Document:

ex10-2.htm

    EX-10.2

    
      OPTIONABLE,
INC.

      

      NONSTATUTORY
STOCK OPTION AGREEMENT

      

      

      THIS
NONSTATUTORY STOCK OPTION AGREEMENT (the “Agreement”)
is made and entered into as of June 29, 2010 (the “Grant
Date”) by and between Optionable, Inc., a Delaware corporation (the
“Company”),
and Brad O’Sullivan (the “Optionee”).

       

      WHEREAS,
the Company desires to grant the Optionee a stock option under the Company’s
2004 Stock Option Plan (the “Plan”) to
acquire shares of the Company’s Common Stock, $0.001 par value per share (the
“Common
Stock”).

       

      WHEREAS,
the Plan provides that each option is to be evidenced by an award agreement,
setting forth the terms and conditions of the option.

       

      NOW
THEREFORE, in consideration of the premises and of the mutual covenants and
agreements contained herein, the Company and the Optionee hereby agree as
follows:

       

      1.           Grant of
Option.  The Company hereby grants to the Optionee, under the
Plan and subject to the terms and conditions of the Plan, a stock option (the
“Option”)
to purchase all or any part of the number of shares of Common Stock (the “Shares”)
set forth below the Optionee’s name on the signature page hereto, on the terms
and conditions hereinafter set forth.  The Option granted hereunder
shall be treated as a nonstatutory stock option and is not intended to
constitute an incentive stock option under section 422 of the Internal Revenue
Code of 1986, as amended (the “Code”).

       

      2.           Exercise
Price.  The exercise price per share (“Exercise
Price”) for the Shares covered by the Option shall be the closing price
per share of the Company’s stock upon grant ($0.015 per share), as quoted on the
Over-the-Counter Bulletin Board, subject to adjustment pursuant to Section
10.

       

      3.           Vesting.

       

      The right
to exercise the Option shall be 50,000 vested upon the Grant
Date.  The “Vested
Percentage” of the Option shall be as follows:

       

      75,000
six month after the date of grant

       

      125,000
twelve months after the date of grant

       

      125,000
eighteen-months after the date of grant

       

      125,000
twenty-four months after the date of grant

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      The right to exercise this Option shall
immediately vest in the event of a “Change of Control” of the Company. For this
purpose, a “Change of Control” means the acquisition after the date hereof,
directly or indirectly, by any Person of ownership of, or the power to direct
the exercise of voting power with respect to, a majority of the issued and
outstanding voting shares of the Company. For this purpose, a “Person” means an individual or a
corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, joint stock company, government (or an
agency or political subdivision thereof) or other entity of any
kind.

       

      4.           Term of
Options.

       

      (a)           Cancellation and
Forfeiture.  The Option shall be cancelled and shall be null
and void, and the Optionee shall forfeit all rights pursuant to the Option,
(i) if the Optionee does not execute and return this Agreement to the
Company within sixty (60) days of the Grant Date, (ii) unless otherwise
agreed to in writing by the Board, upon the Optionee’s bankruptcy, and
(iii) upon the Optionee’s attempted assignment or transfer of the Option in
violation of Section 9.

       

      (b)           Termination.  The
Option shall terminate and shall no longer be exercisable, even if vested, upon
the earliest to occur of the following events:

       

      (i)           if
the Optionee dies, the first anniversary of the date of death; and

       

      (ii)           ninety
days upon the termination of the Optionee’s services as the Chief Executive
Officer/President

       

      (iii)           five
years from the date of grant.

       

      5.           Exercise of
Option.

       

      (a)           Exercisability.  The
Option shall be exercisable at any time prior to its termination pursuant to
Section 4(b) only to the extent of the Vested Percentage as of that
time.  Notwithstanding termination of the Option pursuant to Section
4(b), the Board, in its discretion, may extend the period of exercisability of
the Option for such time period as it deems appropriate.

       

      (b)           Method of
Exercise.  To the extent the Option is exercisable pursuant to
Section 5(a), the Optionee may exercise the Option in full or in part by giving
written notice to the Company, signed by the Optionee (or his legal
representative or heir, in the event of the Optionee’s death), stating the
Optionee’s election to exercise the Option and the number of whole Shares for
which the Option is being exercised.  The written notice must be
accompanied by (i) full payment of the exercise price for the number of
Shares being purchased, and (ii) an executed copy of the form of investor
representation letter referred to in Section 6(b), if required pursuant to such
Section 6(b).

       

      
        
           

        

        
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      (c)           Payment of Exercise
Price.  Payment of the exercise price for the number of Shares
for which the Option is being exercised shall be made:

       

      (i)           In
cash or by check payable to the order of the Company;

       

      (ii)           at
the discretion of the Board, by tender to the Company of shares of Common Stock
owned by the Optionee, acceptable to the Board, having a Fair Market Value (as
defined in the Plan) on the date of exercise at least equal to the exercise
price;

       

      (iii)           at
the discretion of the Board, by a combination of the methods described above;
or

       

      (iv)           by
such other method as may be approved by the Board.

       

      (d)           Maintenance of
Shares.  The Company shall at all times during the term of the
Option reserve and keep available such number of shares of its Common Stock as
will be sufficient to satisfy the requirements of the Option.

       

      6.           Securities Law
Restrictions.

       

      (a)           The
grant of the Option and the issuance of Shares upon exercise of the Option shall
be subject to compliance with all applicable requirements of federal, state or
foreign law with respect to such securities. The Option may not be exercised if
the issuance of Shares upon such exercise would constitute a violation of any
applicable federal, state or foreign securities laws or other law or
regulations.  In addition, the Option may not be exercised unless (i)
a registration statement under the Securities Act of 1933, as amended (the “Securities Act”), shall at the time of
exercise of the Option be in effect with respect to the Shares to be issued upon
exercise of the Option or (ii) in the opinion of legal counsel to the Company,
the Shares to be issued upon exercise of the Option may be issued in accordance
with the terms of an applicable exemption from the registration requirements of
the Securities Act.  THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT
BE EXERCISABLE UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE
OPTIONEE MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE
OPTION IS VESTED.  As a condition to the exercise of the Option, the
Company may require the Optionee to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or
regulation and to make any representation or warranty with respect thereto as
may be requested by the Company.

       

      (b)           In
the event that, as of the date on which the Option is exercised in whole or in
part, the Shares to be issued upon exercise of the Option shall not be
effectively registered under the Securities Act, the person exercising the
Option shall give a written representation to the Company in the form attached
hereto as Exhibit A and the Company shall place an “investment legend,” as
described in Exhibit A, upon any certificate for the Shares issued by reason of
such exercise.

       

      (c)           The
Company shall be under no obligation to cause a registration statement or a
post-effective amendment to any registration statement to be prepared for the
purposes of covering the issue of Shares.

       

      
        
           

        

        
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      7.           Tax
Withholding.  Upon exercise of the Option, in whole or in part,
and as a condition thereto, the Optionee shall remit to the Company an amount
sufficient to satisfy the Optionee’s share of all United States federal, state
and local withholding tax requirements, in such manner and amount as shall be
specified by the Board.  With respect to an
Optionee that is an employee or consultant of Company, the Company shall have
the right to withhold (or to cause one of the Company’s subsidiaries to
withhold), from compensation otherwise payable to the Optionee, an amount
sufficient to satisfy all federal, state and local withholding tax requirements
prior to the issuance of such Shares and the delivery of any certificate or
certificates for such Shares, and from time to time thereafter to the extent
such withholding obligations arise in connection with the Option, including,
without limitation, obligations arising upon (i) the exercise, in whole or
in part, of the Option, (ii) the transfer, in whole or in part, of any
Shares acquired on exercise of the Option, (iii) the operation of any law
or regulation providing for the imputation of interest, or (iv) the lapsing
of any restriction with respect to any Shares acquired on exercise of the
Option.  The
Optionee acknowledges that the Company may issue a Form W-2, W-2c, 1099 or
substitute therefore, as appropriate, to the Optionee with respect to any United
States income recognized by the Optionee with respect to the
Option.

       

      8.           Non-Transferability.

       

      (a)           Unless
otherwise approved by the Board in its discretion, the Option may be exercised
during the lifetime of the Optionee only by the Optionee and may not be assigned
or transferred in any manner, except by will or by the laws of descent and
distribution.  Upon the Optionee’s death, the Optionee’s legal
representative, or any person empowered under the Optionee’s will or under
applicable laws of descent and distribution, may exercise the Option to the
extent unexercised and exercisable by the Optionee as of the date of
death.

       

      (b)           Except
as provided in Section 9(a), without the prior written consent of the Board, no
right or benefit under this Agreement shall be subject to anticipation,
alienation, sale, assignment, pledge, encumbrance or charge, and any attempt to
anticipate, alienate, sell, assign, pledge, encumber or charge the same without
such consent, if applicable, shall be void.  Except with such consent,
no right or benefit under this Agreement shall in any manner be liable for or
subject to the debts, contracts, liabilities or torts of the
Optionee.

       

      9.           Change in Stock Subject to
Option.  In the event of a recapitalization, reclassification,
stock dividend, stock split, reverse stock split, or other change in corporate
structure affecting the Common Stock, the Board may adjust the terms of the
Option in accordance with Section 3 of the Plan.

       

      10.           No Special Rights; Duties of
Optionee.

       

      (a)           The
Optionee shall have no rights as a stockholder with respect to any Shares
covered by the Option until the date of the issuance of a certificate or
certificates for the Shares for which the Option has been
exercised.  No adjustment shall be made for dividends or distributions
or other rights for which the record date is prior to the date such certificate
or certificates are issued, except as provided pursuant to Section
10.

       

      
        
           

        

        
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      (b)           Nothing
contained in this Agreement shall be construed or deemed by any person under any
circumstances to bind the Company to commence or continue the employment or
consulting relationship of the Optionee for the period within which this Option
may be exercised, nor shall this Agreement be construed to create any duty of
the Company or any of its affiliates or any of its other shareholders to the
Optionee, or any duty of the Optionee to the Company or any of its affiliates or
other shareholders, comparable to the duties which partners or joint venturers
may owe to each other.  However, during the period that the Optionee
provides employment or consulting services to the Company, the Optionee shall
render diligently and faithfully the services which are assigned to the Optionee
from time to time by the Board or by the executive officers of the
Company.  The Optionee shall at no time take any action which directly
or indirectly would be inconsistent with the best interests of the
Company.

       

      11.           Notices.  Any
notices or other communications required to be given hereunder shall be given by
hand delivery or by certified or registered mail, return receipt requested, with
all fees prepaid and addressed, if to the Company, to it at _____________, and
if to the Optionee, at the address set forth on the signature page hereto, or to
such other address as either party may specify in writing from time to
time.

       

      12.           Termination or
Amendment.  The Board may terminate or amend the Plan and/or
the Option at any time; provided, however, that no such termination or amendment
may adversely affect the Option or any unexercised portion thereof without the
written consent of the Optionee.

       

      13.           Integrated
Agreement.  This Agreement constitutes the entire understanding
and agreement of the Optionee and the Company with respect to the subject matter
contained herein and supersedes any prior understanding or agreement between the
parties, whether or not in writing, including, but not limited to, any prior
grant by the Company or any of its officers or authorized representatives to the
Optionee of an option or warrant to purchase Common Stock.  There are
no agreements, understandings, restrictions, representations, or warranties
among the Optionee and the Company other than those as set forth or provided for
herein. To the extent contemplated herein, the provisions of this Agreement
shall survive any exercise of the Option and shall remain in full force and
effect.

       

      14.           Binding
Effect.  This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, executors,
administrations, successors and assigns.

       

      15.           Governing
Law.  This Agreement shall be governed by, and construed and
enforced in accordance with, the internal laws of the State of Delaware, without
regard to principles of conflicts of laws.

       

      [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

       

      
        
           

        

        
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      IN
WITNESS WHEREOF, the parties hereto have executed this Nonstatutory Stock Option
Agreement as of the Grant Date.

       

      OPTIONABLE,
INC.

      

       

      By:______________________________

      Name:

       

      Title:

       

      The
undersigned Optionee represents that the Optionee is familiar with the terms and
provisions of this Nonstatutory Stock Option Agreement and the Plan, and hereby
accepts the Option subject to all of the terms and provisions
thereof.  The Optionee hereby agrees to accept as binding, conclusive
and final all decisions or interpretations of the Board upon any questions
arising under this Nonstatutory Stock Option Agreement and the
Plan.  The undersigned acknowledges receipt of a copy of the
Plan.

       

      

      ___________________________________

      Signature
of Optionee

      Brad
O’Sullivan

      Address:

       

      ___________________________

      ___________________________

      ___________________________

      

      

      Social
Security Number:

      Number of
Shares Subject to
Option:             500,000

       

      
        
           

        

        
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      EXHIBIT
A

      Date:___________________

       

      

       

      Optionable,
Inc.

      ______________

      ______________

      

      Ladies
and Gentlemen:

       

      In
connection with the acquisition by me of [__________________] shares of common
stock, $0.0001 par value per share (the “Shares”), of Optionable, Inc., a
Delaware corporation (the “Company”), I hereby represent to the Company as
follows:

       

      (a)           I
hereby confirm that: (i) the Shares to be received by me will be acquired for
investment only, for my own account, not as a nominee or agent and not with a
view to the sale or distribution of any part thereof; and (ii) I have no current
intention of selling, granting participation in or otherwise distributing the
Shares.  I further represent that I do not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant
participation to such person, or to any third person, with respect to any of the
Shares.

       

      (b)           I
understand that the Shares have not been registered under the Securities Act of
1933, as amended (the “1933 Act”) on the basis that the acquisition of the
Shares by me and the issuance of securities by the Company to me is exempt from
registration under the 1933 Act and that the Company’s reliance on such
exemption is predicated on my representations set forth herein.

       

      (c)           I
represent that I have, either alone or together with the assistance of a
“purchaser representative” (as that term is defined in Regulation D promulgated
under the 1933 Act), such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of my investment in
the Company.  I further represent that I am familiar with the business
and financial condition, properties, operations and prospects of the
Company.  I further represent that I have had, prior to my acquisition
of the Shares, the opportunity to ask questions of, and receive answers from,
the Company concerning the terms and conditions of the issuance and to obtain
information (to the extent the Company possessed such information or could
acquire it without unreasonable effort or expense) necessary to verify the
accuracy of any information furnished to me or to which I have had
access.  I am satisfied that there is no material information
concerning the condition, properties, operations and prospects of the Company of
which I am unaware.  I have made, either alone or together with my
advisors, such independent investigation of the Company as I deem to be, or my
advisors deem to be, necessary or advisable in correction with this
investment.

       

      (d)           I
understand that the Shares may not be sold, transferred or otherwise disposed of
without registration under the 1933 Act and applicable state securities laws, or
an exemption there from, and that in the absence of an effective registration
statement covering the Shares or an available exemption from registration tinder
the 1933 Act or applicable state securities laws, the Shares must be held
indefinitely.  In particular, I acknowledge that I am aware that the
Shares may not be sold pursuant to Rule 144 promulgated under the 1933 Act
unless all of the conditions of that Rule are met.  Among the current
conditions for use of Rule 144 by certain holders is the availability to the
public of current information about the Company.  Such information is
not now available, and the Company has no current plans to make such information
available.  I represent that, in the absence of an effective
registration statement covering the Shares or an available exemption from
registration under the 1933 Act or applicable state securities laws, I will not
sell, transfer or otherwise dispose of the Shares.

       

      
        
           

        

        
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      (e)           I
represent that I (i) am capable of bearing the economic risk of holding the
unregistered Shares for an indefinite period of time and have adequate means for
providing for my current needs and contingencies, (ii) can afford to suffer a
complete loss of my investment in the Shares, and (iii) understand and have
taken cognizance of all risk factors related to the acquisition of the
Shares.

       

      (f)           I
understand that the acquisition of the Shares involves a high degree of risk and
there is no established market for the Company’s capital stock and it is not
likely that any public market for such stock will develop in the near
future.

       

      (g)           I
represent that neither I nor anyone acting on my behalf has paid any commission
or other remuneration to any person in connection with the acquisition of the
Shares.

       

      (h)           Independent
of the additional restrictions on the transfer of the Shares contained herein, I
agree that I will not make a transfer, disposition or pledge of any of the
Shares other than pursuant to an effective registration statement under the 1933
Act and applicable state securities laws, unless and until: (i) I shall have
notified the Company of the proposed disposition and shall have furnished the
Company with a statement of the circumstances surrounding the disposition and
(ii) if requested by the Company and at my expense or at the expense of my
transferee, I shall have furnished to the Company an opinion of counsel,
reasonably satisfactory (as to counsel and as to substance) to the Company and
its counsel, to the effect that such transfer may be made without registration
of the Shares under the 1933 Act, and applicable state securities
laws.

       

      (i)           I
acknowledge that all certificates evidencing the Shares shall bear a legend in
substantially the following form:

       

      “TRANSFER
RESTRICTED”

       

      The
shares represented by this certificate have not been registered under the
Securities Act of 1933 and applicable state securities laws.  These
shares have been acquired for investment and not with a view to distribution or
resale, and may not be sold, mortgaged, pledged, hypothecated or otherwise
transferred without an effective registration statement for such shares under
the Securities Act of 1933 and applicable state securities laws, or an opinion
of counsel satisfactory to the Company that registration is not required under
such Act and applicable state securities laws.

       

      The
shares of stock represented by this certificate are subject to certain
restrictions on transfer, repurchase rights and lock-up provisions as set forth
in the certain Stock Option Agreement pursuant to which such shares were
acquired.  Such Agreement is available for inspection without charge
at the office of the Secretary of the Company.

       

      
        
           

        

        
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      (j)           The
certificates evidencing the Shares shall also bear any legend required by any
applicable state securities law.

       

      (k)           In
addition, the Company shall make a notation regarding the restrictions on
transfer of the Shares in its stock books, and the Shares shall be transferred
on the books of the Company only if transferred or sold pursuant to an effective
registration statement under the 1933 Act and applicable state securities laws
covering such Shares or pursuant to and in compliance with the provisions of the
Stock Option Agreement referenced above.  A copy of this Agreement,
together with any amendments thereto, shall remain on file with the Secretary of
the Company and shall be available for inspection to any properly interested
person without charge within five (5) days after the Company’s receipt of a
written request therefore.

       

      

      

      Sincerely yours,

      

      

      

      ______________________________

      Brad
O’Sullivan

       

       

       

      -3-ex10-3.htm

EX-10.3

INDEMNIFICATION AGREEMENT

THIS AGREEMENT is made and entered into this ___  day of May, 2010 by and between Optionable, Inc., a Delaware corporation (the “Corporation”), and Brad O’Sullivan (“Agent”).

WHEREAS, Agent will perform a valuable service to the Corporation in his capacity as a Director and Chief Executive Officer of the Corporation;

WHEREAS, the stockholders of the Corporation have adopted bylaws (the “Bylaws”) providing for the indemnification of the directors, officers, employees and other agents of the corporation, including persons servicing at the request of the Corporation in such capacities with other corporations or enterprises, as authorized by the Delaware General Corporation Law, as amended (the “DGCL”);

WHEREAS, the Bylaws and the DGCL, by their non-exclusive nature, permit contracts between the Corporation and its agents, officers, employees and other agents with respect to indemnification of such persons;  and

WHEREAS, in order to induce Agent to serve as a Director and Chief Executive Officer of the Corporation, the Corporation has determined and agreed to enter into this Agreement with Agent;

NOW, THEREFORE, in consideration of Agent's service as a Director and Chief Executive Officer of the Corporation, after the date hereof, the parties hereto agree as follows:

1.  Services to the Corporation.  Agent will serve, at the will of the Corporation or under separate contract, if any such contract exists, as a director, officer or other fiduciary of an affiliate of the Corporation (including any employee benefit plan of the Corporation) faithfully and to the best of his ability so long as he is duly elected and qualified in accordance with the provisions of the Bylaws or other applicable charter documents of the Corporation or such affiliate; provided, however, that Agent may at any time and for any reason resign from such position (subject to any contractual obligation that Agent may have assumed apart from this Agreement) and that the Corporation or any affiliate shall have no obligation under this Agreement to continue Agent in any such position.

2. Indemnity of Agent.  The Corporation hereby agrees to hold harmless and indemnify Agent to the fullest extent authorized, or permitted by the provisions of the Bylaws and the DGCL, as the same may be amended from time to time (but, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than the Bylaws or the DGCL permitted prior to adoption of such amendment).

 

  

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3.  Additional Indemnity. In addition to and not in limitation of the indemnification otherwise, provided for herein, subject only to the exclusions set forth in Section 4 hereof, the Corporation hereby further agrees to hold harmless and indemnify Agent:

(a) against any and all expenses (including attorneys' fees), witness fees, damages, judgments, fines and amounts paid settlement and any other amounts that Agent becomes legally obligated to pay because of any claim or claims made against or by him in connection with any threatened, pending or completed action, suit or proceeding, whether civil, criminal, arbitration, administrative or investigative (including an action by or in the right of the Corporation) to which Agent is, was or at any time becomes a party, or is threatened to be made a party, by reason of the fact that Agent is, was or at any time becomes a director, officer, employee or other agent of the Corporation, or is or was serving or at anytime serves at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise; and

(b) otherwise to the fullest extent as may be provided to Agent by the Corporation under the non-exclusivity provisions of the DGCL and of the Bylaws.

4.  Limitations on Additional Indemnity. No indemnity pursuant to Section 3 hereof shall be paid by the Corporation:

(a)  on account of any claim against Agent for an accounting of profits made from the purchase or sale by Agent of securities of the Corporation pursuant to the provisions of Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar

provisions of any federal, state or local statutory law;

(b) on account of Agent's conduct that was knowingly fraudulent or deliberately dishonest or that constituted willful misconduct;

(c)  on account of Agent's conduct that constituted a breach of Agent's duty of loyalty to the Corporation or resulted in, any personal profit or advantage to which Agent was not legally entitled;

(d)  for which payment is actually made to Agent under a valid and collectible insurance policy or under a valid and enforceable indemnity clause, bylaw or agreement, except in respect of any excess beyond payment under such insurance, clause, bylaw or agreement;

(e) if indemnification is not lawful (and, in this respect, both the Corporation and the Agent have been advised that the Securities and Exchange Commission believes that indemnification for liabilities arising under the federal securities laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication); or

(f)  in connection with any proceeding (or part thereof) initiated by Agent, or any proceeding by Agent against the Corporation or its directors, officers, employees or other agents, unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by the Board of Directors of the Corporation, (iii) such indemnification is provided by the Corporation, in its sole discretion, pursuant to the powers vested in the Corporation under the DGCL, or (iv) the proceeding is initiated pursuant to the provisions of Section 9 hereof.

 

  

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5. Continuation of Indemnity.  All agreements and obligations of the Corporation contained herein shall continue during the period Agent is a director, officer, employee or other agent of the Corporation (or is or was serving at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise) and shall continue thereafter so long as Agent shall be subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal, arbitration, administrative or investigative, by reason of the fact that Agent was serving in the capacity referred to herein.

6. Partial Indemnification. Agent shall be entitled under this Agreement to indemnification by the Corporation for a portion of the expenses (including attorneys' fees), witness fees, damages, judgments, fines and amounts paid in settlement and any other amounts that Agent becomes legally obligated to pay in connection with any action, suit or proceeding referred to in Section 3 hereof even if not entitled hereunder to indemnification for the total amount thereof, and the Corporation shall indemnify Agent for the portion thereof to which Agent is entitled.

7. Notification and Defense of Claim. Not later than thirty (30) days after receipt by Agent of notice of the commencement of any action, suit or proceeding, Agent will, if a claim in respect thereof is to be made against the Corporation under this Agreement, notify the Corporation of the commencement thereof; but the omission so to notify the Corporation will not relieve it from any liability which it may have to Agent otherwise than under this Agreement.  With respect to any such action, suit or proceeding as to which Agent notifies the Corporation of the commencement thereof:

(a)  the Corporation will be entitled to participate therein at its own expense;

(b)  except as otherwise provided below, the Corporation may, at its option and jointly with any other indemnifying party similarly notified and electing to assume such defense, assume the defense thereof, with counsel reasonably satisfactory to Agent. After notice from the Corporation to Agent of its election to assume the defense thereof, the Corporation will not be liable to Agent under this Agreement for any legal or other expenses subsequently incurred by Agent in connection with the defense thereof except for reasonable costs of investigation or otherwise as provided below. Agent shall have the right to employ separate counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense thereof shall be at the expense of Agent unless (i) the employment of counsel by Agent has been authorized by the Corporation, (ii) Agent shall have reasonably concluded that there may be a conflict of interest between the Corporation and Agent in the conduct of the defense of such action or (iii) the Corporation shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of Agent's separate counsel shall be at the expense of the Corporation. The Corporation shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Corporation or as to which Agent shall have made the conclusion provided for in clause (ii) above; and

 

  

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(c)  the Corporation shall not be liable to indemnify Agent under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent, which shall not be unreasonably withheld. The Corporation shall be permitted to settle any action except that it shall not settle any action or claim in any manner which would impose any penalty or limitation on Agent without Agent's written consent, which may be given or withheld in Agent's sole discretion.

.

8.  Expenses. The Corporation shall advance, prior to the full disposition of any proceeding, promptly following request therefor, all expenses incurred by Agent in connection with such proceeding upon receipt of an undertaking by or on behalf of Agent to repay said amounts if it shall be determined ultimately that Agent is not entitled to be indemnified under the provisions of this Agreement, the Bylaws, the DGCL or otherwise.

9.  Enforcement.  Any right to indemnification or advances granted by this Agreement to Agent shall be enforceable by or on behalf of Agent in any court of competent jurisdiction if (i) the claim for indemnification or advances is denied, in whole or in part, or (ii) no disposition of such claim is made within ninety (90) days of request therefor. Agent, in such enforcement action, if successful in whole or in part, shall be entitled to be paid also the expense of prosecuting his claim. It shall be a defense to any action for which a claim for indemnification is made under Section 3 hereof (other than an action brought to enforce a claim for expenses pursuant to Section 8 hereof, provided that the required undertaking has been tendered to the Corporation) that Agent is not entitled to indemnification because of the limitations set forth in Section 4 hereof. Neither the failure of the Corporation, (including its Board of Directors or its stockholders) to have made a determination prior to the commencement of such enforcement action that indemnification of Agent is proper in the circumstances, nor an actual determination by the Corporation (including its Board of Directors or its stockholders) that such indemnification is improper shall be a defense to the action or create a presumption that

Agent is not entitled to indemnification under this Agreement or otherwise.

10.  Subrogation.  In the event of payment under this Agreement, the Corporation shall be subrogated to the extent of such payment to all of the rights of recovery of Agent, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the Corporation effectively to bring suit to enforce such rights.

11.  Non-Exclusivity of Rights.  The rights conferred on Agent by this Agreement shall not be exclusive of any other right which Agent may have or hereafter acquire under any statute, provision of the Corporation's Articles of Incorporation or Bylaws, agreement, vote of stockholders or directors, or otherwise, both as to action in his official capacity and as to action in another capacity while holding office.

 

  

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12. Survival of Rights.

(a) The rights conferred on Agent by this Agreement shall continue after Agent has ceased to be a director, officer, employee or other agent of the Corporation or to serve at the request of the Corporation as a director, officer, employee or other agent of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise and shall inure to the benefit of Agent's heirs, executors and administrators.

(b) The Corporation shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Corporation, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform if no such succession had taken place.

13. Severability.  Each of the provisions of this Agreement is a separate and distinct agreement and independent of the others, so that if any provision hereof shall be held to be invalid for any reason, such invalidity or unenforceability shall not affect the validity or enforceability of the other provisions hereof. Furthermore, if this Agreement shall be invalidated in its entirety on any ground, then the Corporation shall nevertheless indemnify Agent to the fullest extent provided by the Bylaws, the DGCL or any other applicable law.

14.  Governing Law.  This Agreement shall be interpreted and enforced in accordance with the laws of the State of New York.

15.  Amendment and Termination.  No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both parties hereto.

16. Identical Counterparts. This Agreement may be executed in one or more original or facsimile counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute but one and the same Agreement. Only one such counterpart need be produced to evidence the existence of this Agreement.

17.  Headings.  The headings of the sections of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction hereof.

18. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) upon delivery if delivered by hand to the party to whom such communication was directed, (ii) upon the third business day after the date on which such communication was mailed if mailed by certified or registered mail with postage prepaid or (iii) by confirmed email or facsimile:

 

  

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(a) If to Agent, at the address indicated on the signature page hereof.

(b) If to the Corporation, to the address indicated on the signature page hereof.

With a copy to:

 

McCormick & O’Brien, LLP

9 East 40th Street

Fourth Floor

New York, NY 10016

Facsimile: (212)504-9574

Telephone: (212)286-4471

Attention: Charles F. McCormick, Esq.

E-mail:  charles@mcoblaw.com

or to such other address as may have been furnished by either party to the other.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and as of the day and year first above written.

 

	
OPTIONABLE, INC

	
AGENT

	  
	  	  	  
	
By:_________________________________

	
____________________________

	  
	
Andrew Samaan, Authorized Signatory

	
Brad O’Sullivan

	  
	  	  	  
	
Address:

	
Address:

	  
	
Date:

	
Date:

	  

 

 

 

6

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