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Exhibit 10.14    
  

 
 

Indemnification Agreement    
  

        THIS AGREEEMENT is made as of the 10th day of January, 2003, by and between Veterinary Pet Services, Inc.,
a California corporation ("VPSI"), Veterinary Pet Insurance Company, a California corporation ("VPI"), DVM Insurance Agency, Inc., a California corporation ("DVM"), and VPI
Services, Inc., a California corporation ("VPIS"), on the one hand, and                        ("Indemnitee"), a Director of
VPSI, VPI, DVM, and VPIS, on the other hand. 

witnesseth:  

        WHEREAS, VPI, DVM, and VPIS are wholly-owned subsidiaries of VPSI (hereinafter VPSI, VPI, DVM, and VPIS are
collectively referred to as the "Corporation"); and 

        WHEREAS, it is essential to the Corporation to retain and attract as Directors the most capable persons available; and 

        WHEREAS, the recent trends towards a substantial increase in corporate litigation subjects Directors to expensive litigation risks at the
same time that the availability of Directors' liability insurance has been severely limited; and 

        WHEREAS, it is now and has always been the express policy of the Corporation to indemnify its Directors so as to provide them with the
maximum possible protection permitted by law; and 

        WHEREAS, Indemnitee does not regard the protection available under the Corporation's Articles of Incorporation, Bylaws and insurance as
adequate in the present circumstances, and may not be willing to continue to serve as a Director without adequate protection, and the Corporation desires Indemnitee to continue to serve in such
capacity. 

        NOW THEREFORE, in consideration of the Indemnitee's continued service as a Director of the Corporation the Corporation and Indemnitee do
hereby agree as follows: 

        1.    Agreement to Serve.    Indemnitee agrees to continue to serve as a Director of the
Corporation for so long as he or she is duly elected or appointed or until such time as he or she tenders his or her resignation in writing. 

        2.    Definitions.    As used in this Agreement: 

        (a)  The
term "Proceeding" shall include any threatened, pending, or completed action, suit, or proceeding, whether brought by or in the right of the Corporation or
otherwise, and whether of a civil, criminal, administrative, or investigative nature, in which Indemnitee is or was a party or is threatened to be made a party be reason of the fact that Indemnitee is
or was a Director of the Corporation (or any subsidiary of the Corporation), or is or was serving at the request of the Corporation as a director, officer, employee, agent, or fiduciary of another
corporation, partnership, joint venture, trust, or other enterprise. 

        (b)  The
term "Expenses" shall include, without limitation, expenses of investigation, judicial or administrative proceedings or appeals, amounts paid in settlement by or on
behalf of Indemnitee, attorneys' fees, and disbursements and any expenses of establishing a right to indemnification under Paragraph 7 of this Agreement, but shall not include amounts of
judgments, fines, or penalties against Indemnitee. 

        (c)  References
to "other enterprises" shall include employee benefit plans; references to "fines" shall include any excise taxes assessed on Indemnitee with respect to any
employee benefit plan; references to "serving at the request of the Corporation" shall include any service as a Director, 

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Officer, employee or agent of the Corporation which imposes duties on, or involves services by, such Director, Officer, employee, agent, or fiduciary with respect to an employee benefit plan, its
participants, or beneficiaries; and a person who acted in good faith and in a manner he or she reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit
plan shall be deemed to have acted in a manner "not opposed to the best interest of the Corporation" as referred to in this Agreement. 

        3.    Indemnity in Third-Party Proceedings.    The Corporation shall indemnify Indemnitee in
accordance with the provisions of this Paragraph 3, against all Expenses, judgments, fines, and penalties actually and reasonably incurred by Indemnitee in connection with the defense or
settlement of any Proceeding (other than a Proceeding by or in the right of the Corporation to procure a judgment in its favor), but only if Indemnitee acted in good faith and in a manner which he or
she reasonably believed to be in or not opposed to the best interests of the Corporation, and, in the case of a criminal proceeding, had no reasonable cause to believe that his or her conduct was
unlawful. The termination of any such Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that
Indemnitee did not act in good faith in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal proceeding,
that Indemnitee had reasonable cause to believe that his or her conduct was unlawful. 

        4.    Indemnity in Proceedings By or In the Right of the Corporation.    The Corporation
shall
indemnify Indemnitee in accordance with the provisions of this Paragraph, against all Expenses actually and reasonably incurred by Indemnitee in connection with the defense or settlement of any
Proceeding by or in the right of the Corporation to procure a judgment in its favor, but only if Indemnitee acted in good faith and in a manner which he or she reasonably believed to be in or not
opposed to the best interests of the Corporation, except that no indemnification for Expenses shall be made under this Paragraph in respect of any claim, issue, or matter as to which Indemnitee shall
have been adjudged to be liable to the Corporation for negligence or misconduct in the performance of his or her duty to the Corporation, unless and only to the extent that the court in which such
Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to
indemnity for such Expenses which such court shall deem proper. 

        5.    Indemnification of expenses of Successful Party.    Notwithstanding any other
provision
of this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise, in defense of any Proceeding, or in defense of any claim, issue, or matter therein, Indemnitee shall be
indemnified against all Expenses actually and reasonably incurred by Indemnitee in connection therewith. 

        6.    Advances of Expenses.    At the written request of Indemnitee, the expenses incurred
by
Indemnitee in any Proceeding shall be paid by the Corporation in advance of the final disposition of such Proceeding, provided, that Indemnitee shall undertake in writing to repay such amount to the
extent that it is ultimately determined that Indemnitee is not entitled to indemnification. If the Corporation makes an advance of expenses pursuant to this Paragraph 6, the Corporation shall
be subrogated to every right of recovery Indemnitee may have against any insurance carrier from whom the Corporation has purchased insurance for such purpose. 

        7.    Right of Indemnitee to Indemnification Upon Application; Procedure Upon Application.    

        (a)  Any
indemnification under Paragraphs 3 and 4 or advance under Paragraph 6 shall be paid by the Corporation no later than 45 days after receipt of the
written request of Indemnitee, unless a determination is made within said 45-day period by (i) the Board of Directors by a majority vote of a quorum consisting of directors who were
not parties to the Proceeding in respect of which indemnification is being sought, or (2) independent legal counsel in a written opinion (which counsel 

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shall be appointed by a quorum of the Board of Directors), or (3) the stockholders of the Corporation, that Indemnitee has not met the relevant standards for indemnification set forth in
Paragraphs 3 and 4. 

        (b)  The
right to indemnification or advancement of Expenses as provided by this Agreement shall be enforceable by Indemnitee in any court of competent jurisdiction. The
burden of proving that indemnification or advances are not appropriate shall be on the Corporation. Neither the failure of the corporation (including its Board of Directors or independent legal
counsel or stockholders) to have made a determination prior to the commencement of such action that Indemnitee has met the applicable standard of conduct nor an actual determination by the Corporation
(including its Board of Directors or independent legal counsel or stockholders) that Indemnitee has not met the applicable standard of conduct shall be a defense to the action or create a presumption
that Indemnitee has not met the applicable standard of conduct. Indemnitee's Expenses actually and reasonably incurred in connection with successfully establishing his or her right to indemnification
or advances, in whole or in part, shall also be indemnified by the Corporation. 

        (c)  With
respect to any Proceeding for which indemnification is requested, the Corporation will be entitled to participate therein at its own expense and, except as
otherwise provided below, the Corporation may assume the defense thereof, with counsel satisfactory to Indemnitee. After notice from the Corporation to Indemnitee of its election to assume the defense
of a Proceeding, the Corporation will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than as
provided below. The Corporation shall not settle any Proceeding in any manner which would impose any penalty or limitation or Indemnitee without Indemnitee's written consent. Indemnitee shall have the
right to employ counsel in any Proceeding but the fees and expenses of such counsel incurred after notice from the Corporation of its assumption of the defense of the Proceeding shall be at the
expense of Indemnitee, unless (i) the employment of counsel by Indemnitee has been authorized by the Corporation, (ii) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Corporation and Indemnitee in the conduct of the defense of a Proceeding, or (iii) the Corporation shall not in fact have employed counsel to assume the defense
of a Proceeding, in each of which cases the fees and expenses of Indemnitee's counsel shall be advanced by the Corporation. Notwithstanding the foregoing, the Corporation shall not be entitled to
assume the defense of any Proceeding brought by or in the right of the Corporation. 

        8.    Limitation on Indemnification.    No payment pursuant to this Agreement shall be made
by
the Corporation: 

        (a)  to
indemnify or advance funds to Indemnitee for Expenses with respect to Proceedings initiated or brought voluntarily by Indemnitee and not by way of defense, except
with respect to Proceedings
brought to establish or enforce a right to indemnification under this Agreement, but such indemnification or advancement of Expenses may be provided by the Corporation in specific cases if the Board
of Directors finds it to be appropriate; 

        (b)  to
indemnify Indemnitee for any Expenses, judgments, fines, or penalties sustained in any Proceeding for which payment is actually made to Indemnitee under a valid and
collectible insurance policy, except in respect of any excess beyond the amount of payment under such insurance; 

        (c)  to
indemnify Indemnitee for any Expenses, judgments, fines or penalties sustained in any Proceeding for an accounting of profits made from the purchase or sale by
Indemnitee of securities of the Corporation pursuant to the provisions of § 16(b) of the Securities Exchange Act of 1934, the rules and regulations promulgated thereunder and amendments
thereto or similar provisions of any federal, state, or local statutory law; 

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        (d)  to
indemnify Indemnitee for any Expenses, judgments, fines or penalties resulting from Indemnitee's conduct which is finally adjudged to have been willful misconduct,
knowingly fraudulent, or deliberately dishonest; or 

        (e)  if
a court of competent jurisdiction finally determines that such payment hereunder is unlawful. 

        9.    Indemnification Hereunder Not Exclusive.    The indemnification and advancement of
Expenses provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under the Articles of Incorporation or the Bylaws of the Corporation, any
agreement, any vote of stockholders or disinterested Directors, the General Corporation Law of the State of California, or otherwise, both as to action in his official capacity and as to action in
another capacity while holding such office. The indemnification provided by this Agreement shall continue as to Indemnitee even though he or she may have ceased to be a Director and shall inure to the
benefit of the heirs and personal representatives of Indemnitee. 

        10.    Partial Indemnification.    If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Corporation for a portion of the Expenses, judgment, fines, or penalties actually and reasonably incurred by him or her in any Proceeding but not, however, for the
total amount thereof, the Corporation shall nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines, or penalties to which Indemnitee is entitled. 

        11.    Maintenance of Liability Insurance.    

        (a)  The
Corporation hereby covenants and agrees that, as long as Indemnitee continues to serve as a Director of the Corporation and thereafter as long as Indemnitee may be
subject to any Proceeding, the Corporation, subject to subsection (c) below, shall maintain in full force and effect Directors' and Officers' liability insurance ("D&O Insurance") in reasonable
amounts from established and reputable insurers. 

        (b)  In
all D&O Insurance policies, Indemnitee shall be named as an insured in such a manner as to provide the Indemnitee the same rights and benefits as are accorded to the
most favorably insured of the Corporation's Directors and Officers. 

        12.    Savings Clause.    If this Agreement or any portion hereof is invalidated on any
ground
by any court of competent jurisdiction, the Corporation shall nevertheless indemnify Indemnitee to the extent permitted by any applicable portion of this Agreement that has not been invalidated or by
any other applicable law. 

        13.    Notice.    Indemnitee shall, as a condition precedent to his or her right to be
indemnified under this Agreement, give to the Corporation notice in writing as soon as practicable of any Proceeding for which indemnity will or could be sought under this Agreement. Notice to the
Corporation shall be directed to Veterinary Pet Insurance, Inc., 3060 Saturn Street, Brea, CA 92821, Attention: General Counsel (or such other address as the Corporation shall designated in
writing to Indemnitee). Notice shall be deemed received three days after the date postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the Corporation such
information and cooperation as it may reasonably require and as shall be within Indemnitee's power. 

        14.    Counterpart.    This Agreement may be executed in any number of counterparts, all of
which shall be deemed to constitute one and the same instrument. 

        15.    Applicable Law.    This Agreement shall be governed by, and construed and interpreted
in accordance with, the law of the State of California. 

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        16.    Successors and Assigns.    This Agreement shall be binding upon the Corporation and
its
successors and assigns. 

        17.    Amendments.    No amendment, waiver, modification, termination, or cancellation of
this
Agreement shall be effective unless in writing signed by both parties hereto. The indemnification rights afforded to Indemnitee hereby are contract rights and may not be diminished, eliminated, or
otherwise affected by amendments to the Articles of Incorporation or Bylaws of the Corporation or by other agreements. 

(The
signature page follows immediately.) 

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        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and signed as of the day and year first above written. 

	VETERINARY PET SERVICES, INC.	 	INDEMNITEE
	

By:	
 	

    
 Jack L. Stephens, President	
 	

    

	

VETERINARY PET INSURANCE COMPANY	
 	

 
	

By:	
 	

    
 Jack L. Stephens, President	
 	

 
	

DVM INSURANCE AGENCY, INC.	
 	

 
	

By:	
 	

    
 Jack L. Stephens, President	
 	

 
	

VPI SERVICES, INC.	
 	

 
	

By:	
 	

    
 Jack L. Stephens, President	
 	

 
	

ATTEST:	
 	

 
	

    
 Bruce H. Haglund, Secretary,

Veterinary Pet Services, Inc.,

Veterinary Pet Insurance Company,

DVM Insurance Agency, Inc., and

VPI Services, Inc.	
 	

 

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Exhibit 10.14

Indemnification AgreementQuickLinks
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EXHIBIT 10.80    
  

 
 

AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
  

        THIS AMENDED AND RESTATED AGREEMENT (the "Agreement") is made as of December 18, 2002 (the "Effective Date"), between VCampus Corporation, a corporation
organized and existing under the laws of the State of Delaware ("VCAMPUS") and Daniel John Neal, a citizen and resident of Montgomery County, Maryland. 

        WHEREAS,
VCAMPUS and Neal are parties to that certain Employment Agreement dated as of August 8, 2000 ("Original Agreement"); and 

        WHEREAS,
VCAMPUS AND Neal have agreed for Neal to resign as Chief Executive Officer and President of VCampus, effective upon execution of this Agreement; and 

        WHEREAS,
VCAMPUS desires to continue employing Neal and Neal desires to continue his employment with VCAMPUS as Executive Vice Chairman; and 

        WHEREAS,
the parties desire to amend the Original Agreement as described in this Agreement; and 

        WHEREAS,
the parties acknowledge that the goodwill, continued patronage, names, addresses and specific business requirements of VCAMPUS' clients and customers, and the designs,
procedures, systems, strategies, business methods and know-how of VCAMPUS, having been acquired through VCAMPUS' efforts and the expenditure of considerable time and money, are among the
principal assets of VCAMPUS; and 

        WHEREAS,
the parties acknowledge that as a result of the position(s) in which Neal will be employed, Neal will develop special skills and knowledge peculiar to VCAMPUS' business, whereby
he will become, through his employment with VCAMPUS, acquainted with the identities of the clients and customers of VCAMPUS, and will acquire access to the techniques of VCAMPUS in carrying on its
business, as well as other confidential and proprietary information; and 

        WHEREAS,
the parties hereto acknowledge that the Covenants set forth in Section 8 of this Agreement are necessary for the reasonable and proper protection of VCAMPUS' confidential
and proprietary information (as defined herein), customer relationships, and the goodwill of VCAMPUS' business, and that such Covenants constitute a material portion of the consideration for Neal's
employment hereunder. 

        NOW,
THEREFORE, in consideration of the premises and mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties agree as follows: 

        1.    Term; Duties.    VCAMPUS agrees to employ Neal, and Neal agrees to be employed, as Executive Vice Chairman of
VCAMPUS, from the Effective Date through December 31, 2003 (the "Term"), unless such employment is sooner terminated as provided herein. In his position as Executive Vice Chairman, Neal's
duties shall include strategic planning and business development initiatives, at the direction of the Chief Executive Officer of VCAMPUS as well as other duties reasonably assigned by VCAMPUS. 

        2.    Intentionally deleted.    

        3.    Compensation.    

        (a)    Base Salary.    During the Term, in consideration of Neal's services as Executive Vice Chairman (or any other
capacity in which Neal may be employed by VCAMPUS), VCAMPUS 

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shall pay Neal a minimum annual base salary of One Hundred Sixty Thousand Dollars ($160,000.00) per annum, payable in equal monthly installments in accordance with VCAMPUS' normal payroll practices. 

        (b)    Stock Options.    Any remaining obligation of VCAMPUS to issue additional performance-based stock options to
Neal pursuant to Section 3(c) of the Original Agreement is hereby terminated effective upon execution of this Agreement. 

        (c)    Performance Bonus.    In the sole discretion of the VCAMPUS Board of Directors (the "Board") and conditioned
upon Neal meeting any performance criteria set by the Board, Neal shall be eligible to receive bonus compensation in an amount determined by the Board. 

        (d)    Commissions.    Neal may become entitled to receive commissions, but only to the extent evidenced by a written
agreement between VCAMPUS and Neal, based on new business developed by Neal during the Term. 

        4.    Employee Benefits, Vacation.    During the term of this Agreement, Neal shall be eligible to receive and/or
participate in all employee benefits that are offered by VCAMPUS to its executive employees, including, without limitation, major medical, dental, 401(k) Retirement Plan and long- and
short-term disability insurance coverage for Neal. VCAMPUS shall also provide Neal with life insurance in an amount equal to twice his annual base salary. During the Term, Neal shall be
entitled to receive up to one hundred twenty (120) hours of paid vacation per calendar year. No accrued but unused vacation for 2003 can be carried over to 2004, but any accrued but unused
vacation for 2002 (up to 40 hours) can be used in 2003. Except as may be required by law, VCAMPUS will not provide Neal with monetary compensation for such accrued but unused vacation time. 

        5.    Reimbursement of Expenses.    Neal is authorized to incur reasonable expenses in connection with the business of
VCAMPUS including expenses for travel and similar items. VCAMPUS will reimburse Neal for all such reasonable and management-approved expenses upon itemized account of expenditures. 

        6.    Termination.    

        (a)    Termination Without Cause.    Either VCAMPUS or Neal may terminate this Agreement without cause immediately
upon written notice to the other party. Upon termination without cause, Neal shall receive accrued but unpaid base salary, any pro rata performance bonus (as determined in the reasonable discretion of
the Board) and any unpaid commissions earned pursuant to any agreement referred to in Section 3(d) hereof, all for days worked prior to termination. If terminated without cause by VCAMPUS, Neal
will also receive the Severance Benefit described in Section 7. 

        (b)    Termination for "Cause".    VCAMPUS may discharge Neal immediately for "Cause," which shall be limited to: 

          (i)  Neal's
gross negligence or willful misconduct that results in material harm to the financial condition, business, assets, or prospects of VCAMPUS; 

        (ii)  the
conviction of, or the entering of a plea of no contest by Neal for a felony or crime involving moral turpitude; 

        (iii)  the
Board of Directors determines that Neal has engaged in theft, fraud, misappropriation or embezzlement in connection with his services for the Company; or 

        (iv)  the
Board of Directors determines that Neal has materially breached this Agreement or repeatedly failed to carry out the reasonable directions of the Board of Directors
of the Company, which failure cannot be cured or shall not have been cured within thirty (30) days 

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after receipt by Neal of written notice specifying in reasonable detail the failure to so carry out such directions. 

If
Neal is terminated for "Cause," pursuant to subsection 6(b)(i), 6(b)(iii) or 6(b)(iv), VCAMPUS agrees to provide Neal with written notice of the reasons for its decision to terminate his
employment. Upon receipt of such notice from VCAMPUS, Neal's employment with VCAMPUS shall be temporarily suspended for a period of thirty (30) days following Neal's receipt of such written
notice (the "Suspension Period"), and Neal shall have thirty (30) days in which to respond to the Board of Directors. During the Suspension Period, Neal shall continue to receive the
compensation benefits set out in Section 3(a) hereof, but Neal agrees that he shall not have any rights to vest or exercise the options granted by VCAMPUS. If, in the sole discretion of the
Board of Directors, Neal's response to the Board of Directors' written notice is satisfactory, Neal shall be reinstated to his position and the options granted to Neal by VCAMPUS will vest as if
Neal's employment had never been suspended. 

In
the alternative, if, in the sole discretion of the Board of Directors, Neal's response to the Board of Directors' written notice is unsatisfactory for any reason whatsoever, then Neal's employment
hereunder will be terminated immediately. Provided, however, that within thirty (30) days after such termination Neal may elect to commence an arbitration proceeding in McLean, Virginia, to
determine whether Cause for termination existed, solely for the purposes of determining whether Neal may be entitled to the Severance Benefit provided in Section 7, but not for the purpose of
reinstatement. Any such arbitration proceeding shall be conducted before a panel of arbitrators in accordance with the then-effective National Rules for the Resolution of Employment
Disputes of the American Arbitration Association ("AAA"). The expenses of the parties to such arbitration shall be apportioned as determined by the arbitration panel. 

        (c)    Termination for "Good Reason".    During the Term, Neal may terminate this Agreement for "Good Reason" (as
defined below) by giving VCAMPUS written notice of the event constituting Good Reason. Such termination shall become effective thirty (30) days following delivery of notice thereof by Neal to
VCAMPUS. If Neal terminates this Agreement for Good Reason, Neal shall be entitled to receive the Severance Benefit described in Section 7 hereof. 

"Good
Reason" shall exist if: 

          (i)  In
the event of a "Change of Control" (as defined in subsection 6(c)(iv)), Neal shall have the option within a ninety (90) day period commencing three
(3) months after the Change of Control to terminate his employment voluntarily, or 

        (ii)  There
is a material change in Neal's duties, titles, authority or position with VCAMPUS, excluding isolated or insubstantial action not taken in bad faith and remedied
by VCAMPUS within thirty (30) days after receipt of notice thereof by Neal; or 

        (iii)  There
is a failure by VCAMPUS to comply with any material provision of this Agreement and such failure has continued for a period of thirty (30) days after
notice of such failure has been given by Neal to VCAMPUS. 

        (iv)  For
purposes of this Agreement, "Change of Control" shall mean (1) any merger, exchange offer involving VCAMPUS' stockholders, or sale of all or substantially
all assets of VCAMPUS, in each case only if the stockholders of VCAMPUS immediately prior to such transaction own less than a majority of the voting shares of the entity surviving such transaction;
and (2) a change in the composition of a majority of the members of the VCAMPUS Board of Directors. 

        (d)    Termination due to Death or Disability.    In the event of Neal's death or "disability" (as defined below),
this Agreement shall terminate immediately, and VCAMPUS shall pay to Neal's 

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spouse or beneficiary (a) Neal's accrued unpaid base salary, (b) a prorated bonus, if earned and approved by the Board, for the portion of the year during which Neal was employed by
VCAMPUS, and (c) Neal's accrued but unpaid commissions or other compensation, if any, for the period prior to termination. For purposes of this Agreement, "disability" shall mean the event of
Neal's physical or mental inability (as verified by a physician selected by VCAMPUS) to perform his essential functions hereunder, with or without reasonable accommodation, for a period of at least
sixty (60) consecutive days during the Agreement. 

        7.    Severance Benefit.    During the Term, if this Agreement is terminated (i) by VCAMPUS under
Section 6(a) hereof, or by Neal under Section 6(c) hereof, then all options granted to Neal pursuant to the Original Agreement that are then issued and outstanding shall immediately
become fully vested and Neal shall be entitled to receive, as his exclusive remedy for such termination, the severance benefit set forth in this Section 7 (the "Severance Benefit"). The
Severance Benefit shall equal the remaining balance of Neal's base salary, due to Neal through the end of December 2003, less required withholdings. The Severance Benefit shall be payable to
Neal in equal monthly installments consistent
with VCAMPUS' standard payroll practices (the "Severance Period"), the first of such installments to be due within thirty (30) days after termination hereof. By way of illustration, if Neal
were terminated without cause on June 30, 2003, his Severance Benefit would be $80,000, payable to Neal in installments in accordance with VCAMPUS' normal payroll practices through the end of
2003. During the Severance Period, VCAMPUS further agrees to pay the premiums in connection with Neal's continued participation in the VCAMPUS' group health plan pursuant to COBRA, subject to such
plan's terms, conditions and restrictions. VCAMPUS' obligation to pay the Severance Benefit described herein is conditioned upon Neal's execution of a full Release of all claims that Neal may have
against VCAMPUS in a form satisfactory to VCAMPUS. 

        8.    Restrictive Covenants.    The following restrictions shall apply during Neal's employment by VCAMPUS and for the
indicated periods of time following termination or expiration of this Agreement. 

        (a)    Non-solicitation of Customers.    During Neal's employment with VCAMPUS, and for the one
(1) year period of time following termination or expiration of this Agreement for any reason whatsoever, Neal agrees not to solicit business with any client or customer of VCAMPUS (which did
business with VCAMPUS during Neal's employment), whether or not VCAMPUS is doing work for such client or customer as of the date of termination of Neal's employment. 

        (b)    Nonsolicitation of Employees.    During Neal's employment with VCAMPUS, and for the one (1) year period
following termination or expiration of this Agreement for any reason whatsoever, Neal further agrees not to initiate contact with, solicit, entice, or attempt to entice in any form, fashion or manner
any employee of VCAMPUS for the purpose of inducing that employee to terminate his/her employment with VCAMPUS. 

        (c)    Non-disclosure.    During Neal's employment and for a period of one (1) year after
termination or expiration of this Agreement for any reason whatsoever, Neal agrees not to disclose, or to knowingly allow any other employee to disclose, to any other person or business entity, or use
for personal profit or gain, any confidential or proprietary information of VCAMPUS, regardless of whether the same shall be or may have been originated, discovered or invented by Neal or by Neal in
conjunction with others. For purposes of this Agreement, the term "confidential or proprietary information" shall include, without limitation: the names, addresses and telephone numbers of past,
present and prospective clients or customers of VCAMPUS, as well as products, designs, business plans, proposed business development, marketing strategies, customers requirements, contractual
provisions, employee capabilities, proposed marketing initiatives, pricing methods, company earnings, computer software and reporting systems; and the procedures, systems and business methods of
VCAMPUS. 

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        9.    Remedies for Breach.    Neal hereby acknowledges and agrees that a violation of any of the covenants set forth
in Section 8 (the "Covenants") would result in immediate and irreparable harm to VCAMPUS, and that VCAMPUS' remedies at law, including, without limitation, the award of money damages,
would be inadequate relief to VCAMPUS for any such violation. Therefore, any violation or threatened violation by Neal of the Covenants shall give VCAMPUS the right to enforce such Covenants through
specific performance, temporary restraining order, preliminary or permanent injunction, and other equitable relief. Such remedies shall be cumulative and in addition to any other remedies VCAMPUS may
have, at law or in equity. 

        10.    Employee Representations.    

        (a)    No Conflict.    Neal represents and warrants to VCAMPUS that to his knowledge, neither the execution and
delivery of this Agreement, nor the performance of his duties hereunder violates or will violate the provisions of any other agreement to which he is a party or by which he is bound. Neal agrees to
hold harmless and indemnify VCAMPUS in the event that of any claims against VCAMPUS arising out of such breach. 

        (b)    Director and Officer Liability Insurance.    Neal represents and warrants to VCAMPUS that: (i) he is
unaware of any act or omission that would make him ineligible to be covered under VCAMPUS' Directors' and Officers' Liability Insurance Policy; and (ii) he is unaware of any act or omission
that would materially increase VCAMPUS' premiums under its Directors' and Officers' Liability Insurance Policy. 

        11.    Return of VCAMPUS Property; Assignment of Inventions.    

        a.    Return of Property.    Upon the termination of Neal's employment with VCAMPUS for any reason, Neal shall leave
with or return to VCAMPUS all personal property belonging to VCAMPUS ("VCAMPUS Property") that is in Neal's possession or control as of the date of such termination of employment, including, without
limitation, all records, papers, drawings, notebooks, specifications, marketing materials, software, reports, proposals, equipment, or any other device, document or possession, however obtained,
whether or not such VCAMPUS Property contains confidential or proprietary information of VCAMPUS as described in Section 11(c) hereof. 

        b.    Assignment of Inventions.    If at any time or times during Neal's employment, Neal shall (either alone or with
others) make, conceive, discover or reduce to practice any invention, modification, discovery, design, development, improvement, process, software program, work of authorship, documentation, formula,
data, technique, know-how, secret or intellectual property right whatsoever or any interest therein (whether or not patentable or registrable under copyright or similar statutes or subject
to analogous protection) (herein called "Developments") that (i) relates to the business of VCAMPUS or any of the products or services being developed, manufactured or sold by VCAMPUS or that
may be used in relation therewith, (ii) results from tasks assigned him by VCAMPUS or (iii) results from the use of premises or personal property (whether tangible or intangible) owned,
leased or contracted for by VCAMPUS, such Developments and the benefits thereof shall immediately become the sole and absolute property of VCAMPUS and its assigns, and Neal shall promptly disclose to
VCAMPUS (or any persons designated by it) each such Development and hereby assigns any rights Neal may have or
acquire in the Developments and benefits and/or rights resulting therefrom to VCAMPUS and its assigns without further compensation and shall communicate, without cost or delay, and without publishing
the same, all available information relating thereto (with all necessary plans and models) to VCAMPUS. 

        c.    Cooperation.    Upon disclosure of each Development to VCAMPUS, Neal will, during his employment and at any time
thereafter, at the request and expense of VCAMPUS, sign, execute, 

5

 

make and do all such deeds, documents, acts and things as VCAMPUS and its duly authorized agents may reasonably require: 

            i.  To
apply for, obtain and vest in the name of VCAMPUS alone (unless VCAMPUS otherwise directs) letters patent, copyrights or other analogous protection in any country
throughout the world and when so obtained or vested to renew and restore the same; and 

          ii.  To
defend any opposition proceedings in respect of such applications and any opposition proceedings or petitions or applications for revocation of such letters patent,
copyright or other analogous protection. 

        d.    Power of Attorney.    In the event VCAMPUS is unable, after reasonable effort, to secure Neal's signature on any
letters patent, copyright or other analogous protection relating to a Development, whether because of Neal's physical or mental incapacity or for any other reason, Neal hereby irrevocably designates
and appoints VCAMPUS and its duly authorized officers and agents as Neal's agents and attorneys-in-fact, to act for and in behalf of Neal and stead to execute and file any such
application or applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent, copyright or other analogous protection thereon with the same legal
force and effect as if executed by Neal. 

        12.    Survival.    The provisions of Sections 8, 9, 10, and 11 hereof shall survive the termination of this
Agreement, regardless of the manner or cause of such termination. 

        13.    Effect of Amendment.    Upon execution of this Agreement, the Original Agreement shall immediately terminate,
Neal shall be deemed to have voluntarily resigned from his position as Chief Executive Officer and President of VCAMPUS and this Agreement shall become effective immediately. Thereafter, this
Agreement shall set forth the final and complete Agreement of the parties, and Neal releases any and all claims he may have under the Original Agreement. This Agreement shall not be assigned by Neal
and may not be modified except by way of a writing executed by both parties. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their successors and assigns. 

        14.    Notices.    Any Notice, demand, or other communication required or permitted hereunder shall be deemed properly
given when placed in writing and deposited in the United States Postal Service, by registered mail, postage prepaid, overnight mail or personal delivery, addressed as follows: 

If
to Neal: 

Daniel
J. Neal

8088 Clifford Avenue

Chevy Chase, MD 20815

With
a copy to: 

Paley,
Rothman, Goldstein, Rosenberg & Cooper, Chartered

4800 Hampden Lane

7th Floor

Bethesda, Maryland 20814

Attention: Hope Eastman

If
to VCAMPUS: 

VCampus
Corporation

8251 Greensboro Drive, Suite 500

McLean, VA 22101

Attn: Nat Kannan 

6

 

With
a copy to: 

Wyrick
Robbins Yates & Ponton LLP

Suite 300

4101 Lake Boone Trail

Raleigh, NC 27607

Attn: Kevin A. Prakke 

        15.    Governing Law.    The provisions of this Agreement and any disputes arising hereunder shall be governed by and
construed in accordance with the laws of the State of Virginia. 

[Signature pages follow] 

7

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Amended and Restated Agreement to be duly executed and their seals affixed hereto as of the day and year first above written. 

	 	 	VCAMPUS Corporation
	

 	
 	

By:	

 	
 	

 
	Corporate Seal	 	Name:	Nat Kannan
	 	 	Title:	Chairman of the Board and CEO
	Attest:	 	 	 	 	 
	Secretary	 	 	 	 	 
	 	 	 	 	 	(SEAL)
	 	 	 	
 Daniel John Neal	 	 

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QuickLinks

EXHIBIT 10.80

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

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