

		
			6.         Additional Change in Control Payments.
		

		
			6.1       Gross-Up Payments.  Anything in this Agreement to the contrary notwithstanding, but subject to Section 6.4 below, if it is determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company or any entity to or for the benefit of Executive would be subject to the excise tax imposed by Section 4999 of the Code,  (the “Excess Parachute Payments”), or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay to Executive an additional payment (a “Gross-Up Payment”) in an amount equal to that required to result in Executive receiving, after application of the Excise Tax, a net amount that would have been received hereunder had the Excise Tax not applied.
		

		
			6.2       Determinations.  Subject to Section 6.1 above, all determinations required to be made under this Section 6, including whether and when a Gross-Up Payment is required, the amount of such Gross-Up Payment and the assumptions to be used in arriving at such determinations, shall be made by a public accounting firm that is selected by the Company (the “Accounting Firm”) which shall provide its determinations and any detailed supporting calculations both to the Company and Executive within fifteen (15) business days after the earlier
		

		
			
		

		
			

		 

		

			11

		

		

		
			of the receipt of notice from the Company or Executive that there has been an Excess Parachute Payment or earlier written request by the Company or Executive (collectively, the “Determination”).  All fees and expenses of the Accounting Firm shall be borne solely by the Company.  The Gross-Up Payment under Section 6 with respect to any Excess Parachute Payments made to Executive shall be made no later than thirty (30) days following the payment of such Excess Parachute Payments.
		

		
			6.3       Underpayments and Overpayments.  As a result of the uncertainty in the application of Section 4999 of the Code at the time of the Determination, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (“Underpayment”) or Gross-Up Payments will be made by the Company which should not have been made (“Overpayment”), consistent with the calculations required to be made hereunder.  If Executive thereafter is required to make payment of any Excise Tax or additional Excise Tax in excess of the amount determined by the Accounting Firm, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) shall be promptly paid by the Company to or for the benefit of Executive.  If the amount of the Gross-Up Payment exceeds the amount necessary to reimburse Executive for his Excise Tax, the Accounting Firm shall determine the amount of the Overpayment that has been made and any such Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall be promptly paid by Executive to or for the benefit of the Company.  Executive shall cooperate, to the extent his expenses are reimbursed by the Company, with any reasonable requests by the Company in connection with any contest or disputes with the Internal Revenue Service in connection with the Excise Tax.  Any payment in respect of an Underpayment or Overpayment shall be made within fifteen (15) days after the existence and amount thereof has been determined pursuant to this Section 6.3.
		

		
			6.4       Shareholder Approval Alternative; Termination Upon IPO.  Notwithstanding anything to the contrary within Sections 6.1 through 6.3 above, (i) as an alternative to paying the Gross-Up Payment, the Company may elect to request shareholder approval of the Excess Parachute Payments in a manner that satisfies Section 280G(b)(5)(B) of the Code and the Treasury Regulations thereunder, including Q-7 of Section 1.280G-1 of such Treasury Regulations (in which case, whether or not such shareholder approval is obtained, the Company will not be required to pay any amounts pursuant to this Section 6); Executive shall cooperate with the Company in all aspects of such a shareholder approval process, including executing a document stating that Executive shall waive all Excess Parachute Payments unless such payments are approved by the Company’s shareholders and (ii) Sections 6.1,  6.2 and 6.3 shall terminate and cease to be effective upon the consummation of an IPO by the Company or its parent or subsidiary.
		

		
			7.         Company Property.  Executive agrees that during his employment with the Company that Executive will not make, use or permit to be used any Company Property (defined below) otherwise than for the benefit of the Company.  The term “Company Property” shall include all notes, memoranda, reports, lists, records, drawings, sketches, specifications, software programs, software code, data, computers, cellular telephones, pagers, credit or calling cards, keys, access cards, documentation or other materials of any nature and in any form, whether written, printed, electronic or in digital format or otherwise, relating to any matter within the scope of the business of the Company or concerning any of its dealings or affairs and any other Company
		

		
			
		

		
			

		 

		

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			property in Executive’s possession, custody or control.  Executive further agrees that Executive will not, after the termination of his employment with the Company, use or permit others to use any such Company Property.  Executive acknowledges and agrees that all Company Property shall be and remain the sole and exclusive property of the Company.  Immediately upon the termination of Executive’s employment with the Company, Executive will deliver all Company Property in Executive’s possession, and all copies thereof, to the Company.
		

		
			8.         Restrictive Covenants of Executive
		

		
			8.1       Conflict of Interest/Noncompetition.  During Executive’s employment period with the Company and for twelve (12) months thereafter following any termination of employment, Executive shall not, directly or indirectly, alone or as a partner, officer, director, manager, employee or consultant or equityholder of any entity (a) provide any wealth management services, including personal financial planning or personal advisory services of the type provided or contemplated to be provided by the Company or its subsidiaries at the time of such termination to any individual or entity anywhere in the continental United States (a “Competitive Business”), (b) provide finder, broker or financial advisory services to any Competitive Business, or (c) interfere with any potential acquisition by the Company of any other business or discourage any party to any such potential acquisition from engaging in any such transaction.  In addition, during Executive’s employment period with the Company and for one (1) year thereafter, Executive shall not, directly or indirectly, alone or as a partner, officer, director, manager, employee or individual consultant or equityholder of any entity (w) directly or indirectly hire, offer to hire, divert, entice away, solicit or in any other manner persuade, or attempt to do any of the foregoing (each, a “Solicitation”), any person or entity who is (or who was during the twelve (12)-month period immediately prior to such Solicitation) an officer, employee, agent or individual consultant of the Company, any of its subsidiaries, or an acquisition prospect of the Company, to accept employment with, or otherwise work for, Executive or any third party, (x) engage in a Solicitation with respect to any person who was, at any time within six (6) months prior to the Solicitation, an officer, employee, agent or individual consultant of the Company or any of its subsidiaries, to accept employment with, or otherwise work for Executive or any other third party engaged in a Competitive Business, or (y) solicit or do business with any customer or client of the Company or any of its subsidiaries, or any potential acquisition target of the Company which Executive knew about at the time of termination of employment or any potential customer or client of the Company or any of its subsidiaries or any potential acquisition target of the Company with respect to which the Company or its subsidiaries undertook substantial actions: (i) in any manner which interferes with such person’s relationship or potential relationship with the Company or its subsidiaries, or any such potential acquisition target of the Company, as the case may be, or (ii) in an effort to obtain such person as a customer, client, supplier, consultant, salesman, agent or representative to any Competitive Business, or (z) work together in any business or enterprise involving wealth management services (other than the Company and its affiliates) with any other current or former senior executives of the Company.  As used in this Section 8, the term “subsidiaries” refers to both direct and indirect subsidiaries of the Company.
		

		
			8.2       Nondisclosure.  Executive shall not at any time, whether during or after the termination of Executive’s employment with the Company, except as permitted under Sections 8.5 and 8.6 below, reveal to any person any Confidential Information (as defined below) except to employees or agents of the Company who need to know such Confidential Information for the
		

		
			
		

		
			

		 

		

			13

		

		

		
			purposes of their employment or activities on behalf of the Company, or as otherwise authorized by the Company in writing.  The term “Confidential Information” shall include any non-public information concerning the organization, business or finances of the Company or its subsidiaries, or of any third party that the Company is under an obligation to keep confidential that is maintained by the Company as confidential.  Such Confidential Information shall include trade secrets or confidential information respecting acquisition models, services, inventions, products, designs, methods, know-how, techniques, systems, processes, engineering data, software programs and software code, works of authorship, customer and supplier lists, customer and supplier information, financial information, pricing information, business plans, projects, plans, notes, memoranda, reports, data, sketches, specifications and proposals.  Except as permitted under Sections 8.5 and 8.6 below, Executive shall keep confidential all matters entrusted to Executive and shall not use or attempt to use any Confidential Information except as may be required in the ordinary course of performing Executive’s duties as an employee of the Company, nor shall Executive use any Confidential Information in any manner which injures or causes losses to the Company.
		

		
			8.3       Assignment of Developments.  If at any time or times during Executive’s employment with the Company, Executive shall (either alone or with others) make, conceive, create, discover, invent or reduce to practice any Development (as defined below) that (a) relates to the business of the Company or any customer of or supplier to the Company or any of the products or services being developed, manufactured or sold by the Company or which may be used in relation therewith; (b) results from tasks assigned to Executive by the Company; or (c) results from the use of premises or personal property (whether tangible or intangible) owned, leased or contracted for by the Company, then all such Developments and the benefits thereof are and shall immediately become the sole and absolute property of the Company and its assigns, as works made for hire or otherwise.  The term “Development” shall mean any invention, modification, discovery, design, development, improvement, process, software program, work of authorship, documentation, formula, business model, data, technique, know-how, trade secret or intellectual property right whatsoever or any interest therein (whether or not patentable or registrable under copyright, trademark or similar statutes or subject to analogous protection).  Executive shall promptly disclose to the Company (or any persons designated by it) each such Development.  Executive hereby assigns all rights (including rights to inventions, patentable subject matter, copyrights and trademarks) Executive may have or may acquire in any of the Developments and all benefits or rights resulting therefrom to the Company and its assigns without further compensation and shall communicate, without cost or delay, and without disclosing to others the same, all available information relating thereto (with all necessary plans and models) to the Company.
		

		
			8.4       Nondisparagement.  Except as permitted under Section 8.6 below, Executive shall not, whether in writing or orally, malign, denigrate or disparage the Company, its subsidiaries or affiliates or their respective predecessors and successors, or any of the current or former directors, officers, employees, shareholders, partners, members, agents or representatives of any of the foregoing, with respect to any of their respective past or present activities, or otherwise publish (whether in writing or orally) statements that tend to portray any of the aforementioned parties in an unfavorable light.  The Company shall not, and agrees to instruct its senior executives not to, malign, denigrate or disparage Executive with respect to any of Executive’s past or present activities, or otherwise publish (whether in writing or orally) statements
		

		
			
		

		
			

		 

		

			14

		

		

		
			that tend to portray Executive in an unfavorable light.  Notwithstanding the foregoing, nothing in this paragraph shall prevent any person from making any truthful statement to the extent required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with jurisdiction to order such person to disclose or make accessible such information.
		

		
			8.5       Certain Permitted Uses of Trade Secrets.  Misappropriation of a trade secret of the Company in breach of this Agreement may subject Executive to liability under the Defend Trade Secrets Act of 2016 (the “DTSA”), entitle the Company to injunctive relief and require Executive to pay compensatory damages, double damages and attorneys’ fees.  Notwithstanding any other provision of this Agreement, Executive hereby is notified in accordance with the DTSA that Executive will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (a) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, in each case solely for the purpose of reporting or investigating a suspected violation of law; or (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Executive is further notified that if Executive files a lawsuit for retaliation by Company for reporting a suspected violation of law, Executive may disclose the Company’s trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive files any document containing the trade secret under seal and does not disclose the trade secret except pursuant to court order.
		

		
			8.6       Permitted Disclosures.  Nothing in this Agreement will prevent or restrict Executive from: (a) reporting possible violations of federal, state, or local law or regulation to, or discussing any such possible violations with, any governmental agency or entity or self-regulatory organization, including by initiating communications directly with, responding to any inquiry from, or providing testimony before any federal, state, or local regulatory authority or agency or self-regulatory organization, including without limitation the Securities and Exchange Commission, the Equal Employment Opportunity Commission, FINRA, and the Occupational Safety and Health Administration, or making any other disclosures that are protected by the whistleblower provisions of any federal, state, or local law or regulation, in each case, without notice to the Company.  Nothing in this Agreement limits Executive’s right, if any, to receive an award for information provided to the SEC.
		

		
			9.         Further Assurances.  Executive shall, during Executive’s employment with the Company and at any time thereafter, at the request and cost of the Company, promptly sign, execute, make and do all such deeds, documents, acts and things as the Company and its duly authorized officers may reasonably request, to: (a) apply for, obtain, register and vest in the name of the Company alone (unless the Company otherwise directs) patents, copyrights, trademarks or other analogous protection in any country throughout the world relating to any Development and when so obtained or vested to renew and restore the same; and (b) defend any judicial, opposition or other proceedings in respect of such applications and any judicial, opposition or other proceeding, petition or application for revocation of any such patent, copyright, trademark or other analogous protection.  If the Company is unable, after reasonable effort, to secure Executive’s signature on any application for patent, copyright, trademark or other analogous protection or other documents regarding any legal protection relating to a Development, whether because of Executive’s physical or mental incapacity or for any other reason whatsoever.  Executive hereby
		

		
			
		

		
			

		 

		

			15

		

		

		
			irrevocably designates and appoints the Company and its duly authorized officers and agents as Executive’s agent and attorney-in-fact, to act for and in Executive’s behalf and stead to execute and file any such application or applications or other documents and to do all other lawfully permitted acts to further the prosecution and issuance of patent, copyright or trademark registrations or any other legal protection thereon with the same legal force and effect as if executed personally by Executive.
		

		
			10.       Representations; Agreements.
		

		
			10.1     Executive represents that his performance of all of the terms of this Agreement and as an employee of the Company does not and will not breach any restrictive covenants agreement or any agreement to keep in confidence proprietary information acquired by Executive in confidence or in trust prior to Executive’s employment by the Company.  Executive has not entered into, and shall not enter into, any agreement either written or oral in conflict herewith.
		

		
			10.2     Executive agrees that any breach of this Agreement may cause irreparable damage to the Company and that in the event of such breach the Company shall have, in addition to any and all remedies of law, the right to seek an injunction, specific performance or other equitable relief to prevent the violation of Executive’s obligations hereunder.
		

		
			10.3     Except as set forth in this Agreement, Executive understands that this Agreement does not create an obligation on the Company or any other person to continue Executive’s employment.
		

		
			10.4     Executive is not an officer, director, manager, employee or greater-than-3% stockholder in any Competitive Business of the Company.
		

		
			11.       Indemnification.  Executive shall not be liable to the Company or any other person or entity who has an interest in the Company for any loss, damage or claim (a “Loss”) (or any expenses or costs associated therewith (“Costs”)) incurred by reason of any act or omission performed or omitted by Executive in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on Executive by this Agreement, except that Executive shall be liable for any such Loss and Costs incurred by reason of Executive’s gross negligence, intentional misconduct, or a knowing violation of law.  To the full extent permitted by applicable law, Executive shall be entitled to indemnification from the Company for any Loss or Costs incurred by Executive by reason of any act or omission performed or omitted by Executive in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of the authority conferred on Executive by this Agreement, except that Executive shall not be entitled to be indemnified in respect of any Loss or Costs incurred by Executive by reason of Executive’s gross negligence, intentional misconduct, or a knowing violation of the law with respect to such acts or omissions; provided,  however, that any indemnity under this Section 11 shall be provided out of and to the extent of Company assets only, and no Member, Manager or Officer (each term as defined within the Company’s limited liability company operating agreement as amended and in effect from time to time) shall have personal liability on account thereof.  The Company shall advance Costs incurred by or on behalf of Executive in connection with any Loss within twenty (20) days after receipt by the Company from
		

		
			
		

		
			

		 

		

			16

		

		

		
			Executive of a statement requesting such advances from time to time; provided,  however, such statement provides reasonable documentary evidence of such Costs and provides a written undertaking by Executive to repay any and all advanced Costs in the event Executive is ultimately determined to not be entitled to indemnification by the Company.
		

		
			12.       Amendments; Waiver.  Any amendment to or modification of this Agreement shall be in writing and signed by the Company and Executive.  Any waiver of any provision hereof, shall be in writing and signed by the party against whom such waiver is sought.  Any waiver by the Company of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach of such provision or any other provision hereof.
		

		
			13.       Assignment.  The Company shall assign this Agreement to its successors and assigns (subject to the terms and conditions contained herein), and such successor or assign shall explicitly assume this Agreement, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by said successors or assigns.  This Agreement, being for the personal services of Executive, shall not be assignable by Executive.
		

		
			14.       Certain Definitions.  As used herein, the term “person” means any individual, sole proprietorship, joint venture, partnership, corporation, limited liability company, bank, association, cooperative, trust, estate, government, governmental, administrative or regulatory body, or other entity of any nature.  As used herein, the term “including” (in its various forms) means “including, without limitation.” As used herein, any Incentive Unit, Unit, equity award or equity interest that is “held” by Executive shall include any such Incentive Unit, Unit, equity award or equity interest, whether vested or unvested, that is held directly by Executive or which is held by or placed in a trust or other estate planning vehicle.  The Board shall make all decisions or determinations hereunder on behalf of the Company.
		

		
			15.       Notices.  All notices, consents or other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been duly given when delivered personally or one (1) business day after being sent by a nationally recognized overnight delivery service, charges prepaid.  Notices also may be given by facsimile and shall be effective on the date transmitted if sent during business hours, or, if sent outside of business hours, on the following business day.  Notice to Executive shall be sent to Executive’s most recent address of record with the Company.  Notice to the Company shall be sent to:
		

		
			Focus Financial Partners, LLC
		

		
			825 Third Avenue, 27th Floor
		

		
			New York NY 10022
		

		
			Attn: General Counsel
		

		
			E-mail:  Rmcgranahan@ffpar.com
		

		
			with a copy (which shall not constitute notice) to:
		

		
			c/o Stone Point Capital LLC
		

		
			20 Horseneck Lane
		

		
			Greenwich, Connecticut  06830
		

		
			Attn:  Peter M. Mundheim
		

		
			
		

		
			

		 

		

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			E-mail:  pmundheim@stonepoint.com
		

		
			Either party may change its address for notice and the address to which copies must be sent by giving notice of the new addresses to the other party in accordance with this Section 15,  provided,  however, that any such change of address notice shall not be effective unless and until received.
		

		
			16.       Governing Law; Forum Selection Clause, Waiver of Jury Trial.  This Agreement and any claims arising out of this Agreement (or any other claims arising out of the relationship between the parties) shall be governed by and construed in accordance with the laws of the State of New York and shall in all respects be interpreted, enforced and governed under the internal and domestic laws of such state, without giving effect to the principles of conflicts of laws of such state that would require the application of the laws or rules of any other jurisdiction.  Any claims or legal actions by one party against the other shall be commenced and maintained in any state or federal court located in the City, County and State of New York, and the parties hereby submit to the jurisdiction and venue of any such court.  Each party hereto (a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such party would not, in the event of any action, suit or proceeding, seek to enforce the foregoing waiver and (b) acknowledges that it and the other party hereto has been induced to enter into this Agreement by, among other things, the mutual waiver and certifications in this Section 16.
		

		
			17.       Survival.  Sections 4, 5, 6,  7,  8,  9,  10,  11,  12,  13,  14,  15,  16,  17,  18 and 19 shall survive the termination of Executive’s employment with the Company regardless of the manner of such termination and shall be binding upon each of Executive’s heirs, executors, administrators and legal representatives.
		

		
			18.       Severability.   The parties hereby agree that each provision herein shall be treated as a separate and independent clause, and the unenforceability of any one clause shall in no way impair the enforceability of any other clauses of the Agreement.  If one or more of the provisions contained herein shall for any reason be held to be excessively broad in scope, activity, subject or otherwise so as to be unenforceable at law, such provisions shall be construed by the appropriate judicial body by limiting or reducing it (or them) so as to be enforceable to the maximum extent under the applicable law.  The parties hereby further agree that the language of all parts of this Agreement shall in all cases be construed as a whole according to its fair meaning and not strictly for or against either of the parties.
		

		
			19.       Entire Agreement; Miscellaneous.  Except as set forth below, this Agreement contains the entire agreement of the parties with respect to the subject matter hereof, and this Agreement supersedes all prior and contemporaneous agreements and understandings, oral or written, between the parties hereto concerning the subject matter hereof (including the Original Employment Agreement), except to the extent that any other documents, agreements or understandings are specifically referenced herein, including, without limitation, any award agreements, omnibus agreements, the Focus Financial Partners, LLC Annual Cash Bonus Plan and Incentive Unit Plan and any Incentive Unit Agreements, and the Company’s limited liability company operating agreement as amended and in effect from time to time, each of which shall survive in accordance with their respective terms as modified herein.  However, notwithstanding the preceding sentence, to the extent that this Agreement is in direct conflict with the terms of any document that governs Executive’s equity awards or equity interests, the provision that is most
		

		
			
		

		
			

		 

		

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			favorable to Executive shall control.  Subject to the provisions of Sections 4 and 13, this Agreement shall bind, benefit and be enforceable by and against Executive and Executive’s heirs, personal representatives, estate and beneficiaries, and the Company and its successors and assigns.  This Agreement may be executed in any number of counterparts (including by facsimile or portable document format (.pdf) signature delivery), each of which when so executed and delivered shall be an original hereof, and it shall not be necessary in making proof of this Agreement to produce or account for more than one (1) counterpart hereof.  Section and subsection headings in this Agreement are for convenience of reference only, do not constitute a part of this Agreement, and shall not affect its interpretation.
		

		
			[Signature Page Follows]
		

		
			 
		

		
			 
		

		
			

		 

		

			19

		

		

		
			IN WITNESS WHEREOF, the Company and Executive have entered into this Employment Agreement as of the date first written above.
		

		
			COMPANY
		

		
			 
		

			
					
						Focus Financial Partners, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By: 

					
					
						/s/ Ruediger Adolf

					
					
						 

				
	
					
						Name:

					
					
						Ruediger Adolf

					
					
						 

				
	
					
						Title: 

					
					
						Chief Executive Officer

					
					
						 

				

		
			 
		

		
			EXECUTIVE
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						/s/ John Russell McGranahan

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						John Russell McGranahan

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

		
			Exhibit A
		

		
			Board Memberships
		

		
			None.
		

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit A - 1

		

		

		
			Exhibit B
		

		
			Incentive Units
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Incentive Unit
Certificate
Number

					
					
						Grant Date

					
					
						Hurdle Price

					
					
						Number of
Incentive Units

				
	
					
						I963

					
					
						8/5/2015

					
					
						$16.00

					
					
						100,000

				
	
					
						I1033

					
					
						12/28/2015

					
					
						$19.00

					
					
						75,213

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit B - 1

		

		

		
			Exhibit C
		

		
			Form of Release
		

		
			FOR AND IN CONSIDERATION OF the special payments and benefits to be provided in connection with the termination of my employment in accordance with Section 4.4 (including if such payments and benefits become payable pursuant to Section 4.6) or Section 4.8 of the Amended and Restated Employment Agreement, dated as of _______, 2017 (as amended and in effect from time to time, the “Employment Agreement”) between Focus Financial Partners, LLC, a Delaware limited liability company (the “Company”), and me, I, on my own behalf and on behalf of my personal and legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees and all others connected with me, hereby release and forever discharge the Company and its affiliates and all of their respective past and present officers, directors, managers, stockholders, controlling persons, employees, agents, representatives, successors and assigns and all others connected with any of them (the “Released Parties”), both individually and in their official capacities, from any and all rights, liabilities, claims, damages, demands and causes of action, whether statutory or at common law (including any claim for salary, benefits, payments, expenses, costs, attorney’s fees, damages, penalties, compensation, remuneration, contractual entitlements) (collectively, “Claims”) relating to any matter occurring on or prior to the date of my signing of this Release, including any Claims resulting from, arising out of, or connected with my employment or its termination and any other Claims pursuant to: (a) any federal, state, foreign or local law, regulation or other requirement (including Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, the New York State Human Rights Law, the New York City Human Rights Law, and any other local, state, or federal anti-discrimination or anti-retaliation law, each as amended from time to time); (b) any other local, state or federal law, regulation or ordinance; (c) any public policy or common law; and (d) any contract I may have with any Released Party, including the Employment Agreement (collectively, the “Released Claims”); provided, however, that the foregoing release shall not apply to (i) any right explicitly set forth in the Employment Agreement to any payments and benefits to be provided in connection with the termination of my employment, (ii) any right or claim that arises after the date this release is executed, (iii) any right I may have to vested or accrued benefits or entitlements under any applicable plan, agreement, program, award, policy or arrangement of the Company and its parents, subsidiaries and affiliates to the extent consistent with the Employment Agreement, (iv) my right to indemnification and advancement of expenses in accordance with applicable laws and/or the certificate of incorporation and by-laws, limited liability company agreement or other governing documents of the Company and its parents, subsidiaries and affiliates, or any applicable insurance policy, or (v) any right I may have to obtain contribution as permitted by law in the event of entry of judgment against me as a result of any act or failure to act for which I, on the one hand, and any Released Party, on the other hand, are jointly liable. This Release includes matters attributable to the sole or partial negligence (whether gross or simple) or other fault, including strict liability, of any Released Party.
		

		
			Notwithstanding the release of liability contained herein, nothing in this Release prevents me from filing any charge or claim of discrimination (including a challenge to the validity of this Release) with the Equal Employment Opportunity Commission (“EEOC”), the National Labor Relations Board, or another federal, state, or local government agency.  I retain the right to participate in any such proceeding, provided that I hereby waive any right I otherwise would have to recover monetary damages in connection with any charge, complaint, or lawsuit filed by me or
		

		
			 
		

		
			 
		

		
			

		 

		

			Exhibit C - 1

		

		

		
			by anyone else on my behalf.  I retain the right to communicate with the EEOC and comparable state or local agencies and such communication can be initiated by me or in response to a communication from any such agency, and is not limited by any obligation contained in this General Release.  However, I understand and agree that I am waiving any and all rights to recover any monetary or personal relief as a result of such EEOC or other government agency proceeding or subsequent legal action.
		

		
			In signing this Release, I acknowledge that (a) I have carefully read this Release; (b) I have had at least twenty-one (21) days from the date of notice of termination of my employment, or in the event that such termination of employment is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967, as amended), the date that is forty-five (45) days following such notice date, to consider the terms of this Release and that such time has been sufficient; (c) I am hereby encouraged by the Company to seek the advice of an attorney prior to signing this Release and have had adequate opportunity to do so; (d) I am not entitled to the consideration set forth in Sections 4.4, 4.6, and/or 4.8 of the Employment Agreement but for my entry into, and non-revocation of, this Release within the time provided to do so; and (e) I am signing this Release voluntarily and with a full understanding and acceptance of its terms, I understand the final and binding effect of this Release, and the only promises made to me to sign this Release are those stated in the Employment Agreement and herein.
		

		
			I understand that I may revoke this Release at any time within seven (7) days of the date of my signing by providing written notice to the Company of such revocation so that such notice is received by the Company no later than 11:59 P.M. New York time on the seventh (7th) day after I sign this Release and that this Release will take effect only upon the expiration of such seven-day (7) revocation period (the “Effective Date”) and only if I have not timely revoked it.
		

		
			Intending to be legally bound, I have signed this Release to be effective as of the Effective Date.
		

		
			 
		

			
					
						Signature:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Date:

					
					
						 

					
					
						 

				

		
			 
		

		 

		

			Exhibit C - 2focs_Ex10_31

		
			Exhibit 10.31
		

		
			INDEMNIFICATION AGREEMENT
		

		
			This Indemnification Agreement (“Agreement”) is made as of July 30, 2018 by and between Focus Financial Partners Inc., a Delaware corporation (the “Company”), and Leonard R. Chang (“Indemnitee”).  This Agreement supersedes and replaces any and all previous Agreements between the Company and Indemnitee covering the subject matter of this Agreement.
		

		
			RECITALS
		

		
			WHEREAS, the Board of Directors of the Company (the “Board”) believes that highly competent persons have become more reluctant to serve publicly-held corporations as directors or officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;
		

		
			WHEREAS, the Board has determined that, in order to attract and retain qualified individuals, 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. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Amended and Restated Certificate of Incorporation of the Company (as may be amended, the “Certificate of Incorporation”) and the Amended and Restated Bylaws of the Company (as may be amended, the “Bylaws”) require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the “DGCL”).  The Certificate of Incorporation, the Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;
		

		
			WHEREAS, the uncertainties relating to such insurance and to indemnification may increase the difficulty of attracting and retaining such persons;
		

		
			WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;
		

		
			WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons 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;
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

		
			WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and the Bylaws, and any resolutions adopted pursuant thereto, as well as any rights
		

		
			of Indemnitees under any directors’ and officers’ liability insurance policy, and this Agreement and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and
		

		
			WHEREAS, Indemnitee does not regard the protection available under the Certificate of Incorporation, the Bylaws and insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve or continue to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be so indemnified.
		

		
			NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:
		

		
			Section 1.           Services to the Company.  Indemnitee agrees to serve as a director or officer of the Company or, by mutual agreement of the Company and Indemnitee, as a director or officer of another Enterprise (as defined below), as applicable. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other applicable formal severance policies duly adopted by the Board or, with respect to service as a director or officer of the Company, by the Certificate of Incorporation, the Bylaws, and the DGCL. The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as a director or officer of the Company or any Enterprise, as applicable, as provided in Section 16 hereof.
		

		
			Section 2.           Definitions.  As used in this Agreement:
		

		
			(a)          References to “agent” shall mean any person who is or was a director, officer, or employee of the Company or a subsidiary of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.
		

		
			(b)          A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:
		

		
			i.             Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the
		

		
			
		

		
			

		 

		

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			Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities unless the change in relative Beneficial Ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;
		

		
			ii.            Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;
		

		
			iii.          Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation 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 50% 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;
		

		
			iv.           Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and
		

		
			v.            Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.
		

		
			For purposes of this Section 2(b), the following terms shall have the following meanings:
		

		
			(A)       “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.
		

		
			(B)       “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any entity owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.
		

		
			
		

		
			

		 

		

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			(C)       “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.
		

		
			(D)       “Surviving Entity” shall mean the surviving entity in a merger or consolidation or any entity that controls, directly or indirectly, such surviving entity.
		

		
			(c)          “Corporate Status” describes the status of a person who is or was a director, trustee, partner, managing member, officer, employee, agent or fiduciary of the Company or of any other corporation, limited liability company, partnership or joint venture, trust or other enterprise which such person is or was serving at the request of the Company.
		

		
			(d)          “Disinterested Director” shall mean 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.
		

		
			(e)          “Enterprise” shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, employee, agent or fiduciary.
		

		
			(f)           “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and other costs of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements, obligations or expenses of the types customarily incurred in connection with, or as a result of, prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a deponent or witness in, or otherwise participating in, a Proceeding.  Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, (ii) expenses incurred in connection with recovery under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee is ultimately determined to be entitled to such indemnification, advancement or Expenses or insurance recovery, as the case may be, and (iii) for purposes of Section 14(d) only, Expenses incurred by or on behalf of Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, the Certificate of Incorporation, the Bylaws or under any directors’ and officers’ liability insurance policies maintained by the Company, by litigation or otherwise.  The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable in the good faith judgment of such counsel shall be presumed conclusively to be reasonable.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
		

		
			
		

		
			

		 

		

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			(g)          “Independent Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years 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 the 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.  The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.
		

		
			(h)          The term “Proceeding” shall include any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, regulatory or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of Indemnitee’s Corporate Status, by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee’s part while acting pursuant to Indemnitee’s Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement.  If the Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall be considered a Proceeding under this paragraph.
		

		
			(i)           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; and a person who acted in good faith and in a manner Indemnitee  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.
		

		
			Section 3.          Indemnity in Third-Party Proceedings.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or
		

		
			
		

		
			

		 

		

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			matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding had no reasonable cause to believe that Indemnitee’s conduct was unlawful. The parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Certificate of Incorporation, the Bylaws, vote of the Company’s stockholders or disinterested directors or applicable law.
		

		
			Section 4.          Indemnity in Proceedings by or in the Right of the Company.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company.  If applicable law so provides, no indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court of competent jurisdiction (after the time for an appeal has expired) to be liable to the Company, unless and only to the extent that the Delaware Court (as hereinafter defined) or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.
		

		
			Section 5.          Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law and 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 or on behalf of Indemnitee 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 indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law.  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 6.          Indemnification For Expenses of a Witness.  Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of Indemnitee’s Corporate Status, a witness, is or was made (or asked) to respond to discovery requests in any Proceeding or otherwise asked to participate 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 Indemnitee's behalf in connection therewith.
		

		
			
		

		
			

		 

		

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			Section 7.          Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.
		

		
			Section 8.          Additional Indemnification.
		

		
			(a)        Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee, by reason of his or her Corporate Status is, or is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) by reason of Indemnitee’s Corporate Status.
		

		
			(b)        For purposes of Section 8(a), 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 the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, 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.
		

		
			Section 9.          Exclusions.  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnification payment in connection with any claim made against Indemnitee:
		

		
			(a)          for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or
		

		
			(b)          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 (as defined in Section 2(b) hereof) or similar provisions of state statutory law or common law; provided that the Company shall advance Expenses in connection with Indemnitee’s defense of a claim under Section 16(b), which advances shall be repaid to the Company if it is ultimately determined that Indemnitee is not entitled to indemnification; or (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the 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), if Indemnitee is held liable therefor (including pursuant to any settlement arrangements); or (iii) any reimbursement of the Company by Indemnitee of any compensation pursuant to any compensation recoupment or clawback policy adopted by the Board or the
		

		
			
		

		
			

		 

		

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			compensation committee of the Board, including but not limited to any such policy adopted to comply with stock exchange listing requirements implementing Section 10D of the Exchange Act; or
		

		
			(c)          except as provided in Section 14(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation, (ii) such payment arises in connection with any mandatory counterclaim or cross claim or affirmative defense brought or raised by Indemnitee in any Proceeding (or any part of any Proceeding), or (iii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.
		

		
			Section 10.        Advances of Expenses.  Notwithstanding any provision of this Agreement to the contrary (other than Section 14(d)), the Company shall advance, to the extent not prohibited by law, the Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding (or any part of any Proceeding) not initiated by Indemnitee or any Proceeding initiated by Indemnitee with the prior approval of the Board as provided in Section 9(c), and such advancement shall be made as soon as reasonably practicable, but in any event no later than within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances 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 the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.  In accordance with Section 14(d), 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.  The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes to repay the amounts advanced (without interest) by the Company pursuant to this Section 10, if and only to the extent that it is ultimately determined by final non-appealable judgment or other final non-appealable 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.  No other form of undertaking shall be required other than the execution of this Agreement.  This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 9.
		

		
			Section 11.         Procedure for Notification and Defense of Claim.
		

		
			(a)          Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof.  The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding, in each case, to the extent known to Indemnitee.  To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding.  The omission by
		

		
			
		

		
			

		 

		

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			Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
		

		
			(b)          The Company will be entitled to participate in the Proceeding at its own expense.
		

		
			(c)          The Company shall not settle any Proceeding (in whole or in part) if such settlement would impose any Expense, judgment, liability, fine, penalty or limitation on Indemnitee which Indemnitee is not entitled to be indemnified hereunder without Indemnitee’s prior written consent, which shall not be unreasonably withheld.
		

		
			Section 12.         Procedure Upon Application for Indemnification.
		

		
			(a)          Upon written request by Indemnitee for indemnification pursuant to Section 11(a), 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 in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in 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 (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.  Indemnitee shall 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) incurred by or on behalf of 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) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.  The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied.
		

		
			(b)          In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be selected as provided in this Section 12(b).  If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising Indemnitee of the identity of the Independent Counsel so selected.  If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee
		

		
			
		

		
			

		 

		

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			(unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it 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 given, 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 2 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 the Delaware Court has determined that such objection is without merit.  If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) 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 the Delaware Court 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 such court or by such other person as such 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 12(a) hereof.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
		

		
			(c)          If the Company disputes a portion of the amounts for which indemnification is requested, the undisputed portion shall be paid and only the disputed portion withheld pending resolution of any such dispute.
		

		
			Section 13.         Presumptions and Effect of Certain Proceedings.
		

		
			(a)          In making a 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 11(a) 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 the Company (including by its directors or Independent Counsel) 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 the Company (including by its directors or Independent Counsel) 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)          Subject to Section 14(e), if the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the
		

		
			
		

		
			

		 

		

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			Company of the request therefor, 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, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 13(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) of this Agreement.
		

		
			(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 Indemnitee 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 Indemnitee’s 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 based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser, financial advisor or other expert selected with reasonable care by or on behalf of the Enterprise.  The provisions of this Section 13(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement. Whether or not the foregoing provisions of this Section 13(d) are satisfied, it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.
		

		
			(e)          The knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
		

		
			
		

		
			

		 

		

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			Section 14.        Remedies of Indemnitee.
		

		
			(a)          Subject to Section 14(e), in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12(a) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5, 6 or 7 or the second to last sentence of Section 12(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 8 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of Indemnitee's entitlement to such indemnification or advancement of Expenses.  Alternatively, Indemnitee, at Indemnitee’s 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.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 14(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his rights under Section 5 of this Agreement.  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 12(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 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 14 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.
		

		
			(c)          If a determination shall have been made pursuant to Section 12(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 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.
		

		
			(d)          The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 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.  It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation
		

		
			
		

		
			

		 

		

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			or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder.  The Company shall, to the fullest extent permitted by law, indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by or on behalf of Indemnitee in connection with any action brought by Indemnitee for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.
		

		
			(e)          Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.
		

		
			Section 15.        Non-exclusivity; Survival of Rights; Insurance; Subrogation.
		

		
			(a)          The rights of indemnification and to receive advancement of Expenses as provided by this Agreement (i) shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise and (ii) shall be interpreted independently of, and without reference to, any other such rights to which Indemnitee may at any time be entitled.  No amendment, alteration or repeal of this Agreement or of any provision hereof, the Certificate of Incorporation or the Bylaws shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by Indemnitee in Indemnitee’s Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws, the Certificate of Incorporation 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.  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.
		

		
			(b)          To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall
		

		
			
		

		
			

		 

		

			-13-

		

		

			 

		

		

		
			thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.
		

		
			(c)          The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
		

		
			(d)          The Company hereby acknowledges that Indemnitee may have certain rights to indemnification, advancement and insurance provided by one or more Persons with whom or which Indemnitee may be associated. The Company hereby acknowledges and agrees that (i) the Company shall be the indemnitor of first resort with respect to any Proceeding, Expense, liability or matter that is the subject of the Indemnity Obligations (as defined below), (ii) the Company shall be primarily liable for all Indemnity Obligations and any indemnification afforded to Indemnitee in respect of any Proceeding, Expense, liability or matter that is the subject of Indemnity Obligations, whether created by applicable law, organizational or constituent documents, contract (including this Agreement) or otherwise, (iii) any obligation of any other Persons with whom or which Indemnitee may be associated to indemnify Indemnitee or advance Expenses or liabilities to Indemnitee in respect of any Proceeding shall be secondary to the obligations of the Company hereunder, (iv) the Company shall be required to indemnify Indemnitee and advance Expenses or liabilities to Indemnitee hereunder to the fullest extent provided herein without regard to any rights Indemnitee may have against any other Person with whom or which Indemnitee may be associated or insurer of any such Person and (v) the Company irrevocably waives, relinquishes and releases any other Person with whom or which Indemnitee may be associated from any claim of contribution, subrogation or any other recovery of any kind in respect of amounts paid by the Company hereunder. In the event any other Person with whom or which Indemnitee may be associated or their insurers advances or extinguishes any liability or loss which is the subject of any Indemnity Obligation owed by the Company or payable under any Company insurance policy, the payor shall have a right of subrogation against the Company or its insurer or insurers for all amounts so paid which would otherwise be payable by the Company or its insurer or insurers under this Agreement. In no event will payment of an Indemnity Obligation by any other Person with whom or which Indemnitee may be associated or their insurers affect the obligations of the Company hereunder or shift primary liability for any Indemnity Obligation to any other Person with whom or which Indemnitee may be associated. Any indemnification, insurance or advancement provided by any other Person with whom or which Indemnitee may be associated with respect to any liability arising as a result of Indemnitee’s status as director, officer, employee or agent of the Company or capacity as an officer or director of any Person is specifically in excess over any Indemnity Obligation of the Company or valid and any collectible insurance (including but not limited to any malpractice insurance or professional errors and omissions insurance) provided by the Company under this Agreement. As used herein, the term “Indemnity Obligations” shall mean all obligations of the Company to Indemnitee under the Certificate of Incorporation, the Bylaws, this Agreement or otherwise, including the Company’s obligations to provide indemnification to Indemnitee and advance Expenses to Indemnitee under this Agreement.
		

		
			Section 16.          Duration of Agreement.  This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a
		

		
			
		

		
			

		 

		

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			director or officer of the Company or any other Enterprise, as applicable, or (b) one (1) year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding (including any appeal thereof) commenced by Indemnitee pursuant to Section 14 of this Agreement relating thereto.  The indemnification and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise, and shall inure to the benefit of Indemnitee and Indemnitee’s spouse, assigns, heirs, devisees, executors and administrators and other legal representatives. The Company shall require and shall cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company to, by written agreement, expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.
		

		
			Section 17.         Severability.  Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order or other applicable law, to perform its obligations hereunder shall not constitute a breach of this Agreement. 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 provisions of this Agreement (including without limitation, 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, without limitation, 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 18.         Enforcement.
		

		
			(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 or continue to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving or continuing to serve as a director or officer of the Company.
		

		
			(b)          This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws, any directors’ and officers’ insurance maintained by the Company and
		

		
			
		

		
			

		 

		

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			applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.
		

		
			Section 19.       Modification and Waiver.  No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties hereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.
		

		
			Section 20.       Notice by Indemnitee.  Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.
		

		
			Section 21.       Notices.  All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received:
		

		
			(a)          If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company.
		

		
			(b)          If to the Company to
		

		
			Focus Financial Partners Inc.
		

		
			825 Third Avenue, 27th Floor
		

		
			New York, NY 10022
		

		
			Attn: General Counsel
		

		
			or to any other address as may have been furnished to Indemnitee by the Company.
		

		
			Section 22.        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 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 cause 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).
		

		
			
		

		
			

		 

		

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			Section 23.         Applicable Law and Consent to Jurisdiction.  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.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(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 Court of Chancery 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 24.         Identical 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 25.         Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.  The headings of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
		

		
			IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						FOCUS FINANCIAL PARTNERS INC.

					
					
						    

					
					
						INDEMNITEE

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By: 

					
					
						/s/ Ruediger Adolf

					
					
						 

					
					
						 

					
					
						/s/ Leonard R. Chang

				
	
					
						Name:

					
					
						Ruediger Adolf

					
					
						 

					
					
						Name:

					
					
						Leonard R. Chang

				
	
					
						Office: 

					
					
						Chief Executive Officer

					
					
						 

					
					
						Address: 

					
					
						825 Third Avenue

					
						New York, NY 10022

				

		
			 
		

		 

		

			-17-

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