Document:

NXPC Asset Purchase Agreement and Related License Agreement

EXHIBIT 10.1

Asset Purchase Agreement

 and Related License Agreement

         This Asset Purchase Agreement and Related License Agreement ("Agreement") is made effective February 13, 2008 ("Effective Date") by and between NeXplore corporation, A Nevada Corporation having principal offices at 2601 Network Boulevard, Suite 208, Frisco, Texas 75034 ("NeXplore"), and ClickCaster, Inc., a Delaware corporation having principal offices at 1750 30th Street #173, Boulder, Colorado 80301 ("ClickCaster") (NeXplore and ClickCaster are sometimes referred to individually as "party" and collectively as the "Parties").

RECITALS

	
A.
	
NeXplore develops and markets software products, websites, applications, and services that empower internet users to define a world wide web suited to their unique needs by leveraging Web 2.0 technology.  

	
B.
	
ClickCaster develops and markets software products, websites, applications, and services to 3rd parties and web users a platform for targeting various audiences with customizable web pages, videos, and other outlet.  

	
C.
	
NeXplore wants to purchase and ClickCaster wants to sell copyrights, trademarks, and user list associated with Clickcaster.com Application currently owned by ClickCaster.  This does not include copyrights associated with ClickCaster applications:  Directory Services Database Application, Clickcaster.com Application, Castlister.com Application and other ClickCaster applications not listed in this agreement.  

	
D.
	
NeXplore wants to pay and ClickCaster wants to license certain assets including ClickCaster.com Application, Castlister.com Application, and associated intellectual property currently owned by ClickCaster.  

	 	 

NOW, THEREFORE, the parties agree as follows:

1.     Definitions.

     1.1     "Affiliate" means a corporation or other entity (a) with a common parent corporation; (b) a corporation or other entity whose controlling interests (representing the right to vote for the election of more than one director or other managing authority) are, now or hereafter, owned or controlled, directly or indirectly, by one of the Parties, but such corporation or other entity constitutes an Affiliate only so long as such ownership or control exists; or (c) a corporation or other entity which does not have outstanding shares or securities, as may be the case in a partnership or joint venture, but more than fifty percent (50%) of the whose  ownership interest representing the right to make decisions for such corporation or other entity is now or hereafter, owned or controlled, directly or indirectly, by one of the Parties.  

     1.2     "Code" means computer programming code.

     1.3     "Change of control" means (a) a merger, consolidation or other reorganization to which NeXplore or ClickCaster is a party, if the individual and entities who were stockholders (or partners or members or others that hold an ownership interest) of NeXplore or ClickCaster imeediately prior to the Effective Date have beneficial ownership (as defined in 13d-3 of the Securities Exchange Act of 1934, as amended) of less than fifty percent (50%) of the total combined voting power of election of directors (or the equivalent) of the surviving entity following the Effective Date, (b) acquisition by any entity or group of direct or indirect beneficial ownership in the aggregate of then issued and outstanding securities (or other ownership interest) of NeXplore or ClickCaster in a single transaction or a series of representing in the aggregate fifty percent (50%) or more of the total combine voting power of NeXplore or ClickCaster, or (c) a sale of all or substantially all of NeXplore or ClickCasters's assets.

     1.4     "ClickCaster.com" means a registered public domain name and Web Site associated with the ClickCaster.com Application.

     1.5     "Castlister.com" means a registered public domain name and Web Site associated with the Castlister.com Application.

     1.6     "Directory Services Database Application" means a copy of the Code that allows search of audio and video content on the web accessed by RSS feed.

     1.7     "Directory Services Crawler Application" means a copy of the Code that allows collection of audio and video content accessed by RSS feed.

     1.8     "Clickcaster.com Application" means a copy of the Code associated with ClickCaster.com domain as of February 13, 2008.

     1.9     "Castlister.com Application" means a copy of the Code associated with Directory Services Database Application and Directory Services Crawler Application as of February 13, 2008 and that is associated with Castlister.com.

     1.10     "Intellectual Property Rights" means all current and future worldwide patents and other patent rights, utility models, copyrights, mask work rights, trade secrets, trademark, and all other intellectual property rights and the related documentation or other tangible expression thereof. 

     1.11     "Licensed Applications" means those assets licensed to NeXplore pursuant to Section 4 of this Agreement.

     1.12     "NeXplore Products" means all software products created by neXplore, including NeXplore Search, My Circle, Ad Circle, and any other product, Code or javascript developed by Nexplore.  

     1.13     "Purchased Assets" means those assets described in Section 5.

     1.14     "Software" means software of NeXplore or its licensors included in the NeXplore Products.

     1.15     "Web Site" means an HTML document containing a set of information available via the internet.

2.     Ownership by NeXplore.  NeXplore and its Affiliates will own all right, title, and interest in the NeXplore Products, and is not transferring any of its intellectual property, including its patents, trademarks, trade names, domain names, service marks, copyrights, trade secrets, proprietary processes and all other forms of intellectual property through this Agreement.  Without limiting the generality of the foregoing, no commercial use rights or any licenses under any patent, patent application, copyright, trademark, know-how, trade secret, or any other intellectual proprietary rights are granted by the Parties pursuant to this Agreement.  This Agreement does not include any implied license.

3.     Ownership by ClickCaster.  Except as provided in Sections 4 and 5 below, ClickCaster and its Affiliates own all right, title, and interest in all Intellectual Property Rights currently owned and is not giving up any of those Intellectual Property Rights by entering into this Agreement.

4.     License to NeXplore

     4.1     ClickCaster grants to Nexplore a perpetual, royalty-free, world-wide, non-exclusive, non-assignable, non-trasferable, non-sublicensable license to use:  (a) the Directory Services Database Application, along with its associated Intellectual Property Rights; (b) Directory Services Crawler Application, along with its associated Intellectual Property Rights; (c) the clickCaster.com Application, along with its associated Code and Intellectual Property Rights; the Castlister.com Application, along with its associated Intellectual Property rights ("License").

     4.2     This license is perpetual and non-terminable by ClickCaster unless NeXplore fails to meet its obligations under Section 6 (Compensation) of this Agreement.

     4.3     ClickCaster is not prohibited by this Agreement from using the Applications associated with the License.  

5.     Purchase by NeXplore.  ClickCaster transfers all rights, title, and interest in the domains ClickCaster.com and Castlister.com including all associated copyrights and trademarks to NeXplore.  This does not include the Licensed Applications associated with ClickCaster.com and Castlister.com.  This includes all merchant accounts and associated revenues derived from the ClickCaster.com and Castlister.com applications.  Further, NeXplore shall own all right, title, and interest in any enhancements made to the Licensed Applications in the future that NeXplore creates and develops.  The foregoing shall be defined as "Purhcased Assets", and the Licensed Assets and Purchased Assets shall be defined collectively herein as the "Assets".

6.     Compensation

     6.1     Upon the Effective Date of this Agreement, as compensation for the Assets, NeXplore will issue to ClickCaster Common Stock, par value $.00001, in NeXplore valued at $165,000, based on the "fair market value" of the Common Stock within thirty (30) days of the Effective Date of this Agreement, subject to ClickCaster meeting its obligations under this Agreement.  The "fair market value" is determined by NeXplore, based on the closing price for the Common Stock as quoted on a registered national securities exchange or NASDAQ or, if not listed on a national exchange or NASDAQ, as quoted on the OTC Bulletin Board or pink sheets, or, if not quoted on the OTC Bulletin Board or pink sheets, the closing price for the Common Stock as determined through any other reliable means of determination available on the close of business on the trading day last preceding the Effective Date.  

     6.2     ClickCaster understands that the NeXplore Common Stock issued to them as compensation is subject to the restrictions of Federal and State securities laws, and that such laws govern the right to offer, sell or otherwise dispose of the Common Stock.  These laws include the Securities Act of 1933 and the Securities Exchange Act of 1934, among others.  ClickCaster agrees that it shall not offer, sell, or otherwise dispose of any Common Stock received pursuant to this Agreement in a manner that would violate or cause NeXplore to violate any Federal or State law.  Finally, ClickCaster understands that appropriate restrictive legends will be affixed to the Common Stock certificates received pursuant to this agreement.  

7.     Transfer of Assets.  ClickCaster agrees to begin transfer of the Assets to NeXplore upon the effective Date of this Agreement and, subject to factors outside of the Parties' control, the transfer of purchased Assets shall be complete within 30 days of the effective Date of this Agreement unless otherwise mutually agreed upon Nexplore shall have the election to engage ClickCaster for hosting Licensed Applications provided that it does so within 45 days from the Effective date and pay clickCaster greater of $5,000 per month, or hosting cost incurred by ClickCaster and $5,000 per month for maintenance & support.  ClickCaster agrees to provide telephone support to NeXplore as needed.  During the first 90 days, the first 20 hours of support will be at no cost.  The remainder of the first 90 days, support shall be billed at $50 per hour.  After the first 90 days, support shall be billed at $250 per hour.  ClickCaster shall have the election to cease all support after 365 days.  

8.     Limited Non-Compete.  Upon the effective date of this agreement, ClickCaster and its current directors, officers, employees, and agents agree not to engage in a major campaign to directly solicit large groups of ClickCaster.com or Castlister.com current users, current customers, and current vendors for twelve (12) calendar months.  

9.     Fees and Costs.  Each Party shall bear its own fees and costs in connection with this Agreement and shall share equally any sales, use, registration, transfer, or stamp taxes.  Further, Nexplore agrees that it is responsible for any costs or fees associated with maintaining the assets following the Effective Date of this Agreement.  

10.     Responsibility for Content

     10.1     ClickCaster agrees to maintain sole responsibility for the content generated and displayed on or in connection with the Licensed Applications and Purchased Assets up through the transfer of the Assets from ClickCaster to Nexplore in accordance with this Agreement.  ClickCaster agrees to indemnify Nexplore, defend, and pay damages awarded pursuant to any third party claim based in whole or in part on the content displayed on the Assets prior to the transfer of the Assets to Nexplore.

     10.2     Nexplore agrees to maintain sole responsibility for the content generated and displayed on or in connection with the Licensed Applications and Purchased Assets after the transfer of the Assets from ClickCaster to NeXplore in accordance with this Agreement.  Nexplore agrees to indemnify clickCaster, defend, and pay damanges awarded pursuant to any third party claim based in whole or in part on the content displayed on the Assets after the transfer of the assets to NeXplore.  

11.     Disclaimer of Warranties.  TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE PARTIES MAKE NO WARRANTY OF ANY KIND, WHETHER EPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT LIMITATION WARRANTIES OR CONDITIONS OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE.  

12.     Limitation of Liability.  TO THE EXTENT ALLOWED BY APPLICABLE LAW, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY LOST PROFITS, COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES OR FOR ANY OTHER INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, HOWEVER CAUSED AND UNDER WHATEVER CAUSE OF ACTION OR THEORY OF LIABILITY BROUGHT (INCLUDING, WITHOUT LIMITATION, UNDER ANY CONTRACT, NEGLIGENCE OR OTHER TORT THEORY OF LIABILITY) EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  

13.     Termination.  Either Party may terminate this Agreement due to the other Party's breach of this Agreement, so long as the breaching Party has 30 days following written notice of the breach in which to cure such breach.  The Parties agree that, subject to NeXplore meeting its obligations under this Agreement, the license granted to NeXplore pursuant to Section 4 herein is non-terminable.  

14.     Nondisclosure.

     14.1     Both Parties agree to receive and hold in confidence and not disclose in any manner to third parties any materials or information delivered to a Party or disclosed by the other Party (collectively the "Confidential Information") under the License.  A Party shall use any confidential Information only internally within its own company in the pursuit of its own internal business interests.  A Party shall not sell, lease, license or otherwise transfer, with or without consideration, any Confidential Information to any third party or permit any third party to reproduce or copy or otherwise use or see any confidential Information in any form and shall use all reasonable efforts to ensure that no improper or unauthorized use of any confidential Information is made.  This provision does not apply to NeXplore's ability to sell, lease, license, or otherwise transfer Confidential Information associated with the Purchased Assets following transfer of ownership of those Purchased Assets to NeXplore.  

     14.2     ClickCaster shall provide reasonable assistance to NeXplore in the prosecution of any third parties who violate any of NeXplore's rights under the license agreement set forth in Section 3 herein or rights provided by law with respect to any Asset licensed hereunder to NeXplore.  NeXplore shall bear any associated cost and expense provided that such violation is not the result of a breach by ClickCaster of its obligations under this agreement.  ClickCaster shall not have any obligation to hold any information in confidence if the information was (1) rightfully disclosed to ClickCaster without any obligation to keep such information confidential prior to execution of this Agreement, (2) in the public domain through no fault of ClickCaster, or (3) is developed by clickCaster independently of any proprietary information contained in the Confidential information.  

     14.3     This Section 14 does not prevent the Parties from disclosing the existence of this Agreement and the completed transaction to the public or any governmental entity.  ClickCaster shall approve all public announcements, including and not limited to public releases.  

15.     NeXplore Indemnification.  NeXplore will indemnify, defend and/or settle, and pay damages awarded pursuant to, any third party claim brought against ClickCaster arising from alleged actions of NeXplore relating to this Agreement, provided that ClickCaster promptly notifies NeXplore in writing of any such claim, promptly tenders the control of the defense and settlement of any such claim to NeXplore (at NeXplore's expense and with NeXplore's choice of counsel), and cooperates fully with NeXplore in defending or settling such claim, including but not limited to providing any information or materials necessary for NeXplore to perform the foregoing.  NeXplore will not enter into any settlement or compromise of any such claim, which settlement or compromise would result in any liability to ClickCaster,w ithout prior consent, which will not be unreasonable withheld.  Nexplore shall indemnify ClickCaster for Responsibility of Content under Section10 after the transfer of the assets.  

16.     ClickCaster Indemnification.  ClickCaster will indemnify, defend and/or settle, and pay damanges awarded pursuant to, any third party claim brought against NeXplore arising from alleged infringement associated with the Assets, provided that NeXplore promptly notifies ClickCaster in writing of any such claim, promptly tenders the control of the defense and settlement of any such claim to ClickCaster (at ClickCaster's expense and with ClickCaster's choice of counsel), and cooperates fully with ClickCaster in defending or settling such claim, including but not limited to providing any information  or materials necessary for ClickCaster to perform the foregoing.  ClickCaster will not enter into any settlement or compromise of any such claim, without NeXplore's prior consent, which will not be unreasonably withheld.

18.     Agreement.

     18.1     Executed counterparts will be deemed originals.  The Parties can rely on fax copies of the signed Agreement as if they are originals.  

     18.2     This is the entire agreement between the Parties and it supercedes any other agreements concerning the Assets and related matters.  Any amendment to this Agreement must be in writing and signed by an officer of each Party.  

     18.3     If any part of this Agreement is invalid, the remainder shall remain force and the invalid portion will be replaced with a valid provision that most closely approximates the intent and economic of the Parties.  

19.     Assignment.  The Parties may assign, delegate, or otherwise transfer their respective rights, privileges, and obligations under this Agreement.  Upon any assignment by either Party, including pursuant to a Change of control, the Assignee will be entitled to the rights and bound by the obligations of the Assignor.  

20.     Relationship of Parties.  The Parties are independent and no agency, partnership, joint venture, employer-employee relationship is intended or created by this Agreement.  

21.     Governing Law.  This Agreement is governed by, and will be construed according to the laws of the State of Texas, United States of America without regard to conflict of laws rules that would otherwise apply laws of any other state or jurisdiction.  Each Party hereby consents to non-exclusive personal jurisdiction and venue in the federal and state courts of Dallas County, Texas.  

22.      Notice.  Any notices hereunder will be given to the appropriate Party at the address specified for that Party in the introductory paragraph of this Agreement.  Notice shall be deemed given:  upon personal delivery; upon confirmation of receipt if sent by fax; or one day after the date of mailing if sent by a reputable overnight courier with tracking capabilities.  

     IN WITNESS WHEREOF, the Parties have caused their duly authorized officers to execute this Agreement, on the dates below indicated.  

 

	
NEXPLORE CORPORATION
	 	
CLICKCASTER, INC

	 	 	 
	
      (Paul O. Williams Signature)
	 	
   (Keenan K. Gates Signature)

	
By:  Paul O. Williams
	 	
By:  Keenan K. Gates

	
Its:  Chairman of the Board and
	 	
Its:  President and Chief Financial

	
      Chief Financial Officer
	 	
      Officer

	 	 	 
	
Date:  2/13/08
	 	
Date:  2/13/08exv10w10

 

Exhibit 10.10

COMPENSATION AND BENEFITS

ASSURANCE AGREEMENT FOR EXECUTIVES

Jack in the Box Inc.

Contents

      

	 	 	 	 	 
	 	 	Page
	 
	 	 	 	 
	Section 1. Term of Agreement

	 	 	2	 
	 
	 	 	 	 
	Section 2. Severance Benefits

	 	 	3	 
	 
	 	 	 	 
	Section 3. Excise Tax — Gross-Up

	 	 	8	 
	 
	 	 	 	 
	Section 4. Successors and Assignments

	 	 	10	 
	 
	 	 	 	 
	Section 5. Miscellaneous

	 	 	10	 
	 
	 	 	 	 
	Section 6. Contractual Rights and Legal Remedies

	 	 	11	 

1

 

Compensation and Benefits Assurance Agreement

     This COMPENSATION AND BENEFITS ASSURANCE AGREEMENT (this “Agreement”) is made, entered into,
and is effective as of the 1st day of January, 2008 (the “Effective Date”) by and
between Jack in the Box Inc. (hereinafter referred to as the “Company”) and the eligible Executive
(hereinafter referred to as the “Executive”).

     WHEREAS, the Executive is presently employed by the Company in a key management capacity as
Senior Vice President or above, which includes Chairman of the Board & Chief Executive Officer,
President & Chief Operating Officer, Executive Vice President & Chief Financial Officer, Qdoba
President & Chief Executive Officer, Senior Vice President — Human Resources, Senior Vice President
- Chief Product Safety Officer, Senior Vice President — General Counsel & Secretary, and Senior
Vice President — Chief Marketing Officer, and;

     WHEREAS, the Executive possesses considerable experience and knowledge of the business and
affairs of the Company concerning its policies, methods, personnel, and operations, and

     WHEREAS, the Company desires assuring the continued employment of the Executive in a key
management capacity and the Executive is desirous of having such assurances.

     NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreement of
the parties set forth in this Agreement, and of other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, the parties hereto intending to be legally bound
agree as follows:

Section 1. Term of Agreement

     This Agreement will commence on the Effective Date and shall continue in effect for two full
calendar years (through December 31, 2009) (the “Initial Term”), superseding all earlier
Compensation and Benefits Assurance Agreements entered into by and between the Company and the
Executive.

     The Initial Term of this Agreement automatically shall be extended for two additional calendar
years at the end of the Initial Term, and then again after each successive two-year period
thereafter (each such two-year period following the Initial Term a “Successive Period”). However,
either party may terminate this Agreement at the end of the Initial Term, or at the end of any
Successive Period thereafter, by giving the other party written notice of intent not to renew,
delivered at least six (6) months prior to the end of such Initial Term or Successive Period. If
such notice is properly delivered by either party, this Agreement, along with all corresponding
rights, duties, and covenants shall automatically expire at the end of the Initial Term or
Successive Period then in progress.

     In the event that a “Change in Control” of the Company occurs (as defined in Section 2.4
herein) during the Initial Term or any Successive Period, upon the effective date of such Change in
Control, the term of this Agreement shall automatically and

2

 

irrevocably be renewed for a period of twenty-four (24) full calendar months from the effective
date of such Change in Control. This Agreement shall thereafter automatically terminate following
the twenty-four (24) month Change in Control renewal period. Further, this Agreement shall be
assigned to, and shall be assumed by, the purchaser in such Change in Control, as further provided
in Section 4 herein.

Section 2. Severance Benefits

     2.1. Right to Severance Benefits. The Executive shall be entitled to receive from the Company
Severance Benefits as described in Section 2.3 herein, if during the term of this Agreement there
has been a Change in Control of the Company and if, within twenty-four (24) calendar months
immediately thereafter, the Executive’s employment with the Company shall end due to a Qualifying
Termination (as defined in Section 2.2 herein). The Severance Benefits described in Sections
2.3(a), 2.3(b), and 2.3(c) herein shall be paid in cash to the Executive.

     The Severance Benefits described in Sections 2.3(a), 2.3(b), 2.3(c), 2.3(d) and 2.3(e) shall
be paid out of the general assets of the Company.

     2.2. Qualifying Termination. In the event the Executive incurs a separation from service (as
defined in Internal Revenue Code (the “Code”) section 409A and its regulations) as a result of the
occurrence of any of the following events during the 24-month period following a Change in Control
of the Company (“Qualifying Termination”), the Company shall provide Executive Severance Benefits,
as such benefits are described under Section 2.3 herein:

	 	(a)	 	The Company’s involuntary termination of the Executive’s
employment without Cause (as such term is defined in Section 2.6. herein); and
	 
	 	(b)	 	The Executive’s voluntary termination of employment for Good
Reason (as such term is defined in Section 2.5 herein).

     Notwithstanding the foregoing, a Qualifying Termination shall not include (i) a termination of
the Executive’s employment within twenty-four (24) calendar months after a Change in Control by
reason of death or disability (as such term is defined under the Company’s governing disability
plan, in effect immediately prior to a Change in Control), (ii) the Executive’s voluntary
termination without Good Reason, or (iii) the Company’s involuntary termination of the Executive’s
employment for Cause.

     In the event the Executive’s employment is terminated during the 24-month period following a
Change in Control due to death or disability (as defined under the Company’s governing disability
plan, in effect immediately prior to a Change in Control), any benefits or payments provided to the
Executive will be provided in accordance with the terms of the Company’s standard severance policy
then in effect.

     2.3. Description of Severance Benefits. Subject to, and to the extent applicable, the
payment distribution rules applicable to “specified employees” (as defined in Code section 409A)
set forth in Section 6.12 herein, in the event that the Executive incurs a

3

 

Qualifying Termination, the Company shall pay to the Executive and provide the Executive the
following:

	 	(a)	 	A lump-sum cash amount equal to the Executive’s unpaid Base Salary (as such
term is defined in Section 2.7 herein), accrued vacation pay, un-reimbursed business
expenses, and all other items earned by and owed to the Executive through and
including the date of the Qualifying Termination; provided that any business expense
reimbursements shall (i) be paid no later than the last day of the Executive’s tax
year following the tax year in which the expense was incurred, (ii) not be affected by
any other expense eligible for reimbursement in a tax year, and (iii) not be subject
to liquidation or exchange for another benefit. Such payment shall be payable within
90 days of the effective date of the Executive’s Qualifying Termination and constitute
full satisfaction for these amounts owed to the Executive.
	 
	 	(b)	 	A lump-sum cash amount equal to the result obtained by multiplying (i) the
Executive’s annual rate of Base Salary in effect upon the date of the Qualifying
Termination or, if greater, the Executive’s annual rate of Base Salary in effect
immediately prior to the occurrence of the Change in Control by (ii) the following
multiple, as applicable to the Executive (such applicable multiple referred to herein
as the “Multiple”): 3.0x for Chairman of the Board & Chief Executive Officer, 2.5x for
President & Chief Operating Officer, Executive Vice President & Chief Financial
Officer, and 1.5x for Qdoba President & Chief Executive Officer, Senior Vice President
 — Human Resources, Senior Vice President — Chief Product Safety Officer, Senior Vice
President — General Counsel & Secretary, and Senior Vice President — Chief Marketing
Officer. Such payment shall be payable within 90 days of the effective date of the
Executive’s Qualifying Termination and constitute full satisfaction for these amounts
owed to the Executive.
	 
	 	(c)	 	A lump-sum cash amount equal to the result obtained by multiplying (i) the
Multiple and (ii) the greater of: (I) the result of the Executive’s annualized Base
Salary determined in (b) above multiplied by the Executive’s average bonus percentage
for the last three (3) years prior to the effective date of the Change in Control or
(II) the Executive’s average dollar amount of bonus paid for the last three (3) years
prior to the Change in Control. If the Executive does not have three (3) full years
of bonus payments prior to a Change in Control, the Company will substitute the target
bonus percentage for each missing year. Such payment shall be payable within 90 days
of the effective date of the Executive’s Qualifying Termination and constitute full
satisfaction for these amounts owed to the Executive.
	 
	 	(d)	 	At the exact same cost to the Executive, and at the same coverage level as in
effect as of the Executive’s date of the Qualifying Termination (subject to changes in
coverage levels applicable to all employees generally), a continuation of the
Executive’s (and the Executive’s eligible dependents—”) health insurance coverage for
the following time periods from the date of the Qualifying Termination, as applicable:
36 months for Chairman of the Board & Chief Executive Officer, 30 months for President
& Chief

4

 

	 	 	 	Operating Officer, Executive Vice President & Chief Financial Officer, and 18
months for Qdoba President & Chief Executive Officer, Senior Vice President — Human
Resources, Senior Vice President — Chief Product Safety Officer, Senior Vice
President — General Counsel & Secretary, and Senior Vice President — Chief
Marketing Officer (such applicable period referred to herein as the “Continuation
Coverage Period”). The Continuation Coverage Period will run concurrently with any
coverage provided as required by the Consolidated Omnibus Budget Reconciliation Act
of 1985 (“COBRA”). If coverage provided during the Continuation Coverage Period
requires a monthly payment to the Plan, the Company will pay the required amount,
adjusted on a pre-tax basis. For this purpose, the Executive shall be deemed to be
at the highest marginal rate of federal and state taxes. Notwithstanding the
foregoing, any payments or benefits that the Executive receives during the
Continuation Coverage Period shall (i) be paid no later than the last day of the
Executive’s tax year following the tax year in which the expense was incurred, (ii)
not be affected by any other expense eligible for reimbursement in a tax year, and
(iii) not be subject to liquidation or exchange for another benefit. Such payment
shall constitute full satisfaction for these amounts owed to the Executive;
provided, however, that any tax gross-up payment shall be paid no later than the
end of the Executive’s tax year following the tax year in which the Executive
remitted the related taxes to an agency.
	 
	 	 	 	The Continuation Coverage Period shall cease prior to the end of the eighteenth
(18th) month of such period in the event the Executive becomes covered under health
insurance coverage of a subsequent employer which does not contain any exclusion or
limitation with respect to any preexisting condition of the Executive or the
Executive’s eligible dependents. For purposes of enforcing this offset provision,
the Executive acknowledges and agrees to inform the Company as to the terms and
conditions of any subsequent employment and the corresponding benefits earned from
such employment. The Executive shall provide, or cause a subsequent employer to
provide, to the Company in writing correct, complete, and timely information
concerning the benefits provided under such health insurance coverage.
	 
	 	(e)	 	The Executive shall be entitled, at the expense of the Company, to receive
standard outplacement services from a nationally recognized outplacement firm of the
Executive’s selection, for period of up to one (1) year from the effective date of the
Executive’s Qualifying Termination.
	 
	 	(f)	 	Pursuant to the terms of the Company’s Stock Incentive Plan, all unvested
stock options will become fully vested as of the effective date of the Executive’s
Qualifying Termination. Such options shall be exercisable in accordance with the terms
of the Company’s Stock Incentive Compensation Plan and the award agreement.

5

 

     2.4. Definition of “Change in Control.” “Change in Control” of the Company means, and shall
be deemed to have occurred upon, the first to occur of any of the following events:

	 	(a)	 	Any Person (other than those Persons in control of the Company as of the
Effective Date, or other than a trustee or other fiduciary
holding securities under an employee benefit plan of the Company, or a corporation
owned directly or indirectly by the stockholders of the Company in substantially the
same proportions as their ownership of stock of the Company) becomes the Beneficial
Owner, directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of (i) the then outstanding shares of the securities of the Company, or
(ii) the combined voting power of the then outstanding securities of the Company
entitled to vote generally in the election of directors (“Company Voting Stock”); or
	 
	 	(b)	 	The majority of members of the Company’s Board of Directors is replaced
during any 12-month period by directors whose appointment or election is not endorsed
by a majority of the members of the Company’s Board of Directors before the date of
the appointment; or
	 
	 	(c)	 	The stockholders of the Company approve: (i) a plan of complete liquidation
of the Company; or (ii) an agreement for the sale or disposition of all or
substantially all of the Company’s assets; or (iii) a merger, consolidation, or
reorganization of the Company with or involving any other corporation, if immediately
after such transaction persons who hold a majority of the outstanding voting
securities entitled to vote generally in the election of directors of the surviving
entity (or the entity owning 100% of such surviving entity) are not persons who,
immediately prior to such transaction, held the Company Voting Stock.
	 
	 	 	 	However, in no event shall a “Change in Control” be deemed to have occurred, with
respect to the Executive, if the Executive is part of a purchasing group which
consummates the Change- in Control transaction. The Executive shall be deemed
“part of a purchasing group” for purposes of the preceding sentence if the
Executive is an equity participant in the purchasing company or group (except for:
(i) passive ownership of less than two percent (2%) of the stock of the purchasing
company; or (ii) ownership of equity participation in the purchasing company or
group which is otherwise not significant, as determined prior to the Change in
Control by a majority of the non-employee continuing Directors).

     2.5. Definition of “Good Reason.” “Good Reason” shall be determined by the Executive, in the
exercise of good faith and reasonable judgment, and shall mean, without the Executive’s express
written consent, the occurrence of any one or more of the following conditions:

	 	(i)	 	The material diminution in the Executive’s authorities,
duties or responsibilities, which shall include a material reduction or
alteration in the nature or status of the Executive’s authorities,

6

 

	 	 	 	duties, or responsibilities, from those in effect as of ninety (90)
calendar days prior to the Change in Control, other than an insubstantial
and inadvertent act that is remedied by the Company promptly after receipt
of notice thereof given by the Executive;

	 	(ii)	 	The Company requiring the Executive to be based at a location
in excess of fifty (50) miles from the location of the Executive’s principal
job location or office immediately prior to the Change in Control; except for
required travel on the Company’s business to an extent consistent with the
Executive’s then present business travel obligations;
	 
	 	(iii)	 	A material reduction by the Company of the Executive’s Base
Salary in effect on the Effective Date, or as the same shall be increased from
time to time;
	 
	 	(iv)	 	A material reduction in the Company’s compensation, health
and welfare benefits, retirement benefits, or perquisite programs under which
the Executive receives value, as such program exists immediately prior to the
Change in Control. However, the replacement of an existing program with a new
program will be permissible (and not grounds for a Good Reason termination) if
there is not a material reduction in the value to be delivered to the
Executive under the new program; or
	 
	 	(v)	 	Any material breach by the Company of its obligations under
Section 4 of this Agreement.

     A termination will not be considered Good Reason as defined herein unless the Executive
provides the Company with written notice of the existence of the applicable condition described in
clauses (i) through (v) above no later than 90 days after the initial existence of such condition
is known by the Executive and the Company fails to remedy such condition within 30 days of the date
of such written notice.

     The Executive’s right to terminate employment for Good Reason shall not be affected by the
Executive’s incapacity due to physical or mental illness.

     The Executive’s continued employment shall not constitute consent to, or a waiver of rights
with respect to, any circumstance constituting Good Reason herein.

     2.6. Definition of “Cause”. “Cause” shall be determined by a committee designated by the
Board of Directors of the Company (“Administrative Committee”), in the exercise of good faith and
reasonable judgment, and shall mean the occurrence of any of the following:

	 	(a)	 	A demonstrably willful and deliberate act or failure to act by the Executive
(other than as a result of incapacity due to physical or mental illness) which is
committed in bad faith, without reasonable belief that such action or inaction is in
the best interests of the Company, which causes actual

7

 

	 	 	 	material financial injury to the Company and which act or inaction is not remedied
within fifteen (15) business days of written notice from the Company; or

	 	(b)	 	The Executive’s conviction by a court of competent jurisdiction for
committing an act of fraud, embezzlement, theft, or any other act constituting a
felony involving moral turpitude or causing material harm, financial or otherwise, to
the Company.

     2.7. Other Defined Terms. The following terms shall have the meanings set forth below:

	 	(a)	 	“Base Salary” means, at any time, the then-regular annualized rate of pay
which the Executive is receiving as a salary, excluding amounts (i) designated by the
Company as payment toward reimbursement of expenses; or (ii) received under incentive
or other bonus plans, regardless of whether or not the amounts are deferred.
	 
	 	(b)	 	“Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3
of the General Rules and Regulations under the Exchange Act (as such term is defined
below).
	 
	 	(c)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from
time to time, or any successor act thereto.
	 
	 	(d)	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of
the Exchange Act and used in Section 13(d) and 14(d) thereof, including a “group” as
defined in Section 13(d) thereof.

Section 3. Excise Tax — Gross Up

     3.1. Net-Benefit Reduction & Gross-Up Payment

	 	(a)	 	Net-Benefit Reduction. In the event that the aggregate amount of
payments paid or distributed to Executive pursuant to this Agreement that would be
subject to excise tax under section 4999 of the Internal Revenue Code (“Excise Tax”)
exceed the Executive’s “base amount"(as defined by Code section 280G(b)(3) and its
regulations) by an amount equal to 10% or less (“Payments”), then the Payments shall
be reduced such that the value of the aggregate total payments that the Executive is
entitled to receive shall be one dollar ($1) less than the maximum amount which the
Executive may receive without becoming subject to the Excise Tax or which the Company
may pay without loss of deduction under Code section 280G(a).
	 
	 	(b)	 	Gross-Up Payment. In the event that the aggregate amount of payments
paid or distributed to the Executive pursuant to this Agreement that would be subject
to Excise Tax, or any similar tax that may hereafter be imposed exceeds the
Executive’s base amount by an amount greater than 10% (“Covered Payments”), the
Company shall pay to the Executive at the time specified in Section 3.5 an
additional amount (the “Gross-Up Payment”)

8

 

	 	 	 	such that the net amount retained by the Executive with respect to such Covered
Payments, after deduction of any Excise Tax on the Covered Payments and any
Federal, state and local income tax and other tax on the Gross-Up Payment provided
for by this Section, but before deduction for any Federal, state or local income or
employment tax withholding on such Covered Payments, shall be equal to the amount
of the Covered Payments.

     3.2. Applicable Rules. For purposes of determining whether any of the Covered Payments will
be subject to the Excise Tax and the amount of such Excise Tax:

	 	(a)	 	Such Covered Payments shall be treated as “parachute payments” within the
meaning of section 280G of the Code, unless, and except to the extent that, in the
good faith judgment of the Company’s independent certified public accountants
appointed prior to the Effective Date or tax counsel selected by such accountants (the
“Accountants”), the Company has a reasonable basis to conclude that such Covered
Payments (in whole or in part) either do not constitute “parachute payments” or
represent reasonable compensation for personal services actually rendered (within the
meaning of Code section 280G(b)(4)(B)) in excess of the “base amount,” or such
“parachute payments” are otherwise not subject to such Excise Tax; and
	 
	 	(b)	 	The value of any non-cash benefits or any deferred payment or benefit shall
be determined by the Accountants in accordance with the principles of section 280G of
the Code.

     3.3. Additional Rules. For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to pay (A) Federal income taxes at the highest applicable marginal rate
of Federal income taxation for the calendar year in which the Tax Reimbursement Payment is to be
made, and (B) any applicable state and local income and other taxes at the highest applicable
marginal rate of taxation for the calendar year in which the Gross-Up Payment is to be made, net of
the maximum reduction in Federal income taxes which could be obtained from the deduction of such
state or local taxes if paid in such year.

     3.4. Repayment or Additional Payment in Certain Circumstances.

	 	(a)	 	Repayment. In the event that the Excise Tax is subsequently
determined by the Accountants or pursuant to any proceeding or negotiations with the
Internal Revenue Service to be less than the amount taken into account hereunder in
calculating the Gross-Up Payment made, Executive shall repay to the Company, at the
time that the amount of such reduction in the Excise Tax is finally determined, the
portion of such prior Gross-Up Payment that would not have been paid if such lesser
Excise Tax had been applied in initially calculating such Gross-Up Payment.
Notwithstanding the foregoing, in the event any portion of the Gross-Up Payment to be
repaid to the Company has been paid to any Federal, state or local tax authority,
repayment thereof shall not be required until actual refund or credit of such portion
has been made to Executive by the applicable tax authority. Executive and the Company
shall mutually agree upon the course of action

9

 

	 	 	 	to be pursued (and the method of allocating the expenses thereof) if Executive’s
good faith claim for refund or credit is denied.

	 	(b)	 	Additional Gross-Up Payment. In the event that the Excise Tax is
later determined by the Accountants or pursuant to any proceeding or negotiations with
the Internal Revenue Service to exceed the amount taken into account hereunder at the
time the Gross-Up Payment is made (including, but not limited to, 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 (plus any interest or penalty payable with respect to such excess) at the
time that the amount of such excess is finally determined.

     3.5. Timing for Gross-Up Payment. The Gross-Up Payment (or portion thereof) provided for in
this Section shall be paid to Executive no later than ten (10) business days following the payment
of the Covered Payments; provided, however, that if the amount of such Gross-Up Payment (or portion
thereof) cannot be finally determined on or before the date on which payment is due, the Company
shall pay to Executive by such date an amount estimated in good faith by the Accountants to be the
minimum amount of such Gross-Up Payment and shall pay the remainder of such Gross-Up Payment
(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 45 calendar days after payment of the
related Covered Payments. To the extent that the amount of the estimated Gross-Up Payment exceeds
the amount subsequently determined to have been due, Executive shall pay such excess to the Company
on the fifth business day after written demand by the Company for payment.

Section 4. Successors and Assignments

     4.1. Successors. The Company will require any successor (whether via a Change in Control,
direct or indirect, by purchase, merger, consolidation, or otherwise) of the Company to expressly
assume and agree to perform the obligations under 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.

     4.2. Assignment by Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and legatees. If the Executive should die while any
amount is still payable to the Executive hereunder had the Executive continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Agreement, to the Executive’s devisee, legatee, or other designee, or if there is no such designee,
to the Executive’s estate.

     An Executive’s rights hereunder shall not otherwise be assignable.

Section 5. Miscellaneous

     5.1. Administration. This Agreement shall be administered by the Board of Directors of the
Company (the “Board”), or by the Administrative Committee. The Administrative Committee (with the
approval of the Board, if the Board is not the

10

 

Administrative Committee) is authorized to interpret this Agreement, to prescribe and rescind rules
and regulations, and to make all other determinations necessary or advisable for the administration
of this Agreement.

     In fulfilling its administrative duties hereunder, the Administrative Committee may rely on
outside counsel, independent accountants, or other consultants to render advice or assistance.

     5.2. Notices. Any notice required to be delivered to the Company or the Administrative
Committee by the Executive hereunder shall be properly delivered to the Company when personally
delivered to (including by a reputable overnight courier), or actually received through the U.S.
mail, postage prepaid, by:

Jack in the Box Inc.

9330 Balboa Avenue

San Diego, CA 92123

     Attn: General Counsel

     Any notice required to be delivered to the Executive by the Company or the Administrative
Committee hereunder shall be properly delivered to the Executive when personally delivered to
(including by a reputable overnight courier), or actually received through the U.S. mail, postage
prepaid, by, the Executive at his last known address as reflected on the books and records of the
Company.

Section 6. Contractual Rights and Legal Remedies

     6.1. Contractual Rights to Benefits. This Agreement establishes in the Executive a right to
the benefits to which the Executive is entitled hereunder. However, except as expressly stated
herein, nothing herein contained shall require or be deemed to require, or prohibit or be deemed to
prohibit, the Company to segregate, earmark, or otherwise set aside any funds or other assets in
trust or otherwise to provide for any payment to be made or required hereunder.

     6.2. Legal Fees, Compensation and Expenses. The Company shall pay all legal fees, costs of
litigation, prejudgment interest, and other expenses which are incurred in good faith by the
Executive. Additionally, the Company should be required to continue to pay and provide the
Executive’s compensation and benefits pending resolution of conflict. The aforementioned payments
are a result of the Company’s refusal to provide the Severance Benefits to which the Executive
becomes entitled under this Agreement, or as a result of the Company’s (or any third party’s)
contesting the validity, enforceability, or interpretation of the Agreement, or as a result of any
conflict between the parties pertaining to this Agreement.

     6.3. Arbitration. The Executive shall have the right and option to elect (in lieu of
litigation) to have any dispute or controversy arising under or in connection with this Agreement
settled by arbitration conducted before a panel of three (3) arbitrators sitting in a location
selected by the Executive within fifty (50) miles form the location of his or her job with the
Company, in accordance with the rules of the American Arbitration Associations then in effect. The
Executive’s election to arbitrate, as herein provided, and

11

 

the decision of the arbitrators in that proceeding, shall be binding on the Company and the
Executive.

          Judgment may be entered on the award of the arbitrator in any court having jurisdiction. All
expenses of such arbitration, including the fees and expenses of the counsel for the Executive,
shall be borne by the Company.

     6.4. Unfunded Agreement. This Agreement is intended to be an unfunded general asset promise
for a select, highly compensated member of the Company’s management and, therefore, is intended to
be exempt from the substantive provisions of the Employee Retirement Income Security Act of 1974,
as amended.

     6.5. Exclusivity of Benefits. Unless specifically provided herein, neither the provision of
this Agreement nor the benefits provided hereunder shall reduce any amounts otherwise payable, or
in any way diminish the Executive’s rights as an employee of the Company, whether existing now or
hereafter, under any compensation and/or benefit plans, programs, policies, or practices provided
by the Company, for which the Executive may qualify.

     Vested benefits or other amounts which the Executive is otherwise entitled to receive under
any plan, policy, practice, or program of the Company (i.e, including, but not limited to, vested
benefits under the Company’s 401(k) plan), at or subsequent to the Executive’s date of Qualifying
Termination shall be payable in accordance with such plan, policy, practice, or program except as
expressly modified by this Agreement.

     6.6. Includable Compensation. Severance Benefits provided hereunder shall not be considered
“includable compensation” for purposes of determining the Executive’s benefits under any other plan
or program of the Company.

     6.7. Employment Status. Nothing herein contained shall be deemed to create an employment
agreement between the Company and the Executive, providing for the employment of the Executive by
the Company for any fixed period of time. The Executive’s employment with the Company is
terminable at-will by the Company or the Executive and each shall have the right to terminate the
Executive’s employment with the Company at any time, with or without Cause, subject to the
Company’s obligation to provide Severance Benefits as required hereunder.

     In no event shall the Executive be obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to the Executive under any of the provisions of this
Agreement, nor shall the amount of any payment hereunder be reduced by any compensation earned by
the Executive as a result of employment by another employer, other than as provided in Section
2.3(e) herein.

     6.8. Entire Agreement. This Agreement represents the entire agreement between the parties
with respect to the subject matter hereof, and supersedes all prior discussions, negotiations, and
agreements concerning the subject matter hereof, including, but not limited to, any prior severance
agreement made between the Executive and the Company.

12

 

     6.9. Tax Withholding. The Company shall withhold from any amounts payable under this Agreement
at federal, state, city, or other taxes as legally required to be withheld.

     6.10. Waiver of Rights. Except as otherwise provided herein, the Executive’s acceptance of
Severance Benefits, the Gross-Up Payment (if applicable), and any other payments required hereunder
shall be deemed to be a waiver of all rights and claims of the Executive against the Company
pertaining to any matters arising under this Agreement.

     6.11. Severability. In the event any provision of the Agreement shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Agreement, and the Agreement shall be construed and enforced as if the illegal or invalid provision
had not been included.

     6.12. Applicable Law. To the extent not preempted by the laws of the United States, the laws
of the State of Delaware shall be the controlling law in all matters relating to the Agreement.

     6.13. Application of Section 409A. Notwithstanding any inconsistent provision of this
Agreement, to the extent the Company determines in good faith that (i) payments or benefits
received or to be received by the Executive pursuant to this Agreement in connection with the
Executive’s termination of employment would constitute deferred compensation subject to the rules
of section 409A of the Code, and (ii) the Executive is a “specified employee” under section 409A of
the Code, then only to the extent required to avoid the Executive’s incurrence of any additional
tax or interest under Section 409A, such payment or benefit will be delayed until the earliest date
following the Executive’s “separation from service” within the meaning of Section 409A which will
permit the Executive to avoid such additional tax or interest. The Company and the Executive agree
to negotiate in good faith to reform any provisions of this Agreement to maintain to the maximum
extent practicable the original intent of the applicable provisions without violating the
provisions of section 409A, if the Company deems such reformation necessary or advisable pursuant
to guidance under section 409A to avoid the incurrence of any such interest and penalties. Such
reformation shall not result in a reduction of the aggregate amount of payments or benefits under
this Agreement.

13

 

     IN WITNESS WHEREOF, the Company has executed this Agreement, to be effective as of the day and
year first written above.

ATTEST:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Jack in the Box, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Secretary
	 	 	 	Senior Vice President, Human

Resources & Strategic Planning	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Participating Executive	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	«First» «Last»	 	 
	 

	 	 	 	 	 	Title:
	 	«Title»	 	 

14

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