Document:

SREV - 9.30.2014 - Exhibit 10.2+

Exhibit 10.2+
EMPLOYMENT AND CONFIDENTIAL INFORMATION AGREEMENT
This Employment Agreement (the “Agreement”) is entered into as of September 29, 2014 (the “Commencement Date”) by and between ServiceSource International, Inc. (“ServiceSource”) and Simon Biddiscombe (“Employee”). 
Recitals
WHEREAS, ServiceSource and Employee desire to enter into this Agreement in connection with Employee’s employment as Chief Financial Officer of ServiceSource.
NOW, THEREFORE, in consideration of the foregoing and the mutual agreements of the parties contained herein, the parties acknowledge and agree as follows:
1.EMPLOYMENT TERMS AND CONDITIONS.  ServiceSource hereby employs Employee as ServiceSource’s Chief Financial Officer, and Employee hereby accepts such employment with ServiceSource upon all of the terms and conditions described in this Employment Agreement (this “Agreement”), effective as of the Commencement Date.  This Agreement is contingent upon Employee’s satisfactory background and reference checks, and other standard human resources procedures.

2.DUTIES.

(a)Responsibilities.  Employee’s position is Chief Financial Officer, reporting to ServiceSource’s Chief Executive Officer.  Employee shall be responsible for and expected to perform all duties and tasks as directed by ServiceSource.

(b)Loyal and Full Time Performance of Duties.  While employed by ServiceSource, Employee shall not directly or indirectly, engage in any Competitive Activity.  For the purpose of this Agreement, “Competitive Activity” is any activity which is the same as or competitive with any activity engaged in by ServiceSource, during Employee’s employment by ServiceSource.  Competitive Activities may include, without limitation, the provision of (a) outsourced sales, technology and/or marketing services, or (b) consulting services for a client with respect to the sales and marketing of services agreements to end users where such clients compete with ServiceSource and/or its customers.  

(c)ServiceSource Policies.  Employee agrees to abide by ServiceSource’s rules, regulations, policies and practices, written and unwritten, as they may from time to time be adopted or modified by ServiceSource at its sole discretion.  ServiceSource’s written rules, policies, practices and procedures shall be binding on Employee unless superseded by or in conflict with this Agreement.

3.EMPLOYMENT AT-WILL.  Employee and ServiceSource acknowledge and agree that during Employee’s employment with ServiceSource the parties intend to strictly maintain an at-will employment relationship.  This means that at any time during the course of Employee’s employment with ServiceSource, Employee is entitled to resign with or without cause and with or without advance notice.  Similarly, ServiceSource specifically reserves the same right to terminate Employee’s employment at any time with or without cause and with or without advance notice.  Nothing in this Agreement or the relationship between the parties now or in the future may be construed or interpreted to create an employment relationship 

for a specific length of time or a right to continued employment.  Employee and ServiceSource understand and agree that only ServiceSource’s Chief Executive Officer possesses the authority to alter the at-will nature of Employee’s employment status, and that any such change may be made only by an express written employment contract signed by ServiceSource’s Chief Executive Officer. No implied contract concerning any employment-related decision or term or condition of employment can be established by any other statement, conduct, policy or practice.

4.BASE SALARY AND TARGET BONUS.  In consideration for the services and covenants described in this Agreement, ServiceSource agrees to pay Employee an annual base salary of three hundred sixty thousand dollars ($360,000), paid on ServiceSource’s normal payroll dates, subject to all applicable withholdings.  In addition, Employee will be eligible for a potential annual target Corporate Incentive Plan bonus amount of up to two hundred fifteen thousand dollars ($215,000), prorated from the Commencement Date for the 2014 fiscal year.  The CIP is a discretionary incentive program that ServiceSource funds based the achievement of business results and individual objectives established by ServiceSource and may also be subject to applicable performance requirements as determined by the Board of Directors of ServiceSource (the “Board of Directors”) or its Compensation Committee in their sole discretion.  Notwithstanding the foregoing, so long as you remain an employee through the time of payment, your prorated 2014 CIP bonus will be paid out at 100% of the amount payable, regardless of funding levels for other similarly situated employees.  All other CIP bonus payments will be paid based on Company achievement pursuant to the CIP plan.  
Except as otherwise specifically provided in this Agreement, Employee must be employed as of the date of the scheduled bonus payment in order to be eligible for any form of bonus payment. In no event shall any such bonus be paid after the later of (i) the fifteenth (15th) day of the third (3rd) month following the close of ServiceSource’s fiscal year in which any such bonus is earned or (ii) March 15 following the calendar year in which any such bonus is earned.
5.EQUITY COMPENSATION.  Employee will be eligible to participate in the ServiceSource International, Inc. 2011 Equity Incentive Plan (the “Equity Incentive Plan”) and the ServiceSource International, Inc. 2011 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”), subject to the requirements of the applicable plan.  Subject to (i) approval by the Board of Directors (or its Compensation Committee), (ii) the terms of the Equity Incentive Plan, and (iii) the terms of the respective equity compensation award agreements under the Plan, the Company will recommend to the Board of Directors (or its Compensation Committee) that Employee be granted the equity compensation described under subsections (a) and (b) of this Section 5, in addition to Employee’s cash compensation, effective upon the action of the Board of Directors (or Compensation Committee) approving the equity compensation grant (or such later date as the Board of Director or Compensation Committee may determine).  The date the equity compensation is approved by the Board of Directors (or Compensation Committee) is herein referred to as the “Grant Date.”

(a)Stock Option Grant.   The Company will recommend to the Board of Directors (or its Compensation Committee) that Employee be granted a nonqualified stock option to purchase up to two hundred fifty thousand (250,000) shares of ServiceSource’s common stock (“Shares”) under the Equity Incentive Plan (the “Option”), at an exercise price per share equal to the fair market value on the Grant Date of a single Share as determined under the Equity Incentive Plan.  The Option will be scheduled to vest as follows: (i) twenty five percent (25%) of the Shares underlying the Option shall vest on the first anniversary of the Grant Date and (ii) the remaining seventy five percent (75%) of the Shares underlying the Option shall vest monthly on a pro rata basis over the following thirty six (36) months such that all Options would have vested in full within forty-eight (48) months after the Grant Date.  If there is no corresponding day in a given month, vesting will occur on the last day of the month.  In all cases, vesting shall be subject to Employee 

remaining as a Service Provider (as such term is defined in the Equity Incentive Plan) through each vesting date, subject to any acceleration of vesting as provided in this Agreement.  Note that the above grant and its terms remain subject to approval by the Board of Directors (or the Compensation Committee), and to the terms and conditions of the Equity Incentive Plan and a related stock option agreement, and that any granted shares will be subject to all applicable state and federal tax and securities laws.

(b)Restricted Stock Units Grant.  The Company will recommend to the Board of Directors of ServiceSource (or its Compensation Committee) that Employee be granted two hundred thousand (200,000) restricted stock units (“RSUs”) under the Equity Incentive Plan.  The proposed RSUs will be scheduled to vest and be payable as follows: (i) twenty-five percent (25%) of Employee’s RSUs will vest on the first anniversary of the Grant Date and (ii) the remaining RSUs will vest and be payable in three equal installments on each of the second, third and fourth anniversary of the Grant Date. In all cases, vesting shall be subject to Employee remaining as a Service Provider (as such term is defined in the Equity Incentive Plan) through each vesting date, subject to any acceleration of vesting as provided in this Agreement.  Note that the above grant and its terms remain subject to approval by the Board of Directors (or the Compensation Committee), and to the terms and conditions of the Equity Incentive Plan and a related RSU agreement, and that any granted shares will be subject to all applicable state and federal tax and securities laws.

(c)Employee Stock Purchase Plan.  Subject to the terms and conditions of the Employee Stock Purchase Plan as now or hereafter in effect as determined by the Board of Directors (or Compensation Committee), Employee will be eligible to participate in the Employee Stock Purchase Plan while he meets the eligibility requirements under the Employee Stock Purchase Plan.  Note that any purchase rights or purchased shares under the Employee Stock Purchase Plan will be subject to all applicable state and federal tax and securities laws and the employment policies of ServiceSource.

6.BENEFITS.  As a full-time employee, Employee shall be entitled to all of the benefits provided to ServiceSource employees, in accordance with any benefit plan or policy adopted by ServiceSource from time to time during the existence of this Agreement.  Employee’s rights and those of Employee’s dependents under any such benefit plan or policy shall be governed solely by the terms of such plan or policy.  ServiceSource reserves the right to cancel or change the benefit plans and policies it offers to its employees at any time.  ServiceSource reserves to itself or its designated administrators exclusive authority and discretion to determine all issues of eligibility, interpretation and administration of each such benefit plan or policy.

7.PAID TIME OFF.  Per Company policy, at your level you will not accrue paid time off or be required to track or report paid time off.  Instead, time off is left to the mutual agreement of you and your manager.  

8.PROPRIETARY AND CONFIDENTIAL INFORMATION (INCLUDING TRADE SECRETS).  Employee acknowledges that his employment with ServiceSource will allow him access to Proprietary and Confidential Information.  Employee understands that Proprietary and Confidential Information includes customer and applicant lists, whether written or solely a function of memory, data bases, whether on computer disc or not, business files, contracts and all other information which is used in the day-to-day operation of ServiceSource which is not known by persons not employed by ServiceSource and which ServiceSource undertakes efforts to maintain its secrecy.  Employee understands and agrees that this is confidential information which the law treats as privileged, therefore protecting an employer from use without consent.

(a)Definition.  “Proprietary and Confidential Information” is defined as all information and any idea in whatever form, tangible or intangible, of a confidential or secret nature that pertains in any manner 

to the business of ServiceSource.  As used herein, the term “Confidential Information” shall include any and all non-public information relating to ServiceSource or its business, operations, financial affairs, performance, assets, pricing and pricing strategies, technology, research and development, processes, products, contracts, customers, licensees, sublicensees, suppliers, personnel, plans or prospects, whether or not in written form and whether or not expressly designated as confidential, including (without limitation) any such information consisting of or otherwise relating to trade secrets, know-how, technology (including software and programs), designs, drawings, photographs, samples, processes, license or sublicense arrangements, formulae, proposals, product specifications, customer lists or preferences, referral sources, marketing or sales techniques or plans, operating manuals, service manuals, financial information or projections, lists of suppliers or distributors or sources of supply.

Proprietary and Confidential Information shall include both information developed by Employee for ServiceSource and information Employee obtained while in ServiceSource’s employment.  All Proprietary and Confidential Information, whether created by Employee or other employees, shall remain the property of ServiceSource.
(b)Non-Disclosure and Return.  Employee agrees that he will not, under any circumstances, or at any time, whether as an individual, partnership, or corporation, or employee, principal, agent, partner or shareholder thereof, in any way, either directly or indirectly, divulge, disclose, copy, use, divert or attempt to divulge, disclose, copy, use or divert ServiceSource’s Proprietary and Confidential Information, except to the extent authorized and necessary to carry out Employee’s responsibilities during employment with ServiceSource, or as required by law.  Upon termination of Employee’s employment with ServiceSource, Employee shall immediately return to ServiceSource all property in Employee’s possession or control that belongs to ServiceSource, including all property in electronic form and all copies of Proprietary and Confidential Information.

(c)Former Employer Information.  Employee agrees that Employee will not, during Employee’s employment with ServiceSource, improperly use or disclose any proprietary information or trade secrets of any former or concurrent employer or other person or entity and that Employee will not bring onto the premises of ServiceSource any unpublished document or proprietary information belonging to any such employer, person or entity unless consented to in writing by such employer, person or entity.  Employee represents and warrants to ServiceSource that Employee is not in breach of any agreement with any former Employer by accepting employment with ServiceSource.

(d)Third Party Information.  Employee recognizes that ServiceSource may have received and in the future may continue to receive from third parties their confidential or proprietary information as they may so designate, subject to a duty on ServiceSource’s part to maintain the confidentiality of such information and to use it only for certain limited purposes.  Employee agrees to hold all such confidential or proprietary information in the strictest confidence and not to disclose it to any person, firm or corporation or to use it except as necessary in carrying out Employee’s work for ServiceSource consistent with ServiceSource’s agreement with such third party.

(e)Notification to New Employer.  In the event that Employee’s employment with ServiceSource ends, Employee consents to notification by ServiceSource to any subsequent employer of Employee’s rights and obligations under this Agreement.

(f)No Solicitation of Clients Using Proprietary and Confidential Information.  Employee acknowledges and agrees that the names, addresses, and contact information of ServiceSource’s clients and all other confidential information relating to those clients, have been compiled by ServiceSource at great 

expense and represent a real asset of ServiceSource.  Employee further understands and agrees that this information is deemed confidential by ServiceSource and constitutes trade secrets of ServiceSource.  Employee understands that this information has been provided to Employee in confidence, and Employee agrees that the sale or unauthorized use or disclosure of any of ServiceSource’s trade secrets obtained by Employee during employment with ServiceSource constitutes unfair competition.  Employee agrees and promises not to engage in any unfair competition with ServiceSource.  Employee further agrees not to, directly or indirectly, during or after termination of employment, make known to any person, firm, or company any information concerning any of the clients of ServiceSource which, as Employee acknowledges, is confidential and constitutes trade secrets of ServiceSource.  Nor shall Employee use any such confidential and trade secret information to solicit, take away, or attempt to call on, solicit or take away any of the clients of ServiceSource on whom Employee called or whose accounts Employee had serviced during employment with ServiceSource, whether on Employee’s own behalf or for any other person, firm, or ServiceSource.

(g)No Solicitation of Employees.  Employee understands and acknowledges that as an employee of ServiceSource he has certain fiduciary duties to ServiceSource which would be violated by the solicitation and/or encouragement of ServiceSource employees to leave the employ of ServiceSource.  Employee therefore agrees that he will not, either during his employment or for a period of one year after employment has terminated, solicit any of ServiceSource’s employees for a competing business or otherwise induce or attempt to induce such employees to terminate employment with ServiceSource, either directly or through any third parties.  Employee agrees that any such solicitation during that period of time would constitute unfair competition.

(h)Assignment of Rights.  All Proprietary and Confidential Information and all patents, patent rights, copyrights, trade secret rights, trademark rights and other rights (including, without limitation, intellectual property rights) owned by or otherwise belonging to ServiceSource anywhere in the world in connection therewith, is and shall be the sole property of the ServiceSource.  Employee hereby assigns to ServiceSource any and all rights, title and interest Employee may have or acquire in ServiceSource’s Proprietary and Confidential Information and ServiceSource’s property. 

9.SEVERANCE BENEFITS.  

(a)Termination Without Cause on or before September 30, 2015.   If ServiceSource terminates Employee’s employment without Cause (as defined below) on or before September 30, 2015 then the following will apply:

(i)Base Salary Severance.  Employee shall receive the lesser of (i) six (6) months of Employee’s then-current base salary or (ii) the remaining base pay owed under this Agreement through September 30, 2015, either payment made in a single lump sum in cash and subject to all applicable withholding requirements

(ii)CIP Payment.  Employee will be paid for CIP earned while an employee prior to September 30, 2015, even if not employed on the pay-out date, as required by the CIP plan.  For example, if Employee is terminated on September 1, 2015, 2015 H1 CIP payment would have already been paid in August and H2 CIP would be pro-rated for 2 months (July, August) and paid out per the normal pay cycle in or around February 2016 based on company achievement per the standard plan.

(iii)Equity Acceleration.  Employee’s outstanding equity compensation awards (including, without limitation, all stock options, restricted stock, restricted stock units and any other equity compensation 

awards) shall immediately have their vesting accelerated so as Employee will have received one full year of vesting from his initial equity grants. 

(b)Termination Without Cause on or after October 1, 2015, only if Employee’s role remains at an EVP level.   If Employee’s role remains at an EVP level after October 1, 2015 and ServiceSource terminates Employee’s employment without Cause (as defined below) on or after October 1, 2015 then the following will apply:
(i)Salary Severance.  Employee shall receive the six (6) months of Employee’s then-current base salary, made in a single lump sum payment in cash, subject to all applicable withholding requirements
(ii)COBRA Coverage.  Employee shall be entitled to receive an additional lump-sum payment (less applicable withholding taxes) equal to the result of (A) times (B).  For this purpose, “A” will equal six (6), and “B” will equal the amount of the monthly premium that would be required for the first month of coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended and all applicable regulations (referred to collectively as “COBRA”), with the premium calculated on the assumption that the Employee in fact elects coverage for himself, and any eligible spouse and/or dependents of the Employee that were enrolled in the applicable Company health plan immediately prior to the termination date.  
(c)Termination Without Cause or Resignation for Good Reason Following a Change in Control (Equity Acceleration).   If ServiceSource or a successor should terminate Employee’s employment without Cause or Employee should resign from his employment for Good Reason, in either case within 12 months following a “Change in Control” (as defined in Section 9(d) below), then all of Employee’s outstanding equity compensation awards (including, without limitation, all stock options, restricted stock, restricted stock units and any other equity compensation awards) shall immediately have their vesting accelerated 100%, so as to become fully vested.

(d)Definitions:  For purposes of this Section 9:

(i)“Cause” shall mean the occurrence of any of the following events: (i) Employee’s commission of any felony or any crime involving fraud or dishonesty under the laws of the United States or any state thereof; (ii) Employee’s commission of, or participation in, a fraud or act of dishonesty against ServiceSource; (iii) Employee’s willful violation of any contract or agreement between Employee and ServiceSource or any statutory duty owed to ServiceSource; (iv) Employee’s unauthorized use or disclosure of Proprietary and Confidential Information; or (v) Employee’s gross misconduct; and

(ii)“Good Reason” shall mean the occurrence of any one of the following events, without Employee’s written consent:  (1) a material, adverse change in Employee’s job title from that in effect immediately prior to the Change of Control, including the assignment of the same job title at the divisional level of a larger organization; (2) a material, adverse change in Employee’s duties, authorities or job responsibilities from that in effect immediately prior to the Change in Control; (3) a relocation of Employee’s principal place of employment beyond a radius of 30 miles from its location immediately prior to the Change in Control (unless such Employee was not assigned to a specific office location and is mobile, in which case such relocation would have to be to somewhere other than the San Francisco area or Employee’s current location); or (4) any material reduction in Employee’s base salary, target bonus or aggregate level of benefits measured against such compensation or benefits as in effect immediately prior to the Change in Control; provided that Employee has notified ServiceSource in writing of the event described in (1), (2), (3) or (4) above within ninety (90) days after the occurrence of such event, ServiceSource (or its successor) has within thirty (30) days thereafter failed to restore Employee to the appropriate job title, duties, authorities, responsibility, location, salary, target commissions or benefits and Employee actually terminates employment 

within thirty (30) days following the expiration of ServiceSource’s thirty (30)-day cure period described above; and

(iii)“Change of Control” shall mean the occurrence of one of the following events: a sale of all or substantially all of the shares of stock of ServiceSource; a merger, consolidation or similar transaction involving ServiceSource following which the persons entitled to elect a majority of the members of the Board of Directors of ServiceSource immediately before the transaction are not entitled to elect a majority of the members of the Board of Directors of ServiceSource or the surviving entity following the transaction; or a sale of all or substantially all of the assets of ServiceSource.

(iv)“Section 409A Limit” shall mean the lesser of two (2) times:  (a) Employee’s annualized compensation based upon the annual rate of pay paid to Employee during Employee’s taxable year preceding Employee’s taxable year of Employee’s separation from service with ServiceSource; or (b) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended (the “Code”) for the year in which Employee’s employment is terminated.

(e)Release.  Notwithstanding the foregoing, the severance benefits described in this Section 9 are subject to Employee’s execution and delivery of a binding general release of claims in the form set forth as Schedule A, and such release shall becoming effective, binding and irrevocable in accordance with its terms within fifty-two (52) days following the termination date.  No severance payments or vesting acceleration under this Agreement shall be paid or provided unless and until the release becomes effective.  Any severance payment to which Employee is entitled shall be paid by ServiceSource in full on the fifty-third (53d) day following Employee’s employment termination date or such later date as is required to avoid the imposition of additional taxes under Code Section 409A and the regulations and guidance thereunder, and any applicable state law equivalent (together, “Section 409A”).

(f)Section 409A Compliance.  Notwithstanding any provision to the contrary herein, no Deferred Payments (as defined below) that become payable under this Agreement by reason of Employee’s termination of employment with ServiceSource (or any successor entity thereto) will be made unless such termination of employment constitutes a “separation from service” within the meaning of Section 409A.  Further, if Employee is a “specified employee” of ServiceSource (or any successor entity thereto) within the meaning of Section 409A on the date of Employee’s termination of employment (other than a termination of employment due to death), then the Deferred Payments that are payable within the first six (6) months following Employee’s termination of employment, shall be delayed until the first payroll date that occurs on or after the date that is six (6) months and one (1) day after the date of Employee’s termination of employment, when they shall be paid in full arrears.  All subsequent Deferred Payments, if any, will be paid in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if Employee dies following Employee’s employment termination but prior to the six (6) month anniversary of his employment termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. For the purposes of this Agreement, “Deferred Payment” means any severance pay or benefits to be paid or provided to Employee (or Employee’s estate or beneficiaries) pursuant to this Agreement and any other severance payments or separation benefits, that in each case, when considered together, are considered deferred compensation under Section 409A.
The foregoing provisions and all payments and benefits under this Agreement are intended to be exempt from or comply with the requirements of Section 409A so that none of the severance payments and 

benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to so comply or be exempt.  ServiceSource and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Section 409A.

(g)Termination of Employment for Other Reasons. The above severance benefits in this Section 9 shall not be paid or provided in the event of the termination of Employee’s employment due to Employee’s death, disability or resignation (other than a resignation for Good Reason upon or following a Change in Control as set forth in Section 9(d) above), or the termination of his employment by ServiceSource or its successor for Cause (as defined in Section 9(d) above).  For purposes of clarity, a termination by reason of Employee’s death or disability shall not be deemed a termination without “Cause” under this Agreement.

10.SEVERABILITY.  In the event that any provision of this Agreement is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable to any extent, such term or provision shall be enforced to the fullest extent permissible under the law and all remaining terms and provisions hereof shall continue in full force and effect.

11.MODIFICATION OF AGREEMENT.  This Agreement may be modified only in writing by mutual agreement of ServiceSource and Employee.  Any such writing must specifically state that it is intended to modify the parties’ Agreement and state which specific provision or provisions this writing intends to modify.  Such written modification will only be effective if signed by ServiceSource’s Chief Executive Officer.  Any attempt to modify this Agreement orally, or by a writing signed by any person other than ServiceSource’s Chief Executive Officer, or by any other means, shall be null and void.  This Agreement is intended to be the final and complete statement of the parties’ agreement concerning the legal nature of their employment relationship in any and all disputes arising from that relationship.

12.COMPLETE AND VOLUNTARY AGREEMENT.  This Agreement constitutes the entire understanding of the parties on the subject covered.  The parties expressly warrant that they have read and fully understand this Agreement; that they have had the opportunity to consult with legal counsel of their own choosing to have the terms of this Agreement fully explained to them; that they are not executing this Agreement in reliance on any promises, representations or inducements other than those contained herein; and that they are executing this Agreement voluntarily, free of any duress or coercion.

13.DISPUTE RESOLUTION.  This Agreement shall be governed by California law, without regard to its principles of conflicts of laws. Any dispute arising from this Agreement shall be subject to the exclusive jurisdiction of state and federal courts located in the Northern District of California, and each party hereby waives any and all objections to that venue. The prevailing party in any such dispute shall recover its reasonable attorneys’ fees and costs from the losing party, including any fees or costs arising from an appeal. 

14.SUCCESSORS AND ASSIGNS.  This Agreement will be binding upon Employee’s heirs, executors, administrators and other legal representatives and will be for the benefit of ServiceSource, its successors, and its assigns.

15.GOLDEN PARACHUTE BEST AFTER TAX RESULTS   If any of the payments to Employee (prior to any reduction, below) provided for in this Agreement, together with any other payments which Employee has the right to receive from ServiceSource or any corporation which is a member of an “affiliated group” as defined in Section 1504(a) of the Internal Revenue Code of 1986, as amended (“Code”), 

without regard to Section 1504(b) of the Internal Revenue Code), of which ServiceSource is a member (the “Payments”) would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), and if the Safe Harbor Amount is greater than the Taxed Amount, then the total amount of such Payments shall be reduced to the Safe Harbor Amount.  The “Safe Harbor Amount” is the largest portion of the Payments that would result in no portion of the Payments being subject to the excise tax set forth at Section 4999 of the Code (“Excise Tax”), after reduction for taxes as described below.  The “Taxed Amount” is the total amount of the Payments after reduction for taxes as described below (prior to any reduction, above) notwithstanding that all or some portion of the Payments may be subject to the Excise Tax.  Solely for the purpose of comparing which of the Safe Harbor Amount and the Taxed Amount is greater, the determination of each such amount, shall be made on an after-tax basis, taking into account all applicable federal, state and local employment taxes, income taxes, and, if applicable, the Excise Tax (all of which shall be computed at the highest applicable marginal rate regardless of Employee’s actual marginal rate).  If a reduction of the Payments to the Safe Harbor Amount is necessary, then the reduction shall occur in the following order: reduction of cash payments; cancellation of accelerated vesting of equity awards other than options; cancellation of accelerated vesting of options; and reduction of employee benefits.  In the event that acceleration of vesting of equity awards or options is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Employee’s awards.  If two or more equity awards other than options are granted on the same date, and reduction of acceleration is required under this paragraph, each award will be reduced on a pro-rata basis.  If two or more options are granted on the same date, and reduction of acceleration is required under this paragraph, each option will be reduced on a pro-rata basis. In no event shall Employee have any discretion with respect to the ordering of payment reductions.  ServiceSource and its tax advisors shall make all determinations and calculations required to be made to effectuate this paragraph at ServiceSource’s expense. 

SERVICESOURCE INTERNATIONAL, INC.

By: /s/ KRISTI ERICKSON                            September 23, 2014
       Kristi Erickson,                     Date 
       Chief Human Resources Officer        

EMPLOYEE

/s/. SIMON BIDDISCOMBE                                   September 29, 2014
Simon Biddiscombe                    Date    

Schedule A

FORM OF RELEASE

In exchange for the consideration provided by ServiceSource International, Inc. or its successor (the “Company”) to the undersigned current or former employee of the Company (the “Employee”) under this Agreement or the employment agreement between the Company and the Employee, that Employee is not otherwise entitled to receive, and subject to the Company’s compliance with its post-termination obligations to Employee, Employee hereby generally and completely releases the Company and its directors, officers, employees, shareholders, partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers, affiliates, and assigns from any and all claims, liabilities and obligations, both known and unknown, that arise out of or are in any way related to events, acts, conduct, or omissions occurring prior to my signing this Agreement.  This general release includes, but is not limited to: (1) all claims arising out of or in any way related to Employee’s employment with the Company or the termination of that employment; (2) all claims related to Employee’s compensation or benefits from the Company, including salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock, stock options, or any other ownership interests in the Company; (3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (5) all federal, state, and local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), the Family and Medical Leave Act; the Employee Retirement Income Security Act; California Fair Employment and Housing Act (as amended ), any state labor code; the Equal Pay Act, of 1963, as amended.   
Section 1542 Waiver.  Employee hereby acknowledges that he has read and understands Section 1542 of the Civil Code of the State of California, which reads as follows:
A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.
Employee hereby expressly waives and relinquishes all rights and benefits under that section and any law or legal principle of similar effect in any jurisdiction with respect to the release of any unknown or unsuspected claims Employee may have against the Company, its affiliates, and the entities and persons specified above.
ADEA Waiver and Release.  Employee acknowledges that Employee knowingly and voluntarily waives and releases any rights Employee may have under the ADEA, as amended.  Employee also acknowledges that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which Employee was already entitled.  Employee further acknowledges that Employee has been advised by this writing, as required by the ADEA, that:  (a) his waiver and release does not apply to any rights or claims that may arise after the execution date of this Agreement; (b) Employee has been advised that he has the right to consult with an attorney prior to executing this Agreement; (c) Employee has been given twenty-one (21) days to consider this Agreement; (d) Employee has seven (7) days following the execution of this Agreement by the parties to revoke the Agreement; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth day after this Agreement is executed by Employee, provided that the Company has also executed this Agreement by that date (“Effective Date”).  The parties acknowledge and agree that revocation by Employee of the ADEA 

Waiver and Release is not effective to revoke his waiver or release of any other claims pursuant to this Agreement.

By:                                                                                   Date:SREV - 9.30.2014 - Exhibit 10.3+

Exhibit 10.3+

SEPARATION AGREEMENT AND RELEASE
    

This Separation Agreement and Release (“Agreement”) is made by and between Jay Ackerman (“Employee”) and ServiceSource International, Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).

RECITALS

WHEREAS, Employee signed an Amended Employment and Confidential Information Agreement with the Company on December 8, 2010 (the “Employment Agreement”);
WHEREAS, the Company and Employee have entered into stock agreements granting Employee the option to purchase shares of the Company’s common stock and RSUs subject to the terms and conditions of the Company’s Stock Option Plan and the Stock Option Agreement (collectively the “Stock Agreements”);

WHEREAS, the Company and Employee have arrived at a mutual agreement that Employee’s employment with the Company will terminate effective October 1, 2014 (the “Employment Separation Date”); and

WHEREAS, the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that Employee may have against the Company and any of the Releasees, as defined below, including, but not limited to, any and all claims arising out of or in any way related to Employee’s employment with or separation from the Company.

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows:

1.    Separation.  Employee’s last day of employment with the Company and Employee’s employment termination date shall be the Employment Separation Date.  As of the Employment Separation Date, Employee shall resign from any and all offices Employee has with the Company.  Employee shall execute such additional documents as requested by the Company to evidence the foregoing. 

2.     Consideration.  

a.Severance Payment.  The Company agrees to pay Employee a lump sum payment equivalent to six (6) months of Employee’s base salary and bonus (OTE), for a total of three hundred and fifty thousand Dollars ($350,000), less applicable withholding (the “Severance Payment”), payable within ten (10) days following October 2, 2014.  

b.COBRA.  If you timely elect continued coverage under COBRA, the Company will pay your COBRA group health insurance premiums for you and your eligible dependents, if applicable, until the earliest of (A) six (6) months following the Employment Separation Date, (B) the expiration of your eligibility for the continuation coverage under COBRA, and (C) the date when you become eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment (such period from the Employment Separation Date through the earliest of (A) through (C), the "COBRA Payment Period").  If you become eligible for health insurance coverage under another employer's group health plan or through self-employment, or if you otherwise cease to be eligible for COBRA coverage, you must immediately notify the Company, and the 

Company's obligation to pay COBRA premiums shall cease.  Notwithstanding the foregoing, if the Company determines, in its sole discretion, that it cannot pay the COBRA payments without a substantial risk of violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company instead shall provide you with taxable monthly payments in an amount equal to the premium amount for the first month of your COBRA coverage, and such monthly payments shall be made through the remainder of the COBRA Payment Period.

c.Consulting Term.  From the Employment Separation Date through December 31, 2014, Employee shall make himself reasonably available to the Company as a consultant/independent contractor (the “Consulting Period”) pursuant to the Consulting Agreement Attached hereto as Exhibit A.  In said capacity, Employee will assist the senior management of the Company regarding such duties as the Company may require consistent with Employee’s prior responsibilities.  

3.    Accrued Amounts.  On or before the Employment Separation Date, the Company will pay Employee all Accrued Amounts (as defined below), subject to payroll deductions and required withholdings.  “Accrued Amounts” means (a) any accrued but unpaid base salary through the Employment Separation Date paid in accordance with Company’s normal payroll practices, (b) any unreimbursed business expenses incurred prior to the Employment Separation Date paid in accordance with Company policies, and (c) any accrued but unused vacation time through the Employment Separation Date due in accordance with Company plans and policies. and (d) to the extent not paid on or prior to the Employment Separation Date, any earned but unpaid bonus in respect of the Company’s 2014 H1, to the extent that applicable performance targets are achieved, including any CIP payments that would otherwise be earned for 2014 H1, payable when annual bonuses in respect of the Company’s 2014 H1 are paid to the Company’s executive officers generally, in each case subject to applicable tax withholding.

4.    Bonus.  Company shall pay Employee his earned but unpaid 2014 H1 bonus in the amount of approximately $50,838, to the extent that applicable performance targets are achieved, including any CIP payments that would otherwise be earned for 2014 H1, which sum reasonably approximates the bonus paid to similarly situated employees.  This bonus shall be payable when annual bonuses in respect of the Company’s 2014 H1 are paid to the Company’s executive officers generally (expected to be August 15, 2014), subject to applicable tax withholding.  No bonus of any kind will be paid for 2014 H2.  

5.    Equity Grants. Employee’s unvested stock options and RSUs shall continue to vest during the Consulting Period pursuant to the terms and conditions of the Stock Agreements.  Any stock options and RSUs that are unvested at the termination of the Consulting Period will be forfeited permanently on that date and will not become vested. Employee will have three (3) months following the termination of the Consulting Period to exercise his vested Company stock options.  Notwithstanding the foregoing, in no event may any option be exercised after the original maximum term of the option and any such options that were granted as incentive stock Options will lose tax-advantaged status and automatically will convert to nonqualified options on the first day following the date that is three (3) months after the termination of the Consulting Period.  

6.    Benefits.  Except as set forth in Section 5 above, Employee’s participation in all other benefits and incidents of employment, and the accrual of bonuses, vacation, and paid time off, shall cease as of the Employment Separation Date.

7.    Payment of Salary and Receipt of All Benefits.  Employee acknowledges and represents that, other than the consideration set forth in this Agreement, the Company has paid or provided all salary, wages, bonuses, accrued vacation/paid time off, premiums, leaves, housing allowances, relocation costs, interest, 

severance, outplacement costs, fees, reimbursable expenses, commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee through the date hereof.  

8.    Release of Claims.  Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Employee, on his own behalf and on behalf of his respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation:

a.    any and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that relationship; 

b.    any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

c.    any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

d.    any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; the Sarbanes-Oxley Act of 2002; the Immigration Control and Reform Act; the California Family Rights Act; the California Labor Code; the California Workers’ Compensation Act; and the California Fair Employment and Housing Act; 

e.    any and all claims for violation of the federal or any state constitution;

f.    any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

g.    any claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement; and

h.    any and all claims for attorneys’ fees and costs.

Employee agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not extend to any obligations incurred under this Agreement.  This release does not release claims that cannot be released as a matter of law, including, but not limited to, Employee’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that any such filing or participation does not give Employee the right to recover any monetary damages against the Company; Employee’s release of claims herein bars Employee from recovering such monetary relief from the Company).  

9.    Acknowledgment of Waiver of Claims under ADEA.  Employee acknowledges that he  is waiving and releasing any rights he may have under the Age Discrimination in Employment Act of 1967 ("ADEA"), and that this waiver and release is knowing and voluntary.  Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Agreement.  Employee acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Employee was already entitled.  Employee further acknowledges that he has been advised by this writing that: (a) he should consult with an attorney prior to executing this Agreement; (b) he has twenty-one (21) days within which to consider this Agreement; (c) he has seven (7) days following his execution of this Agreement to revoke this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Employee signs this Agreement and returns it to the Company in less than the 21-day period identified above, Employee hereby acknowledges that he has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.  Employee acknowledges and understands that revocation must be accomplished by a written notification to the person executing this Agreement on the Company’s behalf that is received prior to the Effective Date.  The parties agree that changes, whether material or immaterial, do not restart the running of the 21-day period.

10.    Civil Code Section 1542.  Employee acknowledges that he has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

Employee, being aware of said code section, agrees to expressly waive any rights he may have thereunder, as well as under any other statute or common law principles of similar effect.

11.    Confidentiality.  Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”).  Except as required by law, Employee may disclose Separation Information only to his immediate family members, the Court in any proceedings to enforce the terms of this Agreement, Employee’s attorney(s), and Employee’s accountant and any professional tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment 

or to prepare tax returns, and must prevent disclosure of any Separation Information to all other third parties.  Employee agrees that he will not publicize, directly or indirectly, any Separation Information.

12.    Trade Secrets and Confidential Information; Non-Solicitation.  Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets and confidential and proprietary information, and nonsolicitation of Company employees.  Employee’s signature below constitutes his certification under penalty of perjury that he has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee in connection with his employment with the Company, or otherwise belonging to the Company.  

13.    No Cooperation.  Employee agrees that he will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in this Agreement .  Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order.  If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that he cannot provide counsel or assistance.

14.    Nondisparagement.  Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain from any tortious interference with the contracts and relationships of any of the Releasees.

15.    Breach.  Employee acknowledges and agrees that any material breach of this Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, or of any provision of the Confidentiality Agreement shall entitle the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and to obtain damages, except as provided by law.

16.    Attorneys’ Fees.  Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court fees, and reasonable attorneys’ fees incurred in connection with such an action.

17.    Entire Agreement.  This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement and Employee’s relationship with the Company, with the exception of the Confidentiality Agreement and the Stock Agreements, except as modified herein.

18.    Governing Law.  This Agreement shall be governed by the laws of the State of California without regard for choice-of-law provisions.  Employee consents to personal and exclusive jurisdiction and venue in the State of California.  

19.    Effective Date.  Employee understands that this Agreement shall be null and void if not executed by him within twenty one (21) days.   Each Party has seven (7) days after that Party signs this 

Agreement to revoke it.  This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Date”).

20.    Voluntary Execution of Agreement.  Employee understands and agrees that he executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of his claims against the Company and any of the other Releasees.  Employee acknowledges that:

(a)    he has read this Agreement;

		
	(b)
	he has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or has elected not to retain legal counsel;

		
	(c)
	he understands the terms and consequences of this Agreement and of the releases it contains; and

(d)    he is fully aware of the legal and binding effect of this Agreement.

(Remainder of page intentionally left blank)

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

JAY ACKERMAN

Dated:  July 30, 2014                    _________________________________
Jay Ackerman

SERVICESOURCE INTERNATIONAL, INC.

Dated:  July 30, 2014                    By: ___________________________________
        
Name:     
Title: 

EXHIBIT A
CONSULTING AGREEMENT

This Consulting Agreement (this “Consulting Agreement”) is made and entered into as of October 2, 2014 (the “Effective Date”) by and between ServiceSource International, Inc.  (the “Company”), and Jay Ackerman (“Consultant”) (each herein referred to individually as a “Party,” or collectively as the “Parties”). 

The Company desires to retain Consultant as an independent contractor to perform consulting services for the Company, and Consultant is willing to perform such services, on the terms described below. In consideration of the mutual promises contained herein, the Parties agree as follows:
1.Services.  Consultant shall perform services related to the transition of his responsibilities to an individual or individuals designated by the Company.  In connection with these transition services, Consultant shall be reasonably available and responsive to Company requests for information and assistance during normal business hours.  In no event will Consultant be expected to perform more than ten (10) hours per week in connection with his consulting services.  
For clarity, no travel is required as part of this Consulting agreement and any travel would have to be mutually agreed and may require additional consulting fees.  Reimbursement of travel fees would be consistent with Company’s T&E policy.  

2.    Consulting Term.  The consulting term shall begin on October 2, 2014 and end on December 31, 2014 (the “Consulting Term”).  

3.Compensation.  In consideration for the consulting services provided during the Consulting Term, the Company shall pay Consultant no greater than $1.00 and shall allow Consultant’s options to purchase Company common stock to continue to vest during the Consulting Term.  For purposes of clarity, all vesting of stock options and RSUs shall cease at the conclusion of the Consulting Term.  

4.Non-Competition.  Consultant and Company acknowledges that continued consulting under this Consulting Agreement, and therefore continued vesting in Company stock, can only take place so long as Consultant is not working in competition against Company.  Therefore, Consultant acknowledges and agrees that during the Consulting Term he will not be or become an employee, officer, director, significant stockholder, salesperson, partner, representative, advisor or manager of any company or entity in competition with Company, specifically Concentrix, Rainmaker, Salesforce, Aptus, Gainsight or Totango.  If any such actions occur during the Consulting Term then, unless otherwise mutually agreed in writing in advance of such action, this Consulting Agreement will immediately become null and void and stock vesting shall cease. 

5.Breach.  This Consulting Agreement will become null and void should Consultant breach any of the terms of this Consulting Agreement or the Separation and Release Agreement dated at or around July 30, 2014.  

6.Confidentiality.
Definition of Confidential Information. “Confidential Information” means any information (including any and all combinations of individual items of information) that relates to the actual or anticipated business and/or products, research or development of the Company, its affiliates or subsidiaries or to the Company’s, its affiliates’ or subsidiaries’ technical data, trade secrets, or know-how, including, but not limited 

to, research, product plans, or other information regarding the Company’s, its affiliates’ or subsidiaries’ products or services and markets therefor, customer lists and customers (including, but not limited to, customers of the Company on whom Consultant called or with whom Consultant became acquainted during the term of this Consulting Agreement), software, developments, inventions, discoveries, ideas, processes, formulas, technology, designs, drawings, engineering, hardware configuration information, marketing, finances, and other business information disclosed by the Company, its affiliates or subsidiaries, either directly or indirectly, in writing, orally or by drawings or inspection of premises, parts, equipment, or other property of Company, its affiliates or subsidiaries. Notwithstanding the foregoing, Confidential Information shall not include any such information which Consultant can establish (i) was publicly known or made generally available prior to the time of disclosure to Consultant; (ii) becomes publicly known or made generally available after disclosure to Consultant through no wrongful action or inaction of Consultant; or (iii) is in the rightful possession of Consultant, without confidentiality obligations, at the time of disclosure as shown by Consultant’s then-contemporaneous written records; provided that any combination of individual items of information shall not be deemed to be within any of the foregoing exceptions merely because one or more of the individual items are within such exception, unless the combination as a whole is within such exception.
Nonuse and Nondisclosure. During and after the term of this Consulting Agreement, Consultant will hold in the strictest confidence, and take all reasonable precautions to prevent any unauthorized use or disclosure of Confidential Information, and Consultant will not (i) use the Confidential Information for any purpose whatsoever other than as necessary for the performance of the Services on behalf of the Company, or (ii) disclose the Confidential Information to any third party without the prior written consent of an authorized representative of Company, except that Consultant may disclose Confidential Information to extent compelled by applicable law; provided however, prior to such disclosure, Consultant shall provide prior written notice to Company and seek a protective order or such similar confidential protection as may be available under applicable law. Consultant agrees that no ownership of Confidential Information is conveyed to the Consultant. Without limiting the foregoing, Consultant shall not use or disclose any Company property, intellectual property rights, trade secrets or other proprietary know-how of the Company to invent, author, make, develop, design, or otherwise enable others to invent, author, make, develop, or design identical or substantially similar designs as those developed under this Consulting Agreement for any third party. Consultant agrees that Consultant’s obligations under this section shall continue after the termination of this Consulting Agreement. 
Third Party Confidential Information. Consultant recognizes that the Company has received and in the future will receive from third parties their confidential or proprietary information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Consultant agrees that at all times during the term of this Consulting Agreement and thereafter, Consultant owes the Company and such third parties a duty to hold all such confidential or proprietary information in the strictest confidence and not to use it or to disclose it to any person, firm, corporation, or other third party except as necessary in carrying out the Services for the Company consistent with the Company’s agreement with such third party.

7.    Ownership.  Consultant agrees that all right, title, and interest in and to any copyrightable material, notes, records, drawings, designs, inventions, improvements, developments, discoveries, ideas and trade secrets conceived, discovered, authored, invented, developed or reduced to practice by Consultant, solely or in collaboration with others, during the term of this Consulting Agreement and arising out of, or in connection with, performing the Services under this Consulting Agreement and any copyrights, patents, trade secrets, mask work rights or other intellectual property rights relating to the foregoing, are the sole property of the Company. 

8.Return of Company Materials.  Upon the termination of this Consulting Agreement, or upon Company’s earlier request, Consultant will immediately deliver to the Company, and will not keep in Consultant’s possession, recreate, or deliver to anyone else, any and all Company property, including, but not limited to, Confidential Information, tangible embodiments of the Inventions, all devices and equipment belonging to the Company, all electronically-stored information and passwords to access such property, and any reproductions of any of the foregoing items that Consultant may have in Consultant’s possession or control.

9.Independent Contractor Relationship.  It is the express intention of the Company and Consultant that Consultant perform the Services as an independent contractor to the Company. Nothing in this Consulting Agreement shall in any way be construed to constitute Consultant as an agent or representative of the Company. Without limiting the generality of the foregoing, Consultant is not authorized to bind the Company to any liability or obligation or to represent that Consultant has any such authority. Consultant agrees to furnish (or reimburse the Company for) all tools and materials necessary to accomplish this Consulting Agreement and shall incur all expenses associated with performance. Consultant acknowledges and agrees that Consultant is obligated to report as income all compensation received by Consultant pursuant to this Consulting Agreement. 

10.Indemnification.  Consultant agrees to indemnify and hold harmless the Company and its affiliates and their directors, officers and Consultants from and against all taxes, losses, damages, liabilities, costs and expenses, including attorneys’ fees and other legal expenses, arising directly or indirectly from or in connection with (i) any negligent, reckless or intentionally wrongful act of Consultant or Consultant’s assistants, Consultants, contractors or agents, (ii) any breach by the Consultant of any of the covenants contained in this Consulting Agreement, (iii) any failure of Consultant to perform the Services in accordance with all applicable laws, rules and regulations, or (iv) any violation or claimed violation of a third party’s rights resulting in whole or in part from the Company’s use of the Inventions or other deliverables of Consultant under this Consulting Agreement.

11.Governing Law; Consent to Personal Jurisdiction. This Consulting Agreement shall be governed by the laws of the State of California, without regard to the conflicts of law provisions of any jurisdiction.  To the extent that any lawsuit is permitted under this Consulting Agreement, the Parties hereby expressly consent to the personal and exclusive jurisdiction and venue of the state and federal courts located in California.

IN WITNESS WHEREOF, the Parties hereto have executed this Consulting Agreement as of the date first written above.
		
	CONSULTANT
	SERVICESOURCE INTERNATIONAL, INC.

By:                                By:    _______________________________
Name:                                 Name: _____________________________
Title:                                 Title: ______________________________
Address for Notice:

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