Document:

LOCK-EX10.21-2014.12.31-10K/A

Exhibit 10.21

LIFELOCK, INC.
SEVERANCE AGREEMENT
THIS SEVERANCE AGREEMENT (the “Agreement”) is made and entered into as of the 22nd day of July, 2013 by and between LIFELOCK, Inc., a Delaware corporation (the “Company”), and DON BECK (the “Employee”), together, “the PARTIES”.
Recitals
WHEREAS, the Company wishes to employ the Employee and the Employee wishes to become employed by the Company; and
WHEREAS, the Company and the Employee desire to enter into this Agreement to provide for certain severance benefits, upon the terms and conditions set forth in this Agreement, to be payable solely in the event the Employee’s employment is terminated by the Company without Cause. 
Agreement
NOW, THEREFORE, in consideration of the promises and mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are mutually acknowledged, the Company and the Employee hereby agree as follows:
		
	1.
	Termination of Employment. Nothing in this Agreement changes the Employee’s at-will employment status or confers any right with respect to continuation of employment by the Company. Employee may terminate his employment with the Company at any time and for any reason by notifying the Company. The Company may terminate Employee’s employment at any time, with or without Cause or advance notice.

		
	2.
	Termination without Cause. If the Company terminates the Employee’s employment without Cause (as defined in Section 3) and if such termination constitutes a “separation of service” for purposes of Section 409A of the Internal Revenue Code (“Section 409A”), the Company shall (a) pay to the Employee any unpaid base salary and any other unpaid undisputed wages due, accrued through the effective date of termination within ten days after such termination, and (b) subject to the execution by the Employee of a release agreement containing standard terms in a form reasonably acceptable to the Company, pay to the Employee, in bi-weekly installments consistent with the Company’s normal payroll schedule during the six-month period following termination, subject to applicable withholding and other taxes, an amount equal to six months of the Employee’s then base salary. Payments under subparagraph (b) above shall be treated as a series of separate payments under Treasury Regulation Section 1.409A-2(b)(2)(iii), are subject to required tax and other withholdings, and shall be conditioned upon the Employee’s execution of a general release of claims that becomes irrevocable within 60 days of the Employee’s termination date. 

Any payments due to the Employee under subparagraph (b) above shall be forfeited if the Employee fails to execute a general release of claims that becomes irrevocable within 60 days after the Employee’s termination date.  If the foregoing release is executed and delivered and no longer subject to revocation within 60 days after the termination date, then the following shall apply:
		
	(i)
	To the extent any payments due to the Employee under subparagraph (b) above are not “deferred compensation” for purposes of Section 409A, then such payments shall commence upon the first scheduled payment date immediately after the date the release is executed and no longer subject to revocation (the “Release Effective Date”).  The first such cash payment shall include payment of all amounts that otherwise would have been due prior to the Release Effective Date under the terms of this Agreement had such payments commenced immediately upon the termination date, and any payments made thereafter shall continue as provided herein.  The delayed payments shall in any event expire at the time such payments would have expired had such payments commenced immediately following the termination date.

		
	(ii)
	To the extent any payments due to the Employee under subparagraph (b) above are “deferred compensation” for purposes of Section 409A, then such payments shall commence upon the 60th day following the termination date.  The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under the terms of this Agreement had such payments commenced immediately upon the termination date, and any payments made thereafter shall continue as provided herein.  The delayed payments shall in any event expire at the time such payments would have expired had such payments commenced immediately 

following the termination date.

		
	3.
	Cause. For the purposes of this Agreement, "Cause" shall mean (a) an act or acts of personal dishonesty, fraud, or embezzlement by the Employee; (b) violation by the Employee of the Company's Proprietary Rights and Nonsolicitation Agreement that are demonstrably willful and deliberate on the Employee's  part and which are not remedied in a reasonable period of time after receipt of written notice from the Company; (c) any willful or deliberate refusal to follow the requests or instructions of the Board or the CEO and which are not remedied in a reasonable period of time after receipt of written notice from the Company; or (d) the conviction of the Executive for any criminal act that is a felony or that is a crime involving acts of personal dishonesty  causing  material  harm  to  the  standing  and  reputation  of  the  Company.  Any termination for Cause shall be made in writing to the Executive, which notice shall set forth in detail all acts or omissions upon which the Company is relying for such termination. 

		
	4.
	Death or Disability. The termination of the Employee’s employment due to death or as a result of the Employee’s failure to perform his duties and responsibilities for a period of more than 90 days in any 12-month period due to mental or physical incapacity, illness or disability shall not constitute a termination of the Employee’s employment without Cause.

		
	5.
	Specified Employee.  Notwithstanding any provision of this Agreement to the contrary, if the Employee is a “specified employee” as defined in Section 409A, the Employee shall not be entitled to any payments or benefits the right to which provides for a “deferral of compensation” within the meaning of Section 409A, and whose payment or provision is triggered by the Employee’s termination of employment (whether such payments or benefits are provided to the Employee under this Agreement or under any other plan, program, or arrangement of the Company), until (and any portion or installments of any payments or benefits suspended hereby shall be paid in a lump sum on) the earlier of (a) the date which is the first business day following the six-month anniversary of the Employee’s “separation from service” (within the meaning of Section 409A) for any reason other than death, or (b) the Employee’s date of death, and such payments or benefits that, if not for the six month delay described herein, would be due and payable prior to such date shall be made or provided to the Employee on such date.  The Company shall make the determination as to whether the Employee is a “specified employee” in good faith in accordance with its general procedures adopted in accordance with Section 409A and, at the time of the Employee’s “separation of service” will notify the Employee whether or not he is a “specified employee.”  

		
	6.
	Choice of Law.  This Agreement shall be construed and interpreted in accordance with the laws of the State of Arizona without regard to its choice of law provisions.  Should any valid federal or state law or final determination of any administrative agency or court of competent jurisdiction affect any provision of this Agreement, the provision or provisions so affected shall be automatically conformed to the law and otherwise this Agreement shall continue in full force and effect.

Any litigation based on, arising out of, or in connection with this Agreement shall be brought exclusively in the state or federal courts located in the County of Maricopa, Arizona, and the PARTIES expressly submit to the personal jurisdiction of those courts.  The PARTIES hereby expressly waive, to the fullest extent permitted by law, any objection that they may now or hereafter have, to the laying of venue of any such litigation brought in any such court referred to above, including without limitation any claim that any such litigation has been brought in an inconvenient forum.

EMPLOYEE IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING (I) TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR IN CONNECTION WITH THIS AGREEMENT OR (II) ARISING FROM ANY DISPUTE OR CONTROVERSY IN CONNECTION WITH OR RELATED TO THIS AGREEMENT, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

		
	7. 
	Miscellaneous.

7.1    Successors.
		
	(a)
	This Agreement is personal to the Employee and without the prior written consent of the Company shall not be assignable by the Employee otherwise than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by the Employee’s legal representatives.

		
	(b)
	This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

		
	7.2 
	Severability.  The invalidity of any one or more of the words, phrases, sentences, clauses, or sections contained in this Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are inserted conditionally on their being valid in law, and, in the event that any one or more of the words, phrases, sentences, clauses, or sections contained in this Agreement shall be declared invalid, this Agreement shall be construed as if such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, or section or sections had not been inserted.

		
	7.3
	Waivers.  The waiver by either party hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation.

		
	7.4 
	Exclusive Severance Benefit.  The payments and benefits provided under Section 2 will be instead of any payments or benefits to which the Employee may be entitled under the terms of any severance plan or program of the Company in effect on the termination date.

		
	7.5
	No Third Party Beneficiary.  Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer upon or give any person (other than the parties hereto and, in the case of the Employee, his heirs, personal representative(s), and/or legal representative) any rights or remedies under or by reason of this Agreement.

		
	7.6 
	Execution in Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of the parties reflected hereon as the signatories.

		
	7.7
	Entire Agreement.  This Agreement contains the entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements, and conditions, express or implied, oral or written.  The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.  This Agreement may not be modified or amended other than by an agreement in writing signed by both parties hereto.

		
	7.8
	Paragraph Headings.  The paragraph headings in this Agreement are for convenience only; they form no part of this Agreement and shall not affect its interpretation.

		
	7.9 
	Gender.  Words used herein, regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine, or neuter, as the context requires.

		
	7.10
	Employee’s Beneficiaries.  In the event the Employee dies and there are any amounts remaining to be paid to the Employee pursuant to this Agreement, such payments shall be made to the beneficiary designated by the Employee or, if none, to the Employee’s estate at the same time that they would have been paid to the Employee.

		
	7.11
	Section 409A.  This Agreement is intended to satisfy the requirements of Section 409A with respect to amounts subject thereto, and shall be interpreted and construed consistent with such intent; provided that, notwithstanding the other provisions of this subsection and the paragraph above entitled “Specified Employee,” with respect to any right to a payment or benefit hereunder (or portion thereof) that does not otherwise provide for a “deferral of compensation” within the meaning of Section 409A, it is the intent of the parties that such payment or benefit will not so provide.  Furthermore, if either party notifies the other in writing that, based on the advice of legal counsel, one or more of the provisions of this Agreement contravenes any regulations or Treasury guidance promulgated under Section 409A or causes any amounts to be subject to interest or penalties under Section 409A, the parties shall promptly and reasonably consult with each other (and with their legal counsel), and shall use their reasonable best efforts, to reform the provisions hereof to (a) maintain to the maximum extent practicable the original intent of the applicable provisions without violating the provisions of Section 409A or increasing the costs to the Company of providing the applicable benefit or payment, and (b) to the extent practicable, to avoid the imposition of any tax, interest, or other penalties under Section 409A upon the Employee or the Company. Notwithstanding the foregoing, nothing in this Agreement shall be construed as an entitlement to or a guarantee of any particular tax treatment to the Employee. 

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.
THE COMPANY:
LIFELOCK, INC.
By: /s/ Hilary Schneider    
Its: President    

THE EMPLOYEE:
/s/ Donald BeckLOCK-EX10.22-2014.12.31-10K/A

Exhibit 10.22

LIFELOCK, INC. 2015 SALES COMMISSION PLAN AGREEMENT
In addition to base salary, LifeLock, Inc. (“LifeLock” or the “Company”) will provide incentive compensation to certain eligible sales employees (“Eligible Employee”) pursuant to the terms and conditions of this Sales Commission Plan (the “Plan”).
		
	1.
	PURPOSE AND GOALS. In implementing the Plan, LifeLock’s goal is to align individually established sales goals with those of LifeLock as defined by the strategy: profitable member & revenue growth.

		
	2.
	DEFINITIONS. The following definitions are applicable to the capitalized terms used in this Plan and any Plan-related documents:

		
	2.1
	Account - LifeLock partner listed in the customer resource management platform (“CRM Platform”).

		
	2.2
	Account Commission Period - The period for which an Account is listed as owned by the Eligible Employee and for which commissions are paid.

		
	2.3
	Annualized Revenue - Based on the product pricing associated with each Gross New Member and the billing cycle, Revenue is calculated in the month of enrollment on a 12- month pro-rata basis and then multiplied by a Retention Factor.

		
	2.4
	Authorized Reseller Opportunities - Those opportunities in which the partner both facilitates enrollment in LifeLock, on behalf of the Gross New Member, and pays LifeLock for corresponding enrollments.

		
	2.5
	Billing Partner Opportunities - Those opportunities in which the Gross New Member enrolls directly through LifeLock.com or the contact center with no billing information required from the Gross New Member and in which LifeLock bills the partner for corresponding enrollments.

		
	2.6
	Campaign - The marketing plan under a specific Opportunity such as a direct mail campaign, magazine advertisement etc.

		
	2.7
	Contract Approval Date - Contract Approval Date is the date that the Opportunity is approved in the CRM Platform.

		
	2.8
	Commission Rate - The percentage multiplier that is applied to the Annualized Revenue in order to calculate commissions. This rate is X% of Annualized Revenue for all Gross New Member Enrollments (“GNM”) that fall within the Gross New Member Ownership guidelines. However, if the Eligible Employee brings in Annualized Revenue  above his/her quarterly Revenue goal, then the rate is multiplied by 1.12 for all Annualized Revenue for that quarter. For example only:

	
		
	Annualized Revenue Target for Quarter: $250,000.00

	Actual annualized revenue for
quarter:
	Rate Applied

	$0.00 to $250,000
	7.5%

	+$250,001
	8.4%

For individual-specific rates, See Attachment A.
		
	2.9
	Employee Benefit Opportunity -- An opportunity that results in Gross New Members enrolling in LifeLock directly or indirectly, as the result of an employer communicating the LifeLock offer to its employees.

		
	2.10
	Gross New Member - A person who has been enrolled for the Services and  such Services have commenced.

		
	2.11
	Gross New Member Ownership - Eligible Employees “own” Gross New Memberships in one of two ways: (1) Gross New Members that come in through partnerships that are past the Account Ownership Period, are owned only by the Campaign Owners (generally PAMs); or (2) Gross New Members that come in through partnerships that are within the Account Ownership Period, are owned by the Campaign Owner and the Opportunity Owner.

		
	2.12
	LifeLock’s Internal Compensation Team - The team is comprised of the Chief Financial Officer, Chief Legal Officer, the President and the Vice President of Human Resources.

		
	2.13
	New Account - Any Account that has a Contract Approval Date during the then-current Plan Year. Except as specified below, an Account is considered a “New Account” for the first eighteen (18) months from the Contract Approval Date or when LifeLock’s Internal Compensation Team approves certain re-engaged partners. For 

solution engineers and launch managers, only months one (1) through six (6), will earn commissions as “New Accounts.”
		
	2.13.1
	For Billing Partner Opportunities, Authorized Reseller Opportunities and Employee Benefits Opportunities, months nineteen (19) through twenty-four (24), will earn commissions at the same rate as a New Account.

		
	2.14
	Opportunity - A sales channel under an Account including Co-Marketing, Breach, Embedded, Wholesale/Reseller, and Employee Benefits.

		
	2.15
	Plan Year - The term to which this Commission Agreement applies, January 1, 2015 through December 31, 2015.

		
	2.16
	Rate Per Member - A calculated rate by individual based on quarterly quotas. The Rate per Member is multiplied by the total Gross New Members, per the Gross New Member Ownership guidelines. However, if the Eligible Employee brings in Gross New Members above his/her quarterly Gross New Member goal, then the Rate is multiplied by 1.12 for all Gross New Members for that quarter. For example only:

	
		
	Quarterly Gross New Member Target: 2,500

	Actual GMN for Quarter
	Rate Applied

	0 to 2,500
	$2.50

	+2,501
	$2.80

		
	2.17
	Retention Factor - a pre-determined calculation of the average mid-year retention rates by bill cycle by route to market. This calculation is kept constant throughout the year and applied to the Annualized Revenue calculation for Gross New Members contingent on route to market and bill cycle. If a particular partner is determined to have a Retention factor 10% lower than the average for route to market and bill cycle, LifeLock may, in its discretion, apply a lower Retention Factor to the partner in question.

For channel-specific rates, See Attachment A.
		
	3.
	WHEN COMMISSIONS ARE EARNED AND PAID OUT

		
	3.1
	Commissions are based on Annualized Revenue from Gross New Member enrollments and from Gross New Member counts and are earned quarterly based on the time of the Gross New Member’s enrollment.

		
	3.2
	Commissions are calculated by: (1) multiplying the employee’s Quarterly Annualized Revenue by the applicable Commission Rate; and (2) multiplying the total Gross New Members by the applicable Rate per Member. Commissions are paid on the following schedule: Q1 pays on April 17, 2015; Q2 on July 24, 2015; Q3 on October 16, 2015; and Q4 on January 22, 2016.

		
	3.3
	The information contained in the CRM Platform, including Gross New  Member Ownership, is utilized by LifeLock during the calculation of Annualized Revenue. Each Eligible Employee is responsible for ensuring the accuracy of the Accounts to  which he/she is assigned, including pricing, account set- up, ownership, etc., within the CRM Platform. Failure to check and correct the CRM Platform, where applicable, can result in negative impacts to Annualized Revenue calculations and/or attribution of Gross New Members. LifeLock will not be held accountable for any errors and/or omissions the Eligible Employee makes in the CRM Platform that may negatively impact his or her commission. In the event that any such error or omission results in additional commission paid to an Eligible Employee or an underpayment of commission, Eligible Employee must notify LifeLock immediately of the error and will work with LifeLock to correct and rectify the error promptly. Failure to notify LifeLock of any such error or omission when discovered may be grounds for immediate termination from employment.

		
	3.4
	All commissions under this Plan are subject to normal federal and state withholding tax, social security and all other employment taxes and authorized payroll deductions.

		
	4.
	PAYOUT UPON TERMINATION

		
	4.1
	Eligible Employees whose employment with LifeLock terminates for any reason will receive any earned but unpaid commissions in accordance with the appropriate state law regarding final payment of wages. Such payments will be calculated based on all data available as of the date of termination. Eligible Employees who terminate employment during any quarter of the Plan Year will be eligible for a final commission based on all Gross New Members enrolled under their applicable commission plans on or before their final date of employment with LifeLock.

		
	4.2
	A check for the final commission payout to employees who separate from employment for any reason will be issued in compliance with relevant state law. NO FURTHER COMMISSIONS MAY BE EARNED BY ELIGIBLE EMPLOYEE AFTER THEIR SEPARATION DATE nor can the rate of commission be altered by events occurring after the termination.

		
	5.
	BONUS OPPORTUNITY. An employee may be eligible for one or more opportunities to earn additional sums in addition to the commissions paid under this Plan, as further described in Attachment B.

		
	6.
	INTERPRETATION OF PLAN. LifeLock retains the exclusive right to interpret the terms of this Plan. Any Account or Opportunities for any Account may be assigned to specific employees by the Senior Vice President - Sales in his/her sole discretion, based on a variety of factors including client relationships, region, type of Account and which employees are actually servicing an Account. Any question, dispute or issue regarding  the interpretation  of this  Plan shall  be submitted to LifeLock’s Internal Compensation Team who shall interpret of the terms of this Plan. The interpretation of LifeLock’s Internal Compensation Team shall be binding, conclusive and final.

		
	7.
	MODIFICATION/TERMINATION OF PLAN. LifeLock reserves the right to modify or terminate this Plan at its sole discretion, at any time, on a prospective basis effective upon written notice to the employee. This right to modify or terminate may be triggered by (but not limited to) the following factors: material change in the business, material change in the amount, nature and performance of accounts assigned to eligible employees and material change in the organization or organizational resources. If such modification or termination occurs prior to the end of any month, the employee will receive any commissions earned during the portion of the month the Plan was in effect.

		
	8.
	ACKNOWLEDGEMENT. By signing below, Eligible Employee agrees they he/she has read and understands this Sales Commission Plan and agrees to comply by its terms, including LifeLock’s right to  make adjustments to my commission advances paid for members who cancel before their annual membership is completed. Eligible Employee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of LifeLock’s Internal Compensation Team for any questions, issues or  disputes  arising  under  this  Plan.    In  addition,  Eligible  Employee understands  that  nothing  in   this Plan is intended to alter the at-will  nature  of  his/her employment relationship with the Company.

I, Donald Beck, hereby acknowledge that LifeLock has provided me with my 2015 Sales Commission Plan Agreement including Attachment A. [in accordance with California Labor Code Section 2751 where applicable].

Printed Name:  Donald Beck    
Signature:  /s/ Donald Beck    
Date:  2/17/2015    

LifeLock representative:  /s/ Chris Power    
Title:  CFO    
Date:  February 17, 2015

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