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Exhibit 10.8  

 
 

MANAGEMENT SERVICES AGREEMENT    
    

THIS
AGREEMENT is made and entered into as of the 1st day of June, 2006 by and between HOSTOPIA.COM INC. (the "Company"), and John Nemanic (the "Contractor"). 

WHEREAS
the Company wishes to engage the Contractor to provide the Management Services and desires to enter into an agreement (the "Agreement") embodying the terms of such engagement; 

AND
WHEREAS the Contractor has accepted such engagement on the basis of the terms and conditions set forth in this Agreement; 

IN
CONSIDERATION of the recitals and mutual covenants contained herein and for other good and valuable consideration, the parties agree as follows: 

	1.
	Engagement:

The
Company hereby retains the Contractor and the Contractor hereby accepts engagement with the Company for the term of this Agreement set forth in Section 2 below, to provide the
Management Services set forth in Section 3 below, and upon all other terms and conditions in this Agreement set forth. 

	2.
	Term:

	(a)
	The
term of engagement pursuant to this Agreement (the "term") shall be for a period of 2 years and 10 months, and shall begin on June 1, 2006
(the "Commencement Date") and shall continue until March 31, 2009, subject to the provisions of this Agreement providing for earlier termination of engagement in
certain circumstances.

	(b)
	The
term shall automatically be extended for an additional period of 12 months from and after April 1, 2009 ("Renewal Date") and on each subsequent anniversary of the
Renewal Date, unless terminated by either the Company or the Contractor by written notice to the other given at least 180 days prior to the applicable anniversary of the Renewal Date. In the
event that such notice is given by the Company and not by the Contractor, Section 6(d) shall not apply and the provisions of Section 6(c) shall thereupon be applicable.

	3.
	Management
Services:

	(a)
	The
services that the Contractor is engaged to provide (the "Management Services"), and that the Contractor agrees to provide, to the Company shall include,
without limitation:

	(i)
	contributing
to the development of business strategy and attending monthly strategy sessions with the President and Chief Executive Officer of the Company; 

 

	(ii)
	establishing
and maintaining capital markets relations and investor relations;

	(iii)
	identifying
international and other business opportunities; and

	(iv)
	liaising
with representatives of offshore human resources suppliers, including those suppliers located in Ukraine.

	(b)
	At
all times during the term of this Agreement, Contractor may be designated as the Vice President, Business Development of the Company and its subsidiaries. The Contractor in
performing the Management Services shall report periodically to the President of the Company as to his results.

	(c)
	Throughout
the term of this Agreement, the Contractor shall devote no less than 33% of his time and attention during normal business hours to providing the Management Services, except
for vacations and except for illness or incapacity, but, subject to Section 7.

	(d)
	Nothing
in this Agreement shall preclude the Contractor from providing services (which may be substantially similar to the Management Services), serving as an officer or as a director
of other corporations, from engaging in charitable and public service activities, and from managing his personal investments, provided such activities do not materially interfere with the performance
by the Contractor of the Management Services under this Agreement.

	4.
	Basic
Fee for Services: 

For
services provided by the Contractor during the term of this Agreement, the Contractor shall be paid a base fee payable monthly, at the annual rate of CAD$66,522 during the term, and for subsequent
years, if any, such fee shall be reviewed annually and may be increased at the sole discretion of the Company, taking into account, among other things, individual performance and general business
conditions. The base fee shall be payable in U.S. dollars, converted at the U.S. dollar exchange rate A) of 0.86 until March 31, 2007; and B) posted by the
Bank of Canada on April 1st of each subsequent year, for each period of time during the term that commences on April 1st and ends on
March 31st. 

	5.
	Reimbursement
of Business Expenses: 

The
Contractor will be reimbursed for all reasonable out-of-pocket expenses incurred for and on behalf of the Company in connection with the conduct of the Company's business
upon presentation of sufficient evidence of such expenditures provided such expenditures are deductible to the Company for tax purposes and are authorized expenditures pursuant to policies adopted by
the board of directors of the Company from time to time. 

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	6.
	Termination
of Engagement:

	(a)
	Death
of Contractor.    In the event of the death of the Contractor during the term of this Agreement, the fee will be paid to the Contractor's
estate, through the end of the month in which death occurs.

	(b)
	Disability
of Contractor.    The engagement shall terminate automatically upon written notice from the Company in the event of the Contractor's
absence or inability to render the Management Services due to disability, illness, incapacity or otherwise for an aggregate 90 days during any one year period. In the event of any such absence
or inability, the Contractor shall be entitled to receive the fees provided for herein for the first 30 days thereof.

	(c)
	Termination
by the Company.    In the event of termination by the Company of the engagement of the Contractor hereunder other than for the
reasons stated in Section 6(d), the Contractor shall be entitled to continued base fee payments, payable monthly, for a period of 4 months following such termination
(notwithstanding that the balance of the term of this Agreement may exceed four months) at the rate in effect immediately prior to such termination.

	(d)
	Termination
by the Company.    In the event of a termination of the engagement of the Contractor for any of the reasons in
paragraphs 6(d)(i) to (iv), there will be no continued fee payments by the Company to the Contractor.

	(i)
	Contractor
has been convicted of a criminal offence which would, in the opinion of the Company, reflect negatively on the Company, or has improperly enriched himself at
the expense of the Company or has committed an act evidencing dishonesty including without limitation an act of theft.

	(ii)
	Contractor
has been wilfully and grossly negligent, has committed wilful and gross misconduct or has failed to comply with an instruction or directive from the board of
directors of the Company.

	(iii)
	Contractor
has breached a material term of this Agreement, including the failure of Contractor to perform any of the Management Services for any reason.

	(iv)
	Contractor
becomes bankrupt or in the event a receiving order (or any analogous order under any applicable law) is made against Contractor or in the event
Contractor makes any general disposition or assignment for the benefit of its creditors. 

Prior
to any termination for cause due to any occurrence described in subparagraphs 6(d)(ii), (iii) and (v) above, the Company shall notify the Contractor in writing of the
particulars of the occurrence upon which termination would be based and shall in such notice advise the Contractor as to whether in the Company's sole discretion the default of the Contractor
occasioned by such occurrence is capable of being cured or rectified in full without loss or damage to the Company, in which case the Company shall afford the Contractor a reasonable period of not
less than 5 business days in which to cure or rectify such default. In such event and provided the Contractor cures or rectifies such default in full without loss or damage to the Company, the
engagement of the Contractor shall not be terminated on the basis of such occurrence. 

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	7.
	Non-Competition:

The
Contractor agrees that during the period of engagement with the Company and for a period of 18 months from the last payment of fees to the Contractor by the Company, the Contractor shall
not engage in or participate in any business activity that competes, directly or indirectly, with the businesses of the Company, or its subsidiaries or affiliates; provided, however, that the
Contractor shall not be precluded from competing with the business of the Company in the event of a termination of engagement as a result of a material breach by the Company of the provisions of this
Agreement or in the event that engagement is terminated by the Company other than for cause. 

For
purposes of this Section 7, the Contractor shall be deemed to "compete, directly or indirectly" with the businesses of the Company, or its subsidiaries or affiliates if the
Contractor is or becomes engaged, otherwise than at the request of the Company, as a principal, director or employee of, or is or becomes associated in a management or ownership, consultant or agent,
capacity with, any corporation, partnership or other enterprise or venture whose business includes wholesale, private label web hosting and email services in Canada or the United States, during
the 18 month period immediately preceding termination. Contractor shall not be deemed to "compete, directly or indirectly" with the businesses of the Company, or its subsidiaries or affiliates
if he becomes associated in a management or ownership, consultant or agent, capacity with, any corporation, partnership or other enterprise or venture, the business of which is competitive to the
Company, prior to the date that the businesses of the Company becomes competitive with the business of such corporation, partnership or other enterprise or venture. 

Notwithstanding
anything to the contrary contained herein the Contractor may, without being deemed to compete, directly or indirectly, with the businesses of the Company or its subsidiaries or
affiliates own not more than 5 percent of any class of the outstanding securities of any such corporation listed on a national securities exchange or traded in the
over-the-counter market. 

It
is the desire and the intent of the parties that the provisions of this Section 7 shall be enforceable to the fullest extent permissible under the laws and public policies applied in each
jurisdiction in which enforcement is sought. Accordingly, if any particular portion of this Section 7 is adjudicated unenforceable in any jurisdiction, such adjudication shall apply only in
that particular jurisdiction in which such adjudication is made. 

The
parties recognize that the Company will have no adequate remedy at law for the breach by the Contractor of the covenants provided in this Section 7, and, in the event of such breach, the
Company and the Contractor hereby agree that the Company will be entitled to an injunction, a decree of specific performance, mandamus or other appropriate remedy to enforce such covenants. 

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	8.
	Non-Solicitation:

The
Contractor agrees that for a period of 24 months following the termination of engagement with the Company for any reason whatsoever, the Contractor will not, whether as principal, agent,
employee, employer, director, shareholder or in any other individual or representative capacity, solicit or attempt to retain in any way whatsoever any of the employees of the Company or its
subsidiaries or affiliates. 

	9.
	Confidential
Information:

	(a)
	The
Contractor agrees not to disclose either while engaged by the Company or at any time thereafter to any person not employed by the Company or not engaged to render services to the
Company, any trade secrets or confidential information of or relating to the Company or its subsidiaries and affiliates or its business obtained by the Contractor while engaged by the Company;
provided, however, that this provision shall not preclude the Contractor from the use or disclosure of information known generally to the public (other than that which the Contractor may have
disclosed in breach of this Agreement) or of information not generally considered confidential or from disclosure required by law or court order in the proper conduct of the Company's business.

	(b)
	The
Contractor also agrees that upon ceasing to be engaged by the Company, the Contractor will not take, without the prior written consent of the board of directors of the Company,
any technical report or other document of the Company or its subsidiaries, affiliates and divisions, which is of a confidential nature relating to the Company or its subsidiaries, affiliates
and divisions.

	(c)
	The
parties recognize that the Company will have no adequate remedy at law for breach by the Contractor of the covenants provided in this Section 9, and in the event of such
breach, the Company and the Contractor hereby agree that the Company shall be entitled to an injunction, a decree of specific performance, mandamus or other appropriate remedy to enforce
such covenants.

	10.
	Ownership
of Ideas and Inventions: 

All
results of services performed by the Contractor hereunder including without limitation all inventions, ideas, copyrights, trade secrets or otherwise, shall be owned by and be the sole and
exclusive property of the Company. The Contractor hereby transfers and assigns all right, title and interest of every nature and kind whatsoever therein to the Company and agrees to execute and
deliver such further documents and instruments as may be necessary to fully and effectually give effect thereto. 

5

 
	11.
	Indemnity:

The
Contractor shall indemnify and save the Company harmless from and against all claims, actions, losses, expenses, costs or damages of every nature and kind whatsoever which the Company, or its
principals, employees or agents (for whom in this regard the Company is acting as trustee and agent) may suffer as a result of the negligence or breach of any covenant herein of the Contractor
in the performance or non-performance of this Agreement or as a result of any claims, charges, taxes or penalties the Company may be required to pay in respect of income tax, pension,
unemployment insurance, workers' compensation or health care assessment relating to the payment of fees or expenses to the Contractor hereunder. 

	12.
	Notices:

Any
notices, requests, demands or other communications provided for by this Agreement shall be in writing and shall be sufficiently given when and if sent by personal delivery, overnight courier or by
facsimile to the party entitled thereto at the address stated below or at such other address as the addresses may have given by similar notice: 

To
the Company: 

Hostopia.com Inc.

5915 Airport Road, 11th Floor

Mississauga, Ontario L4V 1T1 

Attention:
Secretary 

Fax
No.: 1 800 979-9587 

To
Contractor: 

John
Nemanic

ADPO 0832-1665

World Trade Center,

Panama City, Republic of Panama 

Fax
No.: 1 800 979-9587 

Any
such notice shall be deemed delivered if given by means of personal delivery on the day of delivery thereof or if given by means of overnight courier or facsimile transmission on the first
business day following the dispatch thereof. 

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	13.
	Entire
Agreement: 

This
Agreement contains the entire agreement between the parties hereto with respect to matters herein and supersedes all prior agreements and understandings, oral or written, between the parties
hereto relating to such matters. 

	14.
	Assignment:

Except
as herein expressly provided, the respective rights and obligations of the Contractor and the Company under this Agreement shall not be assignable by either party without the written consent of
the other party and shall enure to the benefit of and be binding upon the Contractor and the Company and their permitted successors or assigns, including, in the case of the Company, any other
corporation or entity with which the Company may be merged or otherwise combined or which may acquire the Company or its assets in whole or in substantial part, and, in the case of the Contractor, its
legal representatives. Nothing herein expressed or implied is intended to confer on any person other than the parties hereto any rights, remedies, obligations or liabilities under or by reason of
this Agreement. 

	15.
	Legal
Fees: 

In
the event of any dispute or legal proceeding arising out of or in connection with this Agreement, the party succeeding in such action, whether by judicial decision or settlement, shall be
reimbursed by the other party for all legal fees and expenses incurred by the successful party with respect to such dispute or proceeding. 

	16.
	Applicable
Law: 

This
Agreement shall be deemed a contract under, and for all purposes shall be governed by and construed in accordance with, the laws of the Province of Ontario without regard to the conflict of laws
rules thereof. The Company and the Contractor hereby each irrevocably consent and attorn to the jurisdiction of the courts of the Province of Ontario with respect to any dispute or proceeding arising
in connection with this Agreement. 

	17.
	Amendment
or Modification; Waiver: 

No
provision of this Agreement may be amended or waived unless such amendment or waiver is authorized by the Company (including any committee by the board of directors) and is in a writing signed by
the Contractor and by a duly authorized officer of the Company. Except as otherwise specifically provided in this Agreement, no waiver by either party hereto of any breach by the other party of any
condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar breach, condition or provision at the same time or at any prior or
subsequent time. 

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	18.
	Damages:

In
the event that the Contractor is awarded any damages as compensation for any breach of this Agreement, a breach of any covenant contained in this Agreement (whether express or implied by either law
or fact), or any other cause of action based in whole or in part on a breach of any provision of this Agreement or related in any way to the Contractor's engagement hereunder, such damages shall be
limited to contractual damages. 

	19.
	Provisions
Surviving Termination: 

It
is expressly agreed that notwithstanding termination of engagement of the Contractor with and by the Company for any reason or cause or in any circumstances whatsoever, such termination shall be
without prejudice to the rights and obligations of the Contractor and the Company, respectively, in relation to or arising up to the time of and including the date of termination, and the provisions
of Sections 8, 9, 10, 11, 12, 16, 17, 19, 20 and 22 of this Agreement, all of which shall remain and continue in full force and effect unless and until the board of directors of the
Company at its absolute discretion resolves otherwise and so notifies the Contractor in writing. 

	20.
	Force
Majeure: 

If,
during the term of this Agreement, the conduct or operation of the Company or any entity for which the Contractor is assigned to provide services under this Agreement is in any way hampered,
interrupted or interfered with in any manner whatsoever by reason of any present or future statute, law, ordinance, regulation, order, judgment or decree, act of God, earthquake, flood, fire,
epidemic, accident, explosion, casualty, lock-out, boycott, strike, labour controversy (including, but not limited to, threat of lock-out, boycott or strike), riot, civil
disturbance or armed conflict, act of a public enemy, embargo, delay of common carrier, inability without fault of the Company (or any entity for which the Contractor is assigned to provide
services under this Agreement) to obtain sufficient material, labour, transportation, power or other essential commodity required in the conduct of its business or by reason of the death, illness,
incapacity or disability of any principal employee of any such entity or by reason of any cause, thing or occurrence not within such entity's control, then the Company may, at its option, suspend the
Contractor services for any period during which such event or events of force majeure shall continue and no fees shall accrue or be payable to the Contractor for or during the period of such
suspension period. In the event any such suspension shall continue for a period or periods of four (4) weeks in the aggregate, then the Company may elect within ten (10) business days of
such suspension to cancel and terminate this Agreement by written notice to the Contractor of such election. In the event of a termination of this Agreement under the provisions of this paragraph, the
Company and the Contractor shall be released and discharged from any further obligations hereunder, including any further obligations of the Company for the payment of fees to the Contractor. 

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	21.
	Errors
and Omissions Insurance: 

The
Company shall obtain, directly or through its affiliates, a standard form policy of director's and principal's errors and omissions insurance covering the Contractor if and to the extent available
on commercially reasonable terms as reasonably considered and assessed by the board of directors of the Company. Said policy, if obtained, will be subject to such exclusions, deductibles and policy
limits as deemed reasonable by the board of directors of the Company. In any event, the Company hereby indemnifies the Contractor and agrees to hold the Contractor safe, harmless, defended and
indemnified (to the maximum extent permissible under applicable law, as now exists or as may be hereafter amended) against all claims and liabilities incurred by the Contractor relative to his
lawful and authorized performance of the services under this Agreement, except where such claims and liabilities arise because of the Contractor's intentional default or malfeasance, gross negligence,
habitual neglect, unlawful conduct or breach of the terms, covenants or conditions of this Agreement. 

	22.
	Severability:

In
the event that any provision or portion of this Agreement shall be determined to be invalid or unenforceable for any reason, the remaining provisions and portions of this Agreement shall be
unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. 

	23.
	Counterparts: 

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

	24.
	References:

In
the event of Contractor's death or a judicial determination of his incompetency, reference in this Agreement to Contractor shall be deemed, where appropriate, to refer to his legal representatives,
or, where appropriate, to refer to his beneficiary or beneficiaries. 

	25.
	Captions: 

Captions
to the Sections of this Agreement are solely for convenience and no provision of this Agreement is to be construed by reference to the captions of that Section. 

	26.
	Contractor
not an Employee: 

The
Contractor is not an employee of the Company and shall not be entitled to receive from the Company any salary, wages or other remuneration or employment benefits whatsoever in respect of
Management Services provided by Contractor under this Agreement and the Company shall not withhold or deduct taxes, pension, unemployment insurance, workers' compensation, health care assessment and
other similar levies in respect of the fee for services to be paid to the Contractor hereunder. 

9

 

IN
WITNESS WHEREOF this Agreement has been executed by a duly authorized officer of the Company and by the Contractor as of the day and year first above written. 

	 	 	HOSTOPIA.COM INC.
	

 	
 	

Per:	
 	

/s/  MICHAEL MUGAN      
	 	 	 	 	

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	/s/  JOHN NEMANIC      
 John Nemanic

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Exhibit 10.9  

 
 

INDEMNIFICATION AGREEMENT    
    

        INDEMNIFICATION AGREEMENT, effective as of
[                        ]
[                        ], 200[            ], by and between
Hostopia.com Inc., a Delaware corporation
(the "Company"), and [                        ] (the "Indemnitee"). 

        WHEREAS, it is essential to the Company to retain and attract as directors and officers the most capable persons available; and 

        WHEREAS, the Indemnitee is a director or officer of the Company; and 

        WHEREAS, both the Company and the Indemnitee recognize the increased risk of litigation and other claims being asserted against directors
and officers of public companies in today's environment; and 

        WHEREAS, the Certificate of Incorporation and Bylaws of the Company require the Company to indemnify and advance expenses to its directors
and officers to the fullest extent permitted by law and the Indemnitee has been serving and continues to serve as a director or officer of the Company in part in reliance on such provisions of the
Certificate of Incorporation and By-laws of the Company; and 

        WHEREAS, in recognition of Indemnitee's need for substantial protection against personal liability in order to enhance Indemnitee's
continued service to the Company in an effective manner and Indemnitee's reliance on the aforesaid provisions of the Certificate of Incorporation and By-laws of the Company, and in part to
provide Indemnitee with specific contractual assurance that the protection promised by such provisions of the Certificate of Incorporation and By-laws of the Company will be available to
Indemnitee (regardless of, among other things, any amendment to or revocation of such provisions or any change in the composition of the Company's Board of Directors or acquisition transaction
relating to the Company), the Company wishes to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent (whether partial or complete)
permitted by law and as set forth in this Agreement and for the continued coverage of Indemnitee under the Company's directors' and officers' liability insurance policies. 

        NOW, THEREFORE, in consideration of the premises and of the Indemnitee continuing to serve the Company directly or, at its request,
another enterprise, and intending to be legally bound hereby, the parties hereto agree as follows: 

        1.     Certain
Definitions: 

	(a)
	Change
in Control:    shall be deemed to have occurred if (i) any "person" (as such term is used in Sections 13(d)
and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), 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, is or becomes the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 20% or more of the total voting power
represented by the Company's then outstanding Voting Securities, or (ii) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of
Directors of the Company and any new director whose election by the Board of Directors or nomination for election by the Company's stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously
so approved, cease for any reason to constitute a majority thereof, or (iii) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other
than a merger or consolidation which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being
converted into Voting Securities of the surviving entity) at least 80% of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation, or the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of
(in one transaction or a series of transactions) all or substantially all the Company's assets. 

 

	(b)
	Claim:    any
threatened, pending or completed action, suit or proceeding, or any inquiry or investigation, whether instituted by the Company or
any other party, that Indemnitee in good faith believes might lead to the institution of any such action, suit or proceeding, whether civil, criminal, administrative, investigative or other.

	(c)
	Expenses:    include
attorneys' fees and all other costs, expenses and obligations paid or incurred in connection with investigating, defending,
being a witness in or participating in (including on appeal), or preparing to defend, be a witness in or participate in, any Claim relating to any Indemnifiable Event.

	(d)
	Indemnifiable
Event:    any event or occurrence related to the fact that Indemnitee is or was a director, officer, employee, agent or fiduciary
of the Company, or is or was serving at the request of the Company as a director, officer, employee, trustee, agent or fiduciary of another corporation, partnership, joint venture, employee benefit
plan, trust or other enterprise, or by reason of anything done or not done by Indemnitee in any such capacity.

	(e)
	Independent
Legal Counsel:    an attorney or firm of attorneys, selected in accordance with the provisions of Section 3, who shall not
have otherwise performed services for the Company or Indemnitee within the last five years (other than with respect to matters concerning the rights of Indemnitee under this Agreement, or of other
indemnitees under similar indemnity agreements).

	(f)
	Reviewing
Party:    any appropriate person or body consisting of a member or members of the Company's Board of Directors or any other person or
body appointed by the Board who is not a party to the particular Claim for which Indemnitee is seeking indemnification, or Independent Legal Counsel.

	(g)
	Voting
Securities:    any securities of the Company which vote generally in the election of directors. 

        2.     Basic
Indemnification Arrangement.    (a) In the event Indemnitee was, is or becomes a party to or witness or other participant in,
or is threatened to be made a party to or witness or other participant in, a Claim by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee to the
fullest extent permitted by law as soon as practicable but in any event no later than thirty days after written demand is presented to the Company, against any and all Expenses, judgments, fines,
penalties and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines, penalties or
amounts paid in settlement) of such Claim. If so requested by Indemnitee, the Company shall advance (within two business days of such request) any and all Expenses to Indemnitee (an "Expense
Advance"). Notwithstanding anything in this Agreement to the contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in connection with any Claim initiated by
Indemnitee unless the Board of Directors has authorized or consented to the initiation of such Claim. 

        (b)   Notwithstanding
the foregoing, (i) the obligations of the Company under Section 2(a) shall be subject to the condition that the Reviewing Party shall not
have determined (in a written opinion, in any case in which the Independent Legal Counsel referred to in Section 3 hereof is involved) that Indemnitee would not be permitted to be
indemnified under applicable law, and (ii) the obligation of the Company to make an Expense Advance pursuant to Section 2(a) shall be subject to the condition that, if, when and to the
extent that the Reviewing Party determines that Indemnitee would not be permitted to be so indemnified under applicable law, the Company shall be entitled to be reimbursed by Indemnitee
(who hereby agrees to reimburse the Company) for all such amounts theretofore paid; provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings in a court of
competent jurisdiction to secure a determination that Indemnitee should be indemnified under applicable law, any determination made by the Reviewing Party that Indemnitee would not be permitted to be
indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse the Company for any Expense Advance until a final judicial determination is made with respect
thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). If there has not been a Change in Control, the Reviewing Party shall be selected by the Board of Directors,
and if there has been such a Change in Control (other than a Change in Control which has been approved by a majority of the Company's Board of Directors who were directors immediately prior to such
Change in Control), the Reviewing Party shall be the Independent Legal Counsel referred to in Section 3 hereof. If there has been no determination by the Reviewing Party or if the Reviewing
Party determines that Indemnitee substantively would not be permitted to be indemnified in whole or in part under applicable law, Indemnitee shall have the right to commence litigation in any court in
the States of New York or Delaware having subject matter jurisdiction thereof and in which venue is proper seeking an initial determination by the court or challenging any such determination by
the Reviewing Party or any aspect thereof, including the legal or factual bases therefor, and the Company hereby consents to service of process and to appear in any such proceeding. Any determination
by the Reviewing Party otherwise shall be conclusive and binding on the Company and Indemnitee. 

2

 

        3.     Change
in Control.    The Company agrees that if there is a Change in Control of the Company (other than a Change in Control which
has been approved by a majority of the Company's Board of Directors who were directors immediately prior to such Change in Control) then with respect to all matters thereafter arising concerning the
rights of Indemnitee to indemnity payments and Expense Advances under this Agreement or any other agreement or provision of the Company's Certificate of Incorporation or By-Laws now or
hereafter in effect relating to Claims for Indemnifiable Events, the Company shall seek legal advice only from Independent Legal Counsel selected by Indemnitee and approved by the Company (which
approval shall not be unreasonably withheld). Such counsel, among other things, shall render its written opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee would be
permitted to be indemnified under applicable law. The Company agrees to pay the reasonable fees of the Independent Legal Counsel referred to above and to indemnify fully such counsel against any and
all expenses (including attorneys' fees), claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto. 

        4.     Indemnification
for Additional Expenses.    The Company shall indemnify Indemnitee against any and all expenses (including
attorneys' fees) and, if requested by Indemnitee, shall (within two business days of such request) advance such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action
brought by Indemnitee for (i) indemnification or advance payment of Expenses by the Company under this Agreement or any other agreement or provision of the Company's Certificate of
Incorporation or By-Laws now or hereafter in effect relating to Claims for Indemnifiable Events and/or (ii) recovery under any directors' and officers' liability insurance policies
maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advance expense payment or insurance recovery, as the case may be. 

        5.     Partial
Indemnity, Etc.    If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for
some or a portion of the Expenses, judgments, fines, penalties and amounts paid in settlement of a Claim but not, however, for all of the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion thereof to which Indemnitee is entitled. Moreover, notwithstanding any other provision of this Agreement, to the extent that Indemnitee has been successful on the merits or
otherwise in defense of any or all Claims relating in whole or in part to an Indemnifiable Event or in defense of any issue or matter therein, including dismissal without prejudice, Indemnitee shall
be indemnified against all Expenses incurred in connection therewith. 

        6.     Burden
of Proof.    In connection with any determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled
to be indemnified hereunder the burden of proof shall be on the Company to establish that Indemnitee is not so entitled. 

        7.     No
Presumptions.    For purposes of this Agreement, the termination of any claim, action, suit or proceeding, by judgment, order,
settlement (whether with or without court approval) or conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that Indemnitee did not meet any particular
standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law. In addition, neither the failure of the Reviewing Party to
have made a determination as to whether Indemnitee has met any particular standard of conduct or had any particular belief, nor an actual determination by the Reviewing Party that Indemnitee has not
met such standard of conduct or did not have such belief, prior to the commencement of legal proceedings by Indemnitee to secure a judicial determination that Indemnitee should be indemnified under
applicable law shall be a defense to Indemnitee's claim or create a presumption that Indemnitee has not met any particular standard of conduct or did not have any particular belief. 

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        8.     Nonexclusivity,
Etc.    The rights of the Indemnitee hereunder shall be in addition to any other rights Indemnitee may have under
or provision of the Company's Certificate of Incorporation or Bylaws or the General Corporation Law of the State of Delaware (the "DGCL") or otherwise. To the extent that a
change in the DGCL (whether by statute or judicial decision) permits greater indemnification by agreement than would be afforded currently under the provisions of the Company's Certificate of
Incorporation and By-Laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. 

        9.     Liability
Insurance.    To the extent the Company maintains an insurance policy or policies providing directors' and officers'
liability insurance, Indemnitee shall be covered by such policy or policies, in accordance with its or their terms, to the maximum extent of the coverage available for any Company director
or officer. 

        10.   Period
of Limitations.    No legal action shall be brought and no cause of action shall be asserted by or in the right of the
Company against Indemnitee, Indemnitee's spouse, heirs, executors or personal or legal representatives after the expiration of two years from the date of accrual of such cause of action, and any claim
or cause of action of the Company shall be extinguished and deemed released unless asserted by the timely filing of a legal action within such two-year period; provided, however, that if
any shorter period of limitations is otherwise applicable to any such cause of action such shorter period shall govern. 

        11.   Amendments,
Etc.    No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both
of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver. 

        12.   Subrogation.    In
the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary
to enable the Company effectively to bring suit to enforce such rights. 

        13.   No
Duplication of Payments.    The Company shall not be liable under this Agreement to make any payment in connection with any
Claim made against Indemnitee to the extent Indemnitee has otherwise actually received payment (under any insurance policy, By-law or otherwise) of the amounts otherwise
indemnifiable hereunder. 

        14.   Binding
Effect, Etc.    This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto
and their respective successors, assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the
Company, spouses, heirs, executors and personal and legal representatives. This Agreement shall continue in effect regardless of whether Indemnitee continues to serve as an officer or director of the
Company or of any other enterprise at the Company's request. 

        15.   Severability.    The
provisions of this Agreement shall be severable in the event that any of the provisions hereof (including any
provision within a single section, paragraph or sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable in any respect, and the validity and
enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired and shall remain enforceable to the fullest extent permitted
by law. 

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        16.   Governing
Law.    This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of
Delaware applicable to contracts made and to be performed in such state without giving effect to the principles of conflicts of laws. 

	 

	 

        IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this [            ] day of
[                        ], 200[            ]. 

	 	 	HOSTOPIA.COM INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	
 [Indemnitee]

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INDEMNIFICATION AGREEMENT

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