Exhibit 10.11





	







EXHIBIT 10.11




AMENDED AND RESTATED EMPLOYMENT AGREEMENT



     This
Amended and Restated Employment Agreement (this “Agreement”) is entered into the 11th day
of January 2002, by and between Parris H. Holmes, Jr. (“Employee”) and New Century Equity
Holdings Corp., a Delaware corporation (the “Company”). Subject to the conditions set
forth below, this Agreement is to be effective as of November 1, 2001. 




W I T N E S S E T H:



     WHEREAS,
the Company (f/k/a Billing Concepts Corp.) and Employee previously entered into
an Amended and Restated Employment Agreement through which Employee was employed
as the Company’s Chairman of the Board and Chief Executive Officer; and 



     WHEREAS,
the Company and Employee now wish to amend and restate the terms of that prior
Employment Agreement so as to set forth the ongoing terms of Employee’s
employment with the Company and each party’s duties and obligations to the
other on and after the Effective Date of the Amendment and Restatement of the
Employment Agreement; 



     NOW,
THEREFORE, in consideration of the foregoing premises, the mutual agreements
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Prior Agreement is hereby
amended and restated in its entirety effective as of November 1, 2001 (the
“Effective Date”) to read as follows: 




ARTICLE 1




DUTIES



     1.1 Duties.
During the term of this Agreement, the Company agrees to employ Employee as the Company’s
Chairman of the Board and Chief Executive Officer, and Employee agrees to serve the
Company in such capacities or in such other capacities (subject to Employee’s
termination rights under Section 4.2) as the Board of Directors of the Company may
direct, all upon the terms and subject to the conditions set forth in this Agreement.  



     1.2
Extent of Duties. Employee shall devote sufficient business time, energy
and skill to the affairs of the Company as shall reasonably be necessary to
discharge Employee’s duties in such capacities. Employee may participate in
social, civic, charitable, religious, business, education or professional
associations, so long as such participation would not materially detract from
Employee’s ability to perform his duties under this Agreement. 


















	






ARTICLE 2




TERM OF
EMPLOYMENT



     The
term of this Agreement shall commence on the Effective Date and continue for a
period of five years, provided that, on each one-year anniversary of this
Agreement, the term of this Agreement shall
automatically be extended for an additional one year. This Agreement is subject
to earlier termination as hereinafter provided. 




ARTICLE 3




COMPENSATION



     3.1
Annual Base Compensation. As compensation for services rendered under
this Agreement, Employee shall be entitled to receive from Company an annual
base salary of $375,000 (before standard deductions) during the first year of
this Agreement. Employee’s annual base salary shall be subject to review
and adjustment by the Compensation Committee of the Company (the
“Compensation Committee”) on an annual basis, provided that any such
adjustment shall not result in a reduction in Employee’s annual base salary
below $375,000, without Employee’s consent. Employee’s annual base
salary shall be payable at regular intervals in accordance with the prevailing
practice and policy of the Company. 



     3.2
Incentive Bonus. As additional compensation for services rendered under
this Agreement, the Compensation Committee may, in its sole discretion and
without any obligation to do so, declare that Employee shall be entitled to an
annual incentive bonus (whether payable in cash, stock, stock rights or other
property) as the Compensation Committee shall determine. If any such bonus is
declared, the bonus shall be payable in accordance with the terms prescribed by
the Compensation Committee. 



     3.3
Other Benefits. Employee shall, in addition to the compensation provided for in Sections
3.1 and 3.2 above, be entitled to the following additional benefits: 










	 	     (a)
Automobile Allowance. An automobile to be chosen by the Employee, replaceable every two
years and complete payment of all operating, insurance and maintenance expenses attendant
thereto. Upon termination of the Company’s obligation to provide this benefit, Employee
shall have an option, exercisable within 90 days of such termination, to purchase such
automobile at its net book value as shown upon the Company’s records as of the date of
termination. 






	 	     (b)
Country Club Membership. Payment in full of membership fees and dues to a country club of
the Employee’s choice in the area of his employment together with payment or
reimbursement of all charges incurred at such club relating to entertainment of business
guests. Upon termination of this Agreement under Section 4.1, 4.2 or 4.6 hereof, such
country club membership shall be transferred to Employee without further consideration. 






	 	     (c)
Health Club Membership. Payment in full of membership fees and dues in a lunch or health
club of the Employee’s choice, in the area of his employment together with payment or
reimbursement of all charges incurred at such club relating to entertainment of business
guests. 











	










	 	     (d)
Life Insurance. New York Life Insurance Policy Numbers 43695145 and 43950342 owned by
Frost National Bank, Trustee of the Parris H. Holmes, Jr. Trust of May 1992 and New York
Life Insurance Policy Number 46731037 owned by Frost National Bank, Trustee of the Parris
H. Holmes, Jr. 2000 Trust, in the aggregate amount of approximately $5,539,334, insuring
the life of Employee. The premiums on the policies owned by Frost National Bank, Trustee
of the Parris H. Holmes, Jr. Trust of May 1992 are to be paid by the Company pursuant to
that certain Split Dollar Life Insurance Agreement dated March 16, 1998, as such may have
been amended from time to time. The premiums on the policy owned by Frost National Bank,
Trustee of the Parris H. Holmes, Jr. 2000 Trust shall be paid by the Company pursuant to
that certain Split Dollar Life Insurance Agreement dated September 6, 2000, as such may
have been amended from time to time. Such policies shall be collaterally assigned to the
Company to secure the Company’s investment in such policies pursuant to the terms of the
referenced Split Dollar Agreements. 







	 	     (e)
Medical, Health and Disability Benefits. Employee shall be entitled to receive all of the
medical, health and disability benefits that may, from time to time, be provided by the
Company to its executive officers. 






	 	     (f)
Other Benefits. Employee shall also be entitled to receive any other benefits provided by
the Company to all employees of Company as a group, or all executive officers of the
Company as a group, including any profit sharing, 401(k) or retirement benefits. 






	 	     (g)
Vacation Pay. Employee shall be entitled to an annual vacation as determined in
accordance with the prevailing practice and policy of the Company. 






	 	     (h)
Holidays.Employee shall be entitled to holidays in accordance with the prevailing
practice and policy of the Company.






	 	     (i)
Reimbursement of Expenses. The Company shall reimburse Employee for all expenses
reasonably incurred by Employee on behalf of the Company in accordance with the
prevailing practice and policy of the Company. 






	 	     (j)
Tax Gross Up. The Company shall also provide additional compensation to the Employee in
an amount such that after payment by Employee of all taxes on benefits received under
Section 3.3(a) through (i) above that Employee retains an amount of such gross up payment
equal to the taxes imposed upon said benefits under Sections 3.3(a) through (i) above. 






	



ARTICLE 4




TERMINATION



     4.1
Termination by the Company Without Cause. Subject to the provisions of
this Section 4.1, this Agreement may be terminated by the Company without cause
upon 30 days prior written notice thereof given to Employee. In the event of
termination pursuant to this Section 4.1, (a) the Company shall pay Employee,
within 15 days of such termination, a lump-sum payment equal to (without
discounting to present value) his then effective base salary under Section 3.1
hereof through the expiration of the five-year term then in effect (without
giving effect to any further extensions thereof under Article II hereof), (b)
Employee shall be entitled to all benefits under Section 3.3 hereof, with the
exception of life insurance under Subsection (d) thereof, through the expiration
of the five year term then in effect, to the extent continuation of such
benefits is not prohibited by applicable state and/or federal law, and (c) all
outstanding stock options held by Employee not already vested and exercisable
shall become fully vested and exercisable. With respect to life insurance under
Subsection 3.3(d), Employee shall be entitled to an additional twenty (20)
months of premium payments by the Company if Employee’s employment is
terminated under this Section 4.1 prior to November 1, 2002; forty (40) months
of continued premium payments by the Company if Employee’s employment is
terminated between November 1, 2002 and October 31, 2003, and sixty (60) months
of continued premium payments by the Company if Employee’s employment is
terminated on or after November 1, 2003. Payment by the Company in accordance
with this Section shall constitute Employee’s full severance pay and the
Company shall have no further obligation to Employee arising out of such
termination. 
















	






     4.2
Voluntary Termination by Employee for Good Reason. Employee may at any
time voluntarily terminate his employment for “good reason” (as
defined below) upon 30 days prior written notice thereof to the Company. In the
event of such voluntary termination for “good reason,” (a) the Company
shall pay Employee, within 15 days of such termination, a lump-sum payment equal
to (without discounting to present value) his then effective base salary under
Section 3.1 hereof through the expiration of the five-year term then in effect
(without giving effect to any further extensions thereof under Article II
hereof), (b) the Company shall provide the continued benefit coverage described
in Section 4.1 in the event of the Employee’s termination by the Company
without cause, and (c) all outstanding stock options held by Employee not
already vested and exercisable shall become fully vested and exercisable. 



     For
purposes of this Agreement, “good reason” shall mean the occurrence of
any of the following events: 










	 	     (a)
Removal from the offices Employee holds on the date of this Agreement or a material
reduction in Employee’s authority or responsibility, including, without limitation,
involuntary removal from the Board of Directors, but not including termination of
Employee for “cause”, as defined below; 






	 	     (b)
relocation of the Company’s headquarters from Bexar County, Texas; 






	 	     (c)
a reduction in the Employee’s then effective base salary under Section 3.1; or 






	 	     (d)
The Company otherwise commits a material breach of this Agreement. 






	


     4.3
Termination by the Company for Cause. The Company may terminate this
Agreement at any time if such termination is for “cause” (as defined
below), by delivering to Employee written notice describing the cause of
termination 30 days before the effective date of such termination and by
granting Employee at least 30 days to cure the cause. In the event the
employment of Employee is terminated for “cause”, Employee shall be
entitled only to the base salary earned pro rata to the date of such
termination with no entitlement to any base salary continuation payments or
benefits continuation (except as specifically provided by the terms of an
employee benefit plan of the Company). Except as otherwise provided in this
Agreement, the determination of whether Employee shall be terminated for
“cause” shall be made by the Board of Directors of the Company, in the
reasonable exercise of its business judgment, and shall be limited to the
occurrence of the following events: 
















	










	 	     (a)
Conviction of or a plea of nolo contendere to the charge of a felony (which, through
lapse of time or otherwise, is not subject to appeal); 






	 	     (b)
Willful refusal without proper legal cause to perform, or gross negligence in performing,
Employee’s duties and responsibilities; 






	 	     (c)
Material breach of fiduciary duty to the Company through the misappropriation of Company
funds or property; or 






	 	     (d)
The unauthorized absence of Employee from work (other than for sick leave or disability)
for a period of 30 working days or more during any period of 45 working days during the
term of this Agreement. 






	


     4.4
Termination Upon Death or Permanent Disability. In the event that
Employee dies, this Agreement shall terminate 90 days following the
Employee’s death. Likewise, if the Employee becomes unable to perform the
essential functions of the position with or without reasonable accommodation, on
account of illness, disability, or other reason whatsoever for a period of more
than six consecutive or non-consecutive months in any twelve month period, this
Agreement shall terminate effective 90 days following such incapacity, and
Employee (or his legal representatives) shall be entitled to (a) a lump sum
payment equal to (without discounting to present value) his then effective base
salary under Section 3.1 hereof for a period of sixty (60) months; (b) the
Company shall provide the continued benefit coverage described in Section 4.1 in
the event of the Employee’s said disability, and (c) all outstanding stock
options held by Employee not already vested and exercisable shall become fully
vested and exercisable. 



     4.5
Voluntary Termination by Employee. Employee may terminate this Agreement
at any time upon delivering 30 days’ written notice of resignation to the
Company. In the event of such voluntary termination other than for “good
reason” (as defined above), Employee shall be entitled to his base salary
earned pro rata to the date of his resignation, but no base salary
continuation payments or benefits continuation (except as specifically provided
by the terms of an employee benefit plan of the Company). On or after the date
the Company receives notice of Employee’s resignation, the Company may, at
its option, pay Employee his base salary through the effective date of his
resignation and terminate his employment immediately. 















	





     4.6
Termination following Change of Control. 










	 	     (a)
Notwithstanding anything to the contrary contained herein, should Employee at any time
within 24 months of the occurrence of a “change of control” (as defined below)
cease to be an employee of the Company (or its successor), by reason of (i) termination
by the Company (or its successor) other than for “cause” (following a change of
control, “cause” shall be limited to the conviction of or a plea of nolo
contendere to the charge of a felony which, through lapse of time or otherwise, is not
subject to appeal, or a material breach of fiduciary duty to the Company through the
misappropriation of Company funds or property) or (ii) voluntary termination by Employee
for “good reason upon change of control” (as defined below), then in any such
event, (1) the Company shall pay Employee, within 45 days of the severance of employment
described in this Section 4.6, a lump-sum payment equal to (without discounting to
present value) his then effective base salary under Section 3.1 hereof through the
expiration of the five-year term then in effect (without giving effect to any further
extensions thereof under Article II hereof), (2) the Company shall provide the continued
benefit coverage described in Section 4.1 in the event of the Employee’s termination
by the Company without cause, and (3) all outstanding stock options held by Employee not
already vested and exercisable shall become fully vested and exercisable. 






	 	     (b)
Employee shall be entitled to an additional payment, to the extent all payments to
Employee (whether pursuant to this Agreement or any other agreement whatsoever) in
connection with a change of control as defined in this Section 4.6 do not exceed in
aggregate, the maximum amount that could be paid to Employee, without triggering an
excess parachute payment under Section 280G(b) of the Internal Revenue Code of 1986, as
amended (the “Code”), and the resulting excise tax under Section 4999 of the
Code, (referred to herein as the “maximum payment amount”) equal to an amount,
which when added to the amounts payable to the Employee under paragraph (a) equals the
maximum payment amount; it being the express intention of the parties that Employee in
all cases (whether through this Agreement or any other agreement whatsoever) receive the
maximum payment amount in connection with a change of control without creating an excess
parachute payment. If such a payment is required under this paragraph (b) in addition to
the amounts set forth in paragraph (a) above, it shall be paid at the time and in the
manner set forth under paragraph (a)(1). 






	 	     (c)
In determining the amount to be paid to Employee under this Section 4.6, as well as the
limitation determined under Section 280G of the Code, (i) no portion of the total
payments which Employee has waived in writing prior to the date of the payment of
benefits under this Agreement will be taken into account, (ii) no portion of the total
payments which nationally recognized tax counsel (whether through consultation or
retention of any actuary, consultant or other expert), selected by the Company’s
independent auditors and acceptable to Employee, (referred to herein as “Tax Counsel”)
determines not to constitute a “parachute payment” within the meaning of Section
280G(b)(2) of the Code will be taken into account, (iii) no portion of the total payments
which Tax Counsel determines to be reasonable compensation for services rendered within
the meaning of Section 280G(b)(4) of the Code will be taken into account, and (iv) the
value of any non-cash benefit or any deferred payment or benefit included in the total
payments will be determined by the Company’s independent auditors in accordance with
Sections 280G(d)(3) and (iv) of the Code. 






	 	     (d)
As used in this Section, voluntary termination by Employee for “good reason upon
change of control” shall mean (i) removal of Employee from the offices Employee holds
on the date of this Agreement, (ii) a material reduction in Employee’s authority or
responsibility, including, without limitation, involuntary removal from the Board of
Directors, (iii) relocation of the Company’s headquarters from Bexar County, Texas,
(iv) a reduction in Employee’s then effective base salary under Section 3.1, or (v)
the Company otherwise commits a breach of this Agreement. 











	












	 	     (e)
As used in this Agreement, a “change of control” shall be deemed to have
occurred if (i) any "Person" (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), is or becomes
a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing more than 30% of the combined
voting power of the Company’s then outstanding securities, or (ii) at any time
during the 24-month period after a tender offer, merger, consolidation, sale of assets or
contested election, or any combination of such transactions, at least a majority of the
Company’s Board of Directors shall cease to consist of “continuing directors” (meaning
directors of the Company who either were directors prior to such transaction or who
subsequently became directors and whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least two-thirds of the
directors then still in office who were directors prior to such transaction), or (iii)
the stockholders of the Company approve a merger or consolidation of the Company with any
other corporation, other than a merger or consolidation that would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the
surviving entity) at least 60% of the total voting power represented by the voting
securities of the Company or such surviving entity outstanding immediately after such
merger or consolidation, or (iv) the stockholders of the Company approve a plan of
complete liquidation of the Company or an agreement of sale or disposition by the Company
of all or substantially all of the Company’s assets. 






	 	     (f)
Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution by the Company or any of its affiliates to or
for the benefit of Employee, whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise (any such payments or distributions
being individually referred to herein as a “Payment”, and any two or more of
such payments or distributions being referred to herein as “Payments”), would
be subject to the excise tax imposed by Section 4999 of the Code (such excise tax,
together with any interest thereon, any penalties, additions to tax, or additional
amounts with respect to such excise tax, and any interest in respect of such penalties,
additions to tax or additional amounts, being collectively referred herein to as the
“Excise Tax”), then Employee shall be entitled to receive an additional payment
or payments (individually referred to herein as a “Gross-Up Payment” and any two
or more of such additional payments being referred to herein as “Gross-Up Payments”)
in an amount such that after payment by Employee of all taxes (as defined in paragraph
(p) below) imposed upon the Gross-Up Payment, Employee retains an amount of such Gross-Up
Payment equal to the Excise Tax imposed upon the Payments. 






	 	     (g)
Subject to the provisions of paragraph (h) through (n) below, any determination
(individually, a “Determination”) required to be made under this Section 4.6,
including whether a Gross-Up Payment is required and the amount of such Gross-Up Payment,
shall initially be made, at the Company’s expense, by Tax Counsel. Tax Counsel shall
provide detailed supporting legal authorities, calculations, and documentation both to
the Company and Employee within 15 business days of the termination of Employee’s
employment, if applicable, or such other time or times as is reasonably requested by the
Company or Employee. If Tax Counsel makes the initial Determination that no Excise Tax is
payable by Employee with respect to a Payment or Payments, it shall furnish Employee with
an opinion reasonably acceptable to Employee that no Excise Tax will be imposed with
respect to any such Payment or Payments. Employee shall have the right to dispute any
Determination (a “Dispute”) within 15 business days after delivery of Tax
Counsel’s opinion with respect to such Determination. The Gross-Up Payment, if any,
as determined pursuant to such Determination shall, at the Company’s expense, be
paid by the Company to Employee within five business days of Employee’s receipt of
such Determination. The existence of a Dispute shall not in any way affect Employee’s
right to receive the Gross-Up Payment in accordance with such Determination. If there is
no Dispute, such Determination shall be binding, final and conclusive upon the Company
and Employee, subject in all respects, however, to the provisions of paragraph (h)
through (n) below. As a result of the uncertainty in the application of Sections 4999 and
280G of the Code, it is possible that Gross-Up Payments (or portions thereof) which will
not have been made by the Company should have been made (“Underpayment”), and
if upon any reasonable written request from Employee or the Company to Tax Counsel, or
upon Tax Counsel’s own initiative, Tax Counsel, at the Company’s expense,
thereafter determines that Employee is required to make a payment of any Excise Tax or
any additional Excise Tax, as the case may be, Tax Counsel shall, at the Company’s
expense, determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to Employee. 













	










	 	     (h)
The Company shall defend, hold harmless, and indemnify Employee on a fully grossed-up
after tax basis from and against any and all claims, losses, liabilities, obligations,
damages, impositions, assessments, demands, judgments, settlements, costs and expenses
(including reasonable attorneys’, accountants’, and experts’fees and
expenses) with respect to any tax liability of Employee resulting from any Final
Determination (as defined in paragraph (o) below) that any Payment is subject to the
Excise Tax. 






	 	     (i)
If a party hereto receives any written or oral communication with respect to any
question, adjustment, assessment or pending or threatened audit, examination,
investigation or administrative, court or other proceeding which, if pursued
successfully, could result in or give rise to a claim by Employee against the Company
under this paragraph (i) (“Claim”), including, but not limited to, a claim for
indemnification of Employee by the Company under paragraph (h) above, then such party
shall promptly notify the other party hereto in writing of such Claim (“Tax Claim
Notice”). 






	 	     (j)
If a Claim is asserted against Employee (“Employee Claim”), Employee shall take
or cause to be taken such action in connection with contesting such Employee Claim as the
Company shall reasonably request in writing from time to time, including the retention of
counsel and experts as are reasonably designated by the Company (it being understood and
agreed by the parties hereto that the terms of any such retention shall expressly provide
that the Company shall be solely responsible for the payment of any and all fees and
disbursements of such counsel and any experts) and the execution of powers of attorney,
provided that: 











	












	 	     (i)
within 30 calendar days after the Company receives or delivers, as the case may be, the
Tax Claim Notice relating to such Employee Claim (or such earlier date that any payment
of the taxes claimed is due from Employee, but in no event sooner than five calendar days
after the Company receives or delivers such Tax Claim Notice), the Company shall have
notified Employee in writing (“Election Notice”) that the Company does not
dispute its obligations (including, but not limited to, its indemnity obligations) under
this Agreement and that the Company elects to contest, and to control the defense or
prosecution of, such Employee Claim at the Company’s sole risk and sole cost and
expense; and 







	 	     (ii)
the Company shall have advanced to Employee on an interest-free basis, the total amount
of the tax claimed in order for Employee, at the Company’s request, to pay or cause
to be paid the tax claimed, file a claim for refund of such tax and, subject to the
provisions of the last sentence of paragraph (l) below, sue for a refund of such tax if
such claim for refund is disallowed by the appropriate taxing authority (it being
understood and agreed by the parties hereto that the Company shall only be entitled to
sue for a refund and the Company shall not be entitled to initiate any proceeding in, for
example, United States Tax Court) and shall indemnify and hold Employee harmless, on a
fully grossed-up after tax basis, from any tax imposed with respect to such advance or
with respect to any imputed income with respect to such advance; and 






	 	     (iii)
the Company shall reimburse Employee for any and all costs and expenses resulting from
any such request by the Company and shall indemnify and hold Employee harmless, on fully
grossed-up after-tax basis, from any tax imposed as a result of such reimbursement. 






	 	     (k)
Subject to the provisions of paragraph (j) above, the Company shall have the right to
defend or prosecute, at the sole cost, expense and risk of the Company, such Employee
Claim by all appropriate proceedings, which proceedings shall be defended or prosecuted
diligently by the Company to a Final Determination; provided, however, that (i) the
Company shall not, without Employee’s prior written consent, enter into any
compromise or settlement of such Employee Claim that would adversely affect Employee,
(ii) any request from the Company to Employee regarding any extension of the statute of
limitations relating to assessment, payment, or collection of taxes for the taxable year
of Employee with respect to which the contested issues involved in, and amount of, the
Employee Claim relate is limited solely to such contested issues and amount, and (iii)
the Company’s control of any contest or proceeding shall be limited to issues with
respect to the Employee Claim and Employee shall be entitled to settle or contest, in his
sole and absolute discretion, any other issue raised by the Internal Revenue Service or
any other taxing authority. So long as the Company is diligently defending or prosecuting
such Employee Claim, Employee shall provide or cause to be provided to the Company any
information reasonably requested by the Company that relates to such Employee Claim, and
shall otherwise cooperate with the Company and its representatives in good faith in order
to contest effectively such Employee Claim. The Company shall keep Employee informed of
all developments and events relating to any such Employee Claim (including, without
limitation, providing to Employee copies of all written materials pertaining to any such
Employee Claim), and Employee or his authorized representatives shall be entitled, at
Employee’s expense, to participate in all conferences, meetings and proceedings
relating to any such Employee Claim. 













	












	 	     (l)
If, after actual receipt by Employee of an amount of a tax claimed (pursuant to an
Employee Claim) that has been advanced by the Company pursuant to paragraph (j)(ii)
above, the extent of the liability of the Company hereunder with respect to such tax
claimed has been established by a Final Determination, Employee shall promptly pay or
cause to be paid to the Company any refund actually received by, or actually credited to,
Employee with respect to such tax (together with any interest paid or credited thereon by
the taxing authority and any recovery of legal fees from such taxing authority related
thereto), except to the extent that any amounts are then due and payable by the Company
to Employee, whether under the provisions of this Agreement or otherwise. If, after the
receipt by Employee of an amount advanced by the Company pursuant to paragraph (j)(ii)
above, a determination is made by the Internal Revenue Service or other appropriate
taxing authority that Employee shall not be entitled to any refund with respect to such
tax claimed and the Company does not notify Employee in writing of its intent to contest
such denial of refund prior to the expiration of thirty days after such determination,
then such advance shall be forgiven and shall not be required to be repaid and the amount
of such advance shall offset, to the extent thereof, the amount of any Gross-Up Payments
and other payments required to be paid hereunder. 






	 	     (m)
With respect to any Employee Claim, if the Company fails to deliver an Election Notice to
Employee within the period provided in paragraph (j)(i) above or, after delivery of such
Election Notice, the Company fails to comply with the provisions of paragraph (j)(ii)
above and (iii) and (k) above, then Employee shall at any time thereafter have the right
(but not the obligation), at his election and in his sole and absolute discretion, to
defend or prosecute, at the sole cost, expense and risk of the Company, such Employee
Claim. Employee shall have full control of such defense or prosecution and such
proceedings, including any settlement or compromise thereof. If requested by Employee,
the Company shall cooperate, and shall cause its affiliates to cooperate, in good faith
with Employee and his authorized representatives in order to contest effectively such
Employee Claim. The Company may attend, but not participate in or control, any defense,
prosecution, settlement or compromise of any Employee Claim controlled by Employee
pursuant to this paragraph (m) and shall bear its own costs and expenses with respect
thereto. In the case of any Employee Claim that is defended or prosecuted by Employee,
Employee shall, from time to time, be entitled to current payment, on a fully grossed-up
after tax basis, from the Company with respect to costs and expenses incurred by Employee
in connection with such defense or prosecution. 






	 	     (n)
In the case of any Employee Claim that is defended or prosecuted to a Final Determination
pursuant to the terms of this paragraph (n), the Company shall pay, on a fully grossed-up
after tax basis, to Employee in immediately available funds the full amount of any taxes
arising or resulting from or incurred in connection with such Employee Claim that have
not theretofore been paid by the Company to Employee, together with the costs and
expenses, on a fully grossed-up after tax basis, incurred in connection therewith that
have not theretofore been paid by the Company to Employee, within ten calendar days after
such Final Determination. In the case of any Employee Claim not covered by the preceding
sentence, the Company shall pay, on a fully grossed-up after tax basis, to Employee in
immediately available funds the full amount of any taxes arising or resulting from or
incurred in connection with such Employee Claim at least ten calendar days before the
date payment of such taxes is due from Employee, except where payment of such taxes is
sooner required under the provisions of this paragraph (n), in which case payment of such
taxes (and payment, on a fully grossed-up after tax basis, of any costs and expenses
required to be paid under this paragraph (n) shall be made within the time and in the
manner otherwise provided in this paragraph (n). 











	












	 	     (o)
For purposes of this Agreement, the term “Final Determination” shall mean (i) a
decision, judgment, decree or other order by a court or other tribunal with appropriate
jurisdiction, which has become final and non-appealable; (ii) a final and binding
settlement or compromise with an administrative agency with appropriate jurisdiction,
including, but not limited to, a closing agreement under Section 7121 of the Code; (iii)
any disallowance of a claim for refund or credit in respect to an overpayment of tax
unless a suit is filed on a timely basis; or (iv) any final disposition by reason of the
expiration of all applicable statutes of limitations. 






	 	     (p)
For purposes of this Agreement, the terms “tax” and “taxes” mean any
and all taxes of any kind whatsoever (including, but not limited to, any and all Excise
Taxes, income taxes, and employment taxes), together with any interest thereon, any
penalties, additions to tax, or additional amounts with respect to such taxes and any
interest in respect of such penalties, additions to tax, or additional amounts. 






	 	     (q)
For purposes of this Agreement, the terms “affiliate” and “affiliates” mean,
when used with respect to any entity, individual, or other person, any other entity,
individual, or other person which, directly or indirectly, through one or more
intermediaries controls, or is controlled by, or is under common control with such
entity, individual or person. The term “control” and derivations thereof when
used in the immediately preceding sentence means the ownership, directly or indirectly,
of 50% or more of the voting securities of an entity or other person or possessing the
power to direct or cause the direction of the management and policies of such entity or
other person, whether through the ownership of voting securities, by contract or
otherwise. 






	 	     (r)
The Company shall defend, hold harmless, and indemnify Employee on a fully grossed-up
after tax basis from and against any and all costs and expenses (including reasonable
attorneys’, accountants’and experts’fees and expenses) incurred by
Employee from time to time as a result of any contest (regardless of the outcome) by the
Company or others contesting the validity or enforcement of, or liability under, any term
or provision of this Agreement, plus in each case interest at the applicable federal rate
provided for in Section 7872(f)(2)(B) of the Code. 






	


     4.7
Exclusivity of Termination Provisions. The termination provisions of this
Agreement regarding the parties’ respective obligations in the event
Employee’s employment is terminated, are intended to be exclusive and in
lieu of any other rights or remedies to which Employee or the Company may
otherwise be entitled at law, in equity or otherwise. It is also agreed that,
although the personnel policies and fringe benefit programs of the Company may
be unilaterally modified from time to time, the termination provisions of this
Agreement are not subject to modification, whether orally, impliedly or in
writing, unless any such modification is mutually agreed upon and signed by the
parties. 
















	







ARTICLE 5




CONFIDENTIAL
INFORMATION, NONCOMPETITION AND COOPERATION



     5.1
Nondisclosure. During the term of this Agreement and thereafter, Employee
shall not, without the prior written consent of the Board of Directors, disclose
or use for any purpose (except in the course of his employment under this
Agreement and in furtherance of the business of the Company) confidential
information, proprietary data or trade secrets of the Company (or any of its
subsidiaries), including but not limited to customer, business planning or
business strategy information, except as required by applicable law or legal
process; provided, however, that confidential information shall not include any
information known generally to the public or ascertainable from public or
published information (other than as a result of unauthorized disclosure by
Employee) or any information of a type not otherwise considered confidential by
persons engaged in the same business or a business similar to that conducted by
the Company (or any of its subsidiaries). All documents which Employee prepared
or which may have been provided or made available to Employee in the course of
work for the Company shall be deemed the exclusive property of the Company and
shall remain in the Company’s possession. Upon the termination of
Employee’s employment with the Company, regardless of the reason for such
termination, Employee shall promptly deliver to the Company all materials of a
confidential nature relating to the business of the Company (or any of its
subsidiaries) which are within Employee’s possession or control. 



     5.2
Noncompetition. The Company and Employee agree that the services rendered
by Employee hereunder are unique and irreplaceable. For this reason and in
consideration of the benefits of this Agreement, specifically including but not
limited to applicable termination pay provisions, as well as
confidential/proprietary/trade secret information provided to Employee, Employee
hereby agrees that, during the term of this Agreement and for a period of
eighteen months thereafter, he shall not (except in the course of his employment
under this Agreement and in furtherance of the business of the Company (or any
of its subsidiaries)) (i) engage in as principal, consultant or employee in any
segment of a business of a company, partnership or firm (“Business
Segment”) that is directly competitive with any significant business of the
Company in one of its major commercial or geographic markets or (ii) hold an
interest (except as a holder of less than 5% interest in a publicly traded firm
or mutual funds, or as a minority stockholder or unitholder in a form not
publicly traded) in a company, partnership or firm with a Business Segment that
is directly competitive, without the prior written consent of the Company. 



     5.3
Validity of Noncompetition. The foregoing provisions of Section 5.2 shall
not be held invalid because of the scope of the territory covered, the actions
restricted thereby, or the period of time such covenant is operative. Any
judgment of a court of competent jurisdiction may define the maximum territory,
the actions subject to and restricted by Section 5.2 and the period of time
during which such agreement is enforceable. 
















	






     5.4
Noncompetition Covenants Independent. The covenants of the Employee
contained in Section 5.2 will be construed as independent of any other provision
in this Agreement; and the existence of any claim or cause of action by the
Employee against the Company will not constitute a defense to the enforcement by
the Company of said covenants. The Employee understands that the covenants
contained in Section 5.2 are essential elements of the transaction contemplated
by this Agreement and, but for the agreement of the Employee to Section 5.2, the
Company would not have agreed to enter into such transaction. The Employee has
been advised to consult with counsel in order to be informed in all respects
concerning the reasonableness and propriety of Section 5.2 and its provisions
with specific regard to the nature of the business conducted by the Company and
the Employee acknowledges that Section 5.2 and its provisions are reasonable in
all respects. 



     5.5
Cooperation. In the event of termination, and regardless of the reason
for such termination, Employee agrees to cooperate with the Company and its
representatives by responding to questions, attending meetings, depositions,
administrative proceedings and court hearings, executing documents and
cooperating with the Company and its legal counsel with respect to issues,
claims, litigation or administrative proceedings of which Employee has personal
or corporate knowledge. Employee further agrees to maintain in strict confidence
any information or knowledge Employee has regarding current or future claims,
litigation or administrative proceedings involving the Company (or any of its
subsidiaries). Employee agrees that any communication with a party adverse to
the Company, or with a representative, agent or counsel for such adverse party,
relating to any claim, litigation or administrative proceeding, shall be solely
and exclusively through counsel for the Company. 



     5.6
Remedies. In the event of a breach or threatened breach by the Employee
of any of the provisions of Sections 5.1, 5.2 or 5.5, the Company shall be
entitled to a temporary restraining order and an injunctive restraining the
Employee from the commission of such breach. Nothing herein shall be construed
as prohibiting the Company from pursuing any other remedies available to it for
such breach or threatened breach, including the recovery of money damages. 




ARTICLE 6




ARBITRATION



     Except
for the provisions of Sections 5.1, 5.2 and 5.5 dealing with issues of
nondisclosure, noncompetition and cooperation, with respect to which the Company
reserves the right to petition a court directly for injunction or other relief,
any controversy of any nature whatsoever, including but not limited to tort
claims or contract disputes, between the parties to this Agreement or between
the Employee, his heirs, executors, administrators, legal representatives,
successors, and assigns and the Company and its affiliates, arising out of or
related to the Employee’s employment with the Company, any resignation from
or termination of such employment and/or the terms and conditions of this
Agreement, including the implementation, applicability and interpretation
thereof, shall, upon the written request of one party served upon the other, be
submitted to and settled by arbitration in accordance with the provisions of the
Federal Arbitration Act, 9 U.S.C. §§1-15, as amended. Each of the
parties to this Agreement shall appoint one person as an arbitrator to hear and
determine such disputes, and if they should be unable to agree, then the two
arbitrators shall chose a third arbitrator from a panel made up of experienced
arbitrators selected pursuant to the procedures of the American Arbitration
Association (the “AAA”) and, once chosen, the third arbitrator’s
decision shall be final, binding and conclusive upon the parties to this
Agreement. Each party shall be responsible for the fees and expenses of its
arbitrator and the fees and expenses of the third arbitrator shall be shared
equally by the parties. The terms of the commercial arbitration rules of AAA
shall apply except to the extent they conflict with the provisions of this
paragraph. It is further agreed that any of the parties hereto may petition the
United States District Court for the Western District of Texas, San Antonio
Division, for a judgment to be entered upon any award entered through such
arbitration proceedings. 
















	






ARTICLE 7




MISCELLANEOUS



     7.1
Complete Agreement. This Agreement constitutes the entire agreement
between the parties and cancels and supersedes all other agreements between the
parties which may have related to the subject matter contained in this
Agreement. 



     7.2
Modification; Amendment; Waiver. No modification, amendment or waiver of
any provisions of this Agreement shall be effective unless approved in writing
by both parties. The failure at any time to enforce any of the provisions of
this Agreement shall in no way be construed as a waiver of such provisions and
shall not affect the right of either party thereafter to enforce each and every
provision hereof in accordance with its terms. 



     7.3
Governing Law; Jurisdiction. This Agreement and performance under it, and all proceedings
that may ensue from its breach, shall be construed in accordance with and under the laws
of the State of Texas.  



     7.4
Employee’s Representations. Employee represents and warrants that he
is free to enter in to this Agreement and to perform each of the terms and
covenants of it. Employee represents and warrants that he is not restricted or
prohibited, contractually or otherwise, from entering into and performing this
Agreement, and that his execution and performance of this Agreement is not a
violation or breach of any other agreement between Employee and any other person
or entity. 



     7.5
Company’s Representations. Company represents and warrants
that it is free to enter into this Agreement and to perform each of the terms
and covenants of it. Company represents and warrants that it is not restricted
or prohibited, contractually or otherwise, from entering into and performing
this Agreement and that its execution and performance of this Agreement is not a
violation or breach of any other agreements between Company and any other person
or entity. The Company represents and warrants that this Agreement is a legal,
valid and binding agreement of the Company, enforceable in accordance with its
terms. 
















	






     7.6
Severability. Whenever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Agreement shall be held to be prohibited by or
invalid under applicable law, such provision shall be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement. 



     7.7
Assignment. The rights and obligations of the parties under this
Agreement shall be binding upon and inure to the benefit of their respective
successors, assigns, executors, administrators and heirs, provided, however,
that neither the Company nor Employee any assign any duties under this Agreement
without the prior written consent of the other. 



     7.8
Limitation. This Agreement shall not confer any right or impose any
obligation on the Company to continue the employment of Employee in any
capacity, or limit the right of the Company or Employee to terminate
Employee’s employment. 



     7.9
Attorneys’ Fees and Costs. If any action at law or in equity
is brought to enforce or interpret the terms of this Agreement or any obligation
owing thereunder, venue will be in Bexar County, Texas and the prevailing party
shall be entitled to reasonable attorney’s fees and all costs and expenses
of suit, including, without limitation, expert and accountant fees, and such
other relief which a court of competent jurisdiction may deem appropriate. 



     7.10
Notices. All notices and other communications under this Agreement shall
be in writing and shall be given in person or by either personal delivery,
overnight delivery, or first class mail, certified or registered with return
receipt requested, with postage or delivery charges prepaid, and shall be deemed
to have been duly given when delivered personally, upon actual receipt, and on
the next business day when sent via overnight delivery, or three days after
mailing first class, certified or registered with return receipt requested, to
the respective persons named below: 










		If to the Company:	 	 Corporate Secretary

New Century Equity Holdings Corp.
 10101 Reunion Place
 San Antonio, Texas 78216
 








		If to the Employee:	 	 Parris H. Holmes, Jr.
 10101 Reunion Place
 San Antonio, Texas 78216
 






	


     IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the
day and year indicated above. 











		COMPANY:	 	
NEW CENTURY EQUITY HOLDINGS CORP.
 By: /s/  C. LEE COOKE      
 Name: C. Lee Cooke

Title: Chairman, Compensation Committee








		EMPLOYEE:	 	
By: /s/  PARRIS H. HOLMES, JR.      

Parris H. Holmes, Jr.