Document:

ex10_9.htm

Exhibit 10.9

PROSPER MARKETPLACE, INC.

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (this “Agreement”) is dated as of November 2, 2011, and is between Prosper Marketplace, Inc., a Delaware corporation (the “Company”), and Jeffrey Jacobs (“Indemnitee”).

RECITALS

A.            Indemnitee’s service to the Company substantially benefits the Company.

B.             Individuals are reluctant to serve as directors or officers of corporations or in certain other capacities unless they are provided with adequate protection through insurance or indemnification against the risks of claims and actions against them arising out of such service.

C.             Indemnitee does not regard the protection currently provided by applicable law, the Company’s governing documents and any insurance as adequate under the present circumstances, and Indemnitee may not be willing to serve as a director or officer without additional protection.

D.             In order to induce Indemnitee to continue to provide services to the Company, it is reasonable, prudent and necessary for the Company to contractually obligate itself to indemnify, and to advance expenses on behalf of, Indemnitee as permitted by applicable law.

E.             This Agreement is a supplement to and in furtherance of the indemnification provided in the Company’s certificate of incorporation and bylaws, and any resolutions adopted pursuant thereto, and this Agreement shall not be deemed a substitute therefor, nor shall this Agreement be deemed to limit, diminish or abrogate any rights of Indemnitee thereunder.

The parties therefore agree as follows:

1.             Definitions.

(a)            A “Change in Control” shall be deemed to occur upon the effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity.

(b)            “Corporate Status” describes the status of a person who is or was a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other Enterprise.

(c)            “DGCL” means the General Corporation Law of the State of Delaware.

(d)            “Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

  

-1-

  

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

(f)             “Expenses” include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and costs of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond or other appeal bond or their equivalent, and (ii) for purposes of Section 12(d), Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(g)            “Independent Counsel” means a law firm, or a partner or member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than as Independent Counsel with respect to matters concerning Indemnitee under this Agreement, or other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

(h)            “Proceeding” means any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, including any appeal therefrom and including without limitation any such Proceeding pending as of the date of this Agreement, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or officer of the Company, (ii) any action taken by Indemnitee or any action or inaction on Indemnitee’s part while acting as a director or officer of the Company, or (iii) the fact that he or she is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company or any other Enterprise, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement.

(i)             Reference to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

  

-2-

  

2.              Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 2 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 2, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

3.              Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.

4.              Indemnification for Expenses of a Party Who is Wholly or Partly Successful. To the extent that Indemnitee is a party to or a participant in and is successful (on the merits or otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. To the extent permitted by applicable law, if Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, in defense of one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with (a) each successfully resolved claim, issue or matter and (b) any claim, issue or matter related to any such successfully resolved claim, issuer or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

5.              Indemnification for Expenses of a Witness. To the extent that Indemnitee is, by reason of his or her Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified to the extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

6.              Additional Indemnification.

(a)            Notwithstanding any limitation in Sections 2, 3 or 4, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her behalf in connection with the Proceeding or any claim, issue or matter therein.

(b)            For purposes of Section 6(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall include, but not be limited to:

  

-3-

  

(i)     the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL; and

(ii)    the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

7.              Exclusions. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any Proceeding (or any part of any Proceeding):

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

(b)            for an accounting or disgorgement of profits pursuant to Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of federal, state or local statutory law or common law, if Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

(c)            for any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Securities Exchange Act of 1934, as amended (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

(d)            initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees, agents or other indemnitees, unless (i) the Company’s board of directors authorized the Proceeding (or the relevant part of the Proceeding) prior to its initiation, (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law, (iii) otherwise authorized in Section 12(d) or (iv) otherwise required by applicable law; or

(e)            if prohibited by applicable law.

8.              Advances of Expenses. The Company shall advance the Expenses incurred by Indemnitee in connection with any Proceeding, and such advancement shall be made as soon as reasonably practicable, but in any event no later than 30 days, after the receipt by the Company of a written statement or statements requesting such advances from time to time (which shall include invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditure made that would cause Indemnitee to waive any privilege accorded by applicable law shall not be included with the invoice). Advances shall be unsecured and interest free and made without regard to Indemnitee’s ability to repay such advances. Indemnitee hereby undertakes to repay any advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. This Section 8 shall not apply to the extent advancement is prohibited by law and shall not apply to any Proceeding for which indemnity is not permitted under this Agreement, but shall apply to any Proceeding referenced in Section 7(b) or 7(c) prior to a determination that Indemnitee is not entitled to be indemnified by the Company.

  

-4-

  

9.              Procedures for Notification and Defense of Claim.

(a)            Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses as soon as reasonably practicable following the receipt by Indemnitee of notice thereof. The written notification to the Company shall include, in reasonable detail, a description of the nature of the Proceeding and the facts underlying the Proceeding. The failure by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights, except to the extent that such failure or delay materially prejudices the Company.

(b)            If, at the time of the receipt of a notice of a Proceeding pursuant to the terms hereof, the Company has directors’ and officers’ liability insurance in effect, the Company shall give prompt notice of the commencement of the Proceeding to the insurers in accordance with the procedures set forth in the applicable policies. The Company shall thereafter take all commercially-reasonable action to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

(c)            In the event the Company may be obligated to make any indemnity in connection with a Proceeding, the Company shall be entitled to assume the defense of such Proceeding with counsel approved by Indemnitee, which approval shall not be unreasonably withheld, upon the delivery to Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company, the Company will not be liable to Indemnitee for any fees or expenses of counsel subsequently incurred by Indemnitee with respect to the same Proceeding. Notwithstanding the Company’s assumption of the defense of any such Proceeding, the Company shall be obligated to pay the fees and expenses of Indemnitee’s counsel to the extent (i) the employment of counsel by Indemnitee is authorized by the Company, (ii) counsel for the Company or Indemnitee shall have reasonably concluded that there is a conflict of interest between the Company and Indemnitee in the conduct of any such defense such that Indemnitee needs to be separately represented, (iii) the fees and expenses are non-duplicative and reasonably incurred in connection with Indemnitee’s role in the Proceeding despite the Company’s assumption of the defense, (iv) the Company is not financially or legally able to perform its indemnification obligations or (v) the Company shall not have retained, or shall not continue to retain, such counsel to defend such Proceeding. The Company shall have the right to conduct such defense as it sees fit in its sole discretion. Regardless of any provision in this Agreement, Indemnitee shall have the right to employ counsel in any Proceeding at Indemnitee’s personal expense. The Company shall not be entitled, without the consent of Indemnitee, to assume the defense of any claim brought by or in the right of the Company.

(d)            Indemnitee shall give the Company such information and cooperation in connection with the Proceeding as may be reasonably appropriate.

(e)            The Company shall not be liable to indemnify Indemnitee for any settlement of any Proceeding (or any part thereof) without the Company’s prior written consent, which shall not be unreasonably withheld.

  

-5-

  

10.            Procedures upon Application for Indemnification.

(a)            To obtain indemnification, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and as is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of the Proceeding. The Company shall, as soon as reasonably practicable after receipt of such a request for indemnification, advise the board of directors that Indemnitee has requested indemnification. Any delay in providing the request will not relieve the Company from its obligations under this Agreement, except to the extent such failure is prejudicial.

(b)            Upon written request by Indemnitee for indemnification pursuant to Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Company’s board of directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten days after such determination. Indemnitee shall cooperate with the person, persons or entity making the determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information that is not privileged or otherwise protected from disclosure and that is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company, to the extent permitted by applicable law.

(c)            In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(b), the Independent Counsel shall be selected as provided in this Section 10(c). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Company’s board of directors, and the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Company’s board of directors, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after the later of (i) submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof and (ii) the final disposition of the Proceeding, the parties have not agreed upon an Independent Counsel, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 10(b) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of this Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

  

-6-

  

(d)            The Company agrees to pay the reasonable fees and expenses of any Independent Counsel and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

11.            Presumptions and Effect of Certain Proceedings.

(a)            In making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by such person, persons or entity of any determination contrary to that presumption.

(b)            The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

(c)            For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith to the extent Indemnitee relied in good faith on (i) the records or books of account of the Enterprise, including financial statements, (ii) information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, (iii) the advice of legal counsel for the Enterprise or its board of directors or counsel selected by any committee of the board of directors or (iv) information or records given or reports made to the Enterprise by an independent certified public accountant, an appraiser, investment banker or other expert selected with reasonable care by the Enterprise or its board of directors or any committee of the board of directors. The provisions of this Section 11(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

(d)            Neither the knowledge, actions nor failure to act of any other director, officer, agent or employee of the Enterprise shall be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

12.            Remedies of Indemnitee.

(a)            Subject to Section 12(e), in the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 or 12(d) of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10 of this Agreement within 90 days after the later of the receipt by the Company of the request for indemnification or the final disposition of the Proceeding, (iv) payment of indemnification pursuant to this Agreement is not made (A) within ten days after a determination has been made that Indemnitee is entitled to indemnification or (B) with respect to indemnification pursuant to Sections 4, 5 and 12(d) of this Agreement, within 30 days after receipt by the Company of a written request therefor, or (v) the Company or any other person or entity takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of competent jurisdiction of his or her entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in arbitration with respect to his or her entitlement to such indemnification or advancement of Expenses, to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his or her rights under Section 4 of this Agreement. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration in accordance with this Agreement.

  

-7-

  

(b)            Neither (i) the failure of the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders to have made a determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor (ii) an actual determination by the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders that Indemnitee has not met the applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has or has not met the applicable standard of conduct. In the event that a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits, and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 12, the Company shall, to the fullest extent not prohibited by law, have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

(c)            To the fullest extent not prohibited by law, the Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. If a determination shall have been made pursuant to Section 10 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statements not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

(d)            To the extent not prohibited by law, the Company shall indemnify Indemnitee against all Expenses that are incurred by Indemnitee in connection with any action for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company to the extent Indemnitee is successful in such action, and, if requested by Indemnitee, shall (as soon as reasonably practicable, but in any event no later than 60 days, after receipt by the Company of a written request therefor) advance such Expenses to Indemnitee, subject to the provisions of Section 8.

  

-8-

  

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

13.            Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amounts incurred by Indemnitee, whether for Expenses, judgments, fines or amounts paid or to be paid in settlement, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the events and transactions giving rise to such Proceeding; and (ii) the relative fault of Indemnitee and the Company (and its other directors, officers, employees and agents) in connection with such events and transactions.

14.            Non-exclusivity. The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company’s certificate of incorporation or bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Company’s certificate of incorporation and 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, subject to the restrictions expressly set forth herein or therein. Except as expressly set forth herein, 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. Except as expressly set forth herein, 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.

15.            Primary Responsibility. The Company acknowledges that Indemnitee may have certain rights to indemnification and advancement of expenses provided by a venture capital fund and/or certain affiliates thereof (collectively, the “Secondary Indemnitors”). The Company agrees that, as between the Company and the Secondary Indemnitors, the Company is primarily responsible for amounts required to be indemnified or advanced under the Company’s certificate of incorporation or bylaws or this Agreement and any obligation of the Secondary Indemnitors to provide indemnification or advancement for the same amounts is secondary to those Company obligations. The Company waives any right of contribution or subrogation against the Secondary Indemnitors with respect to the liabilities for which the Company is primarily responsible under this Section 15. In the event of any payment by the Secondary Indemnitors of amounts otherwise required to be indemnified or advanced by the Company under the Company’s certificate of incorporation or bylaws or this Agreement, the Secondary Indemnitors shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee for indemnification or advancement of expenses under the Company’s certificate of incorporation or bylaws or this Agreement or, to the extent such subrogation is unavailable and contribution is found to be the applicable remedy, shall have a right of contribution with respect to the amounts paid. The Secondary Indemnitors are express third-party beneficiaries of the terms of this Section 15.

16.            No Duplication of Payments. Subject to Section 15 of this Agreement, the Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment for such amounts under any insurance policy, contract, agreement or otherwise.

  

-9-

  

17.            Insurance. To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, trustees, general partners, managing members, officers, employees, agents or fiduciaries of the Company or any other Enterprise, Indemnitee shall be covered by such policy or policies to the same extent as the most favorably-insured persons under such policy or policies in a comparable position.

18.            Subrogation. In the event of any 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 take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

19.            Services to the Company. Indemnitee agrees to serve as a director or officer of the Company or, at the request of the Company, as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of another Enterprise, for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation or is removed from such position. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee specifically acknowledges that any employment with the Company (or any of its subsidiaries or any Enterprise) is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, with or without notice, except as may be otherwise expressly provided in any executed, written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), any existing formal severance policies adopted by the Company’s board of directors or, with respect to service as a director or officer of the Company, the Company’s certificate of incorporation or bylaws or the DGCL. No such document shall be subject to any oral modification thereof.

20.            Duration. This Agreement shall be effective as of the date that Indemnitee began service as a director or officer of the Company, or as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of any other Enterprise, as applicable, and shall continue until and terminate upon the later of (a) ten years after the date that Indemnitee shall have ceased to serve as a director or officer of the Company or as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of any other Enterprise, as applicable; or (b) one year after the final termination of any Proceeding, including any appeal, then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 12 of this Agreement relating thereto.

21.            Successors. This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

22.            Severability. Nothing in this Agreement is intended to require or shall be construed as requiring the Company to do or fail to do any act in violation of applicable law. The Company’s inability, pursuant to court order or other applicable law, to perform its obligations under this Agreement shall not constitute a breach of this Agreement. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (i) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (ii) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (iii) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

  

-10-

  

23.            Enforcement. The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

24.            Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Company’s certificate of incorporation and bylaws and applicable law.

25.            Modification and Waiver. No supplement, modification or amendment to this Agreement shall be binding unless executed in writing by the parties hereto. No amendment, alteration or repeal of this Agreement shall adversely affect any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his or her Corporate Status prior to such amendment, alteration or repeal. No waiver of any of the provisions of this Agreement shall constitute or be deemed a waiver of any other provision of this Agreement nor shall any waiver constitute a continuing waiver.

26.            Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed by registered or certified mail, postage prepaid, sent by facsimile or electronic mail or otherwise delivered by hand, messenger or courier service addressed:

(a)            if to Indemnitee, to Indemnitee’s address, facsimile number or electronic mail address as shown on the signature page of this Agreement or in the Company’s records, as may be updated in accordance with the provisions hereof; or

(b)            if to the Company, to the attention of the Chief Executive Officer or Chief Financial Officer of the Company at 111 Sutter Street, 22nd Floor, San Francisco, California 94101, or at such other current address as the Company shall have furnished to Indemnitee.

Each such notice or other communication shall for all purposes of this Agreement be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day.

  

-11-

  

27.            Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court of Chancery, 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 of Chancery for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, The Corporation Trust Company, Wilmington, 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 of Chancery, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court of Chancery has been brought in an improper or inconvenient forum.

28.            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. This Agreement may also be executed and delivered by facsimile signature and in 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.

29.            Captions. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

(Signature Page Follows)

  

-12-

  

The parties are signing this Indemnification Agreement as of the date stated in the introductory sentence.

	  	
PROSPER MARKETPLACE, INC.

	  	
a Delaware corporation

	  	  	  
	  	
By:

	
/s/ Christian Larsen

	  	  	  
	  	
Name: Christian Larsen

	  	  	  
	  	
Title: President and CEO

	  	  	  
	  	
INDEMNITEE:

	  	  	  
	  	
/s/ Jeffrey D. Jacobs

	  	
(Signature)

	  	  	  
	  	
Jeffrey D. Jacobs

	  	
(Print name)

	  	  	  
	  	  	  
	  	
(Street address)

	  	  	  
	  	  	  
	  	
(City, State and ZIP)

	  	  	  
	  	  	  
	  	
(Facsimile Number)

	  	  	  
	  	  	  
	  	
(Email Address)

[SIGNATURE PAGE TO INDEMNIFICATION AGREEMENT]

  

 

  

EXHIBIT A

Schedule of Other Officer and Director Indemnification Agreements

	
Name of Counterparty to PMI

 

	
Date of Agreement

	
Josh Tonderys

 

	September 24, 2012
	
Joseph Toms

 

	
June 27, 2011

	
Tim Draper

 

	
June 3, 2011

	
James Alexander

 

	
March 9, 2011

	
Roberto Arnetoli

 

	
October 21, 2010

	
Court Coursey

 

	
April 15, 2010

	
Nick Talwar

 

	
March 4, 2010

	
Sachin Adarkar

 

	
March 1, 2010

	
James Catlin

 

	
March 1, 2010

	
Chris Denend

 

	
March 1, 2010Exhibit 10.73

 

SYMMETRY
MEDICAL INC.

AMENDED AND RESTATED

2004 EMPLOYEE STOCK PURCHASE PLAN

 

As Amended July 1, 2005 and November
16, 2012

 

		1.	Purpose.
                                                           The purpose of the Plan is to provide
                                                           incentive for present and future employees of the Company and any Designated
                                                           Subsidiary to acquire a proprietary interest (or increase an existing
                                                           proprietary interest) in the Company through the purchase of Common
                                                           Stock. It is the Company's intention that the Plan qualify as an "employee
                                                           stock purchase plan" under Section 423 of the Code. Accordingly,
                                                           the provisions of the Plan shall be administered, interpreted and construed
                                                           in a manner consistent with the requirements of that section of the
                                                           Code.

 

		2.	Definitions.

 

a)         "Applicable
Percentage" means the percentage specified in Section 7(b), subject to adjustment by the Committee as provided in Section
7(b).

 

b)         "Board"
means the Board of Directors of the Company.

 

c)         "Code"
means the Internal Revenue Code of 1986, as amended, and any successor thereto.

 

d)         "Committee"
means the committee appointed by the Board to administer the Plan as described in Section 15 of the Plan or, if no such Committee
is appointed, the Board.

 

e)         "Common
Stock" means the Company's common stock, par value $0.0001 per share, after giving effect to the Company's common stock split
in connection with the Company's planned Initial Public Offering (the "Common Stock Split"). All Common Stock share numbers
set forth in this Plan refer to numbers of shares of Common Stock after giving effect to the Common Stock Split.

 

f)         "Company"
means Symmetry Medical Inc., a Delaware corporation.

 

g)         "Compensation"
means, with respect to each Participant for each pay period, the full base salary and overtime paid to such Participant by the
Company or a Designated Subsidiary. Except as otherwise determined by the Committee, "Compensation" does not include:
(i) bonuses, (ii) any amounts contributed by the Company or a Designated Subsidiary to any pension plan, (iii) any automobile or
relocation allowances (or reimbursement for any such expenses), (iv) any amounts paid as a starting bonus or finder's fee, (v)
any amounts realized from the exercise of any stock options or incentive awards, (vi) any amounts paid by the Company or a Designated
Subsidiary for other fringe benefits, such as health and welfare, hospitalization and group life insurance benefits, or perquisites,
or paid in lieu of such benefits, or (vii) other similar forms of extraordinary compensation.

 

    	 

    	 

    

 

h)         "Continuous
Status as an Employee" means the absence of any interruption or termination of service as an Employee. Continuous Status as
an Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company or the Designated
Subsidiary that employs the Employee, provided that such leave is for a period of not more than 90 days or reemployment upon the
expiration of such leave is guaranteed by contract or statute.

 

i)         "Designated
Subsidiaries" means the Subsidiaries that have been designated by the Board from time to time in its sole discretion as eligible
to participate in the Plan.

 

j)         "Employee"
means any person, including an Officer, who is employed by the Company or one of its Designated Subsidiaries.

 

k)         "Entry
Date" means the first Trading Day of each Exercise Period.

 

l)         "Exchange
Act" means the Securities Exchange Act of 1934, as amended.

 

m)         "Exercise
Date" means the last Trading Day of each Exercise Period.

 

n)         "Exercise
Period" means, subject to adjustment as provided in Section 4(b), the approximately six (6) month period beginning on each
June 1 and ending the last Trading Day on or before November 31 of such year, or beginning on each December 1 and ending the last
Trading Day on or before May 31 of such year.

 

o)         "Exercise
Price" means the price per share of Common Stock offered in a given Exercise Period determined as provided in Section 7(b).

 

p)         "Fair
Market Value" means, with respect to a share of Common Stock, the Fair Market Value as determined under Section 7(c).

 

q)         "Offering
Date" means the first Trading Day of each Exercise Period.

 

r)         "Officer"
means a person who is an officer of the Company within the meaning of Section 16 under the Exchange Act and the rules and regulations
promulgated thereunder.

 

s)         "Participant"
means an Employee who has elected to participate in the Plan by filing an enrollment agreement with the Company as provided in
Section 5 hereof.

 

t)         "Plan"
means the Symmetry Medical Inc. 2004 Employee Stock Purchase Plan, as in effect from time to time.

 

u)         "Plan
Contributions" means, with respect to each Participant, the lump sum cash transfers, if any, made by the Participant to the
Plan pursuant to Section 6(a) hereof, plus the after-tax payroll deductions, if any, withheld from the Compensation of the Participant
and contributed to the Plan for the Participant as provided in Section 6 hereof, and any other amounts contributed to the Plan
for the Participant in accordance with the terms of the Plan.

 

    	 

    	 

    

 

v)         "Subsidiary"
means any corporation, domestic or foreign, of which the Company owns, directly or indirectly, 50% or more of the total combined
voting power of all classes of stock, and that otherwise qualifies as a "subsidiary corporation" within the meaning of
Section 424(f) of the Code.

 

w)         "Trading Day"
means a day on which the New York Stock Exchange is open for trading.

 

3.         Eligibility.
Any individual who was an Employee as of December 8, 2004 and has not withdrawn from the Plan (and is not treated as having withdrawn
under the Plan) shall remain a Participant until they withdraw from the Plan (or are treated as having withdrawn under the Plan),
or any individual who is an Employee as of the Offering Date of a given Exercise Period shall be eligible to become a Participant
as of the Entry Date of such Exercise Period.

 

4.         Exercise
Periods.

 

a)         In
General. The Plan shall generally be implemented by a series of Exercise Periods, each of which last approximately
six (6) months.

 

b)         Changes
by Committee. The Committee shall have the power to make changes to the duration and/or the frequency of Exercise Periods
with respect to future offerings if such change is announced at least five (5) days prior to the scheduled beginning of the first
Exercise Period to be affected.

 

5.        Participation.
Employees meeting the eligibility requirements of Section 3 hereof may elect to participate in the Plan commencing on any Entry
Date by completing an enrollment agreement on the form provided by the Company and filing the enrollment agreement with the Company
on or prior to such Entry Date, unless a later time for filing the enrollment agreement is set by the Committee for all eligible
Employees with respect to a given offering.

 

6.        Plan
Contributions.

 

a)         Contribution
by Payroll Deduction. 
 Except as otherwise authorized by the Committee, all contributions to the Plan shall be made only by payroll deductions.
The Committee may, but need not, permit Participants to make after-tax contributions to the Plan at such times and subject to
such terms and conditions as the Committee may in its discretion determine. All such additional contributions shall be made in
a manner consistent with the provisions of Section 423 of the Code or any successor thereto, and shall be treated in the same
manner as payroll deductions contributed to the Plan as provided herein.

 

b)         Payroll
Deduction Election on Enrollment Agreement. At the time a Participant files the enrollment agreement with respect to
an Exercise Period, the Participant may authorize payroll deductions to be made on each payroll date during the portion of the
Exercise Period that he or she is a Participant in an amount not less than 1% and not more than 10% of the Participant's Compensation
on each payroll date during the portion of the Exercise Period that he or she is a Participant. The amount of payroll deductions
must be a whole percentage (e.g., 1%, 2%, 3%, etc.) of the Participant's Compensation.

 

    	 

    	 

    

 

c)         Commencement
of Payroll Deductions. Except as otherwise determined by the Committee under rules applicable to all Participants, payroll
deductions shall commence with the earliest administratively practicable payroll period that begins on or after the Entry Date
with respect to which the Participant files an enrollment agreement in accordance with Section 5.

 

d)         Automatic Continuation of Payroll
Deductions. Unless a Participant elects otherwise prior to the Exercise Date of an Exercise Period, including the Exercise
Date prior to termination in the case of an Exercise Period terminated under Section 4(b) hereof, such Participant shall be deemed
(i) to have elected to participate in the immediately succeeding Exercise Period (and, for purposes of such Exercise Period the
Participant's "Entry Date" shall be deemed to be the first day of such Exercise Period) and (ii) to have authorized the
same payroll deduction for the immediately succeeding Exercise Period as was in effect for the Participant immediately prior to
the commencement of the succeeding Exercise Period.

 

e)         Change of Payroll Deduction Election.
A Participant may decrease or increase the rate or amount of his or her payroll deductions during an Exercise Period (within the
limitations of Section 6(b) above) by completing and filing with the Company a new enrollment agreement authorizing a change in
the rate or amount of payroll deductions; provided, that a Participant may not change the rate or amount of his or her payroll
deductions more than once in any Exercise Period. Except as otherwise determined by the Committee under rules applicable to all
Participants, the change in rate or amount shall be effective as of the earliest administratively practicable payroll period that
begins on or after the date the Committee receives the new enrollment agreement. Additionally, a Participant may discontinue his
or her participation in the Plan as provided in Section 13(a).

 

f)         Automatic
Changes in Payroll Deduction. Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8)
of the Code, Section 7(d) hereof, or any other applicable law, a Participant's payroll deductions for any calendar year may be
decreased, including to 0%, at such time during such calendar year that the aggregate of all payroll deductions accumulated during
such calendar year are equal to the product of $25,000 multiplied by the Applicable Percentage for the calendar year. Payroll
deductions shall recommence at the rate provided in the Participant's enrollment agreement at the beginning of the first Exercise
Period beginning in the following calendar year, unless the Participant terminates participation as provided in Section 13(a).

 

    	 

    	 

    

 

		7.	Grant of Option.

 

a)         Shares
of Common Stock Subject to Option. On a Participant's Entry Date, subject to the limitations set forth in Section 7(d) and
this Section 7(a), the Participant shall be granted an option to purchase on the subsequent Exercise Date (at the Exercise Price
determined as provided in Section 7(b) below) up to a number of shares of Common Stock determined by dividing such Participant's
Plan Contributions accumulated prior to such Exercise Date and retained in the Participant's account as of such Exercise Date
by the Exercise Price; provided, that the maximum number of shares a Participant may purchase during any Exercise Period shall
be 750.

 

b)         Exercise
Price. The Exercise Price per share of Common Stock offered to each Participant in a given Exercise Period shall be
the Applicable Percentage of the Fair Market Value of a share of Common Stock on the Exercise Date. The Applicable Percentage
with respect to each Exercise Period shall be 95%, unless and until such Applicable Percentage is increased by the Committee,
in its sole discretion, provided that any such increase in the Applicable Percentage with respect to a given Exercise Period must
be established not less than fifteen (15) days prior to the Offering Date thereof.

 

c)         Fair
Market Value. The Fair Market Value of a share of Common Stock on a given date shall be determined by the Committee
in its discretion; provided, that if there is a public market for the Common Stock, the Fair Market Value per share shall be either
(i) if the Common Stock is listed on a stock exchange, the closing price of the Common Stock on such exchange on such date (or,
in the event that the Common Stock is not traded on such date, on the immediately preceding trading date), as reported in The
Wall Street Journal, (ii) in the event the Common Stock is not traded on a stock exchange, the closing price of the Common Stock
on such date (or, in the event that the Common Stock is not traded on such date, on the immediately preceding trading date), as
reported by the National Association of Securities Dealers Automated Quotation (Nasdaq) National Market System, (iii) if such
price is not reported, the average of the bid and asked prices for the Common Stock on such date (or, in the event that the Common
Stock is not traded on such date, on the immediately preceding trading date), as reported by Nasdaq, or (iv) if no such quotations
are available for a date within a reasonable time prior to the valuation date, the value of the Common Stock as determined by
the Committee using any reasonable means.

 

d)         Limitation
on Option that may be Granted. Notwithstanding any provision of the Plan to the contrary, no Participant shall be granted
an option under the Plan (i) to the extent that if, immediately after the grant, such Employee (including any stock which is attributed
to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase stock possessing,
in the aggregate, 5% or more of the total combined voting power or value of all classes of stock of the Company or of any Subsidiary
of the Company as computed under Section 423(b)(3) of the Code and the Treasury Regulations thereunder, or (ii) to the extent
that his or her rights to purchase stock under all employee stock purchase plans of the Company and its Subsidiaries intended
to qualify under Section 423 of the Code accrue at a rate which exceeds $25,000 of Fair Market Value of stock (determined at the
time such option is granted) for each calendar year in which such option is outstanding at any time, as determined in accordance
with section 423(b)(8) of the Code and the Treasury Regulations thereunder.

 

    	 

    	 

    

 

 

e)         No Rights
as Shareholder. A Participant will have no interest or voting right in shares covered by his option until such option
has been exercised.

 

8.         Exercise
of Options.

 

a)         Automatic
Exercise. A Participant's option for the purchase of shares will be exercised automatically on each Exercise Date, and
the maximum number of full or fractional shares subject to the option shall be purchased for the Participant at the
applicable Exercise Price with the accumulated Plan Contributions then credited to the Participant's account under the Plan.
During a Participant's lifetime, a Participant's option to purchase shares hereunder is exercisable only by the
Participant.

 

b)         Carryover
of Excess Contributions. Any amount remaining to the credit of a Participant's account after the purchase of shares
by the Participant on an Exercise Date, shall remain in the Participant's account, and be carried over to the next Exercise Period,
unless the Participant withdraws from participation in the Plan or elects to withdraw his or her account balance in accordance
with Section 10(c).

 

9.         Issuance of Shares.

 

a)         Delivery
of Shares. The Company will hold in book-entry the shares of Common Stock purchased by each Participant under the Plan. Upon
receipt of written request from or on behalf of a Participant, the Company shall, as promptly as practicable, arrange for the
delivery to such Participant (or the Participant's beneficiary), as appropriate, or to a custodial account for the benefit of
such Participant (or the Participant's beneficiary) as appropriate, of a certificate representing the full shares purchased under
the Plan, with payment made for any fractional shares, and the Company shall assume, for tax purposes, such Participant's disposition
of the underlying shares (unless such Participant clearly advises the Company otherwise in writing). In the event that a Participant
provides a written statement of his intention not to sell or otherwise dispose of such shares as set forth in the foregoing sentence,
such Participant shall be required to report to the Company any subsequent disposition of such shares prior to the expiration
of the holding periods specified by Section 422(a)(1) of the Code. If and to the extent that such disposition imposes upon the
Company federal, state, local or other withholding tax requirements, or any such withholding is required to secure for the Company
an otherwise available tax deduction, the Participant must remit to the Company an amount sufficient to satisfy those requirements.

 

b)         Registration
of Shares. Shares to be delivered to a Participant under the Plan will be registered in the name of the Participant
or in the name of the Participant and his or her spouse, as requested by the Participant.

 

c)         Compliance
with Applicable Laws. The Plan, the grant and exercise of options to purchase shares under the Plan, and the Company's obligation
to sell and deliver shares upon the exercise of options to purchase shares shall be subject to compliance with all applicable
federal, state and foreign laws, rules and regulations and the requirements of any stock exchange on which the shares may then
be listed.

 

    	 

    	 

    

 

d)         Withholding.
The Company may make such provisions as it deems appropriate for withholding by the Company pursuant to federal or state tax laws
of such amounts as the Company determines it is required to withhold in connection with the purchase or sale by a Participant
of any Common Stock acquired pursuant to the Plan. The Company may require a Participant to satisfy any relevant tax requirements
before authorizing any issuance of Common Stock to such Participant.

 

10.       Participant
Accounts.

 

a)         Bookkeeping
Accounts Maintained. Individual bookkeeping accounts will be maintained for each Participant in the Plan to account for the
balance of his Plan Contributions, options issued, and shares purchased under the Plan. However, all Plan Contributions made for
a Participant shall be deposited in the Company's general corporate accounts, and no interest shall accrue or be credited with
respect to a Participant's Plan Contributions. All Plan Contributions received or held by the Company may be used by the Company
for any corporate purpose, and the Company shall not be obligated to segregate or otherwise set apart such Plan Contributions
from any other corporate funds.

 

b)         Participant
Account Statements.  Statements of account will be provided to Participants periodically by the administrator, which
statements will set forth the amounts of payroll deductions, the per share purchase price and the number of shares purchased.

 

c)         Withdrawal
of Account Balance Following Exercise Date. A Participant may elect at any time within the first thirty (30) days following
any Exercise Period, or at such other time as the Committee may from time to time prescribe, to receive in cash any amounts carried-over
in accordance with Section 8(b). An election under this Section 10(c) shall not be treated as a withdrawal from participation
in the Plan under Section 13(a).

 

11.       Designation
of Beneficiary.

 

a)         Designation.
A Participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the Participant's
account under the Plan in the event of the Participant's death subsequent to an Exercise Date on which the Participant's option
hereunder is exercised but prior to delivery to the Participant of such shares and cash. In addition, a Participant may file a
written designation of a beneficiary who is to receive any cash from the Participant's account under the Plan in the event of
the Participant's death prior to the exercise of the option.

 

b)         Change
of Designation. A Participant's beneficiary designation may be changed by the Participant at any time by written notice.
In the event of the death of a Participant and in the absence of a beneficiary validly designated under the Plan who is living
at the time of such Participant's death, the Company shall deliver such shares and/or cash to the executor or administrator of
the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of
the Participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may
designate.

 

    	 

    	 

    

 

 

c)         Transferability. Neither
Plan Contributions credited to a Participant's account nor any rights to exercise any option or receive shares of Common Stock
under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will or the laws of descent
and distribution, or as provided in Section 11). Any attempted assignment, transfer, pledge or other distribution shall be without
effect, except that the Company may treat such act as an election to withdraw in accordance with Section 13(a).

 

12.       Withdrawal; Termination of
Employment.

  

a)         Withdrawal.
A Participant may withdraw from the Plan at any time by completing a cancellation agreement online at www.computershare.com. Payroll
deductions, if any have been authorized, shall cease as soon as administratively practicable after receipt of the Participant's
notice of withdrawal, and subject to administrative practicability, no further purchases shall be made for the Participant's account.
All Plan Contributions credited to the Participant's account, if any, and not yet invested in Common Stock, will be paid to the
Participant as soon as administratively practicable after receipt of the Participant's notice of withdrawal. The Participant's
unexercised options to purchase shares pursuant to the Plan automatically will be terminated. Payroll deductions will not resume
on behalf of a Participant who has withdrawn from the Plan unless the Former Participant enrolls in a subsequent Exercise Period
in accordance with Section 5.

 

b)         Termination
of Employment. Upon termination of a Participant's Continuous Status as an Employee prior to any Exercise Date for
any reason, including retirement or death, the Plan Contributions credited to the Participant's account and not yet invested in
Common Stock will be returned to the Participant or, in the case of death, to the Participant's beneficiary as determined pursuant
to Section 11, and the Participant's option to purchase shares under the Plan will automatically terminate.

 

13.      Common Stock Available under
the Plan.

 

a)         Number
of Shares. Subject to adjustment as provided in Section 14(b) below, the maximum number of shares of the Company's Common
Stock that shall be made available for sale under the Plan shall be 600,000 shares, plus an automatic annual increase on the first
day of each of the Company's fiscal years beginning in 2006 and ending in 2014 equal to the lesser of (i) 100,000 shares, (ii)
1% of all shares of Common Stock outstanding on the last day of the immediately preceding fiscal year, or (iii) a lesser amount
determined by the Board. Shares of Common Stock subject to the Plan may be newly issued shares or shares reacquired in private
transactions or open market purchases. If and to the extent that any right to purchase reserved shares shall not be exercised
by any Participant for any reason or if such right to purchase shall terminate as provided herein, shares that have not been so
purchased hereunder shall again become available for the purpose of the Plan unless the Plan shall have been terminated, but all
shares sold under the Plan, regardless of source, shall be counted against the limitation set forth above.

 

    	 

    	 

    

 

b)         Adjustments
Upon Changes in Capitalization; Corporate Transactions.  If the outstanding shares of Common Stock are increased or
decreased, or are changed into or are exchanged for a different number or kind of shares, as a result of one or more reorganizations,
restructurings, recapitalizations, reclassifications, stock splits, reverse stock splits, stock dividends or the like, upon authorization
of the Committee, appropriate adjustments shall be made in the number and/or kind of shares, and the per-share option price thereof,
which may be issued in the aggregate and to any Participant upon exercise of options granted under the Plan.

 

In the
event of the proposed dissolution or liquidation of the Company, the Exercise Period will terminate immediately prior to the consummation
of such proposed action, unless otherwise provided by the Committee.

 

In the
event of a proposed sale of all or substantially all of the Company's assets, or the merger of the Company with or into another
corporation (each, a "Sale Transaction"), each option under the Plan shall be assumed or an equivalent option shall be
substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Committee determines,
in the exercise of its sole discretion and in lieu of such assumption or substitution, to shorten the Exercise Period then in progress
by setting a new Exercise Date (the "New Exercise Date"). If the Committee shortens the Exercise Period then in progress
in lieu of assumption or substitution in the event of a Sale Transaction, the Committee shall notify each Participant in writing,
at least ten (10) days prior to the New Exercise Date, that the exercise date for such Participant's option has been changed to
the New Exercise Date and that such Participant's option will be exercised automatically on the New Exercise Date, unless prior
to such date the Participant has withdrawn from the Plan as provided in Section 13(a). For purposes of this Section 14(b), an option
granted under the Plan shall be deemed to have been assumed if, following the Sale Transaction, the option confers the right to
purchase, for each share of option stock subject to the option immediately prior to the Sale Transaction, the consideration (whether
stock, cash or other securities or property) received in the Sale Transaction by holders of Common Stock for each share of Common
Stock held on the effective date of the Sale Transaction (and if such holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, that if the consideration
received in the Sale Transaction was not solely common stock of the successor corporation or its parent (as defined in Section
424(e) of the Code), the Committee may, with the consent of the successor corporation and the Participant, provide for the consideration
to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in fair market
value to the per share consideration received by the holders of Common Stock in the Sale Transaction.

 

In all
cases, the Committee shall have sole discretion to exercise any of the powers and authority provided under this Section 14, and
the Committee's actions hereunder shall be final and binding on all Participants. 

 

    	 

    	 

    
 

14.       Administration.

  

a)         Committee.
The Plan shall be administered by the Committee. The Committee shall have the authority to interpret the Plan, to prescribe, amend
and rescind rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration
of the Plan. The administration, interpretation, or application of the Plan by the Committee shall be final, conclusive and binding
upon all persons.

 

b)         Requirements
of Exchange Act. Notwithstanding the provisions of Section 15(a) above, in the event that Rule 16b-3 promulgated under the
Exchange Act or any successor provision thereto ("Rule 16b-3") provides specific requirements for the administrators
of plans of this type, the Plan shall only be administered by such body and in such a manner as shall comply with the applicable
requirements of Rule 16b-3.

 

15.       Amendment, Suspension,
and Termination of the Plan.

 

a)         Amendment
of the Plan. The Board or the Committee may at any time, or from time to time, amend the Plan in any respect; provided,
that (i) except as otherwise provided in Section 4(b) hereof, no such amendment may make any change in any option theretofore
granted which adversely affects the rights of any Participant and (ii) the Plan may not be amended in any way that will cause
rights issued under the Plan to fail to meet the requirements for employee stock purchase plans as defined in Section 423 of the
Code or any successor thereto. To the extent necessary to comply with Rule 16b-3 under the Exchange Act, Section 423 of the Code,
or any other applicable law or regulation), the Company shall obtain shareholder approval of any such amendment.

 

b)         Suspension
of the Plan. The Board or the Committee may, as of the close of any Exercise Date, suspend the Plan; provided, that the Board
or Committee provides notice to the Participants at least five (5) business days prior to the suspension. The Board or Committee
may resume the normal operation of the Plan as of any Exercise Date; provided further, that the Board or Committee provides notice
to the Participants at least twenty (20) business days prior to the date of termination of the suspension period. A Participant
shall remain a Participant in the Plan during any suspension period (unless he or she withdraws pursuant to Section 13(a)), however
no options shall be granted or exercised, and no payroll deductions shall be made in respect of any Participant during the suspension
period. Participants shall have the right to withdraw carryover funds provided in Section 10(c) throughout any suspension period.
The Plan shall resume its normal operation upon termination of a suspension period.

 

c)         Termination
of the Plan. The Plan and all rights of Employees hereunder shall terminate on the earliest of:

 

		·	The Exercise Date that Participants become entitled to purchase a number of shares greater than
the number of reserved shares remaining available for purchase under the Plan;

		·	Such date as is determined by the Board in its discretion; or

  

    	 

    	 

    

 

		·	The last Exercise Date immediately preceding the tenth (10th) anniversary of the Plan's effective
date.

 

In the event that the Plan terminates under
circumstances described in Section 16(c)(i) above, reserved shares remaining as of the termination date shall be sold to Participants
on a pro rata basis, based on the relative value of their cash account balances in the Plan as of the termination date.

 

d)         Notices.
All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have
been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company
for the receipt thereof.

 

e)         Expenses of the Plan.
All costs and expenses incurred in administering the Plan shall be paid by the Company, except that any stamp duties or transfer
taxes applicable to participation in the Plan may be charged to the account of such Participant by the Company.

 

f)         No
Employment Rights. The Plan does not, directly or indirectly, create any right for the benefit of any employee or class of
employees to purchase any shares under the Plan, or create in any employee or class of employees any right with respect to continuation
of employment by the Company or any Subsidiary, and it shall not be deemed to interfere in any way with the right of the Company
or any Subsidiary to terminate, or otherwise modify, an employee's employment at any time.

 

g)         Applicable Law. The
internal laws of the State of Delaware shall govern all matters relating to this Plan except to the extent (if any) superseded
by the laws of the United States.

 

h)         Additional Restrictions of
Rule 16b-3. The terms and conditions of options granted hereunder to, and the purchase of shares
by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall
be deemed to contain, and such options shall contain, and the shares issued upon exercise thereof shall be subject to, such additional
conditions and restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange
Act with respect to Plan transactions.

 

i)         Effective
Date. The Plan became effective on December 8, 2004 and was amended and restated effective as of July 1, 2005 and again this
16th day of November, 2012.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00210-of-00352.parquet"}]]