EMPLOYMENT AGREEMENT
THIS AGREEMENT, dated as of March 1, 2000, is made by and between IBS
Interactive, Inc., a Delaware corporation (the "Company") with its corporate
offices at 0 Xxxxxxxxx Xxxxxx, Xxxxx 000, Xxxxx Xxxxxx, Xxx Xxxxxx 00000, and
Xxx X. Xxxxxxx, III (the "Executive"), residing at 000 Xxxxxxxxx Xxxx, Xxxxx,
Xxxxxxx 00000.
RECITALS
WHEREAS, Company desires to employ Executive and Executive desires to be
employed by the Company;
NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:
1. EMPLOYMENT; TERM.
(A) EMPLOYMENT Subject to the terms and conditions set forth herein, the
Company agrees to employ and Executive agrees to serve as the
Company's Chief Operating Officer to perform such services, and to
have such powers and authority as are specified in the Company's
Restated By-Laws, as in effect from time to time, or as may be
assigned to the Executive by the Company's Board of Directors,
PROVIDED, THAT, the same is not inconsistent with such position.
Executive agrees that he will use his full business time to promote
the interests of the Company and its affiliates and to fulfill his
duties hereunder. Nothing in this Agreement shall however preclude
Executive from engaging, so long as, in the reasonable determination
of the Company's Board of Directors, such activities do not interfere
with the execution of his duties and responsibilities hereunder, in
charitable and community affairs, from managing any passive investment
made by Executive in publicly traded equity securities or other
property (PROVIDED, THAT, no such investment may exceed 5% of the
equity of any entity, without the prior approval of the Company's
Board of Directors) or from serving, subject to the prior approval of
the Company's Board of Directors, as a member of boards of directors
or as a trustee of any other corporation, association or entity
(PROVIDED, THAT, no such prior approval shall be required for any such
boards on which Executive shall currently serve). For purposes of the
preceding sentence, any approval of the Company's Board of Directors
required herein shall not be unreasonably withheld.
(B) TERM. Unless sooner terminated pursuant to Section 3, the term of
Executive's employment pursuant to this Agreement shall commence on
the date set forth above (the "Effective Date") and shall continue
thereafter for a period of three years.
2. COMPENSATION. During the employment term under this Agreement, the Company
shall compensate Executive as follows:
(A) BASE SALARY. Subject to adjustment as set forth below, the Company
will pay Executive an annual salary at a rate of One Hundred Thousand
Dollars ($100,000) per year, payable in substantially equal monthly
installments, or more frequently in accordance with Company's usual
payroll policy. On each anniversary of the Effective Date, Executive's
then existing base salary will automatically increase at the rate of
20% per year and in the discretion of the Compensation Committee (or
Board of Directors, if at the time there shall be no Compensation
Committee) at such additional rate or amounts as the Compensation
Committee shall deem appropriate. Any such increases granted in the
discretion of the Compensation Committee will be retroactive to the
beginning of the then current fiscal year. The Company will review
annually Executive's performance and compensation.
(B) PERFORMANCE BONUS. Executive shall be entitled to such bonus
compensation as the Compensation Committee deems appropriate. Such
bonus compensation shall be based, in part, on the achievement of
performance criteria established by the Compensation Committee,
including criteria relating to the profitability of the Company.
(C) PARTICIPATION IN EMPLOYEE STOCK OWNERSHIP PLAN. During the period of
Executive's employment, Executive will be entitled to participate in
the Company's 2000 Stock Option Plan (or such other successor plan),
as the Board of Directors or Compensation Committee, in its sole
discretion, may determine.
(D) BENEFITS. Executive will be eligible to participate in all benefit
programs of the Company which are in effect for its senior executive
personnel and, to the extent available to executive personnel, its
employees generally from time to time.
(E) VACATION. Executive will be entitled each year to vacation for a
period or periods not inconsistent with the normal policy of Company
in effect from time to time, but in any event not less than twenty
vacation days each year and to such holidays as may be customarily
afforded to its employees by the Company, during which periods
Executive's compensation shall be paid in full.
(F) REIMBURSEMENT OF EXPENSES.
(i) All reasonable travel and entertainment expenses incurred by
Executive in the course of fulfilling this Agreement or otherwise
promoting the Company and its business shall be reimbursed by the
Company. Such reimbursement shall be made to Executive promptly
following submission to the Company of receipts and other
documentation of such expenses reasonably satisfactory to the
Company.
(ii) In addition to the expenses reimbursable pursuant to paragraph
(i) above, the Company shall also pay to Executive a monthly
allowance of $600.00 for automobile expenses, PROVIDED, HOWEVER,
2
that the Company shall be entitled to withhold from such
allowance, any amounts required to be withheld by applicable
federal, state or local tax laws.
3. TERMINATION.
(A) DEATH AND LEGAL INCAPACITY. Executive's employment hereunder shall
terminate upon Executive's death or legal incapacity.
(B) DISABILITY. Executive's employment hereunder may be terminated by the
Company in the event of Executive's physical or mental incapacity or
inability to perform his duties as contemplated under this Agreement
for a period of at least one hundred twenty (120) consecutive days.
Until such termination occurs, Executive shall continue to receive his
base salary as then in effect, provided, however, that such salary
shall be reduced to the extent of any short-term disability benefits
provided to Executive under a short-term disability plan sponsored by
the Company. The determination of disability shall be made by an
independent physician selected by the Compensation Committee and
approved by Executive or his legal representative.
(C) FOR CAUSE. Executive's employment hereunder may be terminated after
the expiration of the respective time periods set forth below by the
Company for cause ("Cause") upon the occurrence of any of the
following events:
(i) Executive's intentional breach of any provision hereof, which
breach shall not have been cured within 20 days after written
notice thereof from the Company (or cure commenced within said 20
day period if said breach is not curable within said 20 day
period) which breach has a material adverse effect on the
Company;
(ii) Executive's intentional violation of any other duty or obligation
owed by Executive to the Company which violation shall not have
been cured within 20 days after written notice thereof from the
Company (or cure commenced within said 20 day period if said
violation is not curable within said 20 day period) which
violation has a material adverse effect on the Company.
(iii)Executive is convicted or pleads guilty or nolo contendre to any
felony (other than traffic violation) or any crime involving
fraud, dishonesty or misappropriation;
(iv) Executive willfully fails to perform and discharge his duties
hereunder in a competent manner and such failure shall continue
for a period in excess of 20 days after written notice thereof
specifying the failures is given by the Company to Executive.
3
(v) Executive willfully engages in misconduct that causes material
harm to the Company and such misconduct shall continue for a
period in excess of 20 days after written notice thereof
specifying such misconduct and the resulting harm is given by the
Company to Executive.
(D) CONSENT OF DIRECTORS. Termination of this Agreement by the Company for
reasons other than: (i) for Cause or (ii) Executive's death, legal
capacity or disability must be approved by a vote of 2/3 of the
members of the Company's Board of Directors.
(E) FOR GOOD REASON. Executive may terminate his employment hereunder for
good reason ("Good Reason") if such termination occurs within six
months after:
(i) The Company assigns to Executive any duties or responsibilities
inconsistent with Section 1, which assignment is not withdrawn
within 20 business days after Executive's notice to the Company
of his reasonable objection thereto;
(ii) Executive is relocated more than 40 miles from Tampa, Florida
without his prior written consent; or
(iii)The Company breaches any material provision of this Agreement
and such breach and the effects thereof are not remedied by the
Company within 20 business days after Executive's notice to the
Company of the existence of such breach.
(F) EFFECT OF TERMINATION.
(i) If the Company terminates Executive's employment for reasons other
than for Cause, or Executive's death, legal incapacity or disability,
or if Executive terminates this Agreement for Good Reason, the
obligations of Executive under this Agreement will terminate except
that the covenants contained in Section 4(a) shall continue
indefinitely, and the obligations in this section shall continue
pursuant to their terms. In such event, for a period of two (2) years
after the date of Executive's termination, the Company shall pay
Executive, in accordance with customary payroll procedures,
Executive's base salary as then in effect and, in addition, any
Performance Bonus that Executive would have earned in the year he was
terminated, prorated as of the date of termination. For such two-year
period, the Company shall continue to provide medical coverage to
Executive under substantially the same terms as were in effect on the
date Executive's employment terminated under this provision.
Additionally, any and all options, warrants or other securities
awarded to Executive pursuant to the Company's 2000 Stock Option Plan
4
or any other similar plan or other written option agreement shall, as
of the date of Executive's termination, immediately vest and become
exercisable and all such options, warrants or other securities shall
remain exercisable by Executive for the duration of the period during
which the options, warrants or other securities would have remained
exercisable if Executive had remained employed by the Company. The
amounts paid to Executive under this paragraph shall not be affected
in any way by Executive's acceptance of other employment during the
two-year period described above. The provisions set forth herein this
Paragraph 3(f)(i) shall supercede the provisions of Paragraph 3.4 of
the Option Agreement dated as of February 10, 2000 between the
Executive and the Company.
(ii) Except as otherwise provided herein, if Executive terminates his
employment for any reason other than Good Reason or Executive's
employment is terminated for Cause, the obligations of Executive and
the Company under this Agreement will terminate except that the
covenants of Executive contained in Section 4(a) shall continue
indefinitely and the covenants of Executive contained in Section 4(d)
shall continue until the first anniversary of the date of Executive's
termination. In such event, Executive shall be entitled to receive
only the compensation hereunder accrued and unpaid as of the date of
Executive's termination.
(iii)If Executive's employment terminates due to a disability, as defined
in Section 3(b), the obligations of Executive under this Agreement
will terminated except that the covenants in Section 4(a) shall
continue indefinitely. In such event, for a period of one year after
the date of Executive's termination, the Company shall pay Executive,
in accordance with customary payroll procedures, Executive's base
salary as then in effect, provided, however, that the payment of such
salary shall be reduced to the extent of any long-term disability
benefits provided to Executive under a long-term disability plan
sponsored by the Company. The vesting and exercise of any and all
options, warrants or other securities awarded to Executive pursuant to
the Company's 2000 Stock Option Plan or any other similar plan shall
be governed by the terms of such plan, or if awarded pursuant to a
written option agreement, then the terms of such agreement. The
amounts payable to Executive under this paragraph shall not be
affected in any way by Executive's acceptance of other employment
during the one-year period described above.
(iv) No amount payable to Executive pursuant to this Agreement shall be
subject to mitigation due to Executive's acceptance or availability of
other employment.
4. RESTRICTIVE COVENANTS; NON-COMPETITION.
Executive in consideration of his employment hereunder agrees as follows:
(a) Except as otherwise permitted hereby, or by the Company's Board of
Directors, Executive shall treat as confidential and not communicate
or divulge to any other person or entity any information related to
the Company or its affiliates or the business, affairs, prospects,
5
financial condition or ownership of the Company or any of its
affiliates (the "Information") acquired by Executive from the Company
or the Company's other employees or agents, except (i) as may be
required to comply with legal proceedings (PROVIDED, THAT, prior to
such disclosure in legal proceedings Executive notifies the Company
and reasonably cooperates with any efforts by the Company to limit the
scope of such disclosure or to obtain confidential treatment thereof
by the court or tribunal seeking such disclosure) or (ii) while
employed by the Company, as Executive reasonably believes necessary in
performing his duties. Executive shall use the Information only in
connection with the performance of his duties hereunder, and not
otherwise for his benefit or the benefit of any other person or
entity. For the purposes of this Agreement, Information shall include,
but not be limited to, any confidential information concerning
clients, subscribers, marketing, business and operational methods of
the Company or its affiliates and its and its affiliates' clients,
subscribers, contracts, financial or other data, technical data or any
other confidential or proprietary information possessed, owned or used
by the Company. Excluded from Executive's obligations of
confidentiality is any part of such Information that: (i) was in the
public domain prior to the date of commencement of Executive's
employment with the Company or (ii) enters the public domain other
than as a result of Executive's breach of this covenant. This Section
(4)(a) shall survive the expiration or termination of the other
provisions of this Agreement.
(b) Executive shall fully disclose to the Company all discoveries,
concepts, and ideas, whether or not patentable, including, but not
limited to, processes, methods, formulas, and techniques, as well as
improvements thereof or know-how related thereto (collectively,
"Inventions") concerning or relating to the business conducted by the
Company and concerning any present or prospective activities of the
Company which are published, made or conceived by Executive, in whole
or in part, during Executive's employment with the Company.
(c) Executive shall make applications in due form for United States
letters patent and foreign letters patent on such Inventions at the
request of the Company and at its expense, but without additional
compensation to Executive. Executive further agrees that any and all
such Inventions shall be the absolute property of Company or its
designees. Executive shall assign to the Company all of Executive's
right, title and interest in any and all Inventions, execute any and
all instruments and do any and all acts necessary or desirable in
connection with any such application for letters patent or to
establish and perfect in the Company the entire right, title, and
interest in such Inventions, patent applications, or patents, and
shall execute any instrument necessary or desirable in connection with
any continuations, renewals, or reissues thereof or in the conduct of
any related proceedings or litigation.
(d) During Executive's employment with the Company and for a period of one
(1) year after the earlier of the expiration date of this Agreement or
the termination of Executive's employment hereunder by the Company for
Cause or by Executive (other than for Good Reason) or subsequent to a
Change in Control, as hereinafter defined:
6
(i) Executive will not, in any geographical area within which the
Company is, at the time of Executive's termination or during the
term of Executive's employment, marketing its products or
services or conducting other business activities, directly or
indirectly, engage in, own or control an interest in (except as a
passive investor in publicly held companies and except for
investments held at the date hereof) or act as an officer,
director, or employee of, or consultant or adviser to, any firm,
corporation or institution (except as provided in Section 1(a)
hereof) directly or indirectly that is in competition with the
Company at the time of Executive's termination or during the term
of Executive's employment with the Company; and
(ii) Executive will not recruit or hire any employee of the Company,
or otherwise induce such employee to leave the employment of the
Company, to become an employee of or otherwise be associated with
Executive or any company or business with which Executive is or
may become associated.
7
5. CHANGE OF CONTROL.
In the event of a Change of Control, the following provisions shall apply:
(a) If, immediately upon a Change of Control or at any time within one (1)
year thereafter, Executive is no longer employed by the Company (or
any entity to which this Agreement may be assigned in connection with
such Change of Control) for any reason other than Executive's death,
legal incapacity or disability, Executive shall be entitled to
receive, within 10 days after the termination date, a lump sum payment
("Change of Control Payment") equal to two times the amount of
Executive's annual base salary then in effect plus any other amounts
accrued and unpaid as of the date of termination (i.e., earned
bonuses, car allowance, unreimbursed business expenses, and any other
amount due to Executive under employee benefit or fringe benefit plans
of the Company). Notwithstanding the foregoing, if Executive shall so
request, any Change of Control Payment may be paid to Executive in
substantially equal monthly installments, or more frequently in
accordance with the Company's usual payroll policy. Additionally, any
and all options, warrants or other securities awarded to Executive
pursuant to the Company's 2000 Stock Option Plan or any other similar
plan shall, as of the date of Executive's termination, immediately
vest and become exercisable by Executive for the duration of the
period during which the options, warrants or other securities would
have remained exercisable if Executive had remained employed by the
Company.
(b) For purposes of this Section 5, a "Change of Control" shall be deemed
to occur upon any of the following events:
(1) Any "person" or "group" within the meaning of Sections 13(d) and
14(d)(2) of the Exchange Act (i) becomes the "beneficial owner,"
as defined in Rule 13d-3 under the Exchange Act, of 50% or more
of the combined voting power of the Company's then outstanding
securities, otherwise than through a transaction or series of
related transactions arranged by, or consummated with the prior
approval of, the Board or (ii) acquires by proxy or otherwise the
right to vote 50% or more of the then outstanding voting
securities of the Company, otherwise than through an arrangement
or arrangements consummated with the prior approval of the Board,
for the election of directors, for any merger or consolidation of
the Company or for any other matter or question.
(2) During any period of 12 consecutive months (not including any
period prior to the adoption of this Section), Present Directors
and/or New Directors cease for any reason to constitute a
majority of the Board. For purposes of the preceding sentence,
"Present Directors" shall mean individuals who at the beginning
of such consecutive 12-month period were members of the Board,
8
and "New Directors" shall mean any director whose election by the
Board or whose nomination for election by the Company's
stockholders was approved by a vote of at least two-thirds of the
directors then still in office who were Present Directors or New
Directors.
(3) Consummation of (i) any consolidation or merger of the Company in
which the Company is not the continuing or surviving corporation
or pursuant to which shares of Stock would be converted into
cash, securities or other property, other than a merger of the
Company in which the holders of Stock immediately prior to the
merger have the same proportion and ownership of common stock of
the surviving corporation immediately after the merger or (ii)
any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all, or substantially
all, of the assets of the Company; PROVIDED, THAT, the
divestiture of less than substantially all of the assets of the
Company in one transaction or a series of related transactions,
whether effected by sale, lease, exchange, spin-off sale of the
stock or merger of a subsidiary or otherwise, shall not
constitute a Change in Control.
For purposes of this Section 5(b), the rules of Section 318(a) of
the Code and the regulations issued thereunder shall be used to
determine stock ownership.
(C) EXCISE TAX GROSS-UP. If Executive becomes entitled to one or more
payments (with a "payment" including the vesting of restricted
stock, a stock option, or other non-cash benefit or property),
whether pursuant to the terms of this Agreement or any other plan
or agreement with the Company or any affiliated company
(collectively, "Change of Control Payments"), which are or become
subject to the tax ("Excise Tax") imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the "Code"), the
Company shall pay to Executive at the time specified below such
amount (the "Gross-up Payment") as may be necessary to place
Executive in the same after-tax position as if no portion of the
Change of Control Payments and any amounts paid to Executive
pursuant to this paragraph 5(c) had been subject to the Excise
Tax. The Gross-up Payment shall include, without limitation,
reimbursement for any penalties and interest that may accrue in
respect of such Excise Tax. For purposes of determining the
amount of the Gross-up Payment, Executive shall be deemed: (A) to
pay federal income taxes at the highest marginal rate of federal
income taxation for the year in which the Gross-up Payment is to
be made; and (B) to pay any applicable state and local income
taxes at the highest marginal rate of taxation for the calendar
year in which the Gross-up Payment is to be made, net of the
maximum reduction in federal income taxes which could be obtained
9
from deduction of such state and local taxes if paid in such
year. If the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time the
Gross-up Payment is made, Executive shall repay to the Company at
the time that the amount of such reduction in Excise Tax is
finally determined (but, if previously paid to the taxing
authorities, not prior to the time the amount of such reduction
is refunded to Executive or otherwise realized as a benefit by
Executive) the portion of the Gross-up Payment that would not
have been paid if such Excise Tax had been used in initially
calculating the Gross-up Payment, plus interest on the amount of
such repayment at the rate provided in Section 1274(b)(2)(B) of
the Code. In the event that the Excise Tax is determined to
exceed the amount taken into account hereunder at the time the
Gross-up Payment is made, the Company shall make an additional
Gross-up Payment in respect of such excess (plus any interest and
penalties payable with respect to such excess) at the time that
the amount of such excess is finally determined.
The Gross-up Payment provided for above shall be paid on the 30th
day (or such earlier date as the Excise Tax becomes due and
payable to the taxing authorities) after it has been determined
that the Change of Control Payments (or any portion thereof) are
subject to the Excise Tax; provided, HOWEVER, that if the amount
of such Gross-up Payment or portion thereof cannot be finally
determined on or before such day, the Company shall pay to
Executive on such day an estimate, as determined by counsel or
auditors selected by the Company and reasonably acceptable to
Executive, of the minimum amount of such payments. The Company
shall pay to Executive the remainder of such payments (together
with interest at the rate provided in Section 1274(b)(2)(B) of
the Code) as soon as the amount thereof can be determined. In the
event that the amount of the estimated payments exceeds the
amount subsequently determined to have been due, such excess
shall constitute a loan by the Company to Executive, payable on
the fifth day after demand by the Company (together with interest
at the rate provided in Section 1274(b)(2)(B) of the Code). The
Company shall have the right to control all proceedings with the
Internal Revenue Service that may arise in connection with the
determination and assessment of any Excise Tax and, at its sole
option, the Company may pursue or forego any and all
administrative appeals, proceedings, hearings, and conferences
with any taxing authority in respect of such Excise Tax
(including any interest or penalties thereon); PROVIDED, HOWEVER,
that the Company's control over any such proceedings shall be
limited to issues with respect to which a Gross-up Payment would
be payable hereunder, and Executive shall be entitled to settle
or contest any other issue raised by the Internal Revenue Service
or any other taxing authority. Executive shall cooperate with the
Company in any proceedings relating to the determination and
assessment of any Excise Tax and shall not take any position or
action that would materially increase the amount of any Gross-up
Payment hereunder.
6. NO VIOLATION.
10
Executive warrants that the execution and delivery of this Agreement and
the performance of his duties hereunder will not violate the terms of any other
agreement to which he is a party or by which he is bound. Additionally,
Executive warrants that Executive has not brought and will not bring to the
Company or use in the performance of Executive's responsibilities at the Company
any materials or documents of a former employer that are not generally available
to the public, unless Executive has obtained express written authorization from
the former employer for their possession and use. Executive represents that he
is not and, since the commencement of Executive's employment with the Company
has not been a party to any employment, proprietary information,
confidentiality, or noncompetition agreement with any of Executive's former
employers which remains in effect as the date hereof. The warranties set forth
in this Section 6 shall survive the expiration or termination of the other
provisions of this Agreement.
7. BREACH BY EXECUTIVE.
Both parties recognize that the services to be rendered under this
Agreement by Executive are special, unique and extraordinary in character, and
that in the event of the breach by Executive of the terms and conditions of this
Agreement to be performed by him or in the event Executive performs services for
any person, firm or corporation engaged in a competing line of business with
Company, the Company shall be entitled, if it so elects, to institute and
prosecute proceedings in any court of competent jurisdiction, whether in law or
in equity, to, by way of illustration and not limitation, obtain damages for any
breach of this Agreement, or to enforce the specific performance thereof by
Executive, or to enjoin Executive from competing with the Company or, performing
services for himself or any such other person, firm or corporation. The Company
may obtain an injunction restraining any such breach by Executive and no bond or
other security shall be required in connection therewith. The Company and
Executive each consent to the jurisdiction of United States Federal District
Court for the Northern District of Florida.
8. MISCELLANEOUS.
(a) This Agreement shall be binding upon and inure to the benefit of the
Company, its successors, and assigns and may not be assigned by
Executive.
(b) This Agreement contains the entire agreement of the parties hereto and
supersedes all prior or concurrent agreements, whether oral or
written, relating to the subject matter hereof. This Agreement may be
amended only by a writing signed by the party against whom enforcement
is sought.
(C) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW JERSEY WITHOUT REGARD TO ITS CONFLICTS OF
LAWS, RULES OR PRINCIPLES.
(d) Any notices or other communications required or permitted hereunder
shall be in writing and shall be deemed effective when delivered in
person or, if mailed, on the date of deposit in the mails, postage
11
prepaid, to the other party at the respective address of such party
set forth herein or to such other address as shall have been specified
in writing by either party to the other in accordance herewith.
(e) The provisions of Sections 4(a), 4(d) and 6 and the other provisions
of this Agreement which by their terms contemplate survival of the
termination of this Agreement, shall survive termination of this
Agreement and be deemed to be independent covenants.
(f) If any term or provision of this Agreement or its application to any
person or circumstance is to any extent invalid or unenforceable, the
remainder of this Agreement, or the application of such term or
provision to persons or circumstances other than those as to which it
is held invalid or unenforceable, shall not be affected thereby, and
each term and provision shall be valid and enforced to the fullest
extent permitted by law.
(g) No delay or omission to exercise any right, power or remedy accruing
to any party hereto shall impair any such right, power or remedy or
shall be construed to be a waiver of or an acquiescence to any breach
hereof. No waiver of any breach of this Agreement shall be deemed to
be a waiver of any other breach of this Agreement theretofore or
thereafter occurring. Any waiver of any provision hereof shall be
effective only to the extent specifically set forth in the applicable
writing. All remedies afforded under this Agreement to any party
hereto, by law or otherwise, shall be cumulative and not alternative
and shall not preclude assertion by any party hereto of any other
rights or the seeking of any other rights or remedies against any
other party hereto.
(h) It is the intent of the Company that Executive not be required to
incur any legal fees or disbursements associated with (i) the
interpretation of any provision in, or obtaining of any right or
benefit under this Agreement, or (ii) the enforcement of his rights
under this Agreement, including, without limitation by litigation or
other legal action, because the cost and expense thereof would
substantially detract from the benefits to be extended to Executive
hereunder. Accordingly, the Company irrevocably authorizes Executive
from time to time to retain counsel of his choice, at the expense of
the Company as hereafter provided, to represent Executive in
connection with the interpretation and/or enforcement of this
Agreement, including without limitation the initiation or defense of
any litigation or other legal action, whether by or against the
Company, or any Director, officer, stockholder, or any other person
affiliated with the Company in any jurisdiction. The Company shall pay
or cause to be paid and shall be solely responsible for any and all
attorneys' and related fees and expenses incurred by Executive under
this Section 8(h).
9. INDEMNIFICATION.
The Company agrees to indemnify Executive to the fullest extent permitted
by applicable law, as such law may be hereafter amended, modified or
supplemented and to the fullest extent permitted by each of the Company's
12
Restated Certificate of Incorporation and the Company's Restated By-Laws, as
from time to time amended, modified or supplemented. The Company further agrees
that Executive is entitled to the benefits of any directors and officers
liability insurance policy, in accordance with the terms and conditions of that
policy, if such a policy is maintained by the Company.
13
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the date first stated above.
COMPANY
IBS INTERACTIVE, INC.
BY: /S/ XXXXXXXX X. XXXXXXXX, XX.
--------------------------------
XXXXXXXX X. XXXXXXXX, XX.
PRESIDENT AND CEO
EXECUTIVE
/S/ XXX X. XXXXXXX, III
--------------------------------
XXX X. XXXXXXX, III
14
