Document:

2007 Stock Plan

 EXHIBIT 4.1 
 LOGILITY, INC. 
 2007 STOCK PLAN 

 LOGILITY, INC. 
 2007 STOCK PLAN 
 TABLE OF CONTENTS 
  

			
	 ARTICLE 1. DEFINITIONS
	  	1
	 1.1 Act
	  	1
	 1.2 Award
	  	1
	 1.3 Board
	  	1
	 1.4 Cause
	  	1
	 1.5 Change in Control Event
	  	1
	 1.6 Code
	  	3
	 1.7 Committee
	  	3
	 1.8 Common Stock or Stock
	  	3
	 1.9 Company
	  	3
	 1.10 Continuous Service
	  	3
	 1.11 Disability
	  	3
	 1.12 Effective Date
	  	3
	 1.13 Employee
	  	3
	 1.14 Executive Officer
	  	3
	 1.15 Exercise Price
	  	3
	 1.16 Fair Market Value
	  	4
	 1.17 Incentive Stock Option
	  	4
	 1.18 Nonqualified Stock Option
	  	4
	 1.19 Option
	  	4
	 1.20 Option Agreement
	  	4
	 1.21 Participant
	  	4
	 1.22 Repriced
	  	4
	 1.23 Special Stock Option Committee
	  	4
	 1.24 Stock Appreciation Right or SAR
	  	4
	 1.25 Stock Option Committee
	  	4
	 1.26 Subsidiary
	  	5
	 1.27 Unit
	  	5
	 1.28 Unit Grant Price
	  	5
		
	 ARTICLE 2. EFFECTIVE DATE
	  	5
		
	 ARTICLE 3. ADMINISTRATION
	  	5
	 3.1 Special Stock Option Committee
	  	5
	 3.2 Stock Option Committee
	  	5
	 3.3 Meetings and Actions
	  	6
	 3.4 Powers of the Committee
	  	6
	 3.5 Interpretation of Plan
	  	6
	 3.6 Director Stock
	  	6

			
	 ARTICLE 4. STOCK AND SARs SUBJECT TO THE PLAN
	  	6
	 4.1 Plan Limits
	  	6
	 4.2 Unused Stock and Units
	  	7
	 4.3 Adjustment .for Change in Outstanding Shares.
	  	7
	 4.4 Retention of Rights
	  	8
	 4.5 Cancellation of Award
	  	8
		
	 ARTICLE 5. ELIGIBILITY
	  	8
	 5.1 Eligible Employees
	  	8
	 5.2 Board
	  	8
	 5.3 Consultants and Advisors
	  	8
		
	 ARTICLE 6. STOCK OPTIONS
	  	8
	 6.1 Grant of Options
	  	8
	 6.2 Stock Options for Nonemployee Directors
	  	8
	 6.3 Option Agreement
	  	9
	 6.4 Nontransferability of Options
	  	10
	 6.5 Manner of Exercise of Options
	  	10
	 6.6 Payment of Option Exercise Price
	  	10
	 6.7 Termination of Continuous Service
	  	11
		
	 ARTICLE 7. STOCK APPRECIATION RIGHTS
	  	11
	 7.1 Grant of Stock Appreciation Rights
	  	11
	 7.2 SAR Agreement
	  	11
	 7.3 Nontransferability of SARs
	  	12
	 7.4 Manner of Exercise of SARs
	  	12
	 7.5 Termination of Continuous Service
	  	12
		
	 ARTICLE 8. CHANGE IN CONTROL
	  	13
		
	 ARTICLE 9. ISSUANCE OF SHARES OF COMMON STOCK
	  	14
	 9.1 Transfer of Common Stock to Participant
	  	14
	 9.2 Legend
	  	14
	 9.3 Compliance with Laws
	  	14
		
	 ARTICLE 10. AMENDMENT AND TERMINATION
	  	14
	 10.1 Amendment of the Plan
	  	14
	 10.2 Termination of the Plan
	  	15
		
	 ARTICLE 11. GENERAL PROVISIONS
	  	15
	 11.1 No Employment Rights
	  	15
	 11.2 Other Employee Benefits
	  	15
	 11.3 Confidentiality of Information
	  	15
	 11.4 Severability
	  	15
	 11.5 Governing Law and Venue
	  	15
	 11.6 Use of Proceeds
	  	15

 LOGILITY, INC. 
 2007 STOCK PLAN 
 INTRODUCTION 
 The purpose of the Logility, Inc. 2007 Stock Plan (the “Plan”) is to further the growth and development of Logility, Inc., a Georgia corporation (the “Company”), by affording an opportunity for
stock ownership to selected Employees of the Company, members of the Company’s Board, consultants and advisors. The Plan is intended to attract and retain the best available talent and encourage the highest level of performance by executive
officers, key employees, directors, advisors and consultants, and to provide them with incentives to put forth maximum efforts for the success of the Company’s business in order to serve the best interests of the Company. Options granted under
the Plan may be Incentive Stock Options or Nonqualified Stock Options, as such terms are hereinafter defined. Participants in the Plan may also receive Stock Appreciation Rights, as hereinafter defined, in lieu of or in addition to Options.

 ARTICLE 1. DEFINITIONS 
 When
used in this Plan, the following capitalized terms shall have the meanings set forth below unless a different meaning is plainly required by the context: 
 1.1 Act. Act means the Securities Exchange Act of 1934 as in effect from time to time. 
 1.2
Award. Award means the grant of Options or Stock Appreciation Rights under the Plan. 
 1.3 Board. Board means the Board of
Directors of Logility, Inc. 
 1.4 Cause. Cause means “cause,” as
defined in the Participant’s employment agreement, if applicable. If the Participant has not entered into an employment agreement with the Company or
a Subsidiary that includes a definition of “cause”, then Cause shall mean a termination on account of dishonesty, fraud, misconduct, unauthorized use or disclosure of confidential information or trade secrets, a conviction or confession of
a crime punishable by law (except minor violations), or a material breach of any agreement with the Company or a Subsidiary, in each such case as determined by the applicable Committee, and its determination shall be conclusive and binding. Such
actions constituting “Cause” shall include, without limitation, a violation of the Company’s Code of Business Conduct and Ethics. A Participant who agrees to resign from his or her affiliation with the Company or a Subsidiary in lieu
of being terminated for Cause shall be deemed to have been terminated for Cause for purposes of the Plan. 
 1.5 Change in Control
Event. Change in Control Event means the occurrence, prior to the expiration of a Stock Option or Stock Appreciation Right, of any of the following events: 
 (a) the Company is merged, consolidated or reorganized into or with another corporation or other legal person, and as a result of such
merger, consolidation or 

  

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reorganization less than two-thirds of the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors
(“Voting Stock”) of such corporation or person immediately after such transaction are held in the aggregate by the holders of Voting Stock of the Company immediately prior to such transaction; 
 (b) the Company sells or otherwise transfers all or substantially all of its assets to another corporation or other legal person, and as a
result of such sale or transfer less than two-thirds of the combined voting power of the then-outstanding Voting Stock of such corporation or person immediately after such sale or transfer is held in the aggregate by the holders of Voting Stock of
the Company immediately prior to such sale or transfer; 
 (c) there is a report filed on Schedule 13D or Schedule 14D-1 (or
any successor schedule, form or report), each as promulgated pursuant to the Act, disclosing that any person (as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the Act), other than American Software, Inc.,
has become the direct or indirect beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated under the Act) of securities representing 50% or more of the combined voting
power of the then-outstanding Voting Stock of the Company; 
 (d) the Company files a report or proxy statement with the
Securities and Exchange Commission pursuant to the Act disclosing in response to Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) that a change in control of the Company has occurred or will occur in the future
pursuant to any then-existing contract or transaction; or 
 (e) if, during any period of two consecutive years, individuals
who at the beginning of any such period constitute the directors of the Company cease for any reason to constitute at least a majority thereof; provided, however, that for purposes of this clause (e) each director who is first elected, or first
nominated for election by the Company’s stockholders, by a vote of at least two-thirds of the directors of the Company (or a committee thereof) then still in office who were directors of the Company at the beginning of any such period will be
deemed to have been a director of the Company at the beginning of such period; and provided further that this clause (e) shall not commence applicability until such time as at least five directors are serving concurrently on the Board, but
shall apply thereafter regardless of the number of directors. 
 Notwithstanding the foregoing provisions of clauses (c) or
(d) above, unless otherwise determined in a specific case by majority vote of the Board, a “Change in Control” will not be deemed to have occurred for purposes of clause (c) or clause (d) above solely because (1) the
Company or (2) any Company-sponsored employee stock ownership plan or any other employee benefit plan of the Company or any Subsidiary either files or becomes obligated to file a report or a proxy statement under or in response to Schedule 13D,
Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) under the Act disclosing beneficial ownership by it of shares of Voting Stock of the Company, whether in excess of 50% or otherwise, or because the
Company reports that a change in control of the Company has occurred or will occur in the future by reason of such beneficial ownership or any increase or decrease thereof. 
  

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 1.6 Code. Code means the Internal Revenue Code of 1986, as amended from time to time. 

1.7 Committee. Committee shall mean the Stock Option Committee with respect to Awards granted by the Stock Option Committee, and the Special
Stock Option Committee with respect to Awards granted by the Special Stock Option Committee. 
 1.8 Common Stock or Stock. Common
Stock or Stock means the Company’s common stock and any share or shares of the Company’s capital stock hereafter issued or issuable in substitution for such shares of common stock. 
 1.9 Company. Company means Logility, Inc. 
 1.10 Continuous Service. Continuous Service means the period of service for the Company or
a Subsidiary that is not interrupted (other than pursuant to the Company’s or the Subsidiary’s paid time off policy or as required by law) or terminated. The Participant’s Continuous Service shall not be deemed to have terminated
merely because of a change in the affiliated entity for which the Participant renders such service, provided that there is otherwise no interruption or termination of the Participant’s Continuous Service. The applicable Committee, in its sole
discretion, may determine whether Continuous Service shall be considered interrupted in the case of any leave of absence approved by the Company, other than a leave pursuant to the Company’s paid time off policy or as required by law. 
 1.11
Disability. Disability is determined by the administrator of any long term disability plan which covers the Participant that is maintained by the Company or any business that controls or is under common control with the Company within the
meaning of Code Sections 414(b) and (c). If no such long-term disability plan covers the Participant, “Disability” shall mean the date on which the Company makes a final determination that the Participant is suffering from a physical or
mental impairment which the Company determines renders the Participant physically or mentally unable to continue to fulfill his or her duties as an active Employee at his or her assigned level of responsibility or competence, and which thereafter
prevents him or her from being able to resume such duties or their equivalent. 
 1.12 Effective Date. Effective Date means the
effective date of the Plan as specified in Article 2. 
 1.13 Employee. Employee means a common law employee of the Company or a
Subsidiary and any person who has accepted a binding offer of employment from the Company or a Subsidiary. 
 1.14 Executive Officer.
Executive Officer means an “executive officer” of the Company as defined in Rule 3b-7 under the Act. 
 1.15 Exercise Price.
Exercise Price with respect to an Option means the purchase price per share specified in the Option Agreement for such Option. 
  

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 1.16 Fair Market Value. Fair Market Value means the value of the Common Stock, determined by the
NASDAQ National Market System’s closing price for the Common Stock reflected in The Wall Street Journal or another publication selected by the Board. If on the relevant date for determining Fair Market Value the NASDAQ National Market System is
not in session or there is no closing price for the Common Stock, for any reason, then the Fair Market Value shall be determined as of the next preceding date for which a closing price is available. If the Common Stock is not traded on the NASDAQ
National Market System on the relevant date for determining Fair Market Value, or if deemed appropriate by the Board for any other reason, the Fair Market Value of the Common Stock shall be as determined by the Board in such other manner as it may
deem appropriate. 
 1.17 Incentive Stock Option. Incentive Stock Option means any Option granted to an eligible Employee under the
Plan which the Committee intends at the time the Option is granted to be an Incentive Stock Option within the meaning of Code Section 422. 
 1.18 Nonqualified Stock Option. Nonqualified Stock Option means any Option granted to an eligible Employee under the Plan to purchase stock that is not an Incentive Stock Option. 
 1.19 Option. Option means and refers collectively to Incentive Stock Options and Nonqualified Stock Options. 
 1.20 Option Agreement. Option Agreement means the agreement specified in Section 6.3. 
 1.21 Participant. Participant means any Employee, member of the Board or consultant or advisor to the Company or a Subsidiary who is granted an
Award under the Plan. Participant also means the personal representative of a Participant and any other person who acquires the right to exercise or receive payment pursuant to an Award by bequest or inheritance. 
 1.22 Repriced. Repriced means any amendment or adjustment of the Exercise Price of an Option through amendment, cancellation, replacement Awards
or any other means. Repriced shall also include any other action considered a repricing under requirements of the NASDAQ National Market System. 
 1.23 Special Stock Option Committee. Special Stock Option Committee means a committee appointed by the Board in accordance with the requirements of Section 3.1. 
 1.24 Stock Appreciation Right or SAR. Stock Appreciation right or SAR means the right of a Participant, without payment to the Company
(except for applicable withholding taxes), to receive the excess of the Fair Market Value per Unit on the date on which a Stock Appreciation Right is exercised over the Unit Grant Price as provided in the Stock Appreciation Right agreement,
multiplied by the number of Units exercised. A Stock Appreciation Right may be exercised in whole or in part, and if exercised in part the excess above the Unit Grant Price is calculated only on those Units as to which the Stock Appreciation Right
is exercised. 
 1.25 Stock Option Committee. Stock Option Committee means the Stock Option Committee appointed by the Board in
accordance with the provisions of Section 3.2. Prior to the appointment of such a Committee, the Board shall be deemed the Stock Option Committee. 
  

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 1.26 Subsidiary. Subsidiary means any business in which the Company has a “controlling
interest” as defined in Treas. Reg. Section 1.414(c)-2(b)(2)(i), except that 50% ownership interest is substituted where that regulation requires an 80% interest. 
 1.27 Unit. Unit means a share of Common Stock covered by a Stock Appreciation Right which, although not issued to the Participant, is used to
measure, at any particular time, the amount payable to the Participant upon exercise of such Stock Appreciation Right. 
 1.28 Unit Grant
Price. Unit Grant Price shall be determined in accordance with the provisions of Section 7.2(a). 
 ARTICLE 2. EFFECTIVE DATE

 The Effective Date of the Plan shall be the date on which the Plan was adopted by the Board of Directors of the Company, May 15,
2007. 
 ARTICLE 3. ADMINISTRATION 
 3.1 Special Stock Option Committee. The Special Stock Option Committee shall be appointed by the Board, shall consist of two or more non-Employee, independent members of the Board, and in the judgment of the Board, shall be qualified
to administer the Plan as contemplated by (i) Rule 16b-3 under the Act (or any successor rule) including, without limitation, the possession of authority by the Special Stock Option Committee to limit the time of exercise of Options and the
grant of Stock to specified periods, (ii) Section 162(m) of the Code, as amended, and the regulations thereunder (or any successor Section and regulations) and (iii) any rules and regulations of the NASDAQ Stock Market (or such other
stock exchange on which the Stock is traded). Members of the Special Stock Option Committee may not possess an interest in any transaction for which disclosure is required under Section 404(a) of Regulation S-K under the Act or be engaged in a
business relationship that must be disclosed under Section 404(a) and must qualify as “outside directors” as defined in Section 162(m) of the Code and regulations thereunder. Any member of the Special Stock Option Committee who
does not satisfy the qualifications set out in the preceding sentence may recuse himself or herself from any vote or other action taken by the Special Stock Option Committee. The Board may, at any time and in its complete discretion, remove any
member of the Special Stock Option Committee and may fill any vacancy of the Special Stock Option Committee. Any member of the Special Stock Option Committee shall be deemed to have resigned automatically from the Committee upon his or her
termination of service on the Board. The Special Stock Option Committee shall have the authority to grant Awards to Employees who are Executive Officers. 
 3.2 Stock Option Committee. The Stock Option Committee shall be appointed by the Board, and in the judgment of the Board, shall be qualified to administer the Plan. The Board may, at any time and in its
complete discretion, remove any member of the Stock Option Committee and may fill any vacancy of the Stock Option Committee. Any member of the Stock Option Committee shall be deemed to have resigned automatically from the Committee upon his or her
termination of service on the Board. The Stock Option Committee shall have the authority to grant Awards to Employees who are not Executive Officers, and to consultants and advisors of the Company. 
  

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 3.3 Meetings and Actions. The applicable Committees shall hold meetings at such times and places
as they may determine. A majority of the members of a Committee shall constitute a quorum, and the acts of the majority of the members present at a meeting or a consent in writing signed by all members of the Committee shall be final, binding and
conclusive upon all persons, including the Company, its stockholders, and all persons having any interest in Awards that may be or have been granted pursuant to the Plan. 
 3.4 Powers of the Committee. The applicable Committee shall have the full and exclusive right to grant and determine terms and conditions of all Awards granted under the Plan, and to prescribe, amend and
rescind rules and regulations for administration of the Plan. In selecting Participants, the applicable Committee shall take into consideration the contribution the Participant has made or may make to the success of the Company and such other
factors as such Committee shall determine. Subject to the provisions of the Plan, the applicable Committee shall have all powers vested in it by the terms of the Plan, such powers to include the authority to: 
 (a) Select the individuals to be granted Awards under the Plan; 
 (b) Determine the terms, conditions, form and amount of the Awards to be made to each person selected; 
 (c) Determine the time when Awards are to be made and any conditions which must be satisfied before an Award is made; and 
 (d) Establish objectives and conditions for earning Awards. 
 3.5 Interpretation of Plan. The Company shall have the authority to correct any defect,
supply any omission, or reconcile any inconsistency with respect to the Plan. The determination of the Company as to any disputed question arising under the Plan, including questions of construction and interpretation, shall be final, binding and
conclusive upon all persons, including the Company’s stockholders and all persons having any interest in Awards that may be or have been granted pursuant to the Plan. The applicable Committee may correct any defect, supply any omission, or
reconcile any inconsistency in any agreement entered into hereunder with respect to Awards. 
 3.6 Director Stock. The Board shall be
responsible for the administration of Awards granted under Section 6.2. 
 ARTICLE 4. STOCK AND SARs SUBJECT TO THE PLAN 
 4.1 Plan Limits. Subject to the provisions of Section 4.3, the aggregate number of shares of Common Stock that may be issued pursuant to
Options granted under the Plan shall not exceed in the aggregate 500,000 shares. Common Stock that may be issued under Options may consist, in whole or in part, of authorized but unissued stock or treasury stock of the Company not reserved for any
other purpose. Subject to the provisions of Section 4.3, the Units on which Stock Appreciation Rights may be based will not exceed in the aggregate 300,000 Units. 
  

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 4.2 Unused Stock and Units. If any outstanding Option under the Plan expires or for any other
reason ceases to be exercisable, is forfeited or repurchased by the Company, in whole or in part (other than upon exercise of an Option), the Common Stock subject to such Option (and as to which the Option had not been exercised) shall continue to
be available under the Plan or revert to the Plan to again be available for issuance of Options under the Plan. Common Stock underlying vested and exercised Options shall not be available for future Option grants. Any Units on which Stock
Appreciation Rights are based will again be available for the granting of Stock Appreciation Rights under Article 7 if the Stock Appreciation Rights that were based on those Units are terminated, expire unexercised, forfeited or surrendered.

 4.3 Adjustment .for Change in Outstanding Shares. 
 (a) In General. If there is any change (increase or decrease) in the outstanding shares of Common Stock that is effected without receipt of additional consideration by the Company, by reason of a stock dividend, subdivision,
reclassification, recapitalization, merger, consolidation, stock split, combination or exchange of stock, or other similar circumstances not involving the receipt of consideration by the Company, then in each such event, the Company shall make an
appropriate adjustment in the aggregate number of shares of Common Stock or Units available under the Plan, the number of shares of Common Stock or Units subject to each outstanding Award and the Exercise Price or Unit Grant Price in order to
prevent the dilution or enlargement of any Participant’s rights. In the event of any adjustment in the number of shares of Common Stock or Units covered by any Award, including those provided in paragraph (b) below, each such Award shall
cover only the number of full shares or full Units resulting from such adjustment. The Plan Administrator’s determinations in making any adjustment shall be final and conclusive. 
 (b) Adjustments for Certain Distributions of Property. If the Company at any time distributes with respect to its Common Stock
securities or other property (except cash or Common Stock), a proportionate part of those securities or other property shall be set aside and delivered to the Participant when he or she exercises an Option. The securities or other property shall be
in the same ratio to the total securities and property set aside for Participants as the number of shares of Common Stock with respect to which the Option is then exercised is to the total shares of Common Stock subject to the Option. Furthermore,
the Company shall Reprice Units to reflect the value of such securities or other property (except cash or Common Stock) which may be distributed with respect to the Company’s Common Stock. 
 (c) Exceptions to Adjustment. Except as expressly provided herein, the issue by the Company of Common Stock of any class, or
securities convertible into or exchangeable for Common Stock of any class, for cash or property or for labor or services, or upon sale or upon exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the
Company convertible into or exchangeable for Common Stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock or Units subject to any Award granted under the Plan.

  

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 4.4 Retention of Rights. The existence of the Plan and any Award granted pursuant to the Plan
shall not affect the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other change in the Company’s capital structure or its business, or a merger or
consolidation of the Company, or any issue of bonds, debentures, or preferred or preference stock ranking before or affecting the Common Stock, or the dissolution of the Company or any sale or transfer of all or any part of the Company’s assets
or business, or any other corporate act or proceeding, whether similar to the foregoing or not. 
 4.5 Cancellation of Award. The
applicable Committee may at any time cancel an Award, whether vested or unvested, if the Participant holding the Award is terminated for Cause. 
 ARTICLE 5. ELIGIBILITY 
 5.1 Eligible Employees. All full-time and part-time Employees are eligible to receive an Award at
the discretion of the applicable Committee (either the Special Stock Option Committee with respect to Executive Officers or the Stock Option Committee with respect to all other Employees). 
 5.2 Board. Members of the Board shall receive Options in accordance with Section 6.2. 
 5.3 Consultants and Advisors. Any consultant or advisor who renders bona fide services to the Company or a Subsidiary, which services are not in
connection with the offer or sale of securities in a capital-raising transaction, is eligible to receive an Award at the discretion of the Stock Option Committee. 
 ARTICLE 6. STOCK OPTIONS 
 6.1 Grant of Options. The applicable Committee may from time to time in
its discretion determine which of the Employees should receive Options, the type of Options to be granted (whether Incentive Stock Options or Nonqualified Stock Options), the number of shares of Common Stock subject to such Options, the dates on
which such Options are to be granted, the duration of such Options and the vesting schedule for exercise of such Options. To the extent that an Option is granted under which the aggregate Fair Market Value (determined as of the time each Option is
granted) of the Common Stock with respect to which any of such Employee’s Options are exercisable for the first time during a calendar year exceeds $100,000, the Options granted that exceed the annual limitation shall be deemed to be
Nonqualified Stock Options rather than Incentive Stock Options. Options granted by the Special Stock Option Committee are intended to comply with and otherwise satisfy the requirements of Rule 16b-3. To the extent that (i) any provision of the
Plan applicable to an Option granted pursuant to this Section 6 or (ii) any act of the Board, the Stock Option Committee or the Special Stock Option Committee would cause such Option to fail to satisfy or comply with any requirement of
Rule 16b-3, such provision or act will be deemed null and void for purposes of such Option. 
 6.2 Stock Options for Nonemployee
Directors. Each Nonemployee Director newly elected or appointed to the Board will be granted a Nonqualified Stock Option effective upon his or her initial election or other appointment to the Board to purchase 2000 shares of Common 

  

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Stock. Each Nonemployee Director will also be granted an additional Nonqualified Stock Option to purchase 1000 shares of Common Stock as of the last day of
each fiscal quarter following his or her initial option grant under this Section 6.2, beginning on the last day of the first complete fiscal quarter following such date, provided that such individual has served continually as a Nonemployee
Director through the close of business on such date. Each grant will specify (1) the Option Price, which will be equal to the Fair Market Value on the Date of Grant, and (2) a date on which the Options will expire. Stock Options granted
pursuant to this Section shall be exercisable immediately upon being granted. Stock Options granted pursuant to this Section are intended to comply with and otherwise satisfy the requirement of Rule 16b-3. To the extent that (i) any provision
of the Plan applicable to a Stock Option granted pursuant to this Section, or (ii) any act of the Board, Stock Option Committee or Special Stock Option Committee would cause such Stock Option to fail to satisfy or comply with any requirements
of Rule 16b-3, such provision or act will be deemed null and void for purposes of such Stock Option. 
 6.3 Option Agreement. Each
grant of Options under the Plan shall be evidenced by a written Option Agreement setting forth the terms upon which the Options are granted. Each Option Agreement shall designate the type of Options being granted (either Incentive Stock Options or
Nonqualified Stock Options), and shall state the Exercise Price and the number of shares of Common Stock, as designated by the applicable Committee, to which that Option pertains. More than one type of Option may be granted to an Employee.

 (a) Option Exercise Price. The Exercise Price of a Stock Option for any Participant shall be not less than 100% of
the Fair Market Value (determined as of the day the Option is granted) of the Common Stock subject to the Option, provided, however, that the Exercise Price of an Incentive Stock Option for any Participant who is the owner of ten percent
(10%) or more of the issued and outstanding stock of the Company shall be not less than 110% of the Fair Market Value (determined as of the day the Option is granted) of the Common Stock subject to the Option. Except as provided in
Section 4.3 or Article 8, the Exercise Price of the Common Stock under each Option is fixed and may not be Repriced without the approval of the Board after the Board has considered the affect of applicable provisions of tax and securities laws.

 (b) Duration of Options. Each grant of Options shall be of a duration as specified in the Option Agreement;
provided, however, that the term of each Option grant shall not exceed the lesser of: (1) ten (10) years from the date the Participant has the right to exercise such Option or portion thereof; or (2) ten (10) years from the date
the Option is granted. Notwithstanding the preceding sentence, each grant of Incentive Stock Options to any Participant who is the owner of ten percent (10%) or more of the issued and outstanding stock of the Company shall be of a duration as
specified in the Option Agreement; provided, however, that the term of each Option grant shall not exceed the lesser of: (1) five (5) years from the date the Participant has the right to exercise such Option or portion thereof; or
(2) five (5) years from the date the Option is granted 
 (c) Vesting. The grant of Options may be subject to
a vesting schedule, which shall be set forth in the Option Agreement, and which may be waived or accelerated by the Committee at any time. 
  

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 (d) Rights as Stockholder. A Participant shall have no rights as a stockholder of
the Company with respect to the Common Stock covered by an Option until the date of the issuance of the stock certificate for such Common Stock. 
 (e) Other Terms and Conditions. The Option Agreement may contain such other provisions, which shall not be inconsistent with the Plan, as the Committee shall deem appropriate, including, without limitation,
provisions that relate to the Participant’s ability to exercise an Option in whole or in part due to the passage of time or the achievement of specific goals or the occurrence of certain events, as specified by the Committee. Notwithstanding
the foregoing, the Option Agreement may not contain any term that would cause the Option to be nonqualified deferred compensation subject to Code Section 409A and related regulations. 
 6.4 Nontransferability of Options. Options granted pursuant to the Plan are not transferable by the Participant other than by will or the laws of
descent and distribution and shall be exercisable during the Participant’s lifetime only by the Participant. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the Options contrary to the provisions hereof, or
upon the levy of any attachment or similar process upon the Option, the Option shall immediately become null and void. Notwithstanding the foregoing, to the extent specified in an Option Agreement, an Option may be transferred by a Participant
solely to the Participant’s immediate family (children, grandchildren, or spouse) or trusts or other entities established for the benefit of the Participant’s immediate family, to the extent specifically permitted in the trust agreement.
Any such transfer of an Incentive Stock Option shall result in the conversion of the Option to a Nonqualified Stock Option. 
 6.5 Manner
of Exercise of Options. Subject to the limitations and conditions of the Plan or the Option Agreement, an Option shall be exercisable, in whole or in part, from time to time, by giving written notice of exercise to the Chief Financial Officer of
the Company or such other individual as directed from time to time by the Company. The notice shall specify the number of whole shares of Common Stock to be purchased and shall be accompanied by (a) payment in full to the Company of the
Exercise Price; plus (b) for Nonqualified Stock Options, payment in full of such amount as the Company shall determine to be sufficient to satisfy any liability the Company may have for any withholding of federal, state or local income or other
taxes incurred by reason of the exercise of the Option. At the Company’s discretion, payment in full of such amount as the Company shall determine to be sufficient to satisfy any liability the Company may have for any withholding of federal,
state or local income or other taxes incurred may also be requested upon the exercise of an Incentive Stock Option. Except as provided in Section 6.6, the conditions of this Section 6.5 shall be satisfied at the time that the Option or any
part thereof is exercised, and no Common Stock shall be issued or delivered until such conditions have been satisfied by the Participant. 
 6.6 Payment of Option Exercise Price. Payment for Common Stock underlying the Option shall be in the form of (a) a personal check, (b) a certified or bank cashier’s check to the order of the Company, (c) shares of
Common Stock, properly endorsed to the Company, in an amount equal to the Fair Market Value of the stock which on the date of receipt by the Company equals or exceeds the aggregate Exercise Price for the Option, provided that such Stock has been
held outright by the Participant for at least six months, (d) any other form of legal consideration 

  

 10 

 
that may be acceptable to the Company, or (e) in any combination thereof; provided, however, that no payment may be made in Common Stock unless the
Company has approved of payment in such form by such Participant with respect to the Option exercise in question. Payment for withholding taxes shall be in the form of cash. 
 6.7 Termination of Continuous Service. Other than as prescribed in Section 8, any vesting of Options shall cease upon termination of the
Participant’s Continuous Service, and Options shall be exercisable only to the extent that they were vested on the date of such termination of Continuous Service. Any Option not exercisable as of the date of termination, and any Option or
portion thereof not exercised within the period specified herein, shall terminate. 
 (a) Termination Other than for
Cause. Subject to any limitations set forth in the Option Agreement, and provided that the notice of exercise is provided as required by Section 6.5 prior to the expiration of the Option, the Participant shall be entitled to exercise the
Option (i) during the Participant’s Continuous Service, and (ii) for a period of ninety (90) calendar days after the date of termination of the Participant’s Continuous Service for reasons other than Cause, or such longer
period as may be set forth in the Option Agreement. 
 (b) Termination by Death. Notwithstanding paragraph (a), if a
Participant’s Continuous Service should terminate as a result of the Participant’s death, or if a Participant should die within a period of ninety (90) calendar days after termination of the Participant’s Continuous Service under
circumstances in which paragraph (a) would permit the exercise of the Option following termination, the personal representatives of the Participant’s estate or the person or persons who shall have acquired the Option from the Participant
by bequest or inheritance may exercise the Option at any time within one year after the date of death, but not later than the expiration date of the Option. 
 (c) Termination by Disability. Notwithstanding paragraph (a), if a Participant’s Continuous Service should terminate by reason
of the Participant’s Disability, the Participant may exercise the Option at any time within the earlier of (i) one year after the date of termination or (ii) thirty (30) days after the Participant no longer has a Disability, but
in any event not later than the expiration date of the Option. 
 (d) Termination for Cause. Notwithstanding anything
herein to the contrary, and unless otherwise provided by the Option Agreement, all unexercised Options shall terminate immediately if the Participant is terminated for Cause. 
 ARTICLE 7. STOCK APPRECIATION RIGHTS 
 7.1 Grant of Stock Appreciation Rights.
The applicable Committee may from time to time in its discretion determine which of the Employees of shall be entitled to receive SARs, the number of Units, and the dates on which such SARs are to be granted. 
 7.2 SAR Agreement. Each grant of SARs under the Plan shall be evidenced by a written SAR Agreement setting forth the terms upon which such SARs
are granted. Each SAR Agreement shall state the number of Units to which that SAR Agreement pertains. 
  

 11 

 (a) Unit Grant Price. The Unit Grant Price under each SAR Agreement granted under
the Plan shall not be less than 100% of the Fair Market Value (determined as of the day the SAR is granted) of the Common Stock subject to the SAR. Except as provided in Section 4.3 and Article 8, the Unit Grant Price under each SAR Agreement
is fixed and may not be Repriced without the approval of the Board after the Board has considered the affect of applicable provisions of tax and securities laws. 
 (b) Duration of SARs. Each grant of SARs shall be of a duration as specified in the SAR Agreement; provided, however, that the term
of each SAR grant shall not exceed the lesser of: (1) five (5) years from the date the Participant has the right to exercise such SAR or portion thereof; or (2) five (5) years from the date the SARs are granted. 
 (c) Vesting. The grant of SARs may be subject to a vesting schedule, which shall be set forth in the SAR Agreement, and which may
be waived or accelerated by the Committee at any time. 
 (d) Rights as Stockholder. A Participant shall have no rights
as a stockholder of the Company with respect to the Units or the Common Stock used to measure the Units. 
 (e) Other Terms
and Conditions. The SAR Agreement may contain such other provisions, which shall not be inconsistent with the Plan, as the applicable Committee shall deem appropriate, including, without limitation, provisions that relate to the
Participant’s ability to exercise an SAR in whole or in part due to the passage of time or the achievement of specific goals or the occurrence of certain events, as specified by the Committee. Notwithstanding the foregoing, the SAR Agreement
may not contain any term that would cause the SAR to be nonqualified deferred compensation subject to Code Section 409A and related regulations. 
 7.3 Nontransferability of SARs. SARs are not transferable by the Participant other than by will or the laws of descent and distribution and shall be exercisable during the Participant’s lifetime only by
the Participant. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of the SARs contrary to the provisions hereof, or upon the levy of any attachment or similar process upon the SARs, the SARs shall immediately become
null and void. 
 7.4 Manner of Exercise of SARs. SARs shall be exercisable, in whole or in part, from time to time, by giving written
notice of exercise to the Chief Financial Officer of the Company or such other individual as directed from time to time by the Company. The notice shall specify the number of SARs to be exercised. The Company shall withhold from the spread between
the Unit Grant Price of the SARs and the Fair Market Value of the Common Stock on the date of exercise, per Unit exercised, such amount as the Company shall determine to be sufficient to satisfy any liability the Company may have for any withholding
of federal, state or local income or other taxes incurred by reason of such exercise, and pay the Participant the remaining amount of such spread. 
 7.5 Termination of Continuous Service. Other than as prescribed in Section 8, any 

  

 12 

 
vesting of the SAR shall cease upon termination of the Participant’s Continuous Service, and the SAR shall be exercisable only to the extent that it was
exercisable on the date of such termination of Continuous Service. Any SAR not exercisable as of the date of termination, and any SAR or portion thereof not exercised within the period specified herein, shall terminate. 
 (a) Termination Other than for Cause. Subject to any limitations set forth in the SAR Agreement, and provided that the notice of
exercise is provided as required by Section 7.4 prior to the expiration of the SAR, the Participant shall be entitled to exercise the SAR (i) during the Participant’s Continuous Service, and (ii) for a period of thirty
(30) calendar days after the date of termination of the Participant’s Continuous Service for reasons other than Cause, or such longer period as may be set forth in the SAR Agreement. 
 (b) Termination by Death. Notwithstanding paragraph (a), if a Participant’s Continuous Service should terminate as a result of
the Participant’s death, or if a Participant should die within a period of thirty (30) calendar days after termination of the Participant’s Continuous Service under circumstances in which paragraph (a) would permit the exercise
of the SAR following termination, the personal representatives of the Participant’s estate or the person or persons who shall have acquired the SAR from the Participant by bequest or inheritance may exercise the SAR at any time within one year
after the date of death, but not later than the expiration date of the SAR. 
 (c) Termination by Disability.
Notwithstanding paragraph (a), if a Participant’s Continuous Service should terminate by reason of the Participant’s Disability, the Participant may exercise the SAR at any time within the earlier of (i) one year after the date of
termination and (ii) thirty (30) days after the Participant no longer has a Disability, but in any event not later than the expiration date of the SAR. 
 (d) Termination for Cause. Notwithstanding anything herein to the contrary, and unless otherwise provided by the SAR Agreement, all
unexercised SARs shall terminate immediately if the Participant is terminated for Cause. 
 ARTICLE 8. CHANGE IN CONTROL 
 In the event of a Change in Control Event, the Board, at its discretion, shall either (1) accelerate the vesting of all Awards held by Participants
whose Continuous Service has not terminated so that all Participants are 100% vested on the date of the Change in Control Event or (2) cancel the Awards and provide for the issuance of replacement stock options or rights with the same terms and
conditions in effective prior to the Change in Control Event, except that a new award will instead relate to the purchase of securities issued by an acquiring entity and reflect an Exercise Price or a Unit Grant Price (whichever is applicable) that
maintains the same aggregate spread between the Exercise Price or the Unit Grant Price (had the Participant exercised the Option or SAR on the date of the Change in Control) and the Grant Price or the Unit Grant Price, whichever is applicable, on
the date the new award is issued. In anticipation of a Change in Control Event and if the Board chooses the first alternative contained in this Article 8, the Board may, upon written notice to all Participants holding Options and/or SARs, provide
that all unexercised Options and SARs must be exercised upon the Change in Control Event or within a specified number of days of the date of such Change in Control Event or such Options 

  

 13 

 
or SARs will terminate. In response to such notice, a Participant may make an irrevocable election to exercise his or her Options or SARs contingent upon and
effective as of the effective date stated in such notice. Any Option and SAR shall terminate if not exercised within the time frame stated in the notice. 
 ARTICLE 9. ISSUANCE OF SHARES OF COMMON STOCK 
 9.1
Transfer of Common Stock to Participant. As soon as practicable after (a) a Participant has given the Company written notice of exercise of an Option and has otherwise met the requirements of Article 6 with respect to an Option, or
(b) a Participant has satisfied any applicable restrictions, terms and conditions set forth in the Plan, the Company shall register a certificate in such Participant’s name for the Common Stock as to which the Option has been exercised and
shall, upon the Participant’s request, deliver such certificate to the Participant. In no event shall the Company be required to transfer fractional shares of Common Stock to the Participant, and in lieu thereof, the Company may pay an amount
in cash equal to the Fair Market Value of such fractional shares of Common Stock on the date of exercise. 
 9.2 Legend. All
certificates evidencing shares of Common Stock originally issued pursuant to the Plan or subsequently transferred to any person or entity, and any shares of capital stock received in respect thereof, may bear such legends and transfer restrictions
as the Company shall deem reasonably necessary or desirable, including, without limitation, legends restricting transfer of the Common Stock until there has been compliance with federal and state securities laws and until the Participant or any
other holder of the Common Stock has paid the Company such amounts as may be necessary in order to satisfy any withholding tax liability of the Company. 
 9.3 Compliance with Laws. If the issuance or transfer of Common Stock by the Company would for any reason, in the opinion of counsel for the Company, violate any applicable federal or state laws or regulations,
the Company may delay issuance or transfer of such Stock to the Participant until compliance with such laws can reasonably be obtained. In no event shall the Company be obligated to effect or obtain any listing, registration, qualification, consent
or approval under any applicable federal or state laws or regulations or any contract or agreement to which the Company is a party with respect to the issuance of any such Stock. If, after reasonable efforts, the Company is unable to obtain the
authority that counsel for the Company deems necessary for the lawful issuance and sale of Stock upon exercise of Options or vesting of an Award under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common
Stock upon exercise of such Options or vesting of an Award unless and until such authority is obtained. 
 ARTICLE 10. AMENDMENT AND
TERMINATION 
 10.1 Amendment of the Plan. The Board may at any time and from time to time alter, amend, suspend or terminate the Plan
or any part thereof as it may deem proper, except that no such action shall diminish or impair the rights under an Award previously granted. However, if the Company is listed on the NASDAQ National Market System or another public trading market,
then any amendment that would require stockholder approval under the requirements of the NASDAQ National Market System or such other public trading market, as the case may be, shall only be effective when such stockholder approval is obtained.
Subject to the terms and 

  

 14 

 
conditions of the Plan, the Committee may modify, extend or renew outstanding Awards granted under the Plan, provided that such modification would not
constitute a Repriced Award, and provided further that no such action shall diminish or impair the rights under an Award previously granted without the consent of the Participant. 
 10.2 Termination of the Plan. The Plan shall terminate on the date that is the tenth anniversary of the Effective Date. The Board may at any time
suspend or terminate the Plan. No such suspension or termination shall diminish or impair the rights under an Award previously granted without the consent of the Participant. 
 ARTICLE 11. GENERAL PROVISIONS 
 11.1 No Employment Rights. Nothing contained in
the Plan or in any Award granted under the Plan shall confer upon any Participant any right with respect to the continuation of such Participant’s Continuous Service by the Company or a Subsidiary or interfere in any way with the right of the
Company or a Subsidiary, subject to the terms of any separate employment agreement to the contrary, at any time to terminate such Continuous Service or to increase or decrease the compensation of the Participant from the rate in existence at the
time of the grant of the Award. 
 11.2 Other Employee Benefits. Unless so provided by the applicable plan, the amount of compensation
deemed to be received by a Participant as a result of the exercise of an Award shall not constitute earnings with respect to which any other employee benefits of the person are determined, including without limitation benefits under any pension,
profit sharing, life insurance, or disability or other salary continuation plan. 
 11.3 Confidentiality of Information. Information
regarding the grant of Awards under the Plan is confidential and may not be shared by the Participant with anyone other than the Participant’s immediate family and personal financial advisor and other person(s) designated by Participant by
power of attorney or assignment, or as otherwise required by law. 
 11.4 Severability. If any provision of the Plan is held by any
court or governmental authority to be illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions. Instead, each provision held to be illegal or invalid shall, if possible, be construed and enforced in
a manner that will give effect to the terms of such provision to the fullest extent possible while remaining legal and valid. 
 11.5
Governing Law and Venue. The Plan, and all Awards granted under the Plan, shall be construed and shall take effect in accordance with the laws of the State of Georgia without regard to conflicts of laws principles. Resolution of any disputes
under the Plan or any Award under the Plan shall only be held in courts in Fulton County, Georgia. 
 11.6 Use of Proceeds. Any
proceeds received by the Company from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 
  

 15Form of Indemnification Agreement

 Exhibit 10.8 
 INDEMNIFICATION AGREEMENT 
 This Agreement is made as of
                    , 2007, between Secure Computing Corporation, a Delaware corporation (the “Company”), and
                                        
(the “Indemnitee”). 
 RECITALS 
 Both the Company and Indemnitee recognize that highly competent persons have become more reluctant to serve publicly-held corporations as directors or in other capacities unless they are provided with adequate
protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation. 
 In recognition of Indemnitee’s need for substantial protection against personal liability in order to enhance Indemnitee’s continued service to
the Company in an effective manner and Indemnitee’s reliance on the provisions of the Company’s Certificate of Incorporation, as amended (“Certificate of Incorporation”) and the Company’s Bylaws (the “Bylaws”)
requiring indemnification of the Indemnitee to the fullest extent permitted by law, and in part to provide Indemnitee with specific contractual assurance that the protection promised by such Certificate of Incorporation and Bylaws will be available
to Indemnitee (regardless of, among other things, any amendment to or revocation of such Certificate of Incorporation or Bylaws or any change in the composition of the Company’s Board of Directors or acquisition transaction relating to the
Company), the Company wishes to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete) permitted by law and as set forth in this Agreement. 
 The Certificate of Incorporation, the Bylaws and the General Corporation Law of the State of Delaware (“DGCL”) expressly provide that the
indemnification provisions set forth therein are not exclusive and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification.

 It is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf
of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified. 
 This Agreement is a supplement to and in furtherance of the Certificate of Incorporation and Bylaws and any resolutions adopted pursuant thereto and
shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder. 
 AGREEMENT

 In consideration of the premises and of Indemnitee agreeing to serve or continuing to serve the Company directly or, at its
request, with another enterprise, and intending to be legally bound hereby, the parties hereto agree as follows: 
 1. Basic
Indemnification Agreement. 
 (a) In the event Indemnitee was, is or becomes a party to or witness or other participant
in, or is threatened to be made a party to or witness or other participant in, a Claim (as defined 

 
in Section 9(b)) by reason of (or arising in part out of) an Indemnifiable Event (as defined in Section 9(d)), the Company shall indemnify
Indemnitee to the fullest extent permitted by law as soon as practicable but in any event no later than 30 days after written demand is presented to the Company, against any and all Expenses (as defined in Section 9(c)), judgments, fines,
penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection therewith) of such Claim actually and reasonably incurred by or on behalf of Indemnitee in connection with such Claim and
any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement. If requested by Indemnitee in writing, the Company shall advance (within ten business days of such
written request) any and all Expenses to Indemnitee (an “Expense Advance”). Notwithstanding anything in this Agreement to the contrary, prior to a Change of Control (as defined in Section 9(a)) and except as set forth in Sections
1(b), 3 and 7, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with any Claim (i) initiated by Indemnitee against the Company or any director or officer of the Company unless the Company has joined
in or consented to the initiation of such Claim; (ii) made on account of Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty of loyalty to the Company or its stockholders or is an act or omission not in good faith or
which involves intentional misconduct or a knowing violation of the law; or (iii) arising from the purchase and sale by Indemnitee of securities in violation of Section 16(b) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). 
 (b) Notwithstanding the foregoing, (i) the indemnification obligations of the Company under
Section 1(a) shall not be applicable if the Reviewing Party (as defined in Section 9(f)) has determined (in a written opinion, in any case in which the special independent counsel referred to in Section 2 is involved) that Indemnitee
would not be permitted to be indemnified under applicable law, and (ii) the obligation of the Company to make an Expense Advance pursuant to Section 1(a) shall be subject to the condition that the Company receives an undertaking that, if,
when and to the extent that the Reviewing Party determines that Indemnitee would not be permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the Company)
for all such amounts theretofore paid; provided, however, that if Indemnitee has commenced legal proceedings in the Court of Chancery of the State of Delaware (the “Delaware Court”) to secure a determination that Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company for any
Expense Advance until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). Indemnitee’s obligation to reimburse the Company for Expense Advances shall be
unsecured and no interest shall be charged thereon. If there has not been a Change in Control, the Reviewing Party shall be selected by the Board of Directors, and if there has been such a Change in Control, the Reviewing Party shall be the special
independent counsel referred to in Section 2. If there has been no determination by the Reviewing Party or if the Reviewing Party determines that Indemnitee substantively would not be permitted to be indemnified in whole or in part under
applicable law, Indemnitee shall have the right to commence litigation in the Delaware Court seeking an initial determination by the court or challenging any such determination by the Reviewing Party or any aspect thereof and the Company hereby
consents to service of process and to appear in any such proceeding. Any determination by the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee. The Company shall indemnify Indemnitee for Expenses incurred by
Indemnitee in connection with the successful establishment or enforcement, in whole or in part, by Indemnitee of Indemnitee’s right to indemnification or advances. 
 2. Change in Control. The Company agrees that if there is a Change in Control of the Company (other than a Change in Control which has been approved by two- thirds or more of the Company’s Board of
Directors who were directors immediately prior to such Change in Control) then 

  

 -2- 

 
with respect to all matters thereafter arising concerning the rights of Indemnitee to indemnity payments and Expense Advances under this Agreement or any
other agreement, the Bylaws or Certificate of Incorporation now or hereafter in effect relating to Claims for Indemnifiable Events, the Company shall seek legal advice only from special independent counsel selected by Indemnitee and approved by the
Company (which approval shall not be unreasonably withheld or delayed) and who has not otherwise performed services for the Company within the last five years (other than in connection with such matters) or for Indemnitee. In the event that
Indemnitee and the Company are unable to agree on the selection of the special independent counsel, such special independent counsel shall be selected by lot from among at least five law firms with offices in the State of Delaware having more than
fifty attorneys, having a rating of “av” or better in the then current Martindale Hubbell Law Directory and having attorneys which specialize in corporate law. Such selection shall be made in the presence of Indemnitee (and his legal
counsel or either of them, as Indemnitee may elect). Such counsel, among other things, shall, within 90 days of its retention, render its written opinion to the Company and Indemnitee as to whether and to what extent Indemnitee would be permitted to
be indemnified under applicable law. The Company agrees to pay the reasonable fees of the special independent counsel referred to above and to fully indemnify such counsel against any and all expenses (including attorneys’ fees), claims,
liabilities, and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 
 3. Indemnification for
Additional Expenses. The Company shall indemnify Indemnitee against any and all expenses (including attorneys’ fees) and, if requested by Indemnitee in writing, shall (within ten business days of such written request) advance such
expenses to Indemnitee, which are incurred by Indemnitee in connection with any Claim asserted against or action brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Company under this Agreement or any other
agreement, the Bylaws or Certificate of Incorporation now or hereafter in effect relating to Claims for Indemnifiable Events and/or (ii) recovery under any directors’ and officers’ liability insurance policies maintained by the
Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance expense payment or insurance recovery, as the case may be. The Indemnitee shall qualify for advances solely upon the execution and
delivery to the Company of an undertaking providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that the Indemnitee is not entitled to be indemnified by the Company. 
 4. Partial Indemnity. If Indemnitee is entitled under any provisions of this Agreement to indemnification by the Company of some but not
all of the Expenses, liabilities, judgments, fines, penalties and amounts paid in settlement of a Claim, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover, notwithstanding any other
provision of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in defense of any or all Claims relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, including
dismissal without prejudice, Indemnitee shall be indemnified against all Expenses incurred in connection therewith. In connection with any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be indemnified
hereunder the burden of proof shall be on the Company to establish that Indemnitee is not so entitled. 
 5. No Presumption.
For purposes of this Agreement, the termination of any action, suit or proceeding by judgment, order, settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief. 
 6. Notification and
Defense of Claim. Within 30 days after receipt by Indemnitee of notice of the commencement of a Claim which may involve an Indemnifiable Event, Indemnitee will, if a claim in respect thereof is to be made against the Company under this
Agreement, submit to the 

  

 -3- 

 
Company a written notice identifying the proceeding, but the omission so to notify the Company will not relieve it from any liability which it may have to
Indemnitee under this Agreement unless the Company is materially prejudiced by such lack of notice. With respect to any such Claim as to which Indemnitee notifies the Company of the commencement thereof: 
 (a) the Company will be entitled to participate therein at its own expense; 
 (b) except as otherwise provided below, to the extent that it may wish, the Company jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel selected by
the Board of Directors and satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election to assume the defense thereof, the Company will not be liable to Indemnitee under this Agreement for any legal or other expenses
subsequently incurred by Indemnitee in connection with the defense thereof other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ its own counsel in such action, suit or proceeding, but
the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Company,
(ii) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense of such action, or (iii) the Company shall not in fact have employed counsel to
assume the defense of such action, in each of which cases the fees and expenses of counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any claim brought by or on behalf of the Company or as to
which Indemnitee shall have made the conclusion provided for in clause (ii) above; and 
 (c) the Company shall not be liable to
indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent. The Company shall not settle any action or claim in any manner which would impose any penalty or limitation on
Indemnitee without Indemnitee’s written consent. Neither the Company nor Indemnitee will unreasonably withhold or delay their consent to any proposed settlement. 
 7. Non-exclusivity. The rights of Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under the Certificate of Incorporation, the Bylaws, the DGCL, any agreement, a vote of
the stockholders, a resolution of directors or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted
by such Indemnitee acting on behalf of the Company and at the request of the Company prior to such amendment, alteration or repeal. To the extent that a change in the DGCL (whether by statute or judicial decision), the Certificate of Incorporation
or the Bylaws permits greater indemnification by agreement than would be afforded currently under the Certificate of Incorporation, the Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement
the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

8. Liability Insurance. To the extent the Company maintains an insurance policy or policies providing directors’ and officers’
liability insurance, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any Company director or officer. If, at the time the Company receives notice from
any source of a Claim as 

  

 -4- 

 
to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company
shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such Claim in accordance with the terms of such policies. In the event of a Potential Change in Control (as defined in Section 9), the Company shall maintain in force any and all insurance policies
then maintained by the Company providing directors’ and officers’ liability insurance, in respect of Indemnitee, for a period of six years thereafter. The Company shall indemnify Indemnitee for Expenses incurred by Indemnitee in connection
with any successful action brought by Indemnitee for recovery under any insurance policy referred to in this Section 8 and shall advance to Indemnitee the Expenses of such action in the manner provided in Section 3 above. 
 9. Certain Definitions. 
 (a) A
“Change in Control” shall be deemed to have occurred if: 
 (1) any person, as that term is used in
Section 13(d) and Section 14(d)(2) of the Exchange Act, becomes, is discovered to be, or files a report on Schedule 13D or 14D-1 (or any successor schedule, form or report) disclosing that such person is a beneficial owner (as defined in
Rule 13d-3 under the Exchange Act or any successor rule or regulation), directly or indirectly, of securities of the Company representing 30% or more of the total voting power of the Company’s then outstanding Voting Securities (unless such
person becomes such a beneficial owner in connection with the initial public offering of the Company); 
 (2) during any
period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and any new director whose election by the Board of Directors or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason
to constitute a majority thereof; 
 (3) the Company, or any material subsidiary of the Company, is merged, consolidated or
reorganized into or with another corporation or other legal person (an “Acquiring Person”) or securities of the Company are exchanged for securities of an Acquiring Person, and immediately after such merger, consolidation, reorganization
or exchange less than a majority of the combined voting power of the then outstanding securities of the Acquiring Person immediately after such transaction are held, directly or indirectly, in the aggregate by the holders of Voting Securities
immediately prior to such transaction; 
 (4) the Company, or any material subsidiary of the Company, in any transaction or
series of related transactions, sells or otherwise transfers all or substantially all of its assets to an Acquiring Person, and less than a majority of the combined voting power of the then outstanding securities of the Acquiring Person immediately
after such sale or transfer is held, directly or indirectly, in the aggregate by the holders of Voting Securities immediately prior to such sale or transfer; 
  

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 (5) the Company and its subsidiaries, in any transaction or series of related
transactions, sells or otherwise transfers business operations that generated two thirds or more of the consolidated revenues (determined on the basis of the Company’s four most recently completed fiscal quarters) of the Company and its
subsidiaries immediately prior thereto; 
 (6) the Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing that a change in control of the Company has or may have occurred or will or may occur in the future pursuant to any then existing contract or transaction; or 
 (7) any other transaction or series of related transactions occur that have substantially the effect of the transactions specified in any
of the preceding clauses in this paragraph (ii). 
 Notwithstanding the provisions of Section 9(a)(1) or 9(a)(4), unless otherwise determined in a
specific case by majority vote of the Board of Directors of the Company, a Change of Control shall not be deemed to have occurred for purposes of this Agreement solely because (i) the Company, (ii) an entity in which the Company directly
or indirectly beneficially owns 50% or more of the voting securities or (iii) any Company sponsored employee stock ownership plan, or any other employee benefit plan of the Company, either files or becomes obligated to file a report or a proxy
statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any successor schedule, form or report or item therein) under the Exchange Act, disclosing beneficial ownership by it of shares of stock of the Company, or
because the Company reports that a Change in Control of the Company has or may have occurred or will or may occur in the future by reason of such beneficial ownership. 
 (b) A “Claim” is any threatened, pending or completed action, suit, proceeding or alternative dispute resolution mechanism, or any inquiry, hearing or investigation whether conducted by the Company or any
other party, whether civil, criminal, administrative, investigative or other. 
 (c) “Expenses” include attorneys’ fees and
all other costs, fees, expenses and obligations of any nature whatsoever paid or incurred in connection with investigating, defending, being a witness in or participating in (including appeal), or preparing to defend, be a witness in or participate
in any Claim relating to any Indemnifiable Event. 
 (d) An “Indemnifiable Event” is any event or occurrence (whether before or
after the date hereof) related to the fact that Indemnitee is or was a director, officer, employee, consultant, agent or fiduciary of or to the Company, or any subsidiary of the Company, or is or was serving at the request of the Company as a
director, officer, employee, trustee, agent or fiduciary of another corporation, partnership, joint venture, employee benefit plan, trust or other enterprise, or by reason of anything done or not done by Indemnitee in any such capacity. 

(e) A “Potential Change in Control” shall be deemed to have occurred if (i) the Company enters into an agreement, the consummation of
which would result in the occurrence of a Change in Control; (ii) any person (including the Company) publicly announces an intention to take or to consider taking actions which, if consummated, would constitute a Change in Control;
(iii) any person, other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company, who is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing 9.5% or more of the combined voting 

  

 -6- 

 
power of the Company’s then outstanding Voting Securities, increases such person’s beneficial ownership of such securities by five percentage
points or more over the initial percentage of such securities; or (iv) the Board of Directors of the Company adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control has occurred. 
 (f) A “Reviewing Party” is (i) the Company’s Board of Directors (provided that a majority of directors are not parties to the
particular Claim for which Indemnitee is seeking indemnification) or (ii) any other person or body appointed by the Company’s Board of Directors, who is not a party to the particular Claim for which Indemnitee is seeking indemnification,
or (iii) if there has been a Change in Control, the special independent counsel referred to in Section 2 hereof. 
 (g)
“Voting Securities” means any securities of the Company which vote generally in the election of directors. 
 10. Amendments,
Termination and Waiver. No supplement, modification, amendment or termination of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed
or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver. 
 11. Contribution. If the indemnification provided in Sections 1 and 3 is unavailable, then, in respect of any Claim in which the Company is jointly liable with Indemnitee (or would be if joined in the Claim), the Company shall
contribute to the amount of Expenses, judgments, fines, penalties and amounts paid in settlement as appropriate to reflect: (i) the relative benefits received by the Company, on the one hand, and Indemnitee, on the other hand, from the
transaction from which the Claim arose, and (ii) the relative fault of the Company, on the one hand, and of Indemnitee, on the other, in connection with the events which resulted in such Expenses, judgments, fines, penalties and amounts paid in
settlement, as well as any other relevant equitable considerations. The relative fault of the Company, on the one hand, and of Indemnitee, on the other, shall be determined by reference to, among other things, the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Expenses and Liabilities. The Company agrees that it would not be just and equitable if contribution pursuant to this Section 11 were
determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations described in this Section 11. 
 12. Subrogation. In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. 
 13. No Duplication of Payments. The Company shall not be liable under this Agreement to make any payment in connection with any Claim made
against Indemnitee to the extent Indemnitee has otherwise actually received payment (under insurance policy, Certificate of Incorporation or otherwise) of the amounts otherwise identifiable hereunder. 
 14. Binding Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their
respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Company, spouse, heirs, and personal and legal
representatives. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as a director or officer (or in one of the capacities enumerated in Section 9(d) hereof) of the Company or of any other enterprise at
the Board of Director’s request. 
  

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 15. Severability. The provisions of this Agreement shall be severable in the event that any
of the provisions hereof (including any provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, and the remaining provisions shall remain enforceable to
the fullest extent permitted by law. 
 16. Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations
among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. The Company and Indemnitee hereby irrevocably and unconditionally (i) agree
that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court and not in any other state or federal court in the United States of America or any court in any other country,
(ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, irrevocably, to the extent such party is not a resident
of the State of Delaware, as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon
such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or
proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 
 17. Identical Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against
whom enforceability is sought needs to be produced to evidence the existence of this Agreement. 
 Executed this 29 day of August, 2007. 
  

			
	SECURE COMPUTING CORPORATION
		
	By:	 	 /s/ John E. McNulty

		 	John E. McNulty
		 	President and Chief Executive Officer
	
	 /s/ Daniel Ryan

	Indemnitee

  

 -8-

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