Document:

ex10-3.htm

    
      
        
          

        

      

      Exhibit
10.3

    

     

    
      

      

    

    AGREEMENT

     

    THIS AGREEMENT (“Agreement”)
is made this 29th day of January, 2009 (the “Effective Date”) by and between
James P. DeBlasio (“Employee”) and Internap Network Services Corporation
(“INTERNAP”), and arises out of the termination of Employee’s
employment.

     

    WHEREAS, Employee is leaving
his position as president and chief executive officer of INTERNAP;
and

     

    WHEREAS, INTERNAP and Employee
agreed to continue Employee’s employment with INTERNAP in order to allow for
certain transition services; and

     

    WHEREAS, Employee has
completed the transition services; and

     

    WHEREAS, Employee and INTERNAP
agree that Employee’s employment with INTERNAP is ending effective March 15,
2009 (“Separation Date”);

     

    NOW, THEREFORE, for and in
consideration of the foregoing, the mutual promises and covenants set forth
herein, and for other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, Employee and INTERNAP, intending to be
legally bound, agree as follows:

     

    1.           The
foregoing recitals are hereby made a part of this Agreement and are incorporated
herein by reference.

     

    2.           Employee’s
employment with INTERNAP is terminated effective on the Separation
Date.

     

    3.           (a)           Employee
acknowledges and agrees that with payment of normal payroll through the
Separation Date, he will have received all compensation (whether as deferred
compensation, bonuses, or otherwise), employment benefits (including, but not
limited to, health insurance, dental insurance, life insurance, disability
insurance, 403(b) contributions, and profit-sharing payments), vacation pay,
sick pay, other paid leave, and any other alleged obligations relating to
Employee’s employment with INTERNAP through the Separation Date.

     

    (b)           As
consideration for Employee’s service to INTERNAP and for the promises made by
Employee in this Agreement, INTERNAP agrees to pay to Employee the sum of Nine
Hundred Twenty Seven Thousand Two Hundred and no/100 Dollars
($927,200.00).

     

    The
parties agree that this payment will be made to Employee as
follows:

     

    
      	
               
      

            	
              ·

            	
              $475,500.00
      within thirty days of the expiration of the seven (7) day revocation
      period set forth in Paragraph 9(b) of this Agreement, provided that
      Employee does not revoke nor breach this Agreement within that time
      period.

            

    

     

    
      

      

    

    
      
        
        

      

      
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              ·

            	
              $451,700.00
      six (6) months plus one (1) day following final execution of this
      Agreement, provided that Employee has not revoked nor materially breached
      this Agreement within that time
period.

            

    

     

    (c)           All
equity awards previously granted to Employee by INTERNAP shall be deemed to vest
as of the Separation Date, provided that Employee does not revoke nor breach
this Agreement within that time period.

     

    4.           Employee
and INTERNAP agree that Employee shall have twelve (12) months following the
Separation Date in which to exercise the INTERNAP stock options held by him and
that were vested as of the Separation Date, after which such options shall
expire.  All unvested INTERNAP stock options shall expire on the
Separation Date.

     

    5.           Employee
agrees that that the payment and covenants by INTERNAP referenced in Paragraph 3
shall fully and completely extinguish all obligations of INTERNAP to Employee,
including, but not limited to, severance pay, compensation (whether as deferred
compensation, bonuses, or otherwise), the provision of any employment benefits
(including, but not limited to, health insurance, dental insurance, life
insurance, disability insurance, 403(b) contributions, and profit-sharing
payments), vacation pay, sick pay, or any other alleged obligations relating to
Employee’s employment with INTERNAP, other than those specifically set forth in
Paragraph 3.

     

     

    6.           Employee
may elect to continue, at the Company’s cost, health, dental and vision
insurance coverage for Employee and Employee’s eligible dependents under
INTERNAP’s healthcare, dental and vision coverage plan commencing on the
Separation Date and continuing thereafter for a period of eighteen (18) months,
pursuant to Title X of the Consolidated Omnibus Budget Reconciliation Act of
1985 (COBRA).  In the event Employee elects to continue such health
insurance coverage, Employee shall so advise INTERNAP in
writing.   Employee agrees to notify INTERNAP if Employee secures
alternate coverage during the eighteen (18) month period.  Employee
will be eligible to convert any life insurance coverage to an individual
plan.

     

    7.           Employee
acknowledges INTERNAP is relying on Employee’s compliance with the terms of the
Covenants Agreement attached hereto as Schedule A.

     

    8.           At
INTERNAP’s request, Employee agrees to (a) provide reasonable consulting
services to INTERNAP following the Separation Date to assist in transition
matters, and (b) fully cooperate with reasonable requests by INTERNAP regarding
any investigations, claims or litigation involving INTERNAP about which the
Employee has knowledge or the ability to assist INTERNAP in its
defense.  Employee will be compensated at the rate of $250 per hour
for his time associated with his participation in the above
matters.  INTERNAP will reimburse Employee for all reasonable out of
pocket expenses incurred in providing such cooperation.

     

    
      

      

    

    
      
        
        

      

      
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    9.           (a)           In
consideration of the foregoing payments and covenants, Employee, for himself and
for his heirs, legal representatives, and assigns, hereby unconditionally and
absolutely releases, remises, acquits and forever discharges INTERNAP and its
heirs, executors, administrators, legal and personal representatives; former
and/or current owners, partners, officers, directors, employees, residents,
shareholders, managers, agents, attorneys, predecessors, successors, assigns,
trustees, purchasers, principals, and privies; past, present, and future parent,
subsidiary, and affiliated companies (both direct and indirect), divisions,
related trade names, and affiliated entities of any kind; insurers; and any
person or entity who may be jointly liable with INTERNAP or any of the aforesaid
persons or entities (hereinafter referred to as the “INTERNAP Releasees”) from
any and all claims, charges, suits, personal remedies, debts, dues, demands,
grievances, sums of money, rights, damages, liabilities, proceedings, actions,
and causes of action of any kind, nature, or character (whether known or
unknown, whether suspected or unsuspected, and whether at law, in equity, or
otherwise), which relate to and/or arise out of any fact or event whatsoever
from the beginning of time to and including the Effective Date of this
Agreement.  The foregoing release includes, but is not limited to,
those rights and personal remedies arising under:  (a) Title VII of
the Civil Rights Act of 1964, as amended; (b) the Civil Rights Act of 1991; (c)
42 U.S.C. § 1981; (d) the Age Discrimination in Employment Act; (e) the Fair
Labor Standards Act; (f) the Americans with Disabilities Act of 1990, as
amended; (g) the Rehabilitation Act of 1973, as amended; (h) any federal, state,
or local handicap, disability, or discrimination related act, regulation,
ordinance, statute, or executive order; and (i) any ordinance or statute
promulgated by any city, county, municipality, or other state
subdivision.  Furthermore, this release also includes, but is not
limited to, the following:  (1) claims for retaliatory or wrongful
discharge of any kind; (2) claims for unpaid or withheld wages, severance pay,
benefits, bonuses, and/or other compensation or benefits of any kind; (3) claims
for intentional or negligent infliction of emotional or mental distress or for
outrageous conduct; (4) claims for breach of duty, libel, slander, or
tortious conduct of any kind; (5) claims for interference with business
relationships, contractual relationships, or employment relationships of any
kind; (6) claims for breach of an implied covenant of good faith and fair
dealing; (7) claims for interference with and/or breach of contract (whether
express or implied, in fact or in law, oral or written); (8) claims for
attorneys’ fees, costs, or expenses; (9) claims for personal remedies from
alleged discrimination of any kind; (10) claims based upon the creation,
maintenance, or subjection to a hostile or offensive work environment; (11)
claims for constructive discharge; (12) claims for personal remedies from claims
of retaliation; and/or (13) any and all claims which Employee ever had or has
arising as a result of or connected in any way with his employment with and/or
his subsequent separation from employment with INTERNAP.  Employee
agrees never to file a lawsuit to seek damages or other personal relief from
INTERNAP based upon the claims being released under this Agreement.

     

    
      

      

    

    
      
        
        

      

      
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    (b)           Employee
agrees never to file a lawsuit, claim, or cause of action seeking damages,
reinstatement, attorney fees or other personal relief against INTERNAP and/or
the INTERNAP Releasees based on the claims being released by his in this
Agreement.  Notwithstanding this waiver of remedies, above, nothing in
this Agreement shall be construed to prohibit Employee from (1) filing a charge
with the Equal Employment Opportunity Commission or (2) participating in any
investigation or proceeding conducted by the Equal Employment Opportunity
Commission, or (3) filing any charge or claim – including Worker’s Compensation
claims – not waiveable by law.

     

    10.           Employee
knowingly relinquishes, waives and forever releases any and all claims or
personal remedies arising under the Age Discrimination in Employment Act, 29
U.S.C.§ 621, et
seq., related in any manner to his employment with INTERNAP or his
separation from such employment.  In making this release:

     

    (a)           Employee
acknowledges that he has twenty-one (21) days to review this Agreement prior to
signing it.  To the extent that Employee has decided to execute this
Agreement prior to the expiration of the twenty-one (21) day period, he
acknowledges that he has voluntarily executed the Election attached to this
Agreement as Exhibit 1.

     

    (b)           Employee
understands that he has a period of seven (7) days after signing this Agreement
to revoke it and not receive the monetary payments or other consideration
provided to him under the terms of this Agreement.

     

    (c)           Employee
further understands that this Paragraph 9, pertaining specifically to claims or
rights arising under the Age Discrimination in Employment Act, does not cover
any rights, claims, or remedies, if any, that may arise after the date on which
this Agreement is executed, and does not affect his right to challenge the
validity of this release under the law.

     

    (d)           Employee
acknowledges and agrees that the payments and other consideration made by
INTERNAP under Paragraph 3 of this Agreement are in addition to anything of
value to which Employee is already entitled.

     

    11.           Employee
agrees to fully cooperate with reasonable requests by INTERNAP regarding any and
all matters associated with any investigations, claims or litigation involving
INTERNAP about which the Employee has knowledge or the ability to assist
INTERNAP in its defense for three (3) years following the date of this
Agreement.  Employee’s cooperation in such matters will include
answering questions by INTERNAP regarding the subject of any such
investigations, claims, or litigation, voluntarily participating in depositions,
providing affidavits and testimony if necessary, and assisting INTERNAP in
responding to data or discovery requests.  INTERNAP agrees to use
every effort to ensure the time periods in which Employee’s assistance is sought
do not conflict with Employee’s work or other business-related
obligations.  Employee agrees that any participation in the
above-referenced matters will be truthful and factual.  INTERNAP will
reimburse Employee for all reasonable out of pocket expenses incurred in
providing such cooperation.

     

    12.           This
Agreement shall not in any way be construed as an acknowledgement or admission
by INTERNAP that it has acted wrongfully with respect to Employee or to any
other person or that Employee has any rights whatsoever against
INTERNAP.  INTERNAP specifically disclaims any liability to or
wrongful acts against Employee or any other person.

     

    
      

      

    

    
      
        
        

      

      
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    13.           From
and after the Effective Date of this Agreement, Employee will not provide any
disparaging information about INTERNAP or any of its current or former parties,
officers, directors, agents, employees, or representatives to any person or
entity who is not a party to this Agreement nor will he request or direct other
persons to do so, except to the extent required by:  (a) a court
order; (b) a lawfully issued subpoena, provided that Employee, to the extent
possible, provides INTERNAP with written notice of the existence of such
subpoena at least five (5) calendar days prior to such disclosure and agrees not
to contest any motion for protective order or motion to quash filed by INTERNAP;
or (c) otherwise by applicable law.

     

    14.           Employee
represents that on or before the Separation Date he will return to INTERNAP any
property and/or business documents of INTERNAP.  Employee agrees that
if subsequent to the Separation Date he discovers any property of INTERNAP, he
will promptly return it to:  VP HR, Internap Network Services
Corporation, 250 Williams Street, Suite E-100, Atlanta, GA 30303.

     

    15.           Any
other benefits not mentioned in this Agreement that Employee may be entitled to,
including, but not limited to, his rights to health insurance continuation under
Georgia law, shall be provided to Employee in accordance with the underlying
plan or document governing such benefits and/or applicable law.

     

    16.           Employee
acknowledges and agrees that, before signing this Agreement, he was advised and
is hereby advised in writing by INTERNAP to review it and consult with an
attorney of his choosing and that, to the extent Employee desired, he has
availed himself of these opportunities.

     

    17.           Employee
represents and agrees that he has carefully read and fully understands all of
the provisions of this Agreement.  Employee understands the final and
binding nature of the release and waiver of his rights specified herein, and he
knowingly and voluntarily enters into this Agreement with the intent to be bound
by it, and without any coercion or duress from any person or source
whatsoever.

     

    18.           This
Agreement represents and contains the entire agreement and understanding between
the parties with respect to the terms and conditions of this Agreement, and
supersedes any and all prior and contemporaneous written and oral agreements,
understandings, representations, inducements, promises, warranties, and
conditions between the parties with respect to the terms and conditions of this
Agreement, including without limitation any employment agreement between
Employee and Internap.  Except for the Covenants Agreement, attached
hereto as Schedule A, no other agreement, understanding, representation,
inducement, promise, warranty, or condition of any kind with respect to the
terms and conditions of this Agreement shall be relied upon by the parties
unless expressly incorporated herein.

     

    19.           This
Agreement may not be amended or modified except by an agreement in writing
signed by all of the parties hereto.

     

    
      

      

    

    
      
        
        

      

      
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    20.           Any
failure of any party on one or more occasions to enforce or require the strict
keeping and performance of any of the terms and conditions of this Agreement
shall not constitute a waiver of such terms and conditions of this Agreement,
shall not constitute a waiver of such term or condition at any future time, and
shall not prevent any party from insisting on the strict keeping and performance
of such terms and conditions at a later time.

     

    21.           The
provisions of this Agreement shall be deemed severable, and any invalidity or
unenforceability of any one or more of its provisions shall not affect the
validity or enforceability of the other provisions hereof.

     

    22.           Each
party to this Agreement agrees and acknowledges that no presumption, inference,
or conclusion of any kind shall be made or drawn against the drafter or draft(s)
of this Agreement.  Each party to this Agreement also agrees and
acknowledges that he/it has contributed to the final version of this Agreement
through comments and negotiations.

     

    23.           This
Agreement shall be binding upon and shall inure to the benefit of the parties
and each of their respective heirs, personal and legal representatives,
purchasers, executors, administrators, successors and
assigns.  Employee may not assign any rights or obligations hereunder
without INTERNAP’s prior written consent.

     

    24.           It
is understood and agreed that the parties to this Agreement do hereby declare,
represent, acknowledge and warrant that:

     

    (a)           IN
EXECUTING THIS AGREEMENT, THE PARTIES HERETO RELY UPON THEIR OWN JUDGMENT,
BELIEF, AND KNOWLEDGE AS TO THE NATURE, EXTENT, AND EFFECT OF THE POTENTIAL
LIABILITY OF THE PARTIES AND OF THE LIABILITIES, WHETHER POTENTIAL OR OTHERWISE,
WHICH ARE BEING RELEASED BY THIS AGREEMENT AND THE PARTIES FURTHER ACKNOWLEDGE
AND AGREE THAT THEY ARE ENTERING INTO THIS AGREEMENT AND SIGNING THE SAME
VOLUNTARILY AND KNOWINGLY AND WITHOUT ANY DURESS, COERCION, INTIMIDATION, OR
FORCE; and

     

    (b)           The
terms of this Agreement are contractual and not mere recitals; and

     

    (c)           This
Agreement is deemed to have been entered into in the State of Georgia and shall
be construed and interpreted at all times and in all respects in accordance with
the laws of the State of Georgia without regard to the principles of conflicts
of laws, and jurisdiction and venue for any action relating in any manner to
this Agreement shall be in a court of competent jurisdiction in the State of
Georgia.

     

    25.           This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, and all of which shall be deemed as being the same
instrument.

     

    
      

      

    

    
      
        
        

      

      
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    26.           The
persons executing this Agreement do hereby declare, represent, acknowledge,
warrant, and agree that such person is duly and fully authorized to execute this
Agreement so as to legally bind Employee and INTERNAP.

     

    27.           Employees
understands that, if he signs this Agreement, he may change his mind and revoke
his acceptance within seven days after signing it by giving notice in writing to
INTERNAP at the following address:

     

    Internap
Network Services Corporation

     

    Attention:              Director,
Human Resources Department

    250
Williams Street, Suite E-100

    Atlanta,
Georgia  30303

    

    With copy
to:       Chief Administrative
Officer

    

    28.           Employee
understands that this Agreement will not be effective or enforceable until the
seven-day revocation period has expired, but will become effective and
enforceable as soon as the revocation period ends.

    

    IN WITNESS WHEREOF, the
parties have executed this General Release and Separation Agreement as of the
date indicated below:

     

    
      
        
          
            
              
                
                  
                    
                      
                        	 	
                                 

                                 

                                /s/ Christy Reese                                                                

                                WITNESS

                              	 	
                                 

                                 

                                /s/ James P.
      DeBlasio                                                             

                                 

                                 

                                 

                                Date:                      1/29/09                                                      

                                 

                                 

                              
	 	
                                 

                                 

                                 

                                 

                                /s/
      Christy Reese                                                                

                                WITNESS

                              	 	
                                INTERNAP
      NETWORK SERVICES 

                                CORPORATION

                                 

                                /s/ Richard P.
      Dobb                                                                

                                By:
      Richard P. Dobb

                                Title:
      CAO

                                Date:                      1/29/09                                                      

                                 

                              

                      

                    

                  

                

              

            

          

           

          
            

            

          

          
            
              
              

            

            
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    ELECTION
TO EXECUTE PRIOR TO EXPIRATION OF

    TWENTY-ONE DAY CONSIDERATION
PERIOD

     

    I, James
P. DeBlasio, understand that I have at least twenty-one (21) days within which
to consider and execute the attached General Release, Separation and Settlement
Agreement.  However, after having been advised of my right to consult
with an attorney and having exercised that right to the extent desired, I have
freely and voluntarily elected to execute the General Release and Separation
Agreement before the twenty-one (21) day period has expired.

     

    
      
        
          
            
              
                
                  
                    
                      	
                               

                            	  /s/ James P. DeBlasio	 
	 	 	 	 
	 	 	 	 
	 	Date:	     
      1/29/09	 

                    

                  

                

              

            

          

        

      

    

     

     

     

    
      EXHIBIT
1

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      

      

    

    COVENANTS
AGREEMENT

    

    This
COVENANTS AGREEMENT
(“Agreement”) is made this 29th day of January, 2009, (the “Effective Date”),
between Internap Network Services Corporation (“Internap”) and James
P. DeBlasio (“You” or “Your”) (collectively, the “Parties”).1

    

    For and
in consideration of ten dollars, and other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, You agree to the following
terms:

     

    
      	
              1.

            	
              Acknowledgments.  You
      acknowledge and agree that:

            

    

     

    
      
        	 	
                (a)

              	
                Your
      position as an employee with Internap was a position of trust and
      responsibility with access to Confidential Information, Trade Secrets, and
      information concerning Employees, Customers, and Prospective Customers of
      Internap;

              

      

    

     

    
      
        	 	
                (b)

              	
                the
      Trade Secrets and Confidential Information, and the relationship between
      Internap and its Employees, Customers, and Prospective Customers, are
      valuable assets of Internap which may not be used for any purpose other
      than Internap’s Business;

              

      

    

     

    
      
        	 	
                (c)

              	
                the
      names of Customers and Prospective Customers are considered Confidential
      Information of the Business which constitutes valuable, special, and
      unique property of Internap;

              

      

    

     

    
      
        	 	
                (d)

              	
                Customer
      and Prospective Customer lists, and Customer and Prospective Customer
      information, which have been compiled by Internap represents a material
      investment of Internap’s time and
money;

              

      

    

     

    
      
        	 	
                (e)

              	
                Internap
      invested its time and money in the development of Your skills in the
      Business; and

              

      

    

     

    
      	
               
      

            	
              (f)

            	
              the
      restrictions contained in this Agreement, including, but not limited to,
      the restrictive covenants set forth in Sections 2 – 6 below, are
      reasonable and necessary to protect the legitimate business interests of
      Internap, and they do not impair or infringe upon Your right to work or
      earn a living subsequent to Your employment with
  Internap.

            

    

     

    
      	
              2.

            	
              Trade Secrets and
      Confidential Information.

            

    

     

    
      
        	 	
                (a)

              	
                You
      represent and warrant that:

              

      

    

     

    
      	
               
      

            	
              (i)

            	
              You
      are not subject to any legal or contractual duty or agreement that would
      prevent or prohibit You from performing Your duties for Internap or
      complying with this Agreement, and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              You
      are not in breach of any legal or contractual duty or agreement, including
      any agreement concerning trade secrets or confidential information, owned
      by any other person or entity.

            

    

     

    
      
        	 	
                (b)

              	
                You
      shall not:

              

      

       

    

    __________________________________

    
      1 Unless
otherwise indicated, all capitalized terms used in this Agreement are defined in
the “Definitions” set forth in Exhibit A.  Exhibit A is incorporated
by reference and is included in the definition of
“Agreement.”

    

     

    
      

      

    

    
      
        
        

      

      
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              (i)

            	
              use,
      disclose, or reverse engineer the Trade Secrets or the Confidential
      Information for any purpose except as authorized in writing by
      Internap;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              use,
      disclose, or reverse engineer (a) any confidential information or trade
      secrets of any former employer or third party, or (b) any works of
      authorship developed in whole or in part by You during any former
      employment or for any other party, unless authorized in writing by the
      former employer or third party; or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              (a)
      retain Trade Secrets or Confidential Information, including any copies
      existing in any form (including electronic form), or (b) destroy, delete,
      or alter the Trade Secrets or Confidential Information without Internap’s
      prior written consent.

            

    

     

    
      
        	 	
                (c)

              	
                The
      obligations under this Agreement
shall:

              

      

    

     

    
      	
               
      

            	
              (i)

            	
              with
      regard to the Trade Secrets, remain in effect as long as the information
      constitutes a trade secret under applicable law;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              with
      regard to the Confidential Information, remain in effect during the
      Restricted Period.

            

    

     

    
      
        	 	
                (d)

              	
                The
      confidentiality, property, and proprietary rights protections available in
      this Agreement are in addition to, and not exclusive of, any and all other
      rights to which Internap is entitled under federal and state law,
      including, but not limited to, rights provided under copyright laws, trade
      secret and confidential information laws, and laws concerning fiduciary
      duties.

              

      

    

     

    3.   Non-Disclosure of Customer
or Prospective Customer Information.  During the Restricted
Period, You shall not, except as authorized by Internap, divulge or make
accessible to any person or entity (i) the names of Customers or Prospective
Customers, or (ii) any information contained in Customers’ or Prospective
Customers’ accounts.

     

    4.   Non-Solicitation of
Customers.  During the Restricted Period, You shall not,
directly or indirectly, solicit any Customer of Internap for the purpose of
selling or providing any products or services competitive
with the Business.  The restrictions set forth in this Section apply
only to Customers with whom You had Contact during the term of Your
employment.  Nothing in this Section shall be construed to prohibit
You from soliciting any Customer of Internap for the purpose of selling or
providing any products or services competitive with the Business: (i) which You
never sold or provided while employed by Internap; (ii) to a Customer that
explicitly severed its business relationship with Internap unless You, directly
or indirectly, caused or encouraged the Customer to sever the relationship; or
(iii) which products or services Internap no longer offers.

     

    5.   Non-Solicitation of
Prospective Customers.  During the Restricted Period, You shall
not, directly or indirectly, solicit any Prospective Customer of Internap for
the purpose of selling or providing any products or services competitive
with the Business.  The restrictions set forth in this Section apply
only to Prospective Customers with whom You had Contact during the last year of
Your employment with Internap (or during Your employment if employed less than a
year).  Nothing in this Section shall be construed to prohibit You
from soliciting any Prospective Customer of Internap for the purpose of selling
or providing any products or services competitive with the Business which
Internap no longer offers.

     

    
      

      

    

    
      
        
        

      

      
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      6.   Non-Recruitment of
Employees.  During the Restricted Period, You shall not,
directly or indirectly, solicit, recruit, or induce any Employee to (i)
terminate his employment relationship with Internap, or (ii) work for any other
person or entity engaged in the Business.  The restrictions set forth
in this Section shall apply only to Employees (a) with whom You had Material
Interaction, or (b) You, directly or indirectly, supervised.

    

     

    7.   Post-Employment
Disclosure. During the Restricted Period, You shall provide a copy of
this Agreement to persons and/or entities who at any time are likely to be
competitive with Internap’s Business for which You work or consult as an owner,
partner, joint venturer, employee or independent contractor.  If,
during the Restricted Period, You work or consult for another person or entity
who at any time is, or is likely to be, competitive with Internap’s Business as
an owner, partner, joint venturer, employee or independent contractor, You shall
provide Internap with such person or entity’s name, the nature of such person or
entity’s business, Your job title, and a general description of the services You
will provide.

     

    8.   Injunctive Relief. If
You breach any portion of this Agreement, You agree that:

     

    
      
        	 	
                (a)

              	
                Internap
      would suffer irreparable
harm;

              

      

    

     

    
      
        	 	
                (b)

              	
                it
      would be difficult to determine damages, and money damages alone would be
      an inadequate remedy for the injuries suffered by
      Internap;  and

              

      

    

     

    
      
        	 	
                (c)

              	
                if
      Internap seeks injunctive relief to enforce this Agreement, You shall
      waive and shall not (i) assert any defense that Internap has an adequate
      remedy at law with respect to the breach, (ii) require that Internap
      submit proof of the economic value of any Trade Secret or Confidential
      Information, or (iii) require Internap to post a bond or any other
      security.

              

      

    

     

    Nothing
in this Agreement shall limit Internap’s right to any other remedies at law or
in equity.

     

    9.   Independent
Enforcement.  Each of the covenants set forth in Sections 2 – 6
of this Agreement shall be construed as an agreement independent of (i) each of
the other covenants set forth in Sections 2 – 6, (ii) any other agreements, or
(iii) any other provision in this Agreement, and the existence of any claim or
cause of action by You against Internap, whether predicated on this Agreement or
otherwise, regardless of who was at fault and regardless of any claims that
either You or Internap may have against the other, shall not constitute a
defense to the enforcement by Internap of any of the covenants set forth in
Sections 2 – 6 of this Agreement.  Internap shall not be barred from
enforcing any of the covenants set forth in Sections 2 – 6 of this Agreement by
reason of any breach of (i) any other covenant set forth in Sections 2 – 6 of
this Agreement, (ii) any other part of this Agreement, or (iii) any other
agreement with You.

     

    10. Attorneys’
Fees.  In the event of litigation relating to this Agreement,
Internap shall, if it is the prevailing party, be entitled to recover attorneys’
fees and costs of litigation in addition to all other remedies available at law
or in equity.

     

    11. Waiver.  Internap’s
failure to enforce any provision of this Agreement shall not act as a waiver of
that or any other provision.  Internap’s waiver of any breach of this
Agreement shall not act as a waiver of any other breach.

     

    12. Severability.  The
provisions of this Agreement are severable. If any provision is determined to be
invalid, illegal, or unenforceable, in whole or in part, the remaining
provisions and any partially enforceable provisions shall remain in full force
and effect.

     

    
      

      

    

    
      
        
        

      

      
        Page
4

        
          

        

      

      
        
        

      

       

      
        

        

      

      13. Governing
Law.  The laws of the State of Georgia shall govern this
Agreement.  If Georgia’s conflict of law rules would apply another
state’s laws, the Parties agree that Georgia law shall still
govern.

    

     

    14. No Strict
Construction.  If there is a dispute about the language of this
Agreement, the fact that one Party drafted the Agreement shall not be used in
its interpretation.

     

    15. Entire
Agreement.  This Agreement supersedes any prior communications,
agreements or understandings, whether oral or written, between the Parties
relating to the subject matter of this Agreement.

     

    16. Successors and
Assigns.  This Agreement shall be assignable to, and shall
inure to the benefit of, Internap’s successors and assigns, including, without
limitation, successors through merger, name change, consolidation, or sale of a
majority of Internap’s stock or assets, and shall be binding upon
You.  You shall not have the right to assign Your rights or
obligations under this Agreement. The covenants contained
in this Agreement shall survive cessation of Your employment with Internap,
regardless of who causes the cessation or the reason for the
cessation.

     

    17. Consent to Jurisdiction and
Venue.  You agree that any and all claims arising out of or
relating to this Agreement shall be brought in a state or federal court of
competent jurisdiction in Georgia. You consent to the personal jurisdiction of
the state and/or federal courts located in Georgia. You waive (a) any objection
to jurisdiction or venue, or (b) any defense claiming lack of jurisdiction or
improper venue, in any action brought in such courts.

     

    18. Execution.  This
Agreement may be executed in one or more counterparts, including, but not
limited to, facsimiles. Each counterpart shall for all purposes be deemed to be
an original, and each counterpart shall constitute this Agreement.

     

    19. Affirmation.  You
acknowledge that You have carefully read this Agreement, You know and understand
its terms and conditions, and You have had the opportunity to ask Internap any
questions You may have had prior to signing this Agreement.

    

    IN
WITNESS WHEREOF, the Parties have signed this Agreement as of the Effective
Date.

     

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	Internap
      Network Services Corporation	 	 	

                                  /s/
      James P. DeBlasio

                                	 
	 	 	 	Employee
      Signature	 
	 	 	 	 	 
	
                                  By:             
      /s/ Richard P. Dobb

                                	 	 	
                                   

                                	 
	
                                  

                                    Name:         Richard P.
      Dobb

                                  

                                	 	 	
                                   

                                	 
	
                                  Title:           CAO

                                	 	 	
                                   

                                	 
	Address:
      Internap Network Services Corporation  	 	 	Employee’s
      Address:	 
	250
      Williams Street, Suite E-100	 	 	 	 
	Atlanta,
      Georgia 30303	 	 	 	 

                        

                      

                    

                  

                

              

            

          

        

      

    
      

      

    

    
      
        
        

      

      
        Page
5

        
          

        

      

      
        
        

      

       

    

    
      

      

    

    
      
      
EXHIBIT
A

    DEFINITIONS

     

    
      	
               
      

            	
              A.

            	
              “Business”
      shall mean the business of Internap Network Services Corporation,
      consisting of content delivery network services, IP services, colocation
      services and advertising services.

            	 

    

     

    
      	
               
      

            	
              B.

            	
              “Confidential
      Information” means (a) information of Internap, to the extent not
      considered a Trade Secret under applicable law, that (i) relates to the
      business of Internap, (ii) possesses an element of value to Internap,
      (iii) is not generally known to Internap’s competitors, and (iv) would
      damage Internap if disclosed, and (b) information of any third party
      provided to Internap which Internap is obligated to treat as confidential,
      including, but not limited to, information provided to Internap by its
      licensors, suppliers, or customers.  Confidential Information
      includes, but is not limited to, (i) future business plans, (ii) the
      composition, description, schematic or design of products, future products
      or equipment of Internap or any third party, (iii) communication systems,
      audio systems, system designs and related documentation, (iv) advertising
      or marketing plans, (v) information regarding independent contractors,
      employees, clients, licensors, suppliers, customers, or any third party,
      including, but not limited to, customer lists compiled by Internap, and
      customer information compiled by Internap, and (vi) information concerning
      Internap’s or a third party’s financial structure and methods and
      procedures of operation.  Confidential Information shall not
      include any information that (i) is or becomes generally available to the
      public other than as a result of an unauthorized disclosure, (ii) has been
      independently developed and disclosed by others without violating this
      Agreement or the legal rights of any party, or (iii) otherwise enters the
      public domain through lawful means.

            

    

     

    
      	
               
      

            	
              C.

            	
              “Contact”
      means any interaction with a Customer or Prospective Customer, which takes
      place in an effort to establish, maintain, and/or further a business
      relationship on behalf of Internap.

            

    

     

    
      	
               
      

            	
              D.

            	
              “Customer”
      means any person or entity to which Internap has sold its products or
      services.

            

    

     

    
      	
               
      

            	
              E.

            	
              “Employee”
      means any person who (i) is employed by Internap at the time Your
      employment with Internap ends, or (ii) was employed by Internap during the
      last year of Your employment with
Internap.

            

    

     

    
      	
               
      

            	
              F.

            	
              “Licensed
      Materials” means any materials that You utilize for the benefit of
      Internap, or deliver to Internap or Internap’s customers, who (i) do not
      constitute Work Product, (ii) are created by You or of which You are
      otherwise in lawful possession, and (iii) You
      may lawfully utilize for the benefit of, or distribute to, Internap or
      Internap’s customers.

            

    

     

    
      	
               
      

            	
              G.

            	
              "Material
      Interaction" means any interaction with an Employee, which relates or
      related, directly or indirectly, to the performance of Your duties or the
      Employee's duties for Internap.

            

    

     

    
      	
               
      

            	
              H.

            	
              “Prospective
      Customer” means any person or entity to which Internap has solicited to
      sell its products or services.

            

    

     

    
      	
               
      

            	
              I.

            	
              “Restricted
      Period” means the one-year period following the termination of Your
      employment with Internap.

            

    

     

    
      

      

    

    
      
        
        

      

      
        Page
6

        
          

        

      

      
        
        

      

    

     

    
      

      

    

    
      	
               
      

            	
              J.

            	
              “Trade Secrets” means information
      of Internap, and its licensors, suppliers, clients, and customers, without
      regard to form, including, but not limited to, technical or nontechnical
      data, a formula, a pattern, a compilation, a program, a device, a method,
      a technique, a drawing, a process, financial data, financial plans,
      product plans, a list of actual customers, clients, licensors, or
      suppliers, or a list of potential customers, clients, licensors, or
      suppliers which is not commonly known by or available to the public and
      which information (i) derives economic value, actual or potential, from
      not being generally known to, and not being readily ascertainable by
      proper means by, other persons who can obtain economic value from its
      disclosure or use, and (ii) is the subject of efforts that are reasonable
      under the circumstances to maintain its
  secrecy.

            

    

     

     

     

     

    
      

      

    

    Page
7Form of Amended and Restated Executive Service Recognition Plan

 Exhibit 10.2 
 AMENDED AND RESTATED EXECUTIVE SERVICE RECOGNITION PLAN 
 EXECUTIVE EMPLOYMENT AGREEMENT

 between 
 SOUTHWEST AIRLINES CO. 
 and 
                     , 200     

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		  	 PARTIES
	  	1
			
		  	 RECITALS
	  	1
			
	 SEC. 1.
	  	 Operation of Agreement
	  	l
			
	 SEC. 2.
	  	 Change of Control
	  	2
			
	 SEC. 3.
	  	 Employment Period
	  	3
			
	 SEC. 4.
	  	 Position and Duties
	  	3
			
	 SEC. 5.
	  	 Compensation
	  	5
			
	 SEC. 6.
	  	 Termination
	  	7
			
	 SEC. 7.
	  	 Obligations of the Corporation upon Termination
	  	9
			
	 SEC. 8.
	  	 Non-exclusivity of Rights
	  	13
			
	 SEC. 9.
	  	 Full Settlement
	  	13
			
	 SEC. 10.
	  	 Certain Reduction of Payments by the Corporation
	  	14
			
	 SEC. 11.
	  	 Confidential Information
	  	16
			
	 SEC. 12.
	  	 Successors
	  	17
			
	 SEC. 13.
	  	 Miscellaneous
	  	17
		
	 TESTIMONIUM
	  	19
		
	 SIGNATURES
	  	19

 EXECUTIVE EMPLOYMENT AGREEMENT 
 THIS EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”) between SOUTHWEST AIRLINES CO., a Texas corporation (the “Corporation”), and
             (the “Executive”), is dated effective the              day of
            , 200    . 
 W I
T N E S S E T H: 
 WHEREAS, the Corporation, on behalf of itself and its
shareholders, wishes to (i) continue to attract and retain well qualified executive and key personnel who are an integral part of the management of the Corporation, such as the Executive, and (ii) to assure both itself of continuity of
management and the Executive of continued employment in the event of any actual or threatened Change of Control (as defined in Section 2 of this Agreement) of the Corporation and, to such end, the Corporation has established the Amended and
Restated Executive Service Recognition Plan Executive Employment Agreement for entry into between the Corporation and certain executive employees of the Corporation, including the Executive; 
 NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the parties hereto agree as follows: 
 1. Operation of Agreement.  
 (a) Definition. The “Effective Date” shall be the date during the “Change of Control Period” (as defined in Section 1(b)) on which a Change of Control first occurs. 
 (b) Additional Definitions. The “Change of Control Period” is the period commencing on the date hereof and ending on the
earlier to occur of (i) the second anniversary of such date or (ii) the first day of the month coinciding with or next following the Executive’s 70th birthday (“Outside Retirement Date”); provided, however, that commencing
on the date one year 

  

 PAGE 1 

 
after the date hereof, and on each annual anniversary of such date (the date one year after the date hereof and each annual anniversary of such date is
hereinafter referred to as the “Renewal Date”), the Change of Control Period shall be automatically extended so as to terminate on the earlier of (x) two years from such Renewal Date or (y) the first day of the month coinciding
with or next following the Executive’s Outside Retirement Date, unless at least 60 days prior to the Renewal Date the Corporation shall give notice to the Executive that the Change of Control Period shall not be so extended; and provided
further, that this provision for automatic extension shall have no application following a Change of Control. 
 2. Change of
Control. For the purpose of this Agreement, a “Change of Control” shall mean a change of control during the Change of Control Period of a nature that would be required to be reported on a Current Report on Form 8-K, pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); provided that, without limitation, such a “Change of Control” shall be deemed to have occurred if: (i) a third person, including a
“group” as such term is used in Section 13(d)(3) of the Exchange Act, becomes the beneficial owner, directly or indirectly, of 20% or more of the combined voting power of the Corporation’s outstanding voting securities ordinarily
having the right to vote for the election of directors of the Corporation; or (ii) individuals who, as of the date hereof, constitute the Board of Directors of the Corporation (the “Board” generally and, as of the date hereof, the
“Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by the Corporation’s
shareholders, was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened
election contest relating to the election of the directors of the Corporation, shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board. 
  

 PAGE 2 

 3. Employment Period. The Corporation hereby agrees to continue the Executive in its
employ, and the Executive hereby agrees to remain in the employ of the Corporation, for the period commencing on the Effective Date and ending on the earlier to occur of (i) the first anniversary of such date or (ii) the first day of the
month coinciding with or next following the Executive’s Outside Retirement Date (the “Employment Period”). 
 4.
Position and Duties.  
 (a) Position, etc. During the Employment Period, (i) the Executive’s
position (including status, offices, titles and reporting requirements), authority, duties and responsibilities shall be at least commensurate in all material respects with those held, exercised and assigned at any time during the 90-day period
immediately preceding the Effective Date and (ii) the Executive’s services shall be performed at the location where the Executive was employed immediately preceding the Effective Date. Such position, authority, duties and responsibilities
shall be regarded as not commensurate if, as a result of a Change of Control, (i) the Corporation becomes a direct or indirect subsidiary of another corporation or corporations or becomes controlled, directly or indirectly, by one or more
unincorporated entities (such other corporation or unincorporated entity owning or controlling, directly or indirectly, the greatest amount of equity (by vote) of the Corporation is hereinafter referred to as a “Parent Company”), or
(ii) all or substantially all of the assets of the Corporation are acquired by another corporation or unincorporated entity or group of corporations or unincorporated entities owned or controlled, directly or indirectly, by another corporation
or unincorporated entity (such other acquiring or controlling corporation or unincorporated entity is hereinafter referred to as a “successor”), unless, in the case of either (i) or 

  

 PAGE 3 

 
(ii), (x) the second paragraph of Section 12 of this Agreement shall have been complied with and (y) the Executive’s position, authority,
duties and responsibilities with such parent company or successor, as the case may be, are at least commensurate in all material respects with those held, exercised and assigned with the Corporation at any time during the 90-day period immediately
preceding the Effective Date, or (iii) more than one unrelated corporation or unincorporated entity acquires a significant portion of the assets of the Corporation. 
 (b) Extent of Efforts. Excluding periods of vacation and sick leave to which the Executive is entitled, the Executive agrees to
devote during the Employment Period reasonable attention and time during normal business hours to the business and affairs of the Corporation and, to the extent necessary to discharge the responsibilities assigned to the Executive hereunder, to use
reasonable best efforts to perform faithfully and efficiently such responsibilities. The Executive may (i) serve on corporate, civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking engagements or teach at
educational institutions and (iii) manage personal investments, so long as such activities do not significantly interfere with the performance of the Executive’s responsibilities. It is expressly understood and agreed that to the extent
that any such activities have been conducted by the Executive prior to the Effective Date, such prior conduct of activities, and any subsequent conduct of activities similar in nature and scope, shall not thereafter be deemed to interfere with the
performance of the Executive’s responsibilities to the Corporation. 
  

 PAGE 4 

 5. Compensation. Subject to Section 7 hereof (which section shall govern
Executive’s compensation in the event of Executive’s termination of employment during the Employment Period), while employed during the Employment Period, Executive shall be entitled to the following compensation and benefits under this
Agreement. 
 (a) Base Salary. The Executive shall receive a base salary (the “Base Salary”) at a monthly
rate at least equal to the highest monthly salary paid to the Executive by the Corporation, together with any of its affiliated companies, during the twelve-month period immediately preceding the month in which the Effective Date occurs. The Base
Salary shall be increased at any time and from time to time to reflect increases in base salary awarded in the ordinary course of business to other key executives. Any increase in the Base Salary shall not serve to limit or reduce any other
obligation to the Executive under this Agreement. The Base Salary shall not be reduced after any such increase. As used in this Agreement, the term “affiliated companies” includes any company controlling, controlled by or under common
control with the Corporation. 
 (b) Annual Bonus. In addition to the Base Salary, the Executive shall be awarded, for
any fiscal year that ends during the Employment Period, an annual bonus (the “Annual Bonus”) (which may be pursuant to an established bonus or incentive plan or program of the Corporation) in cash at least equal to the highest bonus paid
or payable to the Executive in respect of either of the two fiscal years of the Corporation (annualized with respect to either such fiscal year for which the Executive has been employed only during a portion thereof) immediately prior to the fiscal
year in which the Effective Date occurs. The Annual Bonus shall be payable in January of the fiscal year next following the fiscal year for which the Annual Bonus is awarded. 
 (c) Profit Sharing Incentive and Retirement Plans. In addition to the Base Salary and Annual Bonus payable as hereinabove provided,
the Executive shall be entitled to participate in all profit sharing, incentive and retirement plans and programs applicable to other key executives, but in no event shall such plans and programs, in the aggregate, provide the Executive with
compensation, benefits and reward opportunities less favorable than those provided by the Corporation and it affiliated companies for the Executive under such plans and programs as in effect at any time during the 90-day period immediately preceding
the Effective Date. 
  

 PAGE 5 

 (d) Welfare Benefit Plans. The Executive and/or the Executive’s family, as
the case may be, shall be eligible for participation in (and shall receive all benefits under) each welfare benefit plan of the Corporation, including, without limitation, all medical, dental, disability, group life, accidental death and travel
accident insurance plans and programs of the Corporation and its affiliated companies, as in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect at any time
thereafter with respect to other key executives. 
 (e) Expenses. The Executive shall be entitled to receive prompt
reimbursement for all reasonable expenses incurred by the Executive in accordance with the policies and procedures of the Corporation as in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to
the Executive, as in effect at any time thereafter with respect to other key executives. 
 (f) Fringe Benefits. The
Executive shall be entitled to fringe benefits, including use of a luncheon club membership and payment of related expenses, in accordance with the policies of the Corporation as in effect at any time during the 90-day period immediately preceding
the Effective Date or, if more favorable to the Executive, as in effect at any time thereafter with respect to other key executives. 
 (g) Office and Support Staff. The Executive shall be entitled to an office or offices of a size and with furnishings and other appointments, and to secretarial and other assistance, at least equal to those provided to the Executive
at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive, as provided at any time thereafter with respect to other key executives. 
  

 PAGE 6 

 (h) Vacation. The Executive shall be entitled to paid vacation in accordance with
the policies of the Corporation as in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect at any time thereafter with respect to other key executives. 

6. Termination.  
 (a) Death or Disability. This Agreement shall terminate automatically upon the Executive’s death. The Corporation may terminate the Executive’s employment during the Employment Period, after having established the
Executive’s Disability (pursuant to the definition of “Disability” set forth below), by giving notice to the Executive of its intention to terminate the Executive’s employment. In such a case, the Executive’s employment with
the Corporation shall terminate effective on the 30th day after receipt of such notice (the “Disability Effective Date”), provided that, within 30 days after such receipt, the Executive shall fail to return to full-time performance of the
Executive’s duties. For purposes of this Agreement, “Disability” means disability which, after the expiration of more than 26 weeks after its commencement, is determined to be total and permanent by a physician selected by the
Corporation or its insurers and acceptable to the Executive or the Executive’s legal representative (such agreement to acceptability not to be withheld unreasonably). 
 (b) Cause. The Corporation may terminate the Executive’s employment for Cause during the Employment Period. For purposes of
this Agreement, “Cause” means (i) an act or acts of dishonesty taken by the Executive and intended to result in substantial personal enrichment of the Executive at the expense of the Corporation or (ii) violations by the
Executive of the Executive’s obligations under Section 4 of this Agreement which are (A) grossly negligent or (B) willful and deliberate on the Executive’s part and which, in any case, result in material injury to the
Corporation. 
  

 PAGE 7 

 (c) Good Reason. The Executive’s employment may be terminated by the
Executive for Good Reason during the Employment Period. For purposes of this Agreement, “Good Reason” means 
 (i)(A) the assignment to the Executive of any duties inconsistent in any respect with the Executive’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as contemplated by
Section 4 of this Agreement or (B) any other action by the Corporation which results in a diminishment in such position, authority, duties or responsibilities, other than an insubstantial and inadvertent action which is remedied by the
Corporation promptly after receipt of notice thereof given by the Executive; 
 (ii) any failure by the Corporation to comply
with any of the provisions of Section 5 of this Agreement, other than an insubstantial and inadvertent failure which is remedied by the Corporation promptly after receipt of notice thereof given by the Executive; 
 (iii) the Corporation’s requiring the Executive to be based at any office or location other than that at which the Executive is based
at the Effective Date, except for travel reasonably required in the performance of the Executive’s responsibilities; 
 (iv) any purported termination by the Corporation of the Executive’s employment otherwise than as permitted by this Agreement, it being understood that any such purported termination shall not be effective for any purpose of this
Agreement; or 
 (v) Any failure by the Corporation to comply with and satisfy the second paragraph of Section 12 of this
Agreement. 
  

 PAGE 8 

 For purposes of this Section 6(c), any good faith determination of “Good Reason” made by
the Executive shall be conclusive. 
 (d) Notice of Termination. Any termination by the Corporation for Cause or by the
Executive for Good Reason shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 13(b) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written
notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment
under the provision so indicated and (iii) if the termination date is other than the date of receipt of such notice, specifies the termination date (which date shall be not more than 15 days after the giving of such notice). 
 (e) Date of Termination. “Date of Termination” means the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be. If the Executive’s employment is terminated by the Corporation in breach of this Agreement, the Date of Termination shall be the date on which the Corporation notifies the Executive of such termination.

 7. Obligations of the Corporation upon Termination.  
 (a) Death. If the Executive’s employment is terminated by reason of the Executive’s death, this Agreement shall terminate
without further obligations under this Agreement to the Executive’s legal representatives other than those obligations accrued hereunder at the date of the Executive’s death. Anything in this Agreement to the contrary notwithstanding, the
Executive’s family shall be entitled to receive benefits at least equal to those provided by the Corporation to surviving families of executives of the Corporation under such plans, programs and policies relating to family death benefits, if
any, as in effect at any time during the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time thereafter with respect to other key executives and
their families. 
  

 PAGE 9 

 (b) Disability. If the Executive’s employment is terminated by reason of the
Executive’s Disability, the Executive shall be entitled after the Disability Effective Date to receive disability and other benefits at least equal to those provided by the Corporation to disabled employees and/or their families in accordance
with such plans, programs and policies relating to disability, if any, as in effect during the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect at any time
thereafter with respect to other key executives and their families. 
 (c) Cause. If the Executive’s employment
shall be terminated for Cause, the Corporation shall pay the Executive his full Base Salary through the Date of Termination at the rate in effect at the time Notice of Termination is given and shall have no further obligations to the Executive under
this Agreement. 
 (d) Good Reason; Other Than for Cause or Disability. If, during the Employment Period, the
Corporation shall terminate the Executive’s employment other than for Cause or Disability, or the employment of the Executive shall be terminated by the Executive for Good Reason, then in either event: 
 (i) the Corporation shall pay to the Executive in a lump sum in cash during the 30-day period following the date of Executive’s
termination of employment (with the actual date during such 30-day period being in the sole discretion of the Corporation) the aggregate of the following amounts: 
 (A) if not theretofore paid, the Executive’s Base Salary through the Date of Termination at the rate in effect on the Date of
Termination or, if higher, at the highest rate in effect at any time within the 90-day period preceding the Effective Date; and 
  

 PAGE 10 

 (B) the product of (x) the annual bonus paid to the Executive (whether pursuant to
Section 5(b) of this Agreement or otherwise) for the last full fiscal year of the Corporation prior to the fiscal year in which the Date of Termination occurred, and (y) the fraction obtained by dividing (1) the number of days elapsed
in the then current fiscal year through the Date of Termination and (2) 365; and 
 (C) the sum of (x) the
Executive’s annual Base Salary at the rate in effect at the time Notice of Termination was given or, if higher, at the highest rate in effect at any time within the 90-day period preceding the Effective Date and (y) the Annual Bonus paid
to the Executive for the last full fiscal year of the Corporation (being the fiscal year in which the Effective Date but not the Date of Termination occurred) pursuant to Section 5(b) of this Agreement, or if no Annual Bonus shall have been
paid, the Annual Bonus which would have been payable to the Executive for the then current fiscal year (being the fiscal year in which the Date of Termination occurred) pursuant to Section 5(b) of this Agreement, provided that in no event shall
the Executive be entitled to receive under this clause (C) more than the product obtained by multiplying the amount determined as hereinabove provided in this clause (C) by a fraction the numerator of which shall be the number of months
(including fractions of a month) which at the Date of Termination remain until the first day of the month coinciding with or next following the Executive’s Outside Retirement Date and the denominator of which shall be 12; and 
  

 PAGE 11 

 (ii) until the earlier of (A) the first day of the month coinciding with or next
following the Executive’s Outside Retirement Date or (B) the first anniversary of the Effective Date (such number of months remaining until the earlier of clause (A) or (B) is hereinafter referred to as the “Unexpired
Term”), the Corporation shall, promptly upon submission by the Executive of supporting documentation (but in no event later than 30 days following the end of the fiscal year in which any costs or expenses are incurred), pay or reimburse to the
Executive any costs and expenses (including moving and relocation expenses) paid or incurred by the Executive which would have been payable under Section 5(e) if the Executive’s employment had not terminated; and 
 (iii) for the Unexpired Term, the Corporation shall continue benefits to the Executive and/or the Executive’s family at least equal
to those which would have been provided to them in accordance with the plans, programs and policies described in Sections 5(d) and 5(f) of this Agreement if the Executive’s employment had not been terminated, if and as in effect at any time
during the 90-day period immediately preceding the Effective Date or, if more favorable to the Executive, as in effect at any time thereafter with respect to other key executives and their families. 
 With the exception of the foregoing, if the Corporation shall terminate the Executive’s employment other than for Cause or
Disability, or the employment of the Executive shall be terminated by the Executive for Good Reason, the Corporation will have no further obligations to Executive under this Agreement. 
 (e) Compliance with Section 409A of the Internal Revenue Code. The payments under this Agreement are intended to comply with
the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and this Agreement will be interpreted in accordance with Section 409A and the regulations promulgated thereunder. For purposes of
any payment to which Executive becomes entitled on account of termination of employment under Section 7(d) of this Agreement, such termination of employment shall be deemed to refer only to a termination of employment that constitutes a
Separation from Service. In addition, payment of any 

  

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amounts under Section 7(d) will be deferred to the extent necessary to cause such payment to comply with the six month deferral rule described in
Section 409A(a)(2)(B) of the Internal Revenue Code if Executive is at the time of termination of employment a “specified employee” within the meaning of such section. “Separation from Service” shall mean a reasonably
anticipated permanent reduction in the level of bona fide services performed by the Executive for the Corporation and all Affiliates to 20% or less of the average level of bona fide services performed by the Executive for the Corporation and all
Affiliates (whether as an employee or an independent contractor) over the immediately preceding thirty-six (36) months (or the full period of service to the Company and all Affiliates if less than thirty-six (36) months). For purposes of
this paragraph, the term “Affiliate” means each entity that would be considered a single employer with the Corporation under Section 414(b) or Section 414(c) of the Internal Revenue Code, except that the phrase “at least
50%” shall be substituted for the phrase “at least 80%” as used therein. 
 8. Non-exclusivity of Rights.
Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Corporation or any of its affiliated companies and for which the
Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any stock option or other agreements with the Corporation or any of its affiliated companies. Amounts which are vested benefits or
which the Executive is otherwise entitled to receive under any plan or program of the Corporation or any of its affiliated companies at or subsequent to the Date of Termination shall be payable in accordance with such plan or program. 
 9. Full Settlement. The Corporation’s obligation to make the payments provided for in this Agreement and otherwise to perform its
obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other 

  

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right which the Corporation may have against the Executive or others. In no event shall the Executive be obligated to seek other employment by way of
mitigation of the amounts payable to the Executive under any of the provisions of this Agreement. The Corporation agrees to pay, to the full extent permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result of
any contest (regardless of the outcome thereof) by the Corporation or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof or as a result of any contest by the
Executive against the amount of any reduction pursuant to Section 10 of this Agreement, plus in each case interest during the period of such nonpayment on the total unpaid amount determined to be payable under this Agreement, such interest to
be calculated based upon the rate of interest publicly announced by Bank One Dallas, N.A. (or its successor) from time to time in Dallas, Texas, as its general reference rate of interest (which rate may not be the lowest rate of interest charged by
such bank). 
 10. Certain Reduction of Payments by the Corporation. Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment or distribution by the Corporation to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise) (a “Payment”) would be nondeductible by the Corporation for Federal income tax purposes because of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), then the aggregate present value of
amounts payable or distributable to or for the benefit of the Executive pursuant to this Agreement (such payments or distributions pursuant to this Agreement are hereinafter referred to as “Agreement Payments”) shall be reduced (but not
below zero) to the Reduced Amount. The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Agreement Payments without causing any Payment to be non-deductible by the Corporation
because 

  

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of Section 280G of the Code. Anything to the contrary notwithstanding, if the Reduced Amount is zero and it is determined further that any Payment which
is not an Agreement Payment would nevertheless be nondeductible by the Corporation for Federal income tax purposes because of Section 280G of the Code, then the aggregate present value of Payments which are not Agreement Payments shall also be
reduced (but not below zero) to an amount expressed in present value which maximizes the aggregate present value of Payments without causing any Payment to be nondeductible by the Corporation because of Section 280G of the Code. For purposes of this
Section 10, present value shall be determined in accordance with Section 280G(d)(4) of the Code. 
 All determinations required to
be made under this Section 10 shall be made (at the Corporation’s expense) by the Dallas office of Ernst & Young or its successor (the “Accounting Firm”), which shall provide detailed supporting calculations both to the
Corporation and the Executive within 15 business days of the termination of employment of the Executive or such earlier time as is requested by the Corporation. Any such determination by the Accounting Firm shall be binding upon the Corporation and
the Executive absent manifest error. The Corporation shall determine which and how much of the Agreement Payments and other Payment (after Agreement Payments have been reduced to zero) shall be eliminated or reduced consistent with the requirements
of this Section 10. 
 Within five business days thereafter, the Corporation shall pay to or distribute to or for the benefit of the
Executive such amounts as are then due to the Executive under this Agreement and shall promptly pay to or distribute for the benefit of the Executive in the future such amounts as become due to the Executive under this Agreement. 
  

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 As a result of the uncertainty in the application of Section 280G of the Code at the time of the
initial determination by the Accounting Firm hereunder, it is possible that Payments will have been made by the Corporation which should not have been made (“Overpayment”) or that additional Payments which will have not been made by the
Corporation could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. In the event that the Accounting Firm determines that an Overpayment has been made, the Executive shall repay
such Overpayment to the Corporation together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code; provided, however, that no amount shall be payable by the Executive to the Corporation (or if paid by the
Executive to the Corporation shall be returned to the Executive) if and to the extent such payment would not reduce the amount which is subject to taxation under Section 4999 of the Code. In the event that the Accounting Firm determines that an
Underpayment has occurred, any such Underpayment shall be promptly paid by the Corporation during the year of determination to or for the benefit of the Executive together with interest at the applicable Federal rate provided for in Section;
7872(f)(2) of the Code. 
 11. Confidential Information. The Executive shall hold in a fiduciary capacity for the benefit of
the Corporation all secret or confidential information, knowledge or data relating to the Corporation or any of its affiliated companies, and their respective businesses, which shall have been obtained by the Executive during the Executive’s
employment by the Corporation or any of its affiliated companies and which shall not be public knowledge (other than by acts by the Executive or his representatives in violation of this Agreement). After termination of the Executive’s
employment with the Corporation, The Executive shall not, without the prior written consent of the Corporation, communicate or divulge any such information, knowledge or data to anyone other than the Corporation and those designated by it. In no
event shall an asserted violation of the provisions of this Section 11 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. 
  

 PAGE 16 

 12. Successors. This Agreement is personal to the Executive and without the prior written
consent of the Corporation shall not be assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. This
Agreement shall inure to the benefit of and be binding upon the Corporation and its successors. 
 In the event of a Change of Control of the
Corporation, any parent company or successor shall, in the case of a successor, by an agreement in form and substance satisfactory to the Executive, expressly assume and agree to perform this Agreement and, in the case of a parent company, by an
agreement in form and substance satisfactory to the Executive, guarantee and agree to cause the performance of this Agreement, in each case in the same manner and to the same extent as the Corporation would be required to perform if no Change of
Control had taken place. 
 13. Miscellaneous. 
 (a) Governing Law, etc. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. The Table of
Contents and captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This agreement shall supersede any and all existing oral or written agreements between the Company and Executive regarding the subject
matter hereof. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties hereto or their respective successors or legal representatives. 
  

 PAGE 17 

 (b) Notices. All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
 If to the Executive: 
 At the address indicated 
 on the signature page 
 hereof. 
 If to the Corporation: 
 P.O. Box 36611

 Love Field 
 Dallas, Texas
75235-1611 
 or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall
be effective when actually received by the addressee. 
 (c) Severability. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 
 (d)
Withholding. The Corporation may withhold from any amounts payable under this Agreement such Federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation. 
 (e) Integration. This Agreement contains the entire understanding of the Corporation and the Executive with respect to the subject
matter hereof. 
 (f) Employment Status. The Executive and the Corporation acknowledge that the employment of the
Executive by the Corporation is “at will”, and, prior to the Effective Date, may be terminated by either the Executive or the Corporation at any time with or without cause. 
 [Remainder of page intentionally left blank] 
  

 PAGE 18 

 IN WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant to the authorization from its
Board of Directors, the Corporation has caused these presents to be executed in its name and on its behalf, all as of the day and year first above written. 
  

			
	EXECUTIVE
	
	 
	
	SOUTHWEST AIRLINES CO.
		
	By:	 	 
		
	Name:	 	 
		
	Its:	 	 

 EXECUTIVE EMPLOYMENT AGREEMENT 
  

 PAGE 19

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