exv10w1






Exhibit 10.1




EMPLOYMENT AGREEMENT




          THIS EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of December 23, 2008, by and between
infoGROUP, Inc., a Delaware corporation (the “Company”), and Bill L. Fairfield (the “Executive”).




          WHEREAS, the Company desires to employ the Executive as its Chief Executive Officer and the
Executive desires to accept such employment, on the terms set forth below.




          Accordingly, the parties hereto agree as follows:




     1. Term. The Company hereby employs the Executive, and the Executive hereby accepts
such employment for an initial term commencing as of the date hereof and ending one (1) year from
the date hereof, unless sooner terminated in accordance with the provisions of Section 4 or Section
5 (the period during which the Executive is employed hereunder being hereinafter referred to as the
“Term”). If either the Company or Executive does not wish to renew this Agreement when it expires
at the end of the initial or any renewal term hereof as hereinafter provided, or if either the
Company or Executive wishes to renew this Agreement on different terms than those contained herein,
it or he shall give written notice in accordance with Section 10.4 below of such intent to the
other party at least sixty (60) days prior to the expiration date. In the absence of such notice,
this Agreement shall be renewed on the same terms and conditions contained herein for a term of one
(1) year from the date of expiration. The parties expressly agree that designation of a term and
renewal provisions in this Agreement does not in any way limit the right of the parties to
terminate this Agreement at any time as hereinafter provided. Reference herein to the term of this
Agreement shall refer both to the initial term and any successive term as the context requires.



     2. Duties. The Executive, in his capacity as Chief Executive Officer, shall
faithfully perform for the Company the duties of said office and shall perform such other duties as
shall be specified and designated from time to time by the board of directors of the Company (the
“Board”) (including serving on the board of directors of any subsidiary or affiliate of the Company
without any additional compensation). The Executive shall have the customary powers,
responsibilities and authorities of CEOs of corporations of the size, type and nature of the
Company. Executive’s office shall be at the principal executive offices of the Company in Omaha,
Nebraska. The Executive shall devote substantially all of the Executive’s business time and effort
to the performance of the Executive’s duties hereunder, provided that in no event shall this
sentence prohibit the Executive from performing personal and charitable activities and any other
activities approved by the Board, so long as such activities do not materially and adversely
interfere with the Executive’s duties for the Company. The Board may delegate its authority to
take any action under this Agreement to the Compensation Committee of the Board (the “Compensation
Committee”).



     3. Compensation.



          3.1 Salary. The Company shall pay the Executive during the Term an Annual Salary at
the rate of $750,000 per annum (the “Annual Salary”), payable semi-monthly and subject to regular
deductions and withholdings as required by law. The Annual Salary may be



 









 






increased annually by an amount as may be approved by the Compensation Committee, and, upon
such increase, the increased amount shall thereafter be deemed to be the Annual Salary for purposes
of this Agreement.




          3.2 Annual Cash Incentive. The Executive’s target Annual Cash Incentive amount will
be 100% of the Annual Salary then in effect for each applicable year, provided, however, that
Executive’s Annual Cash Incentive, if any, may be below, at, or above the target. Executive’s
Annual Cash Incentive shall be awarded based upon the achievement of individual and objective
Company annual performance criteria established by the Compensation Committee, and shall be
consistent with performance criteria established for other senior executives of the Company.
Although the Compensation Committee will retain discretion to make such adjustments as it deems
appropriate, including awarding no cash incentive, the Annual Cash Incentive will typically vary
from 50% of Annual Salary to 150% of Annual Salary. The Annual Cash Incentive will be paid within
2 1/2 months after the end of the calendar year to which the Annual Cash Incentive relates.




          3.3 Change of Control Payment. Upon a Change of Control (as defined in Section 6.3),
Company shall pay Executive an amount equal to the sum of: (a) one half (0.5x) of the Executive’s
Annual Salary plus (b) one half (0.5x) the targeted Annual Cash Incentive for the year of
termination. Such payment shall be payable within 30 days of the effective date of the Change of
Control, subject to regular deductions and withholdings as required by law.




          3.4 Other Incentives. The Executive may from time to time be awarded such
incentives, both long-term and short-term, including shares, options and/or other equity or
equity-linked instruments as the Compensation Committee determines to be appropriate pursuant to
the terms of the Company’s omnibus incentive plan.




          3.5 Benefits – In General. The Executive shall be permitted during the Term to
participate in any group life, hospitalization or disability insurance plans, health programs,
pension and profit sharing plans and other benefits that may be available to other senior
executives of the Company generally, on the same terms as may be applicable to such other
executives, in each case to the extent that the Executive is eligible under the terms of such plans
or programs.




          3.6 Paid Personal Leave. During the Term, the Executive shall be entitled to paid
personal leave of 30 working days per year.




          3.7 Expenses. The Company shall pay or reimburse the Executive for all ordinary and
reasonable out-of-pocket expenses actually incurred (and, in the case of reimbursement, paid) by
the Executive during the Term in the performance of the Executive’s services under this Agreement,
provided that the Executive submits such expenses in accordance with the policies applicable to
senior executives of the Company generally.




     4. Termination Due to Death or Disability.



     4.1 Death. In the event of the Executive’s death, the Term will terminate, all
obligations of the Company and Executive under Sections 1 through 3 will immediately cease



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except for obligations which expressly continue after death, and the Company will pay Executive’s
beneficiary or estate, and Executive’s beneficiary or estate will be entitled to receive, the
following:





	 	(i)	 	Executive’s Compensation Accrued at Termination (as defined in Section 6.4);
	 
	 	(ii)	 	In lieu of any annual cash incentive compensation under Section 3.2 for the
year in which Executive dies, a Partial Year Bonus (as defined in Section 6.7);
	 
	 	(iii)	 	All equity awards held by Executive at termination that vest based on time
shall be fully vested, all stock options shall be exercisable during the remainder of
the term of such options, and all other terms of such awards shall be governed by the
plans and programs and the agreements and other documents pursuant to which such
awards were granted;
	 
	 	(iv)	 	Any performance objectives upon which the earning of performance-based
restricted stock, RSUs, and other equity awards and other long-term incentive awards
(including cash awards) is conditioned shall be deemed to have been met at target level
at the date of termination, and such amounts shall become fully vested and
non-forfeitable as a result of termination of employment at the date of such
termination, and, in other respects, such awards shall be governed by the plans and
programs and the agreements and other documents pursuant to which such awards were
granted; and
	 
	 	(vi)	 	All other rights under any other compensatory or benefit plan shall be governed
by such plan. In addition, at Company’s expense, Executive’s spouse and dependent
children shall be entitled to continuation of health insurance coverage (i.e., medical,
dental and vision) under the Company’s group health plan(s) in which the Executive was
participating on the date of termination or if such plan(s) have been terminated, in
the plan(s) in which senior executives of the Company participate for a period of one
(1) year after the date of Executive’s death.





              4.2 Disability. The Company may terminate the employment of Executive hereunder due to the
Disability (as defined in Section 6.5) of Executive. Upon termination of employment, the Term will
terminate, all obligations of the Company and Executive under Sections 1 through 3 will immediately
cease except for obligations which expressly continue after termination of employment due to
Disability, and the Company will pay Executive, and Executive will be entitled to receive, the
following:




	 	(i)	 	Executive’s Compensation Accrued at Termination (as defined in Section 6.4);
	 
	 	(ii)	 	In lieu of any annual cash incentive compensation under Section 3.2 for the
year in which Executive becomes disabled, a Partial Year Bonus (as defined in Section
6.7);
	 
	 	(iii)	 	All equity awards held by Executive at termination that vest based on time
shall




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	 	 	 	be fully vested, all stock options shall be exercisable during the remainder of the
term of such options, and all other terms of such awards shall be governed by the
plans and programs and the agreements and other documents pursuant to which such
awards were granted;
	 
	 	(iv)	 	Any performance objectives upon which the earning of performance-based
restricted stock, RSUs, and other equity awards and other long-term incentive awards
(including cash awards) is conditioned shall be deemed to have been met at target level
at the date of termination, and such amounts shall become fully vested and
non-forfeitable as a result of termination of employment at the date of such
termination, and, in other respects, such awards shall be governed by the plans and
programs and the agreements and other documents pursuant to which such awards were
granted;
	 
	 	(v)	 	Disability benefits shall be payable in accordance with the Company’s plans,
programs and policies; and
	 
	 	(vi)	 	All other rights under any other compensatory or benefit plan shall be governed
by such plan. In addition, at Company’s expense, Executive and his spouse and
dependent children shall be entitled to continuation of health insurance coverage
(i.e., medical, dental and vision) under the Company’s group health plan(s) in which
the Executive was participating on the date of termination or if such plan(s) have been
terminated, in the plan(s) in which senior executives of the Company participate for a
period of one (1) year after the date Executive’s employment terminates.





              4.3 Other Terms of Payment Following Death or Disability. Nothing in this Section 4 shall
limit the benefits payable or provided in the event Executive’s employment terminates due to death
or Disability under the terms of plans or programs of the Company more favorable to Executive (or
his beneficiaries) than the benefits payable or provided under this Section 4 (except in the case
of the Annual Cash Incentive in lieu of which amounts are paid hereunder), including plans and
programs adopted after the date of this Agreement. Subject to Section 5.6, amounts payable under
this Section 4 following Executive’s termination of employment will be paid as promptly as
practicable after such termination of employment, and, in any event, within 2 1/2 months after the
end of the year in which employment terminates. All payments under this Section 4 shall be subject
to regular deductions and withholdings as required by law.



     5. Termination of Employment For Reasons Other Than Death or Disability.



              5.1 Termination by the Company for Cause. The Company may terminate the employment of
Executive hereunder for Cause (as defined in Section 6.2) at any time. At the time Executive’s
employment is terminated for Cause, the Term will terminate, all obligations of the Company and
Executive under Sections 1 through 3 will immediately cease, and the Company will pay Executive,
and Executive will be entitled to receive, the following:




	 	(i)	 	Executive’s Compensation Accrued at Termination (as defined in Section 6.4);




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	 	(ii)	 	The vesting and exercisability of stock options, RSUs and other equity awards
held by Executive at termination and all other terms of such awards shall be governed
by the plans and programs and the agreements and other documents pursuant to which such
options were granted; and
	 
	 	(iii)	 	All other rights under any other compensatory or benefit plan shall be
governed by such plan. In addition, at Executive’s expense, Executive and his spouse
and dependent children shall be entitled to continuation of health insurance coverage
under any applicable law.





              5.2 Termination by Executive Other Than For Good Reason. Executive may terminate his
employment hereunder voluntarily for reasons other than Good Reason (as defined in Section 6.6) at
any time upon at least 30 days’ written notice to the Company. An election by Executive not to
extend the Term pursuant to Section 1 hereof shall be deemed to be a termination of employment by
Executive for reasons other than Good Reason at the date of expiration of the Term. At the time
Executive’s employment is terminated by Executive other than for Good Reason, the Term will
terminate, all obligations of the Company and Executive under Sections 1 through 3 will immediately
cease, and the Company will pay Executive, and Executive will be entitled to the same compensation
and rights specified in Section 5.1.



              5.3 Termination by the Company Without Cause. The Company may terminate the employment of
Executive hereunder without Cause upon at least 30 days’ written notice to Executive. An election
by the Company not to extend the Term pursuant to Section 1 hereof shall not be deemed to be a
termination of employment by the Company Without Cause at the date of expiration of the Term. At
the time Executive’s employment is terminated by the Company (i.e., at the expiration of such
notice period), the Term will terminate, all remaining obligations of the Company and Executive
under Sections 1 through 3 will immediately cease (except as expressly provided below), and the
Company will pay Executive, and Executive will be entitled to receive, the following:




	 	(i)	 	Executive’s Compensation Accrued at Termination (as defined in Section 6.4);
	 
	 	(ii)	 	If such termination is not in anticipation of, or on or after, a Change
of Control (as defined in Section 6.3), Executive shall be entitled to receive
severance payments equal to the sum of: (a) one half (0.5x) of the Executive’s Annual
Salary plus (b) one half (0.5x) the targeted Annual Cash Incentive for the year of
termination. Such severance shall be payable in equal installments on the Company’s
regular salary payment dates for a six-month period commencing on the date of
termination; provided, that such payments shall terminate if Executive fails to comply
with the requirements of Section 8 below;
	 
	 	(iii)	 	If such termination occurs in anticipation of, or on or after, a Change in
Control (as defined in Section 6.3), Executive shall be entitled to receive severance
payments equal to the sum of: (a) two times the Executive’s Annual Salary plus (b) two
times the targeted Annual Cash Incentive for the year of termination, less




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	 	 	 	(c) any amount paid to Executive under Section 3.3 hereof. Such severance shall be
payable within 30 days of the date of termination. Any payments provided under
this subsection (iii) shall be subject to forfeiture if Executive fails to comply
with the requirements of Section 8 below;
	 
	 	(iv)	 	In lieu of any annual cash incentive compensation under Section 3.2 for the
year in which Executive’s employment terminates, a Partial Year Bonus (as defined in
Section 6.7);
	 
	 	(v)	 	All equity awards held by Executive at termination which vest based on time
shall become vested, all stock options shall be exercisable during the remainder of the
term of such options, and all other terms of such awards shall be governed by the plans
and programs and the agreements and other documents pursuant to which such awards were
granted;
	 
	 	(vi)	 	Any performance objectives upon which the earning of performance-based
restricted stock, RSUs, and other equity awards and other long-term incentive awards
(including cash awards,) is conditioned shall be earned based on actual performance at
the date of termination, and such awards shall to the extent earned become vested and
non-forfeitable as a result of termination of employment at the date of such
termination, and, in other respects, such awards shall be governed by the plans and
programs and the agreements and other documents pursuant to which such awards were
granted; provided, however, that if such termination shall occur in anticipation of a
Change in Control (as defined in Section 6.6) or on or within two (2) years after a
Change in Control any such performance objectives shall be deemed to have been met at
target level at the date of termination;
	 
	 	(vii)	 	All other rights under any other compensatory or benefit plan shall be
governed by such plan. In addition, at Company’s expense, Executive and his spouse and
dependent children shall be entitled to continuation of health insurance coverage
(i.e., medical, dental and vision) under the Company’s group health plan(s) in which
the Executive was participating on the date of termination or if such plan(s) have been
terminated, in the plan(s) in which senior executives of the Company participate for a
period of one (1) year after the date Executive’s employment terminates.




Payments and benefits under this Section 5.3 are subject to Section 5.6.




              5.4 Termination by Executive for Good Reason. Executive may terminate his employment
hereunder for Good Reason upon 30 days’ written notice to the Company which notice must be given
within 90 days of the occurrence of the condition that is the basis for such Good Reason; provided,
however, that, if the basis for such Good Reason is correctible and the Company has corrected the
basis for such Good Reason within 30 days after receipt of such notice, Executive may not then
terminate his employment for Good Reason with respect to the matters addressed in the written
notice, and therefore Executive’s notice of termination will automatically become null and void.
At the time Executive’s employment is terminated by



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Executive for Good Reason (i.e., at the expiration of such notice period), the Term will terminate,
all obligations of the Company and Executive under Sections 1 through 3 will immediately cease
(except as expressly provided below), and the Company will pay Executive, and Executive will be
entitled to receive, the same compensation and rights specified in Section 5.3(i) – (vi) and the
text following clause (vi).



If any payment or benefit under this Section 5.4 is based on Annual Salary or other level of
compensation or benefits at the time of Executive’s termination and if a reduction in such Annual
Salary or other level of compensation or benefit was the basis for Executive’s termination for Good
Reason, then the Annual Salary or other level of compensation in effect before such reduction shall
be used to calculate payments or benefits under this Section 5.4.




          5.5 Other Terms Relating to Certain Terminations of Employment. In the event Executive’s
employment terminates for any reason set forth in Section 5.2 through 5.4, Executive will be
entitled to the benefit of any terms of plans or agreements applicable to Executive which are more
favorable than those specified in this Section 5 (except without duplication of payments or
benefits, including in the case of the Annual Cash Incentive in lieu of which amounts are paid
hereunder). Except as otherwise provided under Section 5.6, amounts payable under this Section 5
following Executive’s termination of employment, other than those expressly payable on a deferred
or installment basis, will be paid as promptly as practicable after such a termination of
employment and, in any event, within 2 1/2 months after the end of the year in which employment
terminates. All payments under this Section 5 shall be subject to regular deductions and
withholdings as required by law.




          5.6 Limitations Under Internal Revenue Code Section 409A.




               (i) If at the time of Executive’s separation from service, (i) Executive is a specified
employee (within the meaning of Section 409A and using the identification methodology selected by
the Company from time to time), and (ii) the Company makes a good faith determination that an
amount payable hereunder constitutes deferred compensation (within the meaning of Section 409A) the
payment of which is required to be delayed pursuant to the six-month delay rule set forth in
Section 409A in order to avoid taxes or penalties under Section 409A, then the Company will not pay
such amount on the otherwise scheduled payment date but will instead pay it in a lump sum on the
first business day after such six-month period, together with interest for the period of delay,
compounded annually, equal to the prime rate (as published in the Wall Street Journal) in effect as
of the dates the payments should otherwise have been provided.



               (ii) It is the intention of the parties that payments or benefits payable under this Agreement
not be subject to the additional tax imposed pursuant to Section 409A of the Code. To the extent
such potential payments or benefits could become subject to such Section, the parties shall
cooperate to amend this Agreement with the goal of giving the Executive the economic benefits
described herein in a manner that does not result in such tax being imposed.



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               (iii) With respect to payments under this Agreement, for purposes of
Section 409A of the Code, each severance payment and COBRA continuation reimbursement payment will
be considered one of a series of separate payments.



               (iv) The Executive will be deemed to have a termination of employment for purposes of
determining the timing of any payments that are classified as deferred compensation only upon a
“separation from service” within the meaning of Section 409A.



               (v) Any amount that Executive is entitled to be reimbursed under this Agreement will be
reimbursed to Executive as promptly as practical and in any event not later than 90 days after the
expenses are incurred, and the amount of the expenses eligible for reimbursement during any
calendar year will not affect the amount of expenses eligible for reimbursement in any other
calendar year.



               (v) If on the due date for any payment pursuant to Section 5, all revocation periods with
respect to the release have not yet expired, such payment will not be made until such revocation
period has expired and if such revocation period has not expired by the end of the calendar year in
which the payment would have otherwise been made, the payment shall be forfeited.



     6. Definitions Relating to Termination Events.



          6.1 intentionally omitted




          6.2 “Cause”. For purposes of this Agreement, “Cause” shall mean Executive’s:





	 	(i)	 	conviction for commission of a felony or a crime involving
moral turpitude;
	 
	 	(ii)	 	willful commission of any act of theft, fraud, embezzlement or
misappropriation against the Company or its subsidiaries or affiliates;
	 
	 	(iii)	 	willful and continued failure substantially to perform
Executive’s duties hereunder (other than such failure resulting from
Executive’s incapacity due to physical or mental illness), which failure has a
material adverse impact on the Company and which is not remedied within 30
calendar days after written demand for substantial performance is delivered by
the Company which specifically identifies the manner in which the Company
believes that Executive has not substantially performed Executive’s duties.




No act, or failure to act, on the part of Executive shall be deemed “willful” unless done, or
omitted to be done, by Executive not in good faith and without reasonable belief that his action or
omission was in the best interest of the Company. Notwithstanding the foregoing, Executive shall
not be deemed to have been terminated for Cause unless and until there shall have been delivered to
Executive a copy of the resolution duly adopted by the affirmative vote of not less than
three-quarters (3/4) of the independent members of the Board at a meeting of the Board




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(after reasonable notice to Executive and an opportunity for Executive, together with Executive’s
counsel, to be heard before the Board) finding that, in the good faith opinion of the Board,
Executive was guilty of conduct set forth above in this definition and specifying the particulars
thereof in detail.




          6.3 “Change in Control”. For purposes of this Agreement, a “Change in Control” means the
following:





	 	i.	 	A transaction or series of transactions (other than an offering
of Stock to the general public through a registration statement filed with the
Securities and Exchange Commission) whereby any “person” or related “group” of
“persons” (as such terms are used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than
the Company, any of its subsidiaries, or an employee benefit plan maintained by
the Company or any of its subsidiaries) directly or indirectly acquires
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act)
of securities of the Company and immediately after such acquisition possesses
more than 50% of the total combined voting power of the Company’s securities
outstanding immediately after such acquisition; or
	 
	 	ii.	 	During any period of two consecutive years, individuals who, at
the beginning of such period, constitute the Board together with any new
director(s) (other than a director designated by a person who shall have
entered into an agreement with the Company to effect a transaction described in
Section 6.3(i) hereof or Section 6.3(iii) hereof) whose election by the Board
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 either were
directors at the beginning of the two-year period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof; or
	 
	 	iii.	 	The consummation by the Company (whether directly involving the
Company or indirectly involving the Company through one or more intermediaries)
of (a) a merger, consolidation, reorganization, or business combination or (b)
a sale or other disposition of all or substantially all of the Company’s assets
in any single transaction or series of related transactions or (c) the
acquisition of assets or stock of another entity, in each case other than a
transaction:






	 	(A)	 	Which results in the Company’s voting
securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into
voting securities of the Company or the person that, as a result of the
transaction, controls, directly or indirectly, the Company or owns,
directly or indirectly, all or substantially all of the Company’s




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	 	 	 	assets or otherwise succeeds to the business of the Company (the
Company or such person, the “ Successor Entity “)) directly or
indirectly, at least a majority of the combined voting power of the
Successor Entity’s outstanding voting securities immediately after
the transaction, and;
	 
	 	(B)	 	After which no person or group (as such terms
are used in Sections 13(d) and 14(d)(2) of the Exchange Act)
beneficially owns (within the meaning of Rule 13d-3 under the Exchange
Act) voting securities representing 50% or more of the combined voting
power of the Successor Entity; or






	 	iv.	 	The Company’s stockholders approve a liquidation or dissolution
of the Company and all material contingencies to such liquidation or
dissolution have been satisfied or waived.





              6.4 “Compensation Accrued at Termination”. For purposes of this Agreement, “Compensation Accrued
at Termination” means the following:




	 	(i)	 	The unpaid portion of Annual Salary at the rate payable, in accordance with
Section 3.1 hereof, at the date of Executive’s termination of employment, pro rated
through such date of termination, payable in accordance with the Company’s regular pay
schedule;
	 
	 	(ii)	 	Except as otherwise provided in this Agreement, all earned and unpaid and/or
vested, nonforfeitable amounts owing or accrued at the date of Executive’s termination
of employment under any compensation and benefit plans, programs, and arrangements set
forth or referred to in Sections 3.2-3.4 hereof (including any earned and vested Annual
Cash Incentive) in which Executive theretofore participated, payable in accordance with
the terms and conditions of the plans, programs, and arrangements (and agreements and
documents thereunder) pursuant to which such compensation and benefits were granted or
accrued; and
	 
	 	(iii)	 	Reasonable business expenses and disbursements incurred by Executive prior to
Executive’s termination of employment, to be reimbursed to Executive, as authorized
under Section 3.6, in accordance the Company’s reimbursement policies as in effect at
the date of such termination.





              6.5 “Disability”. For purposes of this Agreement, “Disability” means the Executive is unable due
to a physical or mental condition to perform the essential functions of his position with or
without reasonable accommodation for six (6) months in the aggregate during any twelve (12) month
period or based on the written certification by two licensed physicians of the likely continuation
of such condition for such period. This definition shall be interpreted and applied consistent
with the Americans with Disabilities Act, the Family and Medical Leave Act, Section 409A of the
Code and other applicable law.



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              6.6 “Good Reason”. For purposes of this Agreement, “Good Reason” shall mean, without Executive’s
express written consent, the occurrence of any of the following circumstances unless, if
correctable, such circumstances are fully corrected within 30 days of the notice of termination
given in respect thereof:




	 	(i)	 	The assignment to Executive of duties materially inconsistent with Executive’s
position and status hereunder, or an alteration, materially adverse to Executive, in
the nature of Executive’s duties, responsibilities, and authorities, Executive’s
positions or the conditions of Executive’s employment from those specified in Section 2
or otherwise hereunder (other than inadvertent actions which are promptly remedied);
except the foregoing shall not constitute Good Reason if occurring in connection with
the termination of Executive’s employment for Cause, Disability, as a result of
Executive’s death, or as a result of action by or with the consent of Executive;
	 
	 	(ii)	 	a reduction by the Company in Executive’s Annual Salary or the setting of
Executive’s annual target incentive opportunity or payment of earned Annual Incentives
in amounts less than specified under or otherwise not in conformity with Section 3
hereof;
	 
	 	(iii)	 	a change in Executive’s principal office location to a point more than fifty
(50) miles from the current principal executive offices of the Company in Omaha,
Nebraska;
	 
	 	(iv)	 	the failure of the Company to obtain a satisfactory agreement from any
successor to the Company to fully assume the Company’s obligations and to perform under
this Agreement; or
	 
	 	(v)	 	any other failure by the Company to perform any material obligation under, or
breach by the Company of any material provision of, this Agreement.





              6.7 “Partial Year Bonus”. For purposes of this Agreement, a Partial Year Bonus is an amount equal
to the Annual Cash Incentive compensation that would have become payable to Executive for that year
to the extent the performance goals for receiving such bonus have been achieved multiplied by a
fraction the numerator of which is the number of days Executive was employed in the year of
termination and the denominator of which is the total number of days in the year of termination.
Such amount will be determined at the same time bonus amounts are determined for other executives
of the Company



     7. Excise Tax-Related Provisions. In the event Executive becomes entitled to any
amounts or benefits payable in connection with a Change in Control or other change in control
(whether or not such amounts are payable pursuant to this Agreement) (the “Severance Payments”), if
any of such Severance Payments are subject to the tax (the “Excise Tax”) imposed by Section 4999 of
the Code (or any similar federal, state or local tax that may hereafter be imposed), the Company
shall pay to Executive at the time specified in Section 7(iii) hereof an additional amount (the
“Gross-Up Payment”) such that the net amount retained by Executive, after deduction of any Excise
Tax on the Total Payments (as hereinafter defined) and any federal,



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state and local income tax and Excise Tax upon the payment provided for by Section 7(i), shall
be equal to the Total Payments; provided, however that in the event the aggregate value of the
Total Payments exceeds three times the Executive’s “base amount,” as defined in Section 280G(b)(3)
of the Code, (the “Parachute Threshold”) by less than 10%, one or more of the Total Payments shall
be reduced so that the aggregate value of the Total Payments is $1.00 less than the Parachute
Threshold. Unless the Executive shall have given prior written notice specifying a different order
to the Company to effectuate the foregoing, the Company shall reduce or eliminate the Total
Payments by first reducing or eliminating the portion of the Total Payments which are not payable
in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning
with payments or benefits which are to be paid the farthest in time from the Change in Control. Any
notice given by the Executive pursuant to the preceding sentence shall take precedence over the
provisions of any other plan, arrangement or agreement governing the Executive’s rights and
entitlements to any benefits or compensation. For the avoidance of doubt, in no event shall the
Company be required to pay to Executive any amount under this Section 7 with respect to any taxes
or interest that may arise as a result of Section 409A of the Code.




	 	(i)	 	For purposes of determining whether any of the Severance Payments will be
subject to the Excise Tax and the amount of such Excise Tax:






	 	(A)	 	any other payments or benefits received or to be received by
Executive in connection with a Change in Control or Executive’s termination of
employment (whether pursuant to the terms of this Agreement or any other plan,
arrangement or agreement with the Company, any Person whose actions result in a
Change in Control or any Person affiliated with the Company or such Person)
(which, together with the Severance Payments, constitute the “Total Payments”)
shall be treated as “parachute payments” within the meaning of Section
280G(b)(2) of the Code, and all “excess parachute payments” within the meaning
of Section 280G(b)(1) of the Code shall be treated as subject to the Excise
Tax, unless in the opinion of nationally-recognized tax counsel or compensation
consultant the selection of which was approved under Section 7(iv) such other
payments or benefits (in whole or in part) do not constitute parachute
payments, or such excess parachute payments (in whole or in part) represent
reasonable compensation for services actually rendered within the meaning of
Section 280G(b)(4) of the Code in excess of the base amount within the meaning
of Section 280G(b)(3) of the Code, or are otherwise not subject to the Excise
Tax;
	 
	 	(B)	 	the amount of the Total Payments which shall be treated as
subject to the Excise Tax shall be equal to the lesser of (a) the total amount
of the Total Payments and (b) the amount of excess parachute payments within
the meaning of Section 280G(b)(1) of the Code (after applying Section 7(i)(A)
hereof); and
	 
	 	(C)	 	the value of any non-cash benefits or any deferred payments or
benefit shall be determined by a nationally-recognized accounting or consulting




12









 






	 	 	 	firm the selection of which was approved under Section 7(iv) in accordance
with the principles of Sections 280G(d)(3) and (4) of the Code.






	 	(ii)	 	For purposes of determining the amount of the Gross-Up Payment, Executive shall
be deemed to pay federal income taxes at the highest marginal rate of federal income
taxation in the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rate of taxation in the state and locality
of Executive’s residence on the date of termination, net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and local
taxes. In the event that the Excise Tax is subsequently determined to be less than the
amount taken into account hereunder at the time of termination of Executive’s
employment, Executive shall repay to the Company within ten days after the time that
the amount of such reduction in Excise Tax is finally determined the portion of the
Gross-Up Payment attributable to such reduction (plus the portion of the Gross-Up
Payment attributable to the Excise Tax and federal and state and local income tax
imposed on the Gross-Up Payment being repaid by Executive if such repayment results in
a reduction in Excise Tax and/or federal and state and local income tax deduction) 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 of the termination of Executive’s employment
(including by reason of any payment the existence or amount of which cannot be
determined at the time of the Gross-Up Payment), the Company shall make an additional
gross-up payment in respect of such excess within ten days after the time that the
amount of such excess is finally determined.
	 
	 	(iii)	 	The payments provided for in this Section 7 shall be made not later than the
thirtieth day following the date of Executive’s termination of employment; provided,
however, that if the amount of such payments cannot be finally determined on or before
such day, the Company shall pay to Executive on such day an estimate, as determined in
good faith by the Company, of the minimum amount of such payments and shall pay 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 but in no
event later than the sixtieth day after the date of Executive’s termination of
employment. 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 fifteenth day after the demand by the Company
(together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).
	 
	 	(iv)	 	All determinations under this Section 7 shall be made at the expense of the
Company by a nationally recognized public accounting or consulting firm selected by the
Company and subject to the approval of Executive, which approval shall not be
unreasonably withheld. Such determination shall be binding upon Executive and the
Company.




13









 











     8. Non-Competition and Non-Disclosure; Executive Cooperation; Non-Disparagement.



          8.1 Noncompetition Agreement. Executive and the Company shall execute a Noncompetition
Agreement within sixty (60) days of execution of this Agreement that shall only apply during the
Term and for a period of one year following termination of employment.




          8.2 Non-Solicitation. Without the consent in writing of the Board, Executive will not, at
any time during the Term and for one year thereafter, acting alone or in conjunction with others,
directly or indirectly (i) induce any customers of the Company or any of its affiliates with whom
Executive has had contacts or relationships, directly or indirectly, during and within the scope of
his employment with the Company or any of its affiliates, to curtail or cancel their business with
the Company or any such affiliate; (ii) induce, or attempt to influence, any employee of the
Company or any of its affiliates to terminate employment; or (iii) solicit or assist any third
party in the solicitation of, any person who is an employee of the Company or any affiliate;
provided, however, that activities engaged in by or on behalf of the Company are not restricted by
this covenant. The provisions of subparagraphs (i), (ii), and (iii) above are separate and distinct
commitments independent of each of the other subparagraphs. Notwithstanding anything in this
Section 8.2 to the contrary, Executive is permitted to solicit any individual who served as his
executive assistant during the Term.




          8.3 Non-Disclosure; Ownership of Work. Executive shall not, at any time during the Term
and thereafter (including following Executive’s termination of employment for any reason),
disclose, use, transfer, or sell, except in the course of employment with or other service to the
Company, any proprietary information, secrets, organizational or employee information, or other
confidential information belonging or relating to the Company and its affiliates and customers (so
long as such information has not otherwise been disclosed through no wrongdoing of the Executive or
an individual under a similar restriction or is not otherwise in the public domain) except as
required by law or pursuant to legal process. In addition, upon termination of employment for any
reason, Executive will return to the Company or its affiliates all documents and other media
containing information belonging or relating to the Company or its affiliates. Executive will
promptly disclose in writing to the Company all inventions, discoveries, developments, improvements
and innovations that are capable of being protected under law (collectively referred to as
“Inventions”) that Executive has conceived or made during the Term; provided, however, that in this
context “Inventions” are limited to those which (i) relate in any manner to the existing or
contemplated business activities of the Company and its affiliates; (ii) are suggested by or result
from Executive’s work at the Company; or (iii) result from the use of the time, materials or
facilities of the Company and its affiliates. All Inventions will be the Company’s property rather
than Executive’s. Should the Company request it, Executive agrees to sign any document that the
Company may reasonably require to establish ownership in any Invention.




          8.4 Cooperation With Regard to Litigation. Executive agrees to cooperate with the Company,
during the Term and thereafter (including following Executive’s termination of employment for any
reason), by making himself reasonably available to testify on behalf of the Company or any
subsidiary or affiliate of the Company, in any action, suit, or proceeding, whether civil,
criminal, administrative, or investigative, and to assist the Company, or any



14









 






subsidiary or affiliate of the Company, in any such action, suit, or proceeding, by providing
information and meeting and consulting with the Board or its representatives or counsel, or
representatives or counsel to the Company, or any subsidiary or affiliate of the Company, as may be
reasonably requested and after taking into account Executive’s post-termination responsibilities
and obligations. The Company agrees to reimburse Executive, on an after-tax basis, for all
reasonable expenses actually incurred in connection with his provision of testimony or assistance,
and, if such testimony or other assistance is provided after the end of the period of time during
which severance payments are being received, Executive shall be entitled to reasonable compensation
for his time spent in providing such testimony or other assistance.




          8.5 Non-Disparagement. Executive shall not, at any time during the Term and thereafter
make statements or representations, or otherwise communicate, directly or indirectly, in writing,
orally, or otherwise, or take any action which may, directly or indirectly, disparage or be
damaging to the Company, its subsidiaries or affiliates or their respective officers, directors,
employees, advisors, businesses or reputations, nor shall members of the Board of Directors or
Executive’s successor in office make any such statements or representations regarding Executive.
Notwithstanding the foregoing, nothing in this Agreement shall preclude Executive or his successor
or members of the Board of Directors from making truthful statements that are required by
applicable law, regulation or legal process.




          8.6 Release of Employment Claims. Executive agrees, as a condition to receipt of any
termination payments and benefits provided for in Sections 4 and 5 herein (other than Compensation
Accrued at Termination) (the “Termination Benefits”), that he will execute a general release in
substantially the form attached hereto as Exhibit A within thirty (30) days of termination.




          8.7 Forfeiture of Outstanding Options and Other Equity Awards. The provisions of
Sections 4 and 5 notwithstanding, if Executive fails to comply with the restrictive covenants under
Section 8.1 – 8.3, all options to purchase Common Stock and other equity awards granted by the
Company at and after the Effective Date and then held by Executive or a transferee of Executive
shall be immediately forfeited and thereupon such options and equity awards shall be cancelled.
Notwithstanding the foregoing, Executive shall not forfeit any option or equity award unless and
until there shall have been delivered to him, within six months after the Board (i) had knowledge
of conduct or an event allegedly constituting grounds for such forfeiture and (ii) had reason to
believe that such conduct or event could be grounds for such forfeiture, a copy of a resolution
duly adopted by a majority affirmative vote of the membership of the Board (excluding Executive) at
a meeting of the Board called and held for such purpose (after giving Executive reasonable notice
specifying the nature of the grounds for such forfeiture and not less than 30 days to correct the
acts or omissions complained of, if correctable, and affording Executive the opportunity, together
with his counsel, to be heard before the Board) finding that, in the good faith opinion of the
Board, Executive has engaged in conduct set forth in this Section 8.7 which constitutes grounds for
forfeiture of Executive’s options and equity awards; provided, however, that if any option is
exercised or equity award is settled after delivery of such notice and the Board subsequently makes
the determination described in this sentence, Executive shall be required to pay to the Company an
amount equal to the difference between the aggregate value of the shares acquired upon such
exercise of the option at the date




15









 







of the Board determination and the aggregate exercise price paid by Executive and an amount
equal to the fair market value of the shares delivered in settlement of the equity award at the
date of such determination (net of any cash payment for the shares by Executive). Any such
forfeiture shall apply to such options notwithstanding any term or provision of any option
agreement. In addition, options and equity awards granted to Executive on or after the Effective
Date, and gains resulting from the exercise of such options and settlement of such equity awards,
shall be subject to forfeiture in accordance with the Company’s standard policies relating to such
forfeitures and clawbacks, as such policies are in effect at the time of grant of such options or
equity awards.




          8.8 Survival. The provisions of this Section 8 shall survive the termination of the Term
and any termination or expiration of this Agreement.




          8.9 Remedies. Executive agrees that any breach of the terms of this Section 8 would
result in irreparable injury and damage to the Company for which the Company would have no adequate
remedy at law; Executive therefore also agrees that in the event of said breach or any threat of
breach and notwithstanding Section 9 the Company shall be entitled to an immediate injunction and
restraining order from a court of competent jurisdiction to prevent such breach and/or threatened
breach and/or continued breach by Executive and/or any and all persons and/or entities acting for
and/or with Executive, without having to prove damages. The availability of injunctive relief shall
be in addition to any other remedies to which the Company may be entitled at law or in equity, but
remedies other than injunctive relief may only be pursued in an arbitration brought in accordance
with Section 9. The terms of this paragraph shall not prevent the Company from pursuing in an
arbitration any other available remedies for any breach or threatened breach of this Section 8,
including but not limited to the recovery of damages from Executive. Executive hereby further
agrees that, if it is ever determined, in an arbitration brought in accordance with Section 9, that
actions constituting fraud by Executive have contributed to any material misstatement or omission
from any report or statement filed by the Company with the U.S. Securities and Exchange Commission
or material fraud against the Company, then the Company, or its successor, as appropriate, may
recover all of any award or payment made to Executive, less the amount of any net tax owed by
Executive with respect to such award or payment over the tax benefit to Executive from the
repayment or return of the award or payment, pursuant to Sections 5.3 or 5.4, and Executive agrees
to repay and return such awards and amounts to the Company within 30 calendar days of receiving
notice from the Company that the Board has made the determination referenced above and accordingly
the Company is demanding repayment pursuant to this Section 8.9. The Company or its successor may,
in its sole discretion, affect any such recovery by (i) obtaining repayment directly from
Executive; (ii) setting off the amount owed to it against any amount or award that would otherwise
be payable by the Company to Executive; or (iii) any combination of (i) and (ii) above.




     9. Governing Law; Disputes; Arbitration.



          9.1 Governing Law. This Agreement is governed by and is to be construed, administered, and
enforced in accordance with the laws of the State of Delaware, without regard to conflicts of law
principles. If under the governing law, any portion of this Agreement is at any time deemed to be
in conflict with any applicable statute, rule, regulation, ordinance, or other principle of law,
such portion shall be deemed to be modified or altered to the extent necessary to



16









 






conform thereto or, if that is not possible, to be omitted from this Agreement. The invalidity of
any such portion shall not affect the force, effect, and validity of the remaining portion hereof.
If any court determines that any provision of Section 9 is unenforceable because of the duration or
geographic scope of such provision, it is the parties’ intent that such court shall have the power
to modify the duration or geographic scope of such provision, as the case may be, to the extent
necessary to render the provision enforceable and, in its modified form, such provision shall be
enforced.




          9.2 Reimbursement of Expenses in Enforcing Rights. All reasonable costs and expenses
(including fees and disbursements of counsel) incurred by Executive in negotiating this Agreement
shall be paid on behalf of or reimbursed to Executive promptly by the Company. All reasonable
costs and expenses (including fees and disbursements of counsel) incurred by Executive in seeking
to interpret this Agreement or enforce rights pursuant to this Agreement (A) prior to a Change in
Control, shall be paid on behalf of or reimbursed to Executive promptly by the Company provided the
Executive is the prevailing party, and (B) after a Change in Control, shall be paid on behalf of or
reimbursed to Executive promptly by the Company regardless of whether Executive is the prevailing
party, provided that no reimbursement shall be made of such expenses relating to any unsuccessful
assertion of rights if and to the extent that Executive’s assertion of such rights was in bad faith
or frivolous, as determined by arbitrators in accordance with Section 9.3 or a court having
jurisdiction over the matter.




          9.3 Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in the State of Delaware by three arbitrators
in accordance with the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association in effect at the time of submission to arbitration. Judgment may be
entered on the arbitrators’ award in any court having jurisdiction. For purposes of entering any
judgment upon an award rendered by the arbitrators, the Company and Executive hereby consent to the
jurisdiction of any or all of the following courts: (i) the United States District Court for the
District of Nebraska, (ii) any of the courts of the State of Nebraska, or (iii) any other court
having jurisdiction. The Company and Executive further agree that any service of process or notice
requirements in any such proceeding shall be satisfied if the rules of such court relating thereto
have been substantially satisfied. The Company and Executive hereby waive, to the fullest extent
permitted by applicable law, any objection which it may now or hereafter have to such jurisdiction
and any defense of inconvenient forum. The Company and Executive hereby agree that a judgment upon
an award rendered by the arbitrators may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Subject to Section 9.2, the Company shall bear all costs
and expenses arising in connection with any arbitration proceeding pursuant to this Section 9.
Notwithstanding any provision in this Section 9, Executive shall be paid compensation due and owing
under this Agreement during the pendency of any dispute or controversy arising under or in
connection with this Agreement.




          9.4 Interest on Unpaid Amounts. Any amount which has become payable pursuant to the terms
of this Agreement or any decision by arbitrators or judgment by a court of law pursuant to this
Section 9 but which has not been timely paid shall bear interest at the prime rate in effect at the
time such amount first becomes payable, as quoted by the Company’s principal bank.




17









 








          9.5 LIMITATION ON LIABILITIES. IF EITHER EXECUTIVE OR THE COMPANY IS AWARDED ANY DAMAGES
AS COMPENSATION FOR ANY BREACH OR ACTION RELATED TO THIS AGREEMENT, A BREACH OF ANY COVENANT
CONTAINED IN THIS AGREEMENT (WHETHER EXPRESS OR IMPLIED BY EITHER LAW OR FACT), OR ANY OTHER CAUSE
OF ACTION BASED IN WHOLE OR IN PART ON ANY BREACH OF ANY PROVISION OF THIS AGREEMENT, SUCH DAMAGES
SHALL BE LIMITED TO CONTRACTUAL DAMAGES PLUS INTEREST ON ANY DELAYED PAYMENT AT THE MAXIMUM RATE
PER ANNUM ALLOWABLE BY APPLICABLE LAW FROM AND AFTER THE DATE(S) THAT SUCH PAYMENTS WERE DUE AND
SHALL EXCLUDE CONSEQUENTIAL DAMAGES AND PUNITIVE DAMAGES EVEN IF THE RULES REFERRED TO IN SECTION
9.3 WOULD PROVIDE OTHERWISE.




          9.6 WAIVER OF JURY TRIAL. TO THE EXTENT APPLICABLE, EACH OF THE PARTIES TO THIS AGREEMENT
HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL FOR ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER
OF THIS AGREEMENT. This provision is subject to Section 9.3, requiring arbitration of disputes
hereunder.




     10. Miscellaneous.



          10.1 Integration. This Agreement cancels and supersedes any and all prior agreements and
understandings between the parties hereto with respect to the employment of Executive by the
Company, any parent or predecessor company, and the Company’s subsidiaries during the Term, but
excluding existing contracts relating to compensation under executive compensation and employee
benefit plans of the Company and its subsidiaries. This Agreement constitutes the entire agreement
among the parties with respect to the matters herein provided, and no modification or waiver of any
provision hereof shall be effective unless in writing and signed by the parties hereto. Executive
shall not be entitled to any payment or benefit under this Agreement which duplicates a payment or
benefit received or receivable by Executive under such prior agreements and understandings or under
any benefit or compensation plan of the Company.




          10.2 Successors; Transferability. The Company shall require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise, and whether or not the corporate
existence of the Company continues) to all or substantially all of the business and/or assets of
the Company to expressly assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would be required to perform it if no such succession had taken place.
As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise and, in the case of an acquisition of the Company in
which the corporate existence of the Company continues, the ultimate parent company following such
acquisition. Subject to the foregoing, the Company may transfer and assign this Agreement and the
Company’s rights and obligations hereunder to another entity that is substantially comparable to
the Company in its financial strength and ability



18









 






to perform the Company’s obligations under this Agreement. Neither this Agreement nor the rights
or obligations hereunder of the parties hereto shall be transferable or assignable by Executive,
except in accordance with the laws of descent and distribution or as specified in Section 10.3.




          10.3 Beneficiaries. Executive shall be entitled to designate (and change, to the extent
permitted under applicable law) a beneficiary or beneficiaries to receive any compensation or
benefits provided hereunder following Executive’s death.




          10.4 Notices. Whenever under this Agreement it becomes necessary to give notice, such
notice shall be in writing, signed by the party or parties giving or making the same, and shall be
served on the person or persons for whom it is intended or who should be advised or notified, by
Federal Express or other similar overnight service or by certified or registered mail, return
receipt requested, postage prepaid and addressed to such party at the address set forth below or at
such other address as may be designated by such party by like notice:

If to the Company:



InfoGROUP, Inc.

5711 South 86th Circle

P.O. Box 27347

Omaha, Nebraska 68127-0347

Attention: Executive Vice President for Business Conduct & General Counsel




If to Executive:



[Home address]



If the parties by mutual agreement supply each other with fax numbers for the purposes of providing
notice by facsimile, such notice shall also be proper notice under this Agreement. In the case of
Federal Express or other similar overnight service, such notice or advice shall be effective when
sent, and, in the cases of certified or registered mail, shall be effective two days after deposit
into the mails by delivery to the U.S. Post Office.




          10.5 Reformation. The invalidity of any portion of this Agreement shall not be deemed to
render the remainder of this Agreement invalid.




          10.6 Headings. The headings of this Agreement are for convenience of reference only and do
not constitute a part hereof.




          10.7 No General Waivers. The failure of any party at any time to require performance by
any other party of any provision hereof or to resort to any remedy provided herein or at law or in
equity shall in no way affect the right of such party to require such performance or to resort to
such remedy at any time thereafter, nor shall the waiver by any party



19









 






of a breach of any of the provisions hereof be deemed to be a waiver of any subsequent breach of
such provisions. No such waiver shall be effective unless in writing and signed by the party
against whom such waiver is sought to be enforced.




          10.8 No Obligation To Mitigate. Executive shall not be required to seek other employment
or otherwise to mitigate Executive’s damages upon any termination of employment; provided, however,
that, to the extent Executive receives from a subsequent employer health or other insurance
benefits that are substantially similar to the benefits referred to in Section 3.4 hereof, any such
benefits to be provided by the Company to Executive following the Term shall be correspondingly
reduced.




          10.9 Offsets; Withholding. The amounts required to be paid by the Company to Executive
pursuant to this Agreement shall not be subject to offset other than with respect to any amounts
that are owed to the Company by Executive due to his receipt of funds as a result of his fraudulent
activity. The foregoing and other provisions of this Agreement notwithstanding, all payments to be
made to Executive under this Agreement, including under Sections 4 and 5, or otherwise by the
Company, will be subject to withholding to satisfy required withholding taxes and other required
deductions.




          10.10 Successors and Assigns. This Agreement shall be binding upon and shall inure to the
benefit of Executive, his heirs, executors, administrators and beneficiaries, and shall be binding
upon and inure to the benefit of the Company and its successors and assigns.




          10.11 Counterparts. This Agreement may be executed in counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the same instrument.




          10.12 Due Authority and Execution. The execution, delivery and performance of this
Agreement have been duly authorized by the Company and this Agreement represents the valid, legal
and binding obligation of the Company, enforceable against the Company according to its terms.




          10.13 Representations of Executive. Executive represents and warrants to the Company that
he has the legal right to enter into this Agreement and to perform all of the obligations on his
part to be performed hereunder in accordance with its terms and that he is not a party to any
agreement or understanding, written or oral, which prevents him from entering into this Agreement
or performing all of his obligations hereunder. In the event of a breach of such representation or
warranty on Executive’s part or if there is any other legal impediment which prevents him from
entering into this Agreement or performing all of his obligations hereunder, the Company shall have
the right to terminate this Agreement forthwith in accordance with the same notice and hearing
procedures specified above in respect of a termination by the Company for Cause pursuant to Section
5.1 and shall have no further obligations to Executive hereunder. Notwithstanding a termination by
the Company under this Section 10.13, Executive’s obligations under Section 9 shall survive such
termination.




20









 








     11. D&O Insurance; Indemnification.



          The Company will maintain directors’ and officers’ liability insurance during the Term and for
a period of six years thereafter, covering acts and omissions of Executive during the Term, on
terms substantially no less favorable than those in effect on the Effective Date. In addition, the
Company shall indemnify and hold Executive harmless, to the fullest extent permitted by the laws of
the State of Delaware, from and against all costs, charges and expenses (including reasonable
attorneys’ fees) incurred or sustained in connection with any action, suit or proceeding to which
the Executive or his legal representatives may be made a party by reason of Executive’s being or
having been a director or officer of the Company, or any of its affiliates. The provisions of this
paragraph shall not be deemed exclusive of any other rights which Executive seeking indemnification
may have under any bylaw, agreement, vote of stockholders or directors, or otherwise. The
provisions of this paragraph shall survive the termination of this Agreement for any reason.




     12. Certain Definitions. For purposes of this Agreement:



               (a) an “affiliate” of any person means another person that directly or indirectly, through one
or more intermediaries, controls, is controlled by, or is under common control with, such first
person, and includes subsidiaries.



               (b) A “business day” means the period from 9:00 am to 5:00 pm on any weekday that is not a
banking holiday in New York City, New York.



               (c) A “person” means an individual, corporation, limited liability company, partnership,
association, trust or any other entity or organization, including any court, administrative agency
or commission or other governmental authority.



               (d) A “subsidiary” of any person means another person, an amount of the voting securities,
other voting ownership or voting partnership interests of which is sufficient to elect at least a
majority of its board of directors or other governing body (or, if there are no such voting
interests or no board of directors or other governing body, 50% or more of the equity interests of
which) is owned directly or indirectly by such first person.



          IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first
above written.




	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Bernard Reznicek
	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Bernard Reznicek	 	 
	 

	 	Title:
	 	Chairman of the Board	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Bill L. Fairfield	 	 
	 	 	 	 	 
	 	 	Bill L. Fairfield	 	 







21