Document:

Distribution Agreement

 Exhibit 10.4 
 DISTRIBUTION AGREEMENT 
 THIS DISTRIBUTION AGREEMENT (“Agreement”), is by and between INGRAM MICRO
INC. (“Ingram Micro”), a Delaware corporation, located at 1600 E. St. Andrew Place, Santa Ana, California 92705, and WEBSENSE, INC., a Delaware corporation (“Vendor”), located at 10240 Sorrento Valley Road, San Diego, California
92121. The effective date (“Effective Date”) of this Agreement shall be the date of the last signature set forth below. 
  

	1.	DISTRIBUTION SCOPE 

 1.1 Product. Vendor agrees to authorize
Ingram Micro and/or its resellers to market and distribute the Vendor’s proprietary software applications (“Software”) together with subscriptions to access certain Vendor-owned proprietary databases of URL addresses, software
applications or other content (“Databases”) (collectively the “Products”), subject to the terms set forth in this Agreement including its exhibits, solely to resellers (“Resellers”) and not directly to customers of such
Resellers (“End-Users”). Additional terms are included in Exhibits A – D. Vendor agrees that each Reseller will be subject to Ingram Micro’s standard Sales Terms and Conditions, located at www.ingrammicro.com, at the time of
purchase for such Product and such Product is also subject to Vendor’s then –current Subscription Agreement that each End-User must accept to enable Product download. Ingram Micro agrees to use reasonable efforts to promptly notify Vendor
of any breach by any Reseller or End-User of any term of the Subscription Agreement of which it becomes aware and to take such action as is reasonably requested by Vendor to protect Vendor interests in the Products. Ingram Micro will not modify or
copy any Product; however, Ingram Micro may bundle the Software along with other software or hardware and distribute the Software to its Resellers. No minimum purchase is required and no ordering restrictions shall apply. Vendor shall provide Ingram
Micro with not less than thirty (30) days prior written notice of Product discontinuance including alternatives and cessation of Product production. Vendor agrees to provide information regarding new Products, Price changes, Product changes, or
Product discontinuance in an electronic format determined by Ingram Micro and mutually acceptable to Vendor. 
 1.2 Territory. Vendor grants to Ingram
Micro and its Affiliates as defined above the exclusive (as set forth below), nontransferable right to market and distribute the Products to its Resellers in the United States and Canada (the “Territory”). Unless otherwise agreed between
the parties, this exclusivity shall be effective for one (1) year after the execution of this Agreement; thereafter, Vendor grants to Ingram Micro and its Affiliates the nontransferable right to market and distribute the Products to its
Resellers in the United States and Canada on a non-exclusive basis. Notwithstanding the foregoing, although Vendor agrees to use commercially reasonable efforts to direct its resellers to Ingram Micro, this exclusivity shall apply only to
Vendor’s sale of its Products through other distributors in the Territory, not to sales by Vendor directly to its Resellers or its other customers or when its Products are a component of another product. Additionally, the parties agree that
they will meet approximately one hundred eighty (180) days after the execution of this Agreement to review the exclusivity arrangement and if this arrangement is not working to the parties’ mutual satisfaction, mutually agree to terminate
the one (1) year exclusivity requirement. Any Ingram Micro Affiliate located within the United States or Canada that elects to distribute Products in its local region will determine if it will purchase Products from Ingram Micro in accordance
with this section or purchase Products directly from Vendor. Any other Ingram Micro Affiliate outside of the United States or Canada that elects to distribute Products in its local region will determine if it will purchase Products from Ingram Micro
in accordance with this section or purchase Products directly from Vendor’s affiliate, Websense International Limited (“Vendor’s Affiliate”). If the Affiliate chooses to purchase Products directly from either Vendor or
Vendor’s Affiliate, the Affiliate and Vendor (or Vendor’s Affiliate) shall enter into a separate agreement governing the terms of such purchases. 
  

	2.	TERM 

 The initial term of this Agreement is one (1) year from
the Effective Date. Unless terminated as set forth in Section 11.20 below, this Agreement will automatically renew for successive one (1) year terms unless either party provides written notice of termination no less than thirty
(30) days prior to the anniversary date. 
  

	3.	PRODUCT AVAILABILITY, INFORMATION, MARKETING SUPPORT & REPORTING 

 3.1 Product Availability. Vendor shall provide Ingram Micro with new Product development and Product revisions information prior to notification of new Product announcements or introductions. Vendor shall use commercially reasonable
efforts to notify Ingram Micro of new Product or Product revisions introduction at least thirty (30) days prior to marketplace introduction, but under no circumstances will Vendor notify Ingram Micro of any new Product or Product revisions
later than Vendor’s other distributors or resellers, and shall make such Product available for distribution by Ingram Micro no later than the date it is first offered for general sale in the marketplace. 

 Ingram Micro Inc. Distribution Agreement 
  

 3.2 Information. Vendor agrees to provide the following information to Ingram Micro: 
 (a) Data, images, photos, logos, and other varieties of information regarding Vendor’s products and services provided by Vendor to Ingram Micro
(collectively “Information”) solely for distribution or use by Ingram Micro through its catalog, the World Wide Web (internet), Intranet, Fax, CD-ROM, Floppy disk, broadcast, e-mail, and other electronic or printed media (“Electronic
Resources”). Vendor hereby grants Ingram Micro a royalty-free, non-exclusive worldwide license to market, sub-license, distribute, display, perform, transmit and promote the Information in furtherance of this Agreement through the Electronic
Resources, provided Ingram Micro complies with Vendor’s guidelines for use of the Information. Vendor agrees that it is both necessary and of mutual benefit to the parties that the Information be as current and error-free as is commercially
feasible. Vendor agrees to update the Information regularly. Both parties agree that the Electronic Resources and Information contained therein will be made available to users registered with Ingram Micro. Information may also be made available to
Ingram Micro customers, non-registered users, or other entities or persons transacting business with Ingram Micro. Ingram Micro shall not be required to screen, edit, or monitor Information prior to its distribution by Electronic Resources, but may
do so at its discretion so long as it complies with Vendor’s guidelines for use of the Information. 
 (b) Public information reasonably
requested by Ingram Micro from time to time for the purpose of assessing Vendor’s financial position. Such information includes, without limitation, quarterly financial statements including no less detail than as required by the U.S. Securities
and Exchange Commission in a 10-Q statement provided that such information is made available in the public domain. 
 (c) Notification of
changes to Vendor’s name, address, any sale of substantially all of its assets or any sale of any subsidiary or affiliate of Vendor or of any change in the control of Vendor, whether effected by merger or stock sale all of which shall be
provided promptly upon public disclosure of such information. 
 3.3 Information. Ingram Micro agrees to provide the following information to Vendor:

 (a) Public information reasonably requested by Vendor from time to time for the purpose of assessing Ingram Micro’s financial
position. Such information includes, without limitation, quarterly financial statements including no less detail than as required by the U.S. Securities and Exchange Commission in a 10-Q statement provided that such information is made available in
the public domain. 
 (b) Notification of changes to Ingram Micro’s name, address, any sale of substantially all of its assets or any
sale of any subsidiary or affiliate of Ingram Micro or of any change in the control of Ingram Micro, whether effected by merger or stock sale all of which shall be provided promptly upon public disclosure of such information. 
 3.4 Marketing Support. Vendor shall provide to Ingram Micro, its employees, and its customers reasonable amounts of sales literature, advertising materials and
training to support Product sales and reasonable amounts of demonstration Product and training to support Product sales, all at no cost to Ingram Micro. 
 3.5 Reporting. 
 (a) Ingram Micro. Ingram Micro will provide Vendor access to standard monthly sales-out and weekly
inventory reports in an electronic format as determined by Ingram Micro. If Vendor requests non-standard sales data or other information (“Data”) such Data may be subject to the additional terms of a separate fee-based Point of Sale Report
License Agreement (“POS Agreement”). 
 (b) Vendor. Vendor will provide Marketing Reports in the form as mutually agreed
between the parties including Ingram Micro’s market share with Vendor and co-op Vendor reports including expenditures to date. Reports shall be provided within thirty (30) days after the end of the applicable quarter or as mutually agreed
upon by the parties. 
  

	4.	PRICING 

 4.1 Favorable Terms. Vendor agrees that the prices,
discounts, and marketing funds (collectively “Prices”), offered to Ingram Micro under this Agreement are now and should continue to be at least as favorable as those offered to any of Vendor’s distributors of substantially similar
size and that purchase similar quantities of Products and that compete with Ingram Micro in the Territory (“Ingram Micro Competitors”). If Vendor offers more favorable Prices to any Ingram Micro Competitors, it shall extend such Pricing to
Ingram Micro. 
 4.2 Special Pricing. Vendor may offer special Product pricing, discounts, rebates or incentives (“Special Pricing”) to
Ingram Micro and/or to Ingram Micro customers. Vendor agrees that all such Special Pricing shall be designated as a marketing incentive. Ingram Micro shall have no obligation to recover any such Special Pricing from a customer, or reimburse Vendor
for any such Special Pricing, in the event (i) the customer returns Product to Ingram Micro after receiving written approval from Vendor for such return or Ingram Micro returns Product to Vendor pursuant to Vendor’s prior written approval
of said return that may have been the subject of Special Pricing or (ii) Ingram Micro’s customer fails to comply with Special Pricing terms. Notwithstanding the foregoing, all Special Pricing will be subject to a separate agreement between
the parties. 

 Ingram Micro Inc. Distribution Agreement 
  

 4.3 Subscription Fees. Subscription Fees will be Vendor’s then current published list price attached as
described in Exhibit D which may be updated from time to time. 
 4.4 Purchase Orders (“PO”). Products shall be ordered by Ingram Micro by
submitting purchase orders which specify the following Reseller and End-User information: name of Reseller and End-User companies, the name and e-mail address of End-User contact, the Vendor part number that corresponds to the Product ordered, the
SKU identifying the number of Seats for each End-User which shall have a unique identifier as agreed between the parties, Ingram Micro invoice number and price per SKU and the start and end date of the applicable subscription(s). Ingram Micro agrees
that all orders of five thousand (5,000) seats or more must be accompanied by Vendor’s Subscription Order Form, the current form of which is attached as Exhibit B that has been signed by the End-User. The parties agree that it is the
responsibility of the Vendor to verify that the Vendor’s Subscription Order Form has been signed prior to acceptance of the applicable Purchase Order. All purchase orders placed with Vendor for Products by Ingram Micro shall be subject to
acceptance in writing by Vendor referencing Ingram Micro’s Purchase Order Number; however, Vendor shall be deemed to have accepted a Purchase Order if it fulfills such Purchase Order. Vendor agrees to consider any return requests by Ingram
Micro or Ingram Micro’s customers on a case-by-case basis. Vendor is under no obligation to accept returns under this Agreement. 
  

	5.	TRADEMARK USE 

 5.1 Use and Ownership of Marks. Each party
recognizes the other party’s ownership and title to its respective trademarks, logos, service marks and trade names, including those related to the Products and the Information, whether or not registered (collectively “Marks”). Each
party grants to the other party a limited license to use such party’s Marks in connection with the marketing and distribution of the Products subject to such party’s trademark and usage guidelines and prior written approval. Each party may
not use the other party’s Marks in advertising, promotion, and publicity of the Products without the express written consent of the other party. Any consent to use a party’s Marks will be conditioned upon compliance with the most current
guidelines for use of Marks. Upon request by the other party, the party owning Marks shall provide Marks guidelines (or equivalent guidance) to the other. Any unauthorized modification to Marks is expressly prohibited. Neither party shall acquire
any rights in Marks of the other nor will it act to impair the rights of the other party in and to such Marks. 
 5.2 Domain Locations. Each party
shall maintain ownership and administration of the addresses on the World Wide Web (“Domain Locations”) that have been registered on its behalf and neither party may establish any Domain Locations on behalf of the other party without its
consent. Upon termination, each party agrees to assign to the other party any rights it may have in any domain names or adwords that include the other party’s Marks. 
  

	6.	MARKETING 

 6.1 Launch Funding. In addition to the marketing
allowances identified below, Vendor agrees to provide mutually agreed upon launch funding to Ingram Micro for Product launch and awareness activities commensurate with the Product and customer segments being targeted. Such activities may include
training, sales and customer communication and tools, Vendor and Product listing in Ingram Micro’s online catalog, and recruiting services. Initial launch funding shall be provided to Ingram Micro via check or wire transfer as agreed between
the parties. 
 6.2 General Marketing Allowances. Vendor agrees to establish a general cooperative marketing allowance as mutually agreed by the
parties (or the allowance offered by Vendor to Ingram Micro Competitors, if greater) of the amount of Product invoices submitted by Vendor to Ingram Micro (or the marketing allowance offered by Vendor to Ingram Micro Competitors, if greater) to
cover the costs of Product advertising and/or promotions by Ingram Micro or its customers. Notwithstanding the foregoing, all marketing activities, including but not limited to the payment of marketing funds, will be subject to separate written
agreements between the parties. 
 6.3 Special Marketing Allowances. Exclusive of general marketing allowances, Vendor may, from time to time, provide
special marketing allowances to Ingram Micro or selected customer groups (e.g., to government resellers). Any advertising and promotions subject to these special marketing allowances shall be submitted to Vendor for review and approval prior to
implementation, and Vendor shall not unreasonably withhold or delay such approval. 

 Ingram Micro Inc. Distribution Agreement 
  

 6.4 Payment of Marketing Funds. Payment of marketing funds will be made in accordance with separate marketing
agreements prior to the commencement of such activities. 
 6.5 Programs. Ingram Micro may, in its sole discretion, offer marketing programs and
services to Vendor including but not limited to corporate communications programs, launch programs and reseller pass-through opportunities. The costs, as well as terms and conditions of such programs are outlined in their respective program
agreements. 
 6.6 Email. Each party consents to the other party sending messages of an informational, advertisement or technical nature via e-mail.

  

	7.	WARRANTY 

 7.1 General Warranty. Vendor represents and
warrants that (i) it has full power, right and authority to enter into this Agreement and all necessary licenses to provide the Product for resale and (ii) the Product will perform in substantial conformance with the then current Vendor
published documentation under normal use for the term of each End-User Subscription. Vendor’s sole obligation and any Ingram Micro, Reseller’s and/or End-User’s sole remedy is to correct any significant deviation from the
specifications in a manner determined by Vendor; 
 THE FOREGOING WARRANTIES ARE IN LIEU OF ALL OTHER WARRANTIES EXPRESS OR IMPLIED, INCLUDING BUT NOT
LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO DEFECTS IN THE PHYSICAL MEDIA, OPERATION OF THE SOFTWARE AND THE DATABASES, AND ANY PARTICULAR APPLICATION OR USE OF THE SOFTWARE AND THE
DATABASES. 
 Ingram Micro agrees, and will notify and encourage its Resellers to not make any representations or warranties with respect to the Products
other than the limited warranties made by Vendor under this Agreement. 
 7.2 End-User Warranty. Vendor shall provide a warranty statement with the
Product for End-User benefit. 
 7.3 Harmful Code Warranty. Except as set forth below, Vendor represents and warrants that, to its knowledge, the
Products will not contain any virus or any other contaminant or disabling devices including, but not limited to, codes, commands or instructions enabling, directly or indirectly, access, alteration, deletion, damage or disablement of the Products,
or known viruses, expiration, time-sensitive devices, adware, spyware, malware or other harmful code or malicious programs that would adversely affect the end-user’s experience or inhibit the End-User’s use of the Products. Notwithstanding
the foregoing, Ingram Micro acknowledges and agrees that the Products are activated through the use of a Vendor-issued Subscription Key and that upon expiration of an End-User paid up subscription period, Vendor will deactivate the Subscription Key
and the Products will cease to function. 
  

	8.	INDEMNIFICATION 

 8.1 Vendor Indemnity. Vendor will defend,
indemnify and hold Ingram Micro harmless from and against any and all damages, liabilities, costs and expenses (including but not limited to attorneys’ fees) arising out of or incurred by Ingram Micro in connection with or as a result of any
third party claim or proceeding made or brought against Ingram Micro with respect to any allegation that (i) Vendor’s Product, acts, omissions, misrepresentations, or gross negligence caused personal or bodily injury or tangible property
damage , or (ii) there has been any material breach or default by Vendor in the performance of Vendor’s obligations under this Agreement. 
 8.2
Intellectual Property Indemnity. Vendor shall defend, indemnify and hold Ingram Micro and its customers harmless from and against any claims, demands, liabilities, or expenses (including attorney’s fees and costs) incurred by Ingram
Micro arising from the alleged infringement of any third party’s patent, copyright, trademark, trade secret or other proprietary right by reason of the manufacture, sale, marketing, or use of Product or Information to the extent such claim is
not based upon: (a) the combination of such Product or Information by Ingram Micro with another product or information not authorized by Vendor; (b) the modification of such Product or Information by Ingram Micro; or (c) use of the
Product or Information by Ingram Micro except as authorized in this Agreement. Upon threat of claim or claim of infringement, Vendor may, at its expense and option (i) procure the right to continue using any part of Product, (ii) replace
the infringing Product with a non-infringing Product of similar performance, or (iii) modify Product to make it non-infringing. However, such right of return is in addition to, and not a substitute for, Ingram Micro’s right to
indemnification hereunder. 

 Ingram Micro Inc. Distribution Agreement 
  

 8.3 Document Production Indemnity. Each party shall indemnify and hold the other party harmless from and
against all actual out of pocket costs associated directly with document production, depositions, interrogatories and related demands, arising either from private third party claims or governmental claims or investigations against or concerning the
party wherein the other party is neither a party to nor target of such claims or investigations. 
 8.4 Indemnification by Ingram Micro. Ingram Micro
will defend, indemnify and hold Vendor harmless from and against any and all damages, liabilities, costs and expenses (including but not limited to attorneys’ fees) arising out of or incurred by Vendor in connection with or as a result of any
third party claim or proceeding made or brought against Vendor with respect to any allegation that (i) Ingram Micro’s acts, omissions, misrepresentations, or gross negligence caused personal or bodily injury or tangible property damage ,
or (ii) there has been any material breach or default by Ingram Micro in the performance of Ingram Micro’s obligations under this Agreement. 
  

	9.	LIMITATION OF LIABILITY 

 EXCEPT AS OTHERWISE STATED HEREIN, AND
EXCEPT TO THE EXTENT OF BODILY INJURY OR DEATH OR VIOLATION OF SECTIONS 5 OR 11.2, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR LOST PROFITS OR BUSINESS, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER BASED IN CONTRACT OR TORT (INCLUDING
NEGLIGENCE, STRICT LIABILITY OR OTHERWISE) WHETHER OR NOT EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT FOR CLAIMS BASED ON SECTIONS 5, 8 OR 11.2, IN NO EVENT WILL VENDOR’S AGGREGATE LIABILITY ARISING OUT OF OR
RELATED TO THIS AGREEMENT EXCEED THE TOTAL AMOUNT ACTUALLY PAID BY INGRAM MICRO TO VENDOR FOR THE INDIVIDUAL PRODUCT SUBSCRIPTION ON WHICH THE CLAIM IS BASED DURING THE ONE-YEAR PERIOD PRIOR TO THE EVENT OUT OF WHICH THE CLAIM AROSE. 
  

	10.	GOVERNMENT PROGRAMS 

 Vendor may, at its sole option, participate in
a special pricing and marketing program targeting the federal, state and local government and/or educational markets. If Vendor participates in such a program, Vendor agrees to execute a separate agreement and comply with all mandatory Federal
Acquisition Regulation (“FAR”) flow-down provisions, if any, required by such government entity and to which Vendor has agreed in writing. 
  

	11.	GENERAL PROVISIONS 

 11.1 Conflicting Terms. In the event of
a conflict between the terms and conditions of the underlying Agreement and the terms and conditions in any exhibit thereto, the terms and conditions in the exhibit shall govern. 
  

	11.2	Confidentiality. 

 (a) Either party may disclose to
the other information in connection with its performance hereunder which it deems to be confidential and proprietary. Such information, which is originated by the disclosing party (the “Owner”) or is within the special knowledge of such
party shall, if in documentary form and conspicuously marked “confidential, at the time of disclosure or it would otherwise by its nature be reasonably considered “confidential”, be considered to be confidential and proprietary
(“Confidential Information”). In addition, if any other information is not marked and in documentary form when disclosed, but is thereafter reduced to a writing and forwarded to the other party within ten (10) days of the date of
initial visual or oral disclosure and marked “confidential”, it shall, effective from the time of initial disclosure be considered (also “Confidential Information”). Notwithstanding, however, the presence or absence of a marking
as indicated above, Confidential Information shall include all information, regardless of the form in which it is transmitted, relating to the Owner’s (or another party whose information Owner has in its possession under obligations of
confidentiality) past, present or future research, development or business plans, software, operations or systems (including, without limitation, the terms and conditions of this Agreement, studies or reports, software, memoranda, drafts and other
information in either tangible or intangible form). 
 (b) For a period of two (2) years from the date of disclosure to the party
receiving the Confidential Information (the “Recipient”), Recipient shall not disclose any Confidential Information it receives from Owner to any person, firm or corporation except: (i) employees of Recipient and its affiliated
companies who have a need to know and who have been informed of Recipient’s obligation hereunder; (ii) contractors or consultants under contract to Recipient who have a need to know, who have been informed of 

 Ingram Micro Inc. Distribution Agreement 
  

 
Recipient’s obligations hereunder, and who have agreed in writing not to disclose Confidential Information for a period not shorter than the
nondisclosure period provided above; and (iii) as provided in subparagraph (c) below. Notwithstanding the foregoing, the obligations set forth in this Section 11.2 shall, for any Confidential Information which constitutes as trade
secret under applicable law, continue so long as such information constitutes a trade secret and the Recipient has not disposed of the Confidential Information pursuant to its document retention policies. Recipient shall use the same degree of care,
but in no case less than reasonable care, to avoid disclosure of such Confidential Information as Recipient uses with respect to its own Confidential Information of like importance. 
 (c) Information shall not be deemed confidential or proprietary for purposes of this Agreement, and Recipient shall have no obligation with respect to
any such information, which: (i) is already known to Recipient at the time of its disclosure without restriction; (ii) is or becomes publicly known through no wrongful act of Recipient; (iii) is received from a third party without
similar restrictions and without breach of this Agreement; (iv) is independently developed by Recipient without use of or reference to the Confidential Information; or (v) is lawfully required to be disclosed to any government agency or is
otherwise required to be disclosed by law provided that the Recipient provides prompt notice to the Owner and uses reasonable efforts to protect the confidentiality of such information. 
 (d) All Confidential Information disclosed by Owner to Recipient pursuant to this Agreement in tangible form (including, without limitation, information
incorporated in computer software) shall be and remain in the property of Owner, and all such Confidential Information shall be promptly returned to Owner or certified as destroyed, as the Owner may so designate, upon written request. 
 (e) Neither party shall be liable for any errors or omissions in the Confidential Information or for the use or the results of use of Confidential
Information. ANY AND ALL INFORMATION DISCLOSED UNDER THIS AGREEMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY OF ANY KIND, AND DISCLOSER HEREBY DISCLAIMS ANY IMPLIED WARRANTIES, INCLUDING MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE. 
 11.3 Independent Contractors. Each party shall be considered an independent contractor. The relationship between the parties shall not be
construed to be that of employer and employee, nor constitute a partnership, joint venture or agency of any kind. Neither party shall have any right to enter into any contracts or commitments in the name of, or on behalf of, the other party, or to
bind the other party in any respect whatsoever. 
 11.4 Notices. Any legal notices which either party may desire to give the other party must be in
writing and may be given by (i) personal delivery to an officer of the party, (ii) by mailing the same by registered or certified mail, return receipt requested, or via nationally recognized courier services to the party at the address of
such party as set forth below, or such other address as the parties may hereinafter designate, and (iii) by facsimile subsequently to be confirmed in writing pursuant to item (ii) herein. 
 Notices to Ingram Micro: 
 Ingram Micro Inc. 
 1600 E. St. Andrew Place 
 Santa Ana, CA 92705 
 Notices to Vendor: 
 Websense, Inc. 
 10240 Sorrento Valley Road 
 San Diego, CA 92121 
 11.5 Governing Law. This Agreement shall be construed and enforced in accordance with the laws
of the State of California, exclusive of its conflicts of law provisions. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement. The parties agree to the exclusive jurisdiction and venue of
the state and federal courts located in Orange County, California, USA, for the adjudication of any disputes arising from, related to or regarding the Products or the subject matter of this Agreement. 
 11.6 Dispute Resolution. Unless otherwise agreed in writing, the exclusive procedure for handling disputes shall be as set forth herein. Notwithstanding such
procedures, either party may, at any time, seek injunctive relief in addition to the process described below. Performance under the Agreement shall continue during the dispute resolution process except in such instance where continuation would cause
the Agreement to fail its essential purpose. The parties agree that payment disputes shall not, in association with such dispute resolution procedures, be considered as a condition giving rise to failure of essential purpose. 

 Ingram Micro Inc. Distribution Agreement 
  

 (a) Informal Dispute Resolution. Prior to mediation the parties shall seek informal resolution
of disputes. The process shall be initiated with written notice of one party to the other describing the dispute with reasonable particularity followed with a written response within ten (10) days of receipt of notice. Each party shall promptly
designate an executive with requisite authority to resolve the dispute and who is at a higher level of management than the person with administrative responsibility over the Agreement. The informal procedure shall commence within ten (10) days
of the date of response. All reasonable requests for non-privileged information reasonably related to the dispute shall be honored. If the dispute is not resolved within thirty (30) days of commencement of the procedure, either party may
proceed to mediation pursuant to the rules set forth in (b) below. 
 (b) Mediation. If the dispute is valued, in the aggregate,
at not less than $2.5 million and has not been resolved pursuant to (a) above or, if the parties fail to commence informal dispute resolution pursuant to (a) above, either party may, in writing and within twenty (20) days of the
response date noted in (a) above, ask the other party to participate in a one (1) day mediation with an impartial mediator, and the other party shall do so. Each party will bear its own expenses and an equal share of the fees of the
mediator. If the mediation is not successful the parties may proceed with litigation subject to Section 11.5 above 
 11.7 Tax Exemption
Certificate. Upon request, Ingram Micro will provide Vendor with a valid tax exemption certificate. 
 11.8 Compliance. Each party shall comply
with all applicable state, federal, and where applicable, country specific rules and regulations and shall indemnify the other party in the event of any violations thereof. 
  

	11.9	Insurance. 

 Vendor shall obtain and maintain the following
insurance coverage at its expense: 
 (a) Commercial General Liability (including product and completed operations, personal and advertising
injury and contractual liability coverage) with a minimum per occurrence limit of $5,000,000; General Aggregate limit of $5,000,000; Products and Completed Operations Aggregate limit of $5,000,000 and Personal & Advertising Injury limit of
$5,000,000, written on an occurrence form. Limits noted above will be comprised of primary Commercial General Liability and Umbrella Liability. The insurance policy will include a Vendor Endorsement executed in favor of Ingram Micro Inc. 

(b) Workers’ Compensation Insurance with statutory limits granting a waiver of subrogation in favor of Ingram Micro Inc. 
 (c) Employers’ Liability (Stop-Gap Liability) insurance with minimum limits of $1,000,000. 
 (d) Automobile Liability Insurance with $5,000,000 coverage limits for each accident, including owned, non-owned and hired vehicles. 
 (e) The coverage territory applicable to the insurance policies required above must be worldwide with the exception of Workers’ Compensation
insurance, which must be maintained in those territories where such coverage is mandated, and Auto Liability. Vendor will provide Certificates of Insurance at all times naming Ingram Micro Inc. as “Additional Insured” with respect to
General Liability, Umbrella Liability, and Auto Liability policies. Vendor shall provide the Certificates of Insurance evidencing the required coverage and specifically confirming the vendor endorsement and waiver of subrogation as stated above upon
execution of this Agreement and at each renewal thereafter. 
 (f) Vendor’s insurers must be Best rated A-, VII or better. Policy limits
may not be reduced, terms materially changed, or policies canceled by either party except after thirty (30) days prior written notice to Ingram Micro. Vendor’s insurance shall be primary with respect to all obligations assumed by Vendor
pursuant to this Agreement. Any insurance carried by Ingram Micro shall not contribute to insurance maintained by Vendor. Coverage and limits referred to above shall not in any way limit the liability of Vendor. 
 11.10 Media Releases. Except for any announcement intended solely for internal distribution by either party or any disclosure required by legal,
accounting, or regulatory requirements, all media releases, public announcements, or public disclosures, including but not limited to promotional or marketing material, by either party or its employees or agents relating to this Agreement or its
subject matter, or including the Marks of the other party or any affiliate of such party, shall be coordinated with and approved in writing by the other party prior to the release thereof. 
 11.11 Gifts, Gratuities, Entertainment and other Courtesies. Ingram Micro’s policy prohibits solicitation of gifts, gratuities, entertainment and other
courtesies from Vendor and will be provided in writing to Vendor. 
 11.12 Construction. The parties to this Agreement and their counsel have reviewed
and revised this Agreement and the normal rule of construction that any ambiguities in the Agreement are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 11.13 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. 
 11.14 Section Headings. Section headings in this Agreement are
for convenience only, and shall not be used in construing the Agreement. 
 11.15 Incorporation of all Exhibits. Each exhibit referred to and attached
hereto is incorporated by reference as if set forth fully herein. 
 11.16 Severability. If any provision of these terms and conditions shall be held
to be invalid, illegal or unenforceable, such provision shall be enforced to the fullest extent permitted by applicable law and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired
thereby. 
 11.17 No Implied Waivers. If either party fails to require performance of any duty hereunder by the other party, such failure shall not
affect its right to require performance of that or any other duty thereafter. The waiver by either party of a breach of any provision of this Agreement shall not be a waiver of the provision itself or a waiver of any breach thereafter, or a waiver
of any other provision herein. 
 11.18 Binding Effect; Assignment. Neither party shall assign this Agreement without the express written consent of
assignment by the other party, except for an assignment to an Affiliate or an assignee of all or substantially all of the assets, stock, or equity of the assigning party (whether pursuant to a merger, acquisition, or otherwise) provided that the
assigning party promptly notifies the non-assigning party of such assignment in writing and provides written evidence that the assignee has assumed all of the obligations of the assigning party under this Agreement; any other attempt to assign or
transfer this Agreement without the express written consent of the other party shall not be binding upon the other party and shall not relieve from any liability or obligation under this Agreement. Subject to the foregoing, this Agreement shall be
binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. 
 11.19 Acquisitions. If, as a result
of any merger or acquisition of any kind, Vendor becomes obligated under, or entitled to the benefits of, any other distribution agreement with Ingram Micro the terms of which are not consistent with the terms of this Agreement, then the parties
shall have the right to mutually determine with respect to any such conflicting terms, which terms shall be binding on Vendor and Ingram Micro. 
 11.20
Termination. Notwithstanding anything to the contrary in this Agreement, if the parties fail to reach agreement on the pricing and fees applicable to this Agreement on or before the forty-fifth day after the Effective Date, then Websense may
terminate this Agreement without penalty or obligation. After the initial term, either party may terminate this Agreement for convenience and without cause upon thirty (30) days prior written notice to the other party. Either party may
terminate this Agreement with written notice if the other party: materially breaches any term of this Agreement and fails to cure within fifteen (15) days after written notification detailing such breach; or ceases to conduct business in the
normal course, becomes insolvent, makes a general assignment for the benefit of creditors, suffers or permits the appointment of a receiver for its business or assets, or avails itself of or becomes subject to any proceeding under any Bankruptcy Act
or any other federal or state statute relating to insolvency or the protection of rights of creditors. 
 11.21 Survival. Unless a provision setting
forth the rights or obligations of a party hereunder is expressly terminated pursuant to the specific language of the provision, the parties acknowledge and agree that all rights and obligations set forth herein, which by their nature or operation
are considered material, shall survive termination of this Agreement. 
 11.22 Entirety. This Agreement constitutes the entire agreement between the
parties regarding its subject matter. This Agreement supersedes any and all previous proposals, representations or statements, oral or written. Any previous agreements between the parties pertaining to the subject matter of this Agreement are
expressly terminated. The terms and conditions of each party’s purchase orders, invoices, acknowledgments, confirmations or similar documents shall not apply to any order under this Agreement, and any such terms and conditions on any such
document are objected to without need of further notice or objection. Any modifications to this Agreement must be in writing and signed by authorized representatives of both parties. 
 11.23 Signatory Acknowledgement. The signatory hereto acknowledges that this contract is intended to bind it and its subsidiaries and affiliates. Accordingly, the signatory hereto shall (i) take all
necessary action to ensure compliance with the terms of this Agreement by all of its subsidiaries and affiliates and (ii) be responsible for any breaches by any of its subsidiaries and affiliates of any obligation hereunder, including without
limitation, any payment obligation, any indemnification obligation and any warranty obligation. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 11.24 Authorized Representatives. Either party’s authorized representative for execution of this
Agreement or any amendment hereto shall be president, a partner, or a duly authorized vice-president or representative of the respective party. The parties executing this Agreement warrant that they have the requisite authority to do so. 

11.25 Force Majeure. Neither party shall be liable or deemed to be in default for any delay or failure in performance under this Agreement or interruption of
service resulting directly or indirectly from acts of God, acts of war or any causes beyond the reasonable control of the acting party. Notwithstanding the foregoing, if a party fails to perform under this Agreement because of the events stated
herein, the affected party shall take commercially reasonable steps to mitigate the detrimental impact of such failure of performance on the other party. 
  

									
	IN WITNESS WHEREOF, the parties hereunto have executed this Agreement.
			
	Ingram Micro Inc. (“Ingram Micro”)	 		 	Websense, Inc. (“Vendor”)
					
	By:	 	 	 		 	By:	 	 

									
					
	Printed Name:	 	 	 		 	Printed Name:	 	 

									
					
	Title:	 	 	 		 	Title:	 	 

									
					
	Date:	 	 	 		 	Date:	 	 

 EXHIBITS: 
  

	A	End-User Subscription Agreement 

  

	B	Subscription Order Form 

  

	C	Subscription Product Terms 

  

	D	Subscription Fees 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 EXHIBIT A 
 For information purposes only 
 

 
 The following Agreement describes the terms and conditions under which WEBSENSE offers you a subscription to use its
software and database(s). By clicking on the “I Agree” button below or by using WEBSENSE software or any WEBSENSE database, YOU ACKNOWLEDGE THAT YOU HAVE READ THIS AGREEMENT AND UNDERSTAND IT, AND YOU AGREE TO BE BOUND BY ITS TERMS AND
CONDITIONS. 
 SUBSCRIPTION AGREEMENT 
  

	1.	Subscription 

 Websense, Inc., located at 10240 Sorrento Valley
Road, San Diego, CA 92121 (“WEBSENSE”), hereby provides you (“You” or “Your”) with certain subscription services (the “Subscription”) in accordance with the terms of this Agreement. As part of the
non-transferable Subscription, certain WEBSENSE proprietary software applications (“Software”), WEBSENSE proprietary database(s) of URL addresses, applications and other valuable information (“Database(s)”), changes to the
content of the Database(s) (“Database Updates”) and certain modifications or revisions to the Software (“Software Upgrades”), together with applicable documentation (collectively, the “Products”) shall be made
accessible to You on a periodic basis as set forth below. For clarification, the term “Software” shall include Software Upgrades and the term “Database(s)” shall include Database Updates. 
  

	2.	Evaluation Key 

 If You have received a temporary encrypted
alphanumeric access code (“Evaluation Key”) as a prospective subscriber for evaluation purposes, You must use it strictly for Your own internal use in evaluating the Products’ performance to facilitate Your subscription decision. The
Evaluation Key will allow You to access certain Databases using certain of the Software for a maximum period of thirty (30) days in accordance with the terms and conditions provided therewith. At the end of the thirty (30) day evaluation
period, (i) the Agreement shall terminate and You must return or destroy all Products in Your possession, whether on servers, computers, electronic appliances, devices, storage media or located elsewhere, or (ii) You must convert this
limited evaluation usage to a Subscription by payment of the applicable Subscription fee (“Subscription Fee”) for a fee-based encrypted alphanumeric Subscription access code (“Subscription Key”). 
  

	3.	Subscription Key 

 Once the parties mutually agree to the terms of a
purchase commitment (the “Order”), WEBSENSE will issue You a Subscription Key that allows You to access certain Databases and use the Software in accordance with the terms and conditions set forth herein. You may download the Software from
WEBSENSE’s web site located at http://www.websense.com or transfer it to Your server from compact disk, diskette, tape or other media provided by WEBSENSE. You may use the Software to access certain Database(s) only on a specified server, in
and for Your own or Your subsidiaries’ or affiliates’ internal purposes and business operations. The Subscription Key may be relocated and/or transferred to operate on another of Your servers within another of Your locations. 

 

	4.	Subscription Fee 

 Your payment of the Subscription Fee entitles You
to access the ordered Database(s) based on the number of Seats that the Subscription Fee covers for the term of the Subscription. “Seat” means each computer, electronic appliance or device that is authorized to access or use the
Database(s), whether or not through, or in conjunction with, a server. The amount due will be set forth in the Order and billed via an invoice from WEBSENSE or one of its authorized resellers (“Resellers”). YOUR USAGE MAY EXCEED THE NUMBER
OF SEATS ONLY UPON THE PAYMENT OF ADDITIONAL SUBSCRIPTION FEES FOR ADDITIONAL SEATS. WEBSENSE may audit Your usage of the Products on-site during normal business hours upon reasonable notice or remotely at any time. You will be invoiced and required
to pay for any Seats not previously subscribed to by You. In the event any invoice is not paid by You within thirty (30) days after receipt, WEBSENSE may assess a late payment charge in an amount equal to a rate of two percent (2%) per
month, or the highest amount allowed under applicable law, whichever is lower, on any outstanding balance which is not paid. Any and all fees specified in this Agreement do not include sales, use, property, value-added, withholding or other taxes,
duties or fees, associated with the rights granted hereunder, the Products supplied herein or services provided through this Agreement (“Taxes”). Any such Taxes shall be Your sole responsibility and will be billed to and paid by You. This
Section 4 shall not apply to Taxes based on WEBSENSE’s net income or payroll taxes. 
  

	5.	Term/Renewals 

 As used in this Agreement, “Term” means
the initial Subscription term and any subsequent renewal term(s) for the Subscription. The initial Term of the Subscription is set forth in the Order. You must pay additional annual Subscription Fees prior to the expiration date of the then-current
Term for uninterrupted access to the Database(s) for a renewal Term. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

	6.	Database Updates and Software Upgrades 

 WEBSENSE regularly makes Database Updates and Software Upgrades. Your Subscription entitles You to advise WEBSENSE to download Database Updates to Your designated server pursuant to Your reasonable instructions.
WEBSENSE may require You to install Software Upgrades up to and including the latest release. Database Updates and Software Upgrades will be provided to You only if You have paid the appropriate Subscription Fee for Your Seats. You may at Your sole
discretion, provide to WEBSENSE manually, or utilizing the automated technology of WEBSENSE’s proprietary software, WebCatcherTM, the URL addresses which You may have accessed or
attempted to access, so that WEBSENSE may analyze and categorize them and include them in the Databases. Should You elect to enable WebCatcherTM, WEBSENSE makes no representations about the
legality of such monitoring in any particular jurisdiction, and You shall be responsible and Websense shall have no responsibility for determining that this proposed use of the Products complies with applicable laws. 
  

	7.	Email Opt-Out 

 Websense may periodically send You messages of an
informational, advertisement or technical nature via email. You may choose to “opt-out” of receiving these messages by sending an email to optoutlegal@websense.com requesting the opt-out. You acknowledge and agree that by
sending such email and “opting out” You will not receive emails containing messages concerning upgrades and enhancements to Websense Products. 
  

	8.	Premium Groups and Application Modules 

 WEBSENSE may offer certain enhanced subscription services, including but not limited to subscription services that allow You to utilize add-on application modules. The parties may agree pursuant to an Order that
WEBSENSE shall provide the enhanced subscription services to You. WEBSENSE shall provide the enhanced subscription services only if You have paid the appropriate Subscription Fee for Your Seats utilizing the enhanced subscription services. With
respect to certain enhanced subscription services, in order to get the full benefit of the enhanced subscription services, You shall have the right to install certain Software designated in an Order on individual computers, electronic appliances or
devices, rather than merely on Your server. If the Subscription includes the appropriate application module(s), You may at Your sole discretion, provide to WEBSENSE manually, or utilizing the automated technology of WEBSENSE’s proprietary
software, AppCatcherTM, the names of applications which You may have accessed or attempted to access, so that WEBSENSE may analyze and categorize them and include them in the Databases.
Should You elect to enable AppCatcherTM, WEBSENSE makes no representations about the legality of such monitoring in any particular jurisdiction, and You shall be responsible as between the
parties for determining that this proposed use of the Products complies with applicable laws. 
  

	9.	Usage Policy 

 You represent and warrant that: (i) You shall
take all appropriate measures to avoid violating any privacy rights of individuals in connection with Your use of the Products; (ii) You shall provide written notice to all users of the Products that their use of Your computers, electronic
appliances and devices may be monitored, and that the users should have no expectation of privacy when using the Products, including accessing the Internet or applications, as appropriate; (iii) when You submit any web or application use data
to WEBSENSE, You shall do so without any information identifying any particular individual who attempted to access or actually accessed a specific URL address or application, or any other data that might identify any particular user; and
(iv) You shall take appropriate steps to keep any monitoring data confidential, and use it only for internal computer system management purposes and (v) the Product will not be used to filter, screen, manage or censor Internet content for
consumers without their permission. 
  

	10.	Limited Warranty 

 WEBSENSE warrants that the Products will operate
in substantial conformance with the then current WEBSENSE published documentation under normal use for the Term. Notwithstanding the previous sentence, WEBSENSE does not warrant that: (i) the Products will be free of defects; (ii) the
Products will satisfy all of Your requirements; (iii) the Products will be used without interruption or error; (iv) the Products will always block access to the addresses and applications that are contained in the Databases; (v) the
Databases will contain every foreseeable URL address or application that should potentially be blocked; or (vi) addresses and applications contained in the Databases will be appropriately categorized. 
 WEBSENSE shall use reasonable efforts to remedy any significant non-conformance in the Products which You report to WEBSENSE that WEBSENSE can reasonably identify and
confirm. WEBSENSE or its representative will repair or replace any such non-conforming or defective Products. You acknowledge that this paragraph sets forth Your exclusive remedy and WEBSENSE’s exclusive liability for any breach of warranty or
other duty related to the Products. Any unauthorized modification of the Products, tampering with the Products, use of the Products inconsistent with the accompanying documentation, or related breach of this Agreement by You shall void the
aforementioned warranty. 
 EXCEPT AS EXPLICITLY SET FORTH HEREIN AND TO THE EXTENT ALLOWED BY LAW, THERE ARE NO OTHER WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO THE PRODUCTS OR THE SUBJECT MATTER OF THIS AGREEMENT. 
  

	11.	Limitation of Liability 

 TO THE FULLEST EXTENT PERMITTED BY LAW,
UNDER NO CIRCUMSTANCES WILL WEBSENSE, ITS LICENSORS OR RESELLERS BE LIABLE FOR ANY DIRECT, INDIRECT, CONSEQUENTIAL, SPECIAL, PUNITIVE OR INCIDENTAL DAMAGES, WHETHER FORESEEABLE OR UNFORESEEABLE, BASED UPON ANY CLAIMS INCLUDING, BUT NOT LIMITED TO
CLAIMS FOR LOSS OF DATA, GOODWILL, OPPORTUNITY, REVENUE, PROFITS, OR USE OF THE PRODUCTS, INTERRUPTION IN USE OR AVAILABILITY OF DATA, STOPPAGE OF OTHER WORK OR IMPAIRMENT OF OTHER ASSETS, PRIVACY, EMPLOYEE CONDUCT, ACCESS TO URL ADDRESSES OR
APPLICATIONS CONTAINED IN THE DATABASES THAT SHOULD HAVE BEEN BLOCKED, THE CONTENTS OF ANY ADDRESS OR APPLICATION IN THE DATABASES, NEGLIGENCE, BREACH OF CONTRACT, TORT OR OTHERWISE AND THIRD PARTY CLAIMS, EVEN IF WEBSENSE HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL ANY AGGREGATE LIABILITY EXCEED THE TOTAL AMOUNT ACTUALLY PAID BY YOU TO WEBSENSE OVER THE ONE YEAR PERIOD PRIOR TO THE EVENT OUT OF WHICH THE CLAIM AROSE FOR THE SPECIFIC SUBSCRIPTION FOR THE PRODUCT
THAT DIRECTLY CAUSED THE DAMAGE. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

	12.	Ownership 

 All right, title and interest in and to the Products and any modifications, translations, or derivatives thereof, even if unauthorized, and all applicable rights in patents, copyrights, trade secrets, trademarks and all intellectual
property rights in the same shall remain exclusively with WEBSENSE and its licensors, if any. Products provided hereunder are valuable, proprietary, and unique, and You agree to be bound by and observe the proprietary nature thereof.
“Websense®,” “Websense Enterprise®,” “WebCatcherTM” and “AppCatcherTM” are trademarks of WEBSENSE.
WEBSENSE’s failure to list a trademark in this Section 12 shall not constitute a waiver of any trademark rights. You may not, and shall not allow third parties to: (i) reverse engineer, decompile, or disassemble the Products, except
and only to the extent that such activity is expressly permitted by applicable law notwithstanding this limitation; (ii) modify the Products or incorporate the Products into, or with, any other software; (iii) remove any Products’
identification or other notices; or (iv) loan, reproduce, transfer, distribute or resell the Products or any portion thereof, without the prior written consent of WEBSENSE. You may make copies of the Software for backup and hot swap purposes
only. You may not, and shall not allow third parties to, publish, distribute or disclose the results of any benchmark tests performed on the Products without WEBSENSE’S prior written approval. 
  

	13.	Intellectual Property Indemnification 

 In the event of any claim by
a third party against You asserting, or involving, a patent or copyright violation which concerns Products subscribed to by You hereunder, WEBSENSE will defend You, at its expense, and will indemnify You against cost, expense, attorneys’ fees
and liability arising from such claim whether or not such claim is successful; however, You must notify WEBSENSE in writing within ten (10) days after You have received notice of any such claim of infringement. WEBSENSE shall have sole control
of the defense and related settlement negotiations for the claim; provided that WEBSENSE shall have no right to incur any financial liability for a claim or a materially adverse impact on Your behalf without Your written consent. You shall fully
assist and cooperate in the defense and settlement negotiations as reasonably requested by WEBSENSE so long as WEBSENSE pays Your out-of-pocket expenses associated with such assistance and cooperation. Subject to WEBSENSE’s right to control the
defense and settlement of such claims, You may, at Your cost and expense, engage Your own counsel to advise You regarding any claims. 
 In the event an
injunction or order shall be obtained against Your use of Products, or if in the opinion of WEBSENSE, the Products are likely to become the subject of a claim of infringement, WEBSENSE shall, at its sole option and expense: (i) procure for You
the right to continue using the Products; (ii) modify the Products so that they become non-infringing; or (iii) replace the Products with substitute Products which perform substantially the same. WEBSENSE will have no liability to You with
respect to any claim of patent or copyright infringement which is based upon: (a) the combination or use of the Products with any other equipment or program not furnished by WEBSENSE; (b) any modification of the furnished Products by a
party other than WEBSENSE; (c) any use of the Products by You that exceeds the scope of the rights set forth in Section 12; or (d) the failure to promptly use/install any Database Update or Software Upgrade provided by WEBSENSE. You
shall indemnify WEBSENSE for any third party claims of patent or copyright infringement arising out of Your actions (a)-(d), as set forth in the previous sentence. 
 THE FOREGOING STATES YOUR SOLE AND EXCLUSIVE REMEDY FOR INFRINGEMENT OF INTELLECTUAL PROPERTY RIGHTS AND THE ENTIRE LIABILITY OF WEBSENSE WITH REGARD THERETO. 
  

	14.	Termination/Suspension of Access 

 WEBSENSE may terminate this
Agreement, upon reasonable notice, if You breach any term hereof. Any payment obligations of a party and the terms of Sections 10, 11, 12, 13, 15, 16, 17, 18 and 19, as appropriate, shall survive termination or expiration of this Agreement. Upon
expiration or termination of this Agreement for any reason, all rights granted to You to use the Products or access the Database(s) hereunder will cease and You must promptly destroy all Products, and any copies thereof, in Your possession, whether
on servers, computers, electronic appliances, devices, storage media or located elsewhere. 
  

	15.	Software and Services 

 Subject to the terms and conditions of this
Agreement, and only prior to termination or expiration of this Agreement, WEBSENSE hereby grants You a limited, non-exclusive, non-sublicensable, non-transferable right solely to access and use internally Software and Software Upgrades (in object
code form only) to: (i) access WEBSENSE Database(s) and Database Updates; and (ii) manage Your Internet and application use, during the term of this Agreement and as described in the Order. This right extends only to the number of Seats
set forth in the Order and is effective only upon the payment of the Subscription Fee. The Products shall reside on Your designated server, except as set forth in Section 8. Websense provides its standard technical support for Subscriptions to
Products pursuant to the terms of this Agreement. Enhanced support offerings and services are available for additional cost and are also sold pursuant to the terms of this Agreement. 
  

	16.	Export Restrictions 

 You acknowledge that the Products and all
related technical information, documents and materials are subject to export controls under the U.S. Export Administration Regulations and the export regulations of other countries. You may not re-export the Products or related technical
information, documents or materials unless You have complied with all appropriate laws, regulations and rulings, and obtained an appropriate authorization from the U.S. Commerce Department and/or any other appropriate government authorities.

  

	17.	Governing Law 

 This Agreement shall be governed in all respects by
the laws of the State of California, USA, excluding its conflict of laws rules and without application of the United Nations Conventions on Contracts for the International Sale of Goods. You agree to the exclusive jurisdiction and venue of the state
and federal courts located in San Diego County, California, USA, for the adjudication of any disputes arising from, related to or regarding the Products or the subject matter of this Agreement. 
  

	18.	Government Customers 

 If a unit or agency of the U.S. government is
given certain rights to use the Products, this provision applies. The Products (a) are or contain existing computer software and accompanying documentation and were developed at private expense, (b) are trade secrets of WEBSENSE for all
purposes of the Freedom of Information Act, (c) are “commercial items” and/or “commercial computer software” as defined in FAR 2.101, DFARS 252.227-7014(a)(1) and DFARS section 252.227-7015, subject to limited utilization as
expressly stated in this Agreement, (d) in all respects are proprietary data belonging to WEBSENSE, and (e) are unpublished and all rights are 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 
reserved under the copyright law of the United States. For civilian agencies and entities given certain rights to use the Products, and any legend or mark
thereof, the rights to use the Products are limited to “Restricted Rights,” and use, reproduction or disclosure is subject to restrictions set forth in this Agreement, the provisions in FAR 12.212 or DFARS 227.7202-3 -227.7202-4 and, to
the extent required under U.S. federal law, the minimum restricted rights set forth in FAR 52.227-14, Restricted Rights Notice (June 1987) Alternate III(g)(3) or FAR 52.227-19. To the extent any technical data is provided pursuant to the Agreement,
such data is protected per FAR 12.211 and DFARS 227.7102-2 and to the extent explicitly required by the U.S. government, is subject to limited rights set forth in DFARS 252.227.7015 and DFARS 252.227-7037. In the event that any of the above
referenced agency regulations are modified or amended, the subsequent equivalent regulation shall apply. 
  

	19.	Miscellaneous 

 All notices or approvals required under this
Agreement must be given in writing and sent to the respective addresses set forth in Section 1 above, in the case of Websense, and in the relevant Order, in Your case, and shall be delivered by (i) Federal Express or other overnight
courier and deemed received within one business days of sending; (ii) certified U.S. mail and deemed received upon written verification of receipt; or (iii) facsimile and deemed received upon acknowledgement of receipt of electronic
transmission. This Agreement and any Orders express the complete and exclusive statement of this agreement between the parties and supersede all prior oral or written agreements, communications, statements and negotiations relating to the subject
matter hereof. Inconsistencies between this Agreement and any Orders shall be governed by this Agreement. Any waiver or modification of this Agreement will not be effective unless executed in writing and signed by the parties. A waiver of any breach
of this Agreement by a party shall not be construed to be a waiver of a subsequent breach. This Agreement will bind Your successors-in-interest. If any provision of this Agreement is held to be unenforceable, in whole or in part, such provision
shall be struck in part or in whole, as necessary, and the remaining provisions of this Agreement shall remain valid. You acknowledge that WEBSENSE may use Your company name only in a list of WEBSENSE customers. Neither party shall be liable for any
failure or delay in performance due, in whole or in part, to any cause beyond its reasonable control, except for payment of fees due under this Agreement. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 Exhibit B 
 For information purposes only 
 

 
 10240 Sorrento Valley Road 
 San
Diego, CA 92121 
 Subscription Order Form 
 Websense Inc. hereby grants Subscriber, as identified below, a non-exclusive, non-transferable right to use the Websense provided software products (the “Software”) solely to access the Websense Database for a limited time on the
conditions set forth below and in the then current Websense Subscription Agreement (at www.websense.com/global/en/Downloads/Terms/) incorporated herein by reference (herein collectively the “Agreement”). 
 Subscriber Information 
  

			
	Subscriber Company:	  	 

			
		
	Subscriber Contact Name:	  	 

			
		
	Subscriber Company Address:	  	 
	
	                                       
                                         
                                         
                                         
                                         
                                         
      

			
	
	 Subscriber Contact
 Telephone:                                     
                                         
                                         
                                         
                                         
                                 

			
	
	 Subscriber Contact
 email:                                      
                                         
                                         
                                         
                                         
                                         
 

 Subscription Fees 
 Subscriber shall pay a Subscription Fee of $              for              (the
number of) Seats for                      (the number of) year(s). 
 The subscription period will begin upon signature of this addendum. 
 Upon expiration of the year(s) purchased, Subscriber
must purchase additional years for proper operation of the Software and for use of the Websense Database. 
 SUBSCRIBER ACKNOWLEDGES THAT IT HAS AGREED TO
THE TERMS AND CONDITIONS FOR WEBSENSE PRODUCTS AT (www.websense.com/global/en/Downloads/Terms/) WHICH MAY BE CHANGED FROM TIME TO TIME BY WEBSENSE AND WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE, BY INSTALLING AND USING THE SOFTWARE AND/OR THE
WEBSENSE DATABASE. THE PERSON SIGNING ON BEHALF OF THE SUBSCRIBER REPRESENTS THAT HE/SHE HAS THE AUTHORITY TO SIGN THIS AGREEMENT AND BIND THE SUBSCRIBER TO ITS TERMS. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

			
	Subscriber:
		
	By:	 	 

			
		
	Print Name:	 	 

			
		
	Title:	 	 

			
		
	Date:	 	 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 EXHIBIT C 
 SUBSCRIPTION PRODUCT TERMS 
  

	1.	PRODUCTS. 

 General. The terms herein apply
to Subscription Products (hereafter in this Exhibit C the “Product”) and are in addition to the terms in the underlying Agreement. As used herein, “End-User” shall have the meaning set forth in the Agreement. 
  

	2.	SUBSCRIPTION GRANT 

 2.1 Right to Distribute Products. As
specifically set forth in the Agreement, Vendor grants to Ingram Micro a non-exclusive right to distribute Products to its Resellers throughout the Territory. 
 2.2 Retained Rights. Notwithstanding anything to the contrary set forth in this Agreement, all right, title in and to the Products and any modifications, translations or derivatives thereof, even if unauthorized, and all applicable
rights in patents, copyrights, trade secrets, trademarks and all intellectual property rights in the same shall remain exclusively with Vendor and its licensors, if any. 
  

	3.	DISTRIBUTION PROCESS 

  

	3.1	Electronic Product Access. Vendor shall provide access to the Products pursuant to an Ingram Micro PO. 

 3.2 Cancellation of Orders. Ingram Micro has the right to cancel any PO at any time prior to delivery. Any delivery of the Products on a cancelled PO will be
subject to credit of the Product’s invoice price. 
 3.3 Invoicing. For each Product ordered by Ingram Micro with access provided to an End-User,
Vendor shall issue to Ingram Micro an invoice showing Ingram Micro’s PO number, the Vendor part number(s), description(s), price and payment terms as specified herein. At least monthly, Vendor shall provide Ingram Micro with a current statement
of account listing all invoices outstanding and any payments made and credits given since the date of the previous statement. Vendor agrees to provide invoices related to the Product to Ingram Micro within sixty (60) days of ship date.

 3.4 Information. Vendor agrees to provide the following information within ten (10) days after receipt of a written request from Ingram for
any Product which is subject to such requirements, each Product’s Export Control Classification Number (ECCN), U.S. Harmonized Tariff System Number (HTS), Country of Origin, and for Products containing encryption, the Encryption bit, the
declaration of eligibility for License Exception ENC, and a copy of the Commodity Classification Automated Tracking System (CCATS) approval form. 
 3.5
Product Warranty: Vendor represents and warrants that (i) it will not download or cause the download of any Product on the End-User’s computer that performs functions without the End-User’s or the End-User’s IT
administrator’s advance knowledge and consent including, but not limited to: (a) transmission of Product that collects and transmits personal information about the computer owner or End-User, (b) monitors and transmits Web pages
accessed (other than Vendor’s WebCatcher and AppCatcher product features), or (c) modifies default computer settings as to home page or search, (ii) it will provide easy and reasonable removal procedures to uninstall any Product from
the End-User’s computer by End-User’s IT administrator, and (iii) it will not use pop-up windows for advertisements. 
 3.6 Subscription
Desk Infrastructure. Vendor will fund any agreed upon subscription desk infrastructure for Product support in an amount that is mutually agreed upon between the parties. 
  

	4.	PRICING & PAYMENT TERMS 

 4.1 Product Pricing. Not
less than thirty (30) days prior to Vendor changing its list pricing, Vendor must provide Ingram Micro with written notice thereof. Ingram Micro shall have sole discretion as to the selling price of Product to its Resellers. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 4.2 Payment and Withhold Amounts. Ingram Micro’s payment terms for any order of Product hereunder shall
be net thirty (30) days from the invoice date. Payment shall be deemed made on the payment postmark date or the actual date of electronic funds transfer, if applicable. Notwithstanding any other provision in this Agreement to the contrary,
Ingram Micro shall not be deemed in default if it deducts from invoice (“DFI”) or withholds any specific amount invoiced by Vendor due to Vendor’s error and Vendor agrees that Ingram Micro may DFI for any other mutually agreed upon
credits due Ingram Micro (e.g., Special Pricing or program withholds.) Any such DFI by Ingram Micro shall constitute Ingram Micro’s submission of a claim related to such item. Vendor agrees to notify Ingram Micro of any discrepancies. Vendor
agrees that Ingram Micro retains the right to withhold an amount equal to any complete, approved or pending mutually agreed upon marketing programs for which Ingram Micro has not yet provided a claim or invoice to Vendor. The parties agree to
reconcile all accounting issues related to this Agreement on a regular basis. 
 4.3 Rebate. Vendor will pay Ingram Micro a rebate as mutually agreed
between the parties for every Ingram Micro fiscal quarter or pro-rata portion thereof commencing upon the Effective Date of this Agreement. Ingram Micro will provide Vendor with an invoice for the rebate sum at the end of each Ingram Micro fiscal
quarter and Vendor will provide Ingram Micro a check or wire funds in the amount of the rebate sum within thirty (30) days after receipt of a correct invoice. 
  

	5.	TAXES AND TITLES 

 5.1 Taxes. Ingram Micro shall pay all
applicable country, state, municipal and other taxes including, without limitation, sales, use, value added, withholding and other taxes, and customs and import duties on Products, other than taxes based upon Vendor’s net income. Should tax law
in the Territory require the withholding of tax by Ingram Micro on any of its payments to Vendor, then Ingram Micro shall provide to Vendor documentation that establishes Ingram Micro’s obligation to withhold such tax as well as all receipts,
credit notices or other documents which evidence the actual withholding and submission of such taxes by Ingram Micro to the applicable taxing authorities. 
 5.2 Title. Title to and risk of loss or damage to the media containing the Software will pass to Ingram Micro upon delivery to a common carrier at Vendor’s point of shipment or when the Subscription Key for each Product is sent
to Ingram Micro, its Reseller or the End-User by e-mail. 
  

	6.	RETURNS 

 6.1 Right of Return. Vendor agrees to consider any
return requests by Ingram Micro or Ingram Micro’s customers on a case-by-case basis. Vendor is under no obligation to accept returns under this Agreement. 

  
 Ingram Micro Inc.
Distribution Agreement 
  

 Exhibit D 
 Subscription Fees 
 Subscription Fees are based upon per Seat access by an End-User of the Database(s) pursuant to
the terms of the End-User Subscription Agreement the current form of which is set forth in Exhibit A for a specified subscription term. Upon expiration of the initial subscription term, an End-User must pay an annual Subscription Fee for
uninterrupted use of the Software to access the Database(s). “Seat” means any computer, electronic appliance or device that is authorized to access or use the Databases(s), whether or not through, or in conjunction with a server. Vendor
will provide Ingram Micro notice of an increase in the list price of the Products, as set forth in Exhibit C. In such event, Vendor will accept orders at the pre-increase price level for ninety (90) days after the increase is announced. Vendor
does not accept returns. 
 Current list of fees: 
 To be
agreed in writing between the parties on or before the forty-fifth day after the Effective Date.Amended and Restated Executive Employment Agreement

 Exhibit 10.3 
 Execution Copy 
 AMENDED AND RESTATED 
 ENTEROMEDICS INC. 
 EXECUTIVE
EMPLOYMENT AGREEMENT 
 THIS AGREEMENT (the “Agreement”) is made and entered on May 4, 2009 (the “Amended Agreement
Date”), between ENTEROMEDICS INC. (“Company”), a Delaware corporation with its principal place of business at 2800 Patton Road, St. Paul, Minnesota 55113; and MARK B. KNUDSON (“Employee”), a Minnesota resident whose address
is 1309 West Royal Oaks Drive, Shoreview, Minnesota 55126, for the purpose of setting forth the terms and conditions of Employee’s employment by Company. 
 BACKGROUND 
 A. Employment. Employee is currently employed by Company as its Chief Executive Officer and
President, and Employee possesses certain skills, talents, contacts, judgment and knowledge of the business of Company. Company desires to have the continued benefit of Employee’s employment in such capacities, and Employee desires to continue
to serve in such capacities, pursuant to the terms and conditions set forth in this Agreement. Employee understands that his continued employment by Company is expressly conditioned on execution of this Agreement. 
 B. Prior Agreement. The parties entered into a written Executive Employment Agreement dated June 22, 2005 (the “Prior Agreement”), which has
remained in effect from that date until the Amended Agreement Date and is intended to be entirely superseded by this Agreement as of the Amended Agreement Date. 
 C. Purposes of Amendment and Restatement. Based on Employee’s successful performance of his duties for Company through the Amended Agreement Date the parties desire that the terms and conditions of his employment be improved
from those set forth in the Prior Agreement. 
 The parties also desire to minimize Employee's risk of premature income taxation and
penalties under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), by amending certain compensation and severance provisions of the Prior Agreement in a manner set forth in this Agreement, to the extent
necessary to comply with Code Section 409A and the Treasury Regulations and other applicable guidance issued under Code Section 409A. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of Employee’s continued employment with Company and the facts recited above, the
mutual covenants set forth below and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Company and Employee agree as follows: 
 ARTICLE I: EMPLOYMENT, TERM AND DUTIES 
 1.1 Employment. Company hereby employs Employee as its Chief Executive
Officer and President, and Employee accepts such employment and agrees to perform services for Company pursuant to the terms and conditions set forth in this Agreement. 

 1.2 Term. The term (the “Term”) of this Agreement shall commence on the Amended Agreement Date
and, unless earlier terminated in accordance with Article III of this Agreement, shall terminate two years from the Amended Agreement Date; provided, however, that the Term of this Agreement shall automatically renew for successive one-year terms
thereafter unless, at least 90 days before the expiration of the initial Term or any additional Term, either party provides written notice to the other of its or his desire to terminate this Agreement. 
 1.3 Position and Duties. 
 1.3.1 Service
with Company. During the Term, Employee agrees to perform such duties and responsibilities as are assigned to him from time to time by Company’s Board of Directors (the “Board”). 
 1.3.2 Performance of Duties. During the Term, Employee agrees to serve Company in an executive capacity as its President and Chief Executive
Officer, and shall perform such duties as are required by Company’s Board of Directors. 
 ARTICLE II. COMPENSATION, BENEFITS AND EXPENSES

 2.1 Base Salary. Subject to the provisions of Article III of this Agreement, during the Term, Company shall pay Employee a “Base
Salary” not less than $300,000 per year or such higher annual rate as may from time to time be approved by the Board. Such Base Salary shall be paid in substantially equal regular periodic payments, less deductions and withholdings, in
accordance with Company’s regular payroll procedures, policies and practices for executive officers, as such may be modified from time to time. The Base Salary shall be reviewed by the Board annually for potential adjustment on the basis of
performance; and Employee shall be eligible, at Company’s sole discretion, for annual salary increases consistent with Company’s procedures, policies and practices. If Employee’s Base Salary is increased from time to time during the
Term, the increased amount shall become the Base Salary for the remainder of the Term and any extensions of the Term and for as long thereafter as required pursuant to Article III as applicable, subject to any subsequent increases.

 2.2 Incentive Compensation. In addition to Base Salary, Company shall make Employee eligible for such cash and equity awards pursuant to
Company’s Incentive Compensation Plan, if any, as may be applicable and adopted by Company. Except to the extent as otherwise provided in Article III in connection with a termination of Employee’s employment, payment of incentive
compensation will be subject to Employee achieving certain objectives set annually by Employee and the Compensation Committee of the Board, with the target amount of any cash incentive compensation for any calendar year to be approved by the
Compensation Committee of the Board, which target in no event shall be less than 30% (subject to performance of the specified objectives) of Employee’s Base Salary in effect from time to time. Employee and the Compensation Committee will meet
and review the objectives set by the Compensation 

  

 2 

 
Committee for each upcoming calendar year before March 31 of such year. Company shall pay any such incentive compensation earned by Employee for a
calendar year on or before March 15 of the following year. 
 2.3 Participation in Benefits. During the Term of Employee’s employment by
Company, Employee shall be entitled to participate in the employee benefits offered generally by Company to its employees, to the extent that Employee’s position, tenure, salary, health and other qualifications make Employee eligible to
participate. Without limiting the foregoing, Employee shall be eligible to participate in any pension plan, or group life, health or accident insurance or any other plan or policy that may presently be in effect or that may hereafter be adopted by
Company for the benefit of its employees and/or corporate officers generally. Employee is eligible to receive six weeks of vacation on an annual basis, subject to Company’s “Paid Time Off” policy. Employee’s participation in such
benefits shall be subject to the terms of the applicable plans, as the same may be amended from time to time. Company does not guarantee the adoption or continuance of any particular employee benefit during Employee’s employment; and nothing in
this Agreement is intended to, or shall in any way restrict the right of Company to amend, modify or terminate any of its benefit plans during the Term of this Agreement. 
 ARTICLE III: TERMINATION AND COMPENSATION FOLLOWING TERMINATION 
 3.1 Termination. Subject to the respective
continuing obligations of the parties under this Agreement, this Agreement and Employee’s employment hereunder may be terminated as of the applicable date, whether before or at the end of the Term (the “Separation Date”) under any of
the following circumstances: 
 3.1.1 Termination by Mutual Agreement. By mutual written agreement of the parties at any time, which
may specify a Separation Date. 
 3.1.2 Termination by Employee’s Death. If Employee dies during the Term, the date of his death
shall be his Separation Date. 
 3.1.3 Termination Due to Employee’s Disability. If Employee becomes Disabled, the Separation
Date shall be the effective date of his resignation or his discharge by the Company because of the Disability, whichever occurs first. For purposes of this Agreement, “Disabled” or “Disability” means the incapacity or inability
of Employee, whether due to accident, sickness or otherwise (with the exception of the illegal use of drugs), to perform the essential functions of Employee’s position under this Agreement, with or without reasonable accommodation (provided
that no accommodation that imposes undue hardship on Company will be required) for an aggregate of 90 days during any period of 180 consecutive days, or such longer period as may be required under applicable law. 
 If Employee (or his legal representative, if applicable) does not agree with the Company’s decision to terminate his employment hereunder because of
Disability, the question of Employee’s Disability shall be subject to the certification of a qualified medical doctor mutually agreed to by Company and Employee (or, in the event of Employee’s incapacity to designate a doctor,
Employee’s legal representative). In the absence of such agreement, each 

  

 3 

 
such party shall nominate a qualified medical doctor and the two doctors shall select a third doctor, who shall make the determination as to Employee’s
Disability. The decision of the designated physician shall be binding upon the parties in the same manner a the decision of an arbitrator under Section 7.5. 
 3.1.4 Termination by Company for Cause. Company may terminate this Agreement and Employee’s employment for Cause at any time after providing written notice to Employee. For purposes of this Agreement,
“Cause” means: (a) willful breach of Employee’s duties to Company or willful breach of this Agreement; (b) Employee’s conviction of any felony or any crime involving fraud, dishonesty, or moral turpitude;
(c) Employee’s willful participation in any fraud against or affecting Company or any subsidiary, affiliate, customer, supplier, client, agent, or employee thereof; or (d) any other act that Company reasonably determines constitutes
gross or willful misconduct materially detrimental to Company including, but not limited to, unethical practices, dishonesty, disloyalty, or any other acts harmful to Company; provided, however that a for Cause termination pursuant to clause (a), if
susceptible of cure, shall not become effective unless Employee fails to cure such failure to perform or breach within 30 days after his receipt of written notice from Company, such notice to describe such failure to perform or breach and identify
what reasonable actions shall be required to cure such failure to perform or breach. 
 For purposes of this Section 3.1.4, no act, or
failure to act, on Employee’s part shall be considered “dishonest” or “willful” unless done, or omitted to be done, by Employee in bad faith and without reasonable belief that his action or omission was in or not opposed to,
the best interest of Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for Company shall be conclusively presumed to be done, or omitted to be done,
by Employee in good faith and in the best interests of Company. Furthermore, the term "Cause" shall not include ordinary negligence or failure to act, whether due to an error in judgment or otherwise, if Employee has exercised substantial efforts in
good faith to perform the duties reasonably assigned or appropriate to his position. 
 3.1.5 Termination by Employee without Good
Reason. Employee may at any time voluntarily terminate his employment under this Agreement, for any reason or no reason, with 30 days written notice. 
 3.1.6 Termination by Company without Cause. Company may terminate Employee’s employment under this Agreement at any time for any reason or no reason with 30 days written notice, except that no notice shall
be required for a termination without Cause following a “Change in Control” as defined in Employee’s Incentive Stock Option Agreement(s) or Non-Incentive Stock Option Agreement(s), as the case may be, with Company (collectively, the
“Stock Option Agreements”). 
 3.1.7 Termination by Employee for Good Reason. Employee may at any time voluntarily terminate
his employment pursuant to this Agreement for Good Reason (as defined below); provided, however, that any resignation by Employee for Good Reason shall not be effective unless and until the following two conditions have been satisfied: (a) he
has notified Company in writing of the facts that he believes constitute Good Reason, within 90 days after such facts first becomes known to him; and (b) Company fail to cure such Good Reason within 

  

 4 

 
30 days after its receipt of that notice. Employee’s resignation shall be effective before the end of that 30-day period as of any earlier date on which
Company refuses to cure or denies the existence of such Good Reason. The effective date of any resignation for Good Reason shall be a Separation Date. If Company timely cures such Good Reason, or it is determined that the reason for Employee’s
resignation was not a Good Reason, he shall be deemed not to have resigned unless he elects to resign under Section 3.1.5. 
 For
purposes of this Agreement, “Good Reason” means, at any time: (a) the assignment by Company to Employee of employment duties, functions or responsibilities that are significantly different from, and result in a substantial diminution
of, Employee’s duties, functions or responsibilities, including without limitation any requirement that Employee report to another officer of Company, rather than directly to the Board; (b) a material reduction in Employee’s Base
Salary or the minimum target amount provided under Section 2.2 for his cash incentive compensation for any calendar year; (c) a Company requirement that Employee be based at any office or location more than 25 miles from Employee’s
primary work location before the date of this Agreement; or (d) any other action or inaction that constitutes a material breach of this Agreement by Company. 
 3.1.8 Termination at End of Term. The termination of this Agreement and Employee’s employment, as of the end of the initial Term or any additional Term, pursuant to the operation of the provisions of
Section 1.2, shall entitle Employee only to the payments provided in Sections 3.2.1, 3.2.3 and 3.3. 
 3.2 Compensation following Termination of
Employment. If Employee’s employment pursuant to this Agreement is terminated before the end of the Term, or by Company as of the end of the Term, Employee shall be entitled to the following compensation and benefits upon such termination:

 3.2.1 Payment of Base of Salary. If Employee’s employment is terminated pursuant to any subsection of Section 3.1, Company
shall, within 14 calendar days following the Separation Date, pay to Employee, Employee’s surviving spouse (or, if none, Employee’s estate), as the case may be, any amounts due to Employee for Base Salary through the Separation Date.

 If a termination occurs pursuant to Section 3.1.5 (by Employee without Good Reason), when Company receives Employee’s notice
Company shall have the option, at its discretion (a) to continue to engage Employee’s services through the 30-day notice period until the Separation Date, or (b) terminate the use of Employee’s services during the 30 day notice
period before the Separation Date but treat Employee as if he were providing services through the 30 day notice period until the Separation Date for purposes of determining Employee’s compensation due him pursuant to this Section 3.2.1.

 3.2.2 Payment of Severance for Termination by Company without Cause or by Employee for Good Reason. If (a) Employee’s
employment is terminated pursuant to either of Sections 3.1.6 (by Company without Cause) or 3.1.7 (by Employee for Good Reason), (b) Employee has executed and delivered to Company, within 60 days after the effective date of that termination, a
written release in substantially the same form attached hereto as Exhibit A, and (c)

  

 5 

 
the rescission period specified therein has expired, Company shall, subject to any payment delay required by Section 3.2.6, continue to pay, as
severance pay, Employee’s Base Salary at the rate in effect on the Separation Date, for a period of 18 months following the Separation Date, and Employee shall be permitted to exercise all shares that are vested as of the Separation Date under
his Options immediately or at any time during the five-year period (but not after the end of each Option’s original term) following the Separation Date. Such payments of Base Salary will be at the usual and customary pay intervals of Company
and will be subject to all appropriate deductions and withholdings. For purposes of Employee’s qualification for severance pay, his right to any series of such payments due under this Agreement is treated as the right to a series of separate
payments, each of which is subject to all of the requirements of this Section 3.2.2. 
 3.2.3 Payment of Severance at End of
Term. If (a) Employee’s employment terminates pursuant to Section 3.1.8, (b) Employee has executed and delivered to Company, within 60 days after the effective date of that termination, a written release in substantially the
same form attached hereto as Exhibit A, and (c) the rescission period specified therein has expired, Company shall, subject to any payment delay required by Section 3.2.6, continue to pay, as severance pay, Employee’s Base Salary at
the rate in effect on the Separation Date, for a period of 12 months following the Separation Date, and Employee shall be permitted to exercise all shares vested as of the Separation Date under his Options immediately or at any time during the
five-year period (but not after the end of each Option’s original term) following the Separation Date. 
 3.2.4 Effects of Change in
Control. Upon the occurrence of a Change in Control (as defined in Section 3.1.6), Company agrees that, notwithstanding any contrary provisions of the Stock Option Agreements or Company’s Stock Incentive Plan, the vesting schedule of
Employee’s stock options granted in the Stock Option Agreements (the “Options”) shall accelerate such that on the date the Change in Control is completed, 100% of any then-unvested shares subject to the Options held by Employee shall
immediately vest; provided, however, that if, in connection with the consummation of the transaction resulting in the Change in Control, Employee receives a cash payment with respect to each Option (after they become fully vested) equal to
the difference or “spread” between (a) the per share amount paid to holders of Company’s common stock in such transaction and (b) the per share exercise price under the applicable Stock Option Agreement, his Options shall be
cancelled upon the consummation of the Change in Control in exchange for such cash payment; provided, further, that if in connection with or within the first two years after the Change in Control (as defined in Section 3.1.6),
Employee’s employment is terminated pursuant to either of Sections 3.1.6 (by Company without Cause) or 3.1.7 (by Employee for Good Reason), and (a) Employee has executed and delivered to Company, within 60 days after the effective date of
that termination, a written release in substantially the same form attached hereto as Exhibit A, and (b) the rescission period specified therein has expired, then, in addition to the payments under Section 3.2.2: 
 (A) within 14 calendar days following the Separation Date, the Company shall also pay to Employee, or Employee’s surviving spouse (or, if none,
Employee’s estate), as the case may be) any amounts to which Employee is entitled as of the Separation Date, as a pro rata portion of any unpaid cash incentive compensation determined under Section 2.2 for the calendar year in which the
Separation Date occurs. That pro rated cash incentive compensation shall be based on whether Employee’s objectives were achieved (also pro rated to the extent possible) during the portion of the year before the Separation Date; and the pro
rated amount shall be based on the number of days in that portion, as compared with the entire year; and 
  

 6 

 (B) the vesting schedule of Options held by Employee shall accelerate such that on the Separation Date
connected with or after a Change in Control, 100% of any unvested shares under the Options shall immediately vest and shall be exercisable immediately or at any time during the five-year period (but not after the end of each Option’s original
term) following the Separation Date, notwithstanding any contrary provisions of the Stock Option Agreements or Company’s Stock Incentive Plan; provided, however, that if, in connection with the consummation of the transaction resulting in the
Change in Control, Employee receives a cash payment with respect to each Option (after they become fully vested under this paragraph) equal to the difference or “spread” between (a) the per share amount paid to holders of
Company’s common stock in such transaction and (b) the per share exercise price under the applicable Stock Option Agreement, his Options shall be cancelled upon the consummation of the Change in Control in exchange for such cash payment.
The parties hereto agree and acknowledge that, with respect to any Options previously granted to Employee that were intended by the parties to be treated as “incentive stock options” within the meaning of Code Section 422, such
Options, to the extent they may be exercised by Employee more than 90 days following the Separation Date, shall be treated as non-qualified Options, notwithstanding any contrary provisions of the Stock Option Agreements. 
 3.2.5 General Provision Regarding Treatment of Options. Except as otherwise specified in Sections 3.2.2 and 3.2.4 of this Agreement, the terms of
the Stock Incentive Plan and the Stock Option Agreements, as applicable, shall govern the treatment of the Options following the Separation Date. 
 3.2.6 Potential Delay of Severance Payments. If, as of the Separation Date, (a) Company’s common stock is publicly traded (as determined under Code Section 409A), (b) Employee is a “specified employee”
(as determined under Code Section 409A), and (c) any portion of the severance pay due Employee under Sections 3.2.2, 3.2.3 (and, if applicable, paragraph (A) of Section 3.2.4) would exceed the sum of the applicable limited
separation pay exclusions as determined pursuant to Code Section 409A, then payment of the excess amount shall be delayed until the first regular payroll date of Company following the six month anniversary of Employee’s Separation Date (or
the date of his death, if earlier than that anniversary), and shall include a lump sum equal to the aggregate amounts that Employee would have received had payment of this excess amount commenced as provided in Sections 3.2.2, 3.2.3 (and, if
applicable, paragraph (A) of Section 3.2.4) after the Separation Date. If Employee continues to perform any services for Company (as an employee or otherwise) after the Separation Date, such six month period shall be measured from the date
of Employee’s “separation from service” as defined pursuant to Code Section 409A. 
 3.3 Benefits Following Certain Employment
Terminations. If Employee’s employment is terminated pursuant to any of Sections 3.1.2, 3.1.3, 3.1.6, 3.1.7 or 3.1.8, Company shall provide, at the sole cost of Company (except for any share of the cost for benefits of his spouse and
eligible dependents that Employee was required to pay immediately before the Separation Date), continuing coverage under any of its medical, dental and life insurance programs for Employee (if he survives) and his spouse and any eligible dependents,
to the extent any such coverage was 

  

 7 

 
in effect for any of those individuals immediately before the Separation Date, during the greater of the following periods: (a) if applicable, the
period during which he is entitled to receive his Base Salary as severance pay under Section 3.2.2 or 3.2.3; or (b) the first 18 months after the Separation Date, irrespective of any then pre-existing health conditions of Employee, his
spouse or any eligible dependents; provided, however, that Company may discontinue any such coverage for which it does not receive timely payment of Employee’s share of the cost due after the Separation Date; and provided further that, in each
case, such continued participation is not prohibited by any applicable laws or would not otherwise jeopardize the tax qualified status of any such programs. All reimbursement under this Section 3.3 shall terminate upon commencement of new
employment by Employee with an employer that offers health care coverage to its employees. If any such continuing participation is prohibited by applicable law or would otherwise jeopardize the tax qualified status of any medical, dental or life
insurance plan and, as a result, Company terminates any such coverage, it shall promptly reimburse Employee (or Employee’s spouse and eligible dependents, as the case may be) for the cost of obtaining comparable third party coverage
irrespective of any then preexisting health conditions of any of them who was covered immediately before the Separation Date. Any period of continuing coverage under this Section 3.3 shall run at the same time as the applicable continuing
coverage required to be offered to Employee, his spouse or eligible dependents under applicable laws; and each of them who has a right to continuing coverage under any such law shall be deemed to have timely elected continuing coverage under such
law, to the extent that Company is required to provide continuing coverage under this paragraph. 
 Except as otherwise provided in this Section 3.3,
the benefits to which Employee (or, as applicable, Employee’s spouse, eligible dependents or estate) may be entitled upon termination of his employment, pursuant to the plans and policies of Company described in Article II of this Agreement,
shall be determined and paid in accordance with such plans, policies and applicable laws. 
 3.4 Surrender of Records and Property. Upon termination
of Employee’s employment with Company, Employee shall deliver promptly to Company all Confidential Information as defined in Section 4.1 and all Company property including, but not necessarily limited to records, manuals, books, blank
forms, documents, letters, memoranda, business plans, minutes, notes, notebooks, reports, computer disks, computer software, computer programs (including source code, object code, on-line files, documentation, testing materials and plans and
reports), computer print-outs, member or customer lists, credit cards, keys, identification, products, access cards, designs, drawings, sketches, devices, specifications, formulae, data, tables or calculations or copies thereof, and all other
tangible or intangible property relating in any way to the business of Company that are the property of Company or any subsidiary or affiliate, if any, or which relate in any way to the business, products, practices or techniques of Company or any
subsidiary or affiliate. 
 ARTICLE IV. CONFIDENTIAL INFORMATION 
 4.1 Definition. For purposes of this Agreement, “Confidential Information” means any information that is not generally known to the public or to other persons who can obtain economic value from its disclosure
or use; information which derives independent economic benefit from not being known to such persons; and information about the activities or business of 

  

 8 

 
Company that is not generally known to others engaged in similar business or activities, its products, services, finances, trade secrets, contracts, patents
filed or pending, the techniques used in completing customer projects, research and development, data and information, processes, designs, engineering, marketing plans or techniques, organization or operation. The foregoing list is intended to be
illustrative rather than comprehensive. Additionally, the term “confidential information” shall mean any confidential information as that term is defined in any agreement Company may have with its customers or other third parties from time
to time. 
 4.2 Nondisclosure. During the term of this Agreement or at any time thereafter, Employee agrees not to disclose Confidential
information to any other third party or company, other than in connection with Employee’s employment with Company, or use such information, directly or indirectly, for any purpose whatsoever, without the prior written consent of Company.

 ARTICLE V. INVENTIONS 
 5.1 Disclosure and
Assignment of Inventions and Other Works. During the term of this Agreement and for one year following the Separation Date, Employee shall promptly disclose to Company in writing all ideas, improvements and discoveries, whether or not such are
patentable or copyrightable, and whether or not in writing or reduced to practice (“Inventions”) and any writings, drawings, diagrams, charts, tables, databases, software (in object or source code and recorded on any medium), and any other
works of authorship, whether or not such are copyrightable (“Works of Authorship”) that are conceived, made, discovered, written or created by Employee alone or jointly with any person, group or entity, whether during the normal hours of
his employment at Company or on Employee’s own time. Employee hereby assigns all rights to all such Inventions and Works of Authorship to Company. Employee shall give Company all the assistance it reasonably requires for Company to perfect,
protect, and use its rights to such Inventions and Works of Authorship. Employee shall sign all such documents, take all such actions and supply all such information that Company considers necessary or desirable to transfer or record the transfer of
Company’s entire right, title and interest in such Inventions and Works of Authorship and to enable Company to obtain exclusive patent, copyright, or other legal protection for Inventions and Works of Authorship anywhere in the world, provided
Company shall bear all reasonable expenses of Employee in rendering such cooperation. 
 5.2 Notice and Acknowledgement. In accordance with Minnesota
Statute § 181.78, the foregoing Section 5.1 does not require Employee to assign or offer to assign to Company any of Employee’s rights in an Invention that Employee developed entirely on Employee’s own time without using
Company’s equipment, supplies, facilities or trade secret information, and (a) that does not relate directly to Company’s business or to Company’s actual or demonstrably anticipated research or development, or (b) that does
not result from any work performed by Employee for Company. For the purpose of this Section, “Company’s business” shall be defined as development pertaining to implantable medical devices to treat obesity or devices to apply signals
to a vagus nerve to treat a gastrointestinal disorder (e.g., obesity, pancreatitis or irritable bowel syndrome). 
 To the extent a provision in this
Agreement purports to require Employee to assign Inventions otherwise excluded by this paragraph, the provision is against the public policy of the State of Minnesota and is unenforceable. By signing this Agreement, Employee acknowledges receipt of
the notification required by Minnesota Statute § 181.78. 
  

 9 

 ARTICLE VI. NONCOMPETITION AND NONSOLICITATION 
 6.1 Agreement Not to Compete. During the Term of Employee’s employment by Company, and for a period of 12 consecutive months from the date of termination of such employment for whatever reason
(whether occasioned by Employee or Company), Employee shall not, directly or indirectly, in any place in the world, render services to any conflicting organization, or engage in competition with Company, in any manner or capacity, nor direct any
other individual or business enterprise to engage in competition with Company in any manner or capacity, (e.g., as an advisor, principal, agent, partner, officer, director, stockholder of more than 1% of the outstanding shares
of the capital stock of a publicly traded company, employee, member of any association or limited liability company or otherwise) on any products competitive with Company’s existing products, any products competitive with Company’s
announced products or any products competitive with Company’s pending products that have not yet been announced but which Employee has, or should have, actual or constructive knowledge. For the purposes of this Section, “conflicting
organization” shall be defined as any person, corporation or entity that competes with any product, process or service, in existence or under development, of Company pertaining to implantable medical devices to treat obesity or devices to apply
signals to a vagus nerve to treat a gastrointestinal disorder (e.g., obesity, pancreatitis or irritable bowel syndrome). 
 6.2
Agreement Not to Solicit. Employee hereby acknowledges that Company’s customers constitute vital and valuable aspects of its business on a worldwide basis. In recognition of that fact, for a period of one year following the termination
of this Agreement for any reason whatsoever, Employee shall not solicit, or assist anyone else in the solicitation of, any of Company’s then-current customers to terminate their respective relationships with Company and to become customers of
any enterprise with which Employee may then be associated, affiliated or connected. 
 6.3 Agreement Not to Recruit. Employee hereby acknowledges that
Company’s employees, consultants and other contractors constitute vital and valuable aspects of its business and missions on a worldwide basis. In recognition of that fact, for a period of one year following the termination of this Agreement
for any reason whatsoever, Employee shall not solicit, or assist anyone else in the solicitation of, any of Company’s then-current employees, consultants and other contractors to terminate their respective relationships with Company and to
become employees, consultants and other contractors of any enterprise with which Employee may then be associated, affiliated or connected. 
 ARTICLE VII:
MISCELLANEOUS PROVISIONS 
 7.1 Company Remedies. Employee acknowledges and agrees that the restrictions and agreements contained in this Agreement
are reasonable and necessary to protect the legitimate interests of Company, that the services to be rendered by Employee are of a special, unique and extraordinary character, that it would be difficult to replace such services and that any
violation of Articles IV, V or VI of this Agreement would be highly injurious to Company, that 

  

 10 

 
Employee’s violation of any of Articles IV, V or VI of this Agreement would cause Company irreparable harm that would not be adequately compensated by
monetary damages and that the remedy at law for any breach of any of the provisions of Articles IV, V and VI will be inadequate. Accordingly, Employee specifically agrees that Company shall be entitled, in addition to any remedy at law, to
preliminary and permanent injunctive relief and specific performance for any actual or threatened violation of this Agreement and to enforce the provisions of Articles IV, V and VI of this Agreement. 
 7.2 Assignment. This Agreement shall not be assignable, in whole or in part, by Employee without the written consent of Company and any purported or
attempted assignment or transfer of this Agreement or any of Employee’s duties, responsibilities or obligations hereunder shall be void. This Agreement shall inure to the benefit of and be binding upon Employee, Employee’s heirs and
personal representatives. This Agreement shall inure to the benefit of and be binding upon Company and its successors and assigns. Notwithstanding the foregoing, Company may not, without the written consent of Employee, assign its rights and
obligations under this Agreement to any business entity that has become the successor to Company in the event of a sale, merger, liquidation or similar transaction. After any such assignment by Company to which Employee has given such consent,
Company shall be discharged from all further liability hereunder and such successor assignee shall thereafter be deemed to be Company for the purposes of all provisions of this Agreement. 
 7.3 Notices. All notices, requests, demands and other communications under this Agreement shall be in writing, shall be deemed to have been duly given on the date
of service if personally served on the parties to whom notice is to be given, or on the third day after mailing if mailed to the parties to whom notice is given, whether by first class, registered, or certified mail, and properly addressed as
follows: 
  

			
	If to Company, at:	  	 EnteroMedics Inc.
 2800 Patton Road
 St. Paul, MN 55113

		
	If to Employee, at:	  	 Mark Knudson
 1309 West Royal Oaks Drive
 Shoreview, Minnesota 55126

 Any party may change the address for the purpose of this Section by giving the other written notice of the new
address in the manner set forth above. 
 7.4 Governing Law. The validity, interpretation, performance and enforcement of this Agreement shall
be governed by the laws of the State of Minnesota, without regard to conflicts of laws principles thereof. 
 7.5 Arbitration. The parties
irrevocably consent that, except to the extent provided in the following sentence, any litigation or other dispute arising between the parties, in connection with the interpretation or enforcement of this Agreement, that has not been settled through
negotiation within a period of 30 days after the date on which either party shall first have notified the other party in writing of the existence of the dispute, shall be settled by final and binding arbitration 

  

 11 

 
under the then-applicable Commercial Arbitration Rules of the American Arbitration Association (“AAA”); and a court judgment on the award may be
entered in any court having competent jurisdiction. Notwithstanding the foregoing, neither party shall be entitled or required to seek arbitration regarding any cause of action that would entitle such party to injunctive relief. 
 Any such arbitration shall be conducted by one neutral arbitrator appointed by mutual agreement of the parties or, failing such agreement, in accordance with the AAA
Rules. The arbitrator shall be an experienced attorney with a background in employment law. Any arbitration shall be conducted in Minneapolis, Minnesota. An arbitration award may be enforced in any court of competent jurisdiction. Notwithstanding
any contrary provision in the AAA Rules, the following additional procedures and rules shall apply to any such arbitration: 
  

	 	(a)	Each party shall have the right to request from the arbitrator, and the arbitrator shall order upon good cause shown, reasonable and limited pre-hearing discovery, including
(i) exchange of witness lists, (ii) depositions under oath of named witnesses at a mutually convenient location, (iii) written interrogatories, and (iv) document requests; 

  

	 	(b)	Upon conclusion of the pre-hearing discovery, the arbitrator shall promptly hold a hearing upon the evidence to be adduced by the parties and shall promptly render a written opinion
and award; 

  

	 	(c)	The arbitrator may award damages consistent with the terms of this Agreement but may not award or assess punitive damages against either party; and 

  

	 	(d)	Each party shall bear 50% of the fees and costs of the arbitrator, subject to the 

 power of the arbitrator, in his or her sole discretion, to award all such fees and costs to the prevailing party. 
 7.6 Construction. Notwithstanding the general rules of construction, both Company and Employee acknowledge that both parties were given an equal opportunity to
negotiate the terms and conditions contained in this Agreement, and agree that the identity of the drafter of this Agreement is not relevant to any interpretation of the terms and conditions of this Agreement. 
 To the extent any provision of this Agreement may be deemed to provide a benefit to Employee that is treated as non-qualified deferred compensation pursuant to Code
Section 409A, such provision shall be interpreted in a manner that qualifies for any applicable exemption from compliance with Code Section 409 or, if such interpretation would cause any reduction of benefit(s), such provision shall be
interpreted (if reasonably possible) in a manner that complies with Code Section 409A and does not cause any such reduction. 
 7.7 Severability.
In the event any provision of this Agreement (or portion thereof) shall be held illegal or invalid for any reason, said illegality or invalidity shall not in any way affect the legality or validity of any other provision of this Agreement. To the
extent any provision (or portion thereof) of this Agreement shall be determined to be invalid or unenforceable in any jurisdiction, such provision (or portion thereof) shall be deemed to be deleted from this Agreement as to such jurisdiction only,
and the validity and enforceability of the remainder of such provision and of this Agreement shall be unaffected. 
  

 12 

 7.8 Entire Agreement. Except for Employee’s Stock Option Agreements, this Agreement is the final,
complete and exclusive agreement of the parties and sets forth the entire agreement between Company and Employee with respect to Employee’s employment by Company, and there are no undertakings, covenants or commitments other than as set forth
herein. The Agreement may not be altered or amended, except by a writing executed by Employee and a member of the Board. This Agreement supersedes, terminates, replaces and supplants the Prior Agreement any and all other prior understandings or
agreements between the parties relating in any way to the hiring or employment of Employee by Company. 
 7.9 Survival. The parties
expressly acknowledge and agree that the provisions of this Agreement that by their express or implied terms extend beyond the expiration of this Agreement or the termination of Employee’s employment under this Agreement, shall continue in full
force and effect, notwithstanding Employee’s termination of employment under this Agreement or the expiration of this Agreement. 
 7.10
Waivers. No failure on the part of either party to exercise, and no delay in exercising, any right or remedy under this Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy under this
Agreement preclude any other or further exercise thereof or the exercise of any other right or remedy granted hereby or by any related document or by law. 
 7.11 Attorneys’ Fees for Negotiating Agreement. Upon receipt by Company of a statement for legal services from the attorneys representing Employee, Company shall reimburse Employee or pay on behalf of Employee the reasonable and
necessary attorneys’ fees and associated expenses incurred by Employee in connection with the negotiation of this Agreement, provided, that such fees and expenses shall not exceed $5,000.00. 
 7.12 Attorneys’ Fees for Resolving Disputes. If any party to this Agreement is made or shall become a party to any litigation (including arbitration)
commenced by or against the other party involving the enforcement of any of the rights or remedies of such party, or arising on account of a default of the other party in its performance of any of the other party's obligations hereunder, then the
prevailing party in such litigation shall be entitled to receive from the other party all costs incurred by the prevailing party in such litigation, plus reasonable attorneys' fees to be fixed by the court or arbitrator (as applicable), with
interest thereon from the date of judgment or arbitrator's decision at the rate of 8% or, if less, the maximum rate permitted by law. 
 IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first above written. 
  

			
	ENTEROMEDICS INC.
		
	By	 	 /s/ Greg S. Lea

	Its:	 	Chief Financial Officer
	
	 /s/ Mark B. Knudson

	Mark B. Knudson

  

 13 

 The undersigned member of the Compensation Committee of the Board hereby certifies that this Agreement has been duly
approved by resolutions of that Committee. 
  

	
	 /s/ Nicholas Teti, Jr.

	Printed Name: Nicholas Teti, Jr.

  

 14 

 EXHIBIT A 
 GENERAL RELEASE 
 This General Release is made and entered into as of the     
day of                     , by Employee (“Employee”). 
 WHEREAS, EnteroMedics Inc. (“Company”) and Employee are parties to an Amended and Restated Employment Agreement dated
                    , 2009; 
 WHEREAS, Employee intends to settle any and all claims that Employee has or may have against Company as a result of Employee’s employment with Company and the cessation of Employee’s employment with Company; and 

WHEREAS, Under the terms of the Employment Agreement, which Employee agrees are fair and reasonable, Employee agreed to enter into this General
Release as a condition precedent to the severance arrangements described in Article III of the Employment Agreement. 
 NOW,
THEREFORE, in consideration of the provisions and the mutual covenants herein contained, the parties agree as follows: 
 1.
Release. For the consideration expressed in the Employment Agreement, Employee does hereby fully and completely release and waive any and all claims, complaints, causes of action, demands, suits and damages, of any kind or character, which
Employee has or may have against the Released Parties, as hereinafter defined, arising out of any acts, omissions, conduct, decisions, behavior or events occurring up through the date of Employee’s signature on this General Release, including
Employee’s employment with Company and the cessation of that employment. For purposes of this General Release, “Released Parties” means collectively Company, its predecessors, successors, assigns, parents, affiliates, subsidiaries,
related companies, officers, directors, shareholders, agents, servants, employees and insurers, and each and all thereof. 
 Employee
understands and accepts that Employee’s release of claims includes any and all possible discrimination claims, including, but not limited to, claims based upon: Title VII of the Federal Civil Rights Act of 1964, as amended; the Age
Discrimination in Employment Act; the Americans with Disabilities Act; the Equal Pay Act; the Fair Labor Standards Act; the Employee Retirement Income Security Act; the Minnesota Human Rights Act; Minn. Stat. §181.81; or any other federal,
state or local statute, ordinance or law. Employee also understands that Employee is giving up all other claims, including those grounded in contract or tort theories, including, but not limited to: wrongful discharge; violation of Minn. Stat.
§176.82; breach of contract; tortious interference with contractual relations; promissory estoppel; breach of the implied covenant of good faith and fair dealing; breach of express or implied promise; breach of manuals or other policies;
assault; battery; fraud; false imprisonment; invasion of privacy; intentional or negligent misrepresentation; defamation, including libel, slander, discharge defamation and self-publication defamation; discharge in violation of public policy;
whistleblower; intentional or negligent infliction of emotional distress; or any other theory, whether legal or equitable. 
  

 15 

 Employee further understands that Employee is releasing, and does hereby release, any claims for damages,
by charge or otherwise, whether brought by Employee or on Employee’s behalf by any other party, governmental or otherwise, and agrees not to institute any claims for damages via administrative or legal proceedings against any of the Released
Parties. Employee also waives and releases any and all rights to money damages or other legal relief awarded by any governmental agency related to any charge or other claim against any of the Released Parties. 
 This General Release does not apply to any post-termination claim that Employee may have for benefits under the provisions of any employee benefit plan
maintained by Company. 
 Employee’s release of claims shall not apply to any claims Employee might have to indemnification under
Minnesota Statute §302A.521, any other applicable statute or regulation or Company’s by-laws. 
 2. Rescission. Employee has
been informed of Employee’s right to rescind this General Release by written notice to Company within 15 calendar days after the execution of this General Release. Employee has been informed and understands that any such rescission must be in
writing and delivered to Company by hand or sent by mail within the 15-day time period. If delivered by mail, the rescission must be: (1) postmarked within the applicable period and (2) sent by certified mail, return receipt requested.

 Employee understands that Company will have no obligations under the Employment Agreement in the event a notice of rescission by Employee
is timely delivered, and, in the event Employee rescinds this General Release, Employee agrees to repay to Company any payments made to Employee or benefits conferred upon him pursuant to Article III of the Employment Agreement before the date of
rescission. 
 3. Acceptance Period; Advice of Counsel. The terms of this General Release will be open for acceptance by Employee for
a period of 21 days during which time Employee may consider whether or not to accept this General Release. Employee agrees that changes to this General Release, whether material or immaterial, will not restart this acceptance period. Employee is
hereby advised to seek the advice of an attorney regarding this General Release. 
 4. Binding Agreement. This General Release shall
be binding upon, and inure to the benefit of, Employee and Company and their respective successors and permitted assigns. 
 5.
Representation. Employee hereby acknowledges and states that Employee has read this General Release. Employee further represents that this General Release is written in language that is understandable to Employee, that Employee fully
appreciates the meaning of its terms, and that Employee enters into this General Release freely and voluntarily. 
 IN WITNESS
WHEREOF, Employee, after due consideration, has authorized, executed and delivered this General Release all as of the date first written. 
  

	
	  

	Employee

  

 16

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