Document:

Exhibit 10.3

Exhibit 10.3

CHANGE IN CONTROL AGREEMENT

This Change in Control Agreement (the “Agreement”) is entered into effective as of

 _____, 20_____ 
(the “Effective Date”), by and between GSI Commerce, Inc. (the “Company”) and
                     (the “Employee”). The Company and the Employee are hereinafter collectively
referred to as the “Parties,” and individually referred to as a “Party.”

Recitals

WHEREAS, the Employee is presently an officer or key employee of the Company;

WHEREAS, the Board of Directors (the “Board”) of the Company has determined that it is in the
best interests of the Company and its stockholders to ensure the Employee’s continued dedication
and active participation in the business of the Company; and

WHEREAS, in order to induce the Employee to remain in the employ of the Company and in
consideration of the Employee’s agreeing to remain in the employ of the Company, the parties desire
to specify the benefits which shall be due the Employee in the event that his employment with the
Company is terminated under specified circumstances.

Agreement

In consideration of the foregoing Recitals and the mutual promises and covenants herein
contained, and for other good and valuable consideration, the Parties, intending to be legally
bound, agree as follows:

1. Definitions.

1.1 Definitions. For purposes of this Agreement, the following terms shall have the following
meanings:

1.1.1 Cause. “Cause” means the occurrence of the events described in the following
subsections (a) and (b):

(a) a good faith determination by the Board or the Compensation Committee that the Employee
(i) was grossly negligent or engaged in willful misconduct in the performance of his or her duties
for the Company, (ii) was convicted of, or entered a plea of guilty to, a crime constituting a
felony or any criminal offense constituting fraud, dishonesty or moral turpitude under the laws of
the United States or any state thereof, other than an automobile offense; or (iii) intentionally
and materially violated any contract or agreement between the Employee and the Company, the
Company’s Code of Business Conduct or any of the Company’s material policies; provided, however,
that no act or failure to act by the Employee shall be deemed to constitute Cause under this clause
(iii) if done, or omitted to be done, in good faith and with the reasonable belief that the action
or omission was in the best interests of the Company; and

 

 

 

(b) (i) the Company has delivered written notice to the Employee of its intention to terminate
his employment for Cause within ninety (90) days after the Company has actual knowledge of the
facts and circumstances upon which it seeks to rely as a basis for its right to terminate for
Cause, (ii) such notice sets forth in reasonable detail such facts and circumstances and (iii) the
Employee has failed to correct any of the events listed in Section 1.1.1(a) above, if such events
are reasonably capable of being corrected, within thirty (30) days following delivery of the
Company’s written notice of its intention to terminate for Cause.

1.1.2 Change in Control. “Change in Control” means the occurrence, in a single transaction or
in a series of related transactions, of any one or more of the following events: 

(a) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the
Company representing more than fifty (50%) of the combined voting power of the Company’s then
outstanding securities other than by virtue of a merger, consolidation or similar transaction,
which is covered by Section 1.1.2(b). Notwithstanding the foregoing, a Change in Control shall not
be deemed to occur (A) on account of the acquisition of securities of the Company from the Company
by an investor, any affiliate (as such term is defined in Rule 405 of the Securities Act) thereof
or any other Exchange Act Person in a transaction or series of related transactions the primary
purpose of which is to obtain financing for the Company through the issuance of equity securities
or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”)
exceeds the designated percentage threshold of the outstanding voting securities as a result of a
repurchase or other acquisition of voting securities by the Company reducing the number of shares
outstanding, provided that if a Change in Control would occur (but for the operation of this
sentence) as a result of the acquisition of voting securities by the Company, and after such share
acquisition, the Subject Person becomes the Owner of any additional voting securities that,
assuming the repurchase or other acquisition had not occurred, increases the percentage of the then
outstanding voting securities Owned by the Subject Person over the designated percentage threshold,
then a Change in Control shall be deemed to occur;

(b) there is consummated a merger, consolidation or similar transaction involving, directly or
indirectly, the Company and, immediately after the consummation of such merger, consolidation or
similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly
or indirectly, either (i) outstanding voting securities representing more than fifty percent (50%)
of the combined outstanding voting power of the surviving Entity in such merger, consolidation or
similar transaction or (ii) more than fifty percent (50%) of the combined outstanding voting power
of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each
case in substantially the same proportions as their Ownership of the outstanding voting securities
of the Company immediately prior to such transaction;

(c) the stockholders of the Company approve or the Board approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company
shall otherwise occur;

 

2.

 

(d) there is consummated a sale, lease, exclusive license or other disposition of all or
substantially all of the consolidated assets of the Company and its Subsidiaries, other than a
sale, lease, license or other disposition of all or substantially all of the consolidated assets of
the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are Owned by stockholders of the Company in substantially
the same proportions as their Ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition;

(e) individuals who, on the Effective Date, are members of the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided, however, that if the
appointment or election (or nomination for election) of any new director was approved or
recommended by a majority vote of the Incumbent Board, such new director shall, for purposes of
this Agreement, be considered a member of the Incumbent Board.

The term Change in Control shall not include a sale of assets, merger or other transaction effected
exclusively for the purpose of changing the domicile of the Company.

1.1.3 Code. “Code” means the Internal Revenue Code of 1986, as amended.

1.1.4 Disability. “Disability” means (a) the Employee has suffered a physical or mental
sickness or injury that impairs the Employee’s ability to substantially perform the Employee’s
full-time duties with the Company for a period of one hundred eighty (180) consecutive days and
that qualifies the Employee for benefits under the Company’s group long-term disability plan, and
(b) the Employee has not substantially returned to full time employment within thirty (30) days
after the Company gives the Employee notice that he or she is being terminated by the Company due
to the sickness or injury specified in clause (a) of this Section 1.1.4.

1.1.5 Entity. “Entity” means a corporation, partnership, limited liability company or other
entity.

1.1.6 Equity Award. “Equity Award” means any stock option, restricted stock award, restricted
stock unit or other equity incentive award of any type granted by the Company to the Employee,
whether granted before, on or after the Effective Date, as the same may be adjusted or converted as
a result of any recapitalization, stock dividend, spin-off or similar event.

1.1.7 Equity Plan. “Equity Plan” means any stock option plan, restricted stock plan or other
equity incentive or equity compensation plan of the Company.

1.1.8 Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

3.

 

1.1.9 Exchange Act Person. “Exchange Act Person” means any natural person, Entity or “group”
(within the meaning of Section 13(d) or 14(d) of the Exchange
Act), except that “Exchange Act Person” shall not include (i) the Company or any Affiliate,
(ii) any employee benefit plan of the Company or any Affiliate or any trustee or other fiduciary
holding securities under an employee benefit plan of the Company or any Affiliate, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, (iv) an
Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their Ownership of stock of the Company; or (v) any natural person, Entity or
“group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the
Effective Date, is the Owner, directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the combined voting power of the Company’s then outstanding
securities.

1.1.10 Good Reason. “Good Reason” means, with respect to the Employee, the occurrence of one
or more of the following events or conditions, without the Employee’s express prior written consent
(which may be withheld for any reason or no reason), provided that upon the first occurrence of any
such event or condition, the Employee shall have given the Company written notice that he or she is
resigning his or her employment with the Company due to the occurrence of such event or condition
and the Company shall not have corrected the situation within ten (10) days after the Employee
gives such notice:

(a) a material reduction in the Employee’s duties, positions, titles, offices, authority or
responsibilities relative to the duties, positions, titles, offices, authority or responsibilities
in effect immediately prior to the Change in Control; the assignment to the Employee of any duties
or responsibilities that are substantially inconsistent with the Employee’s duties, positions,
titles, offices, authority or responsibilities as in effect immediately before such assignment; or
any removal of the Employee from or failure to reappoint or reelect the Employee to any of such
positions, titles or offices; provided that any of the foregoing that result solely from the fact
that the Company is no longer a publicly traded and listed company shall not by itself constitute
Good Reason under this Section 1.1.10(i);

(b) a reduction in the Employee’s base salary as in effect immediately prior to the Change in
Control;

(c) a reduction in the Employee’s bonus or other cash incentive compensation opportunity as in
effect immediately prior to the Change in Control; a reduction or negative change in the Employee’s
equity award or other long-term non-cash incentive opportunities (the value of which is measured as
of the date of grant using a reasonable valuation methodology consistently applied); or a reduction
or negative change in the Employee’s benefits other than base salary, bonus or other cash and non
cash incentive compensation as in effect immediately prior to the Change in Control; provided,
however, that Good Reason shall not exist under this Section 1.1.10(c) if after a Change in
Control, the Company offers the Employee a range of cash and non-cash bonus and incentive
opportunities and other benefits which, taken as a whole, are comparable to the cash and non-cash
bonus and incentive opportunities and other benefits provided to the Employee immediately prior to
the Change in Control;

(e) the failure of the Company to timely pay or provide to the Employee any portion of the
Employee’s compensation or benefits then due to the Employee;

 

4.

 

(f) a relocation of the Employee’s principal place of employment that will result in an
increase of more than thirty (30) miles in the Employee’s one-way commute as compared to the
Employee’s one-way commute prior to the Change of Control;

(g) any material breach by the Company of this Agreement or any other material agreement
between the Company and the Employee, including any employment agreement, indemnification agreement
or agreement relating to any Equity Award; or

(h) the failure by the Company to obtain, before a Change in Control occurs, an agreement in
writing from any successors and assigns to all or substantially all of the business or assets of
the Company to assume and agree to perform this Agreement unless otherwise assumed by such
successors and assigns by operation of law.

1.1.11 “Own,” “Owned,” “Owner,” “Ownership”. A person or Entity shall be deemed to “Own,” to
have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such person or
Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or
otherwise, has or shares voting power, which includes the power to vote or to direct the voting,
with respect to such securities.

1.1.12 Securities Act. “Securities Act” means the Securities Act of 1933, as amended.

1.1.13 Subsidiary. “Subsidiary” means, with respect to the Company (i) any corporation of
which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power
to elect a majority of the board of directors of such corporation (irrespective of whether, at the
time, stock of any other class or classes of such corporation shall have or might have voting power
by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the
Company and (ii) any partnership in which the Company has a direct or indirect interest (whether in
the form of voting or participation in profits or capital contribution) of more than fifty percent
(50%).

2. Termination in Connection With a Change in Control. 

2.1 Termination by the Company without Cause; Resignation by the Employee for Good Reason. If
within ninety (90) days before or [___] days following a Change in Control, the Company
terminates the Employee’s employment without Cause or the Employee resigns for Good Reason, then
notwithstanding any contrary provision contained in any of the Employee’s outstanding Equity Awards
or in any of the Company’s Equity Plans, all Equity Awards held by the Employee shall immediately
become fully vested, all restrictions set forth in such Equity Awards related to the passage of
time and/or continued employment shall immediately lapse, all option shares and other rights
exercisable under such Equity Awards shall immediately become fully exercisable, and the Employee
shall have continued exercisability of each Company stock option and stock appreciation right held
by the Employee (if any) for the remaining term of each such Equity Award; provided, however, that
for stock options and stock appreciation rights granted prior to the Effective Date, such period
shall not
exceed the latest date possible that would not cause such option or stock appreciation right
to become subject to Section 409A of the Code.

 

5.

 

2.2 Release. The Employee shall not receive any of the benefits set forth under Section 2.1
hereof, unless and until, the Employee furnishes the Company with an effective waiver and release
of claims (the “Release”) in the form attached hereto as Exhibit A.

2.3 Termination for Death, Disability or Cause. Nothing in this Agreement shall be
interpreted to entitle the Employee to any of the rights provided for in Section 2.1 hereof upon
the termination of the Employee’s employment due to death, Disability or Cause.

2.4 Parachute Payments.

2.4.1 Anything in this Agreement to the contrary notwithstanding, if any benefit the Employee
would receive from the Company pursuant to this Agreement or otherwise (a “Payment”) would (i)
constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for
this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”),
then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x)
the largest portion of the Payment that would result in no portion of the Payment being subject to
the Excise Tax or (y) the largest portion of the Payment, up to and including the total Payment,
whichever amount, after taking into account all applicable federal, state and local employment
taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate),
results in the Employee’s receipt, on an after-tax basis, of the greater amount of the Payment,
notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a
reduction in payments or benefits constituting “parachute payments” is necessary so that the
Payment equals the Reduced Amount, the amounts payable or benefits to be provided to the Employee
shall be reduced such that the economic loss to the Employee as a result of the “parachute payment”
elimination is minimized. In applying this principle, the reduction shall be made in a manner
consistent with the requirements of Section 409A of the Code and where two economically equivalent
amounts are subject to reduction but payable at different times, such amounts shall be reduced on a
pro rata basis but not below zero.

2.4.2 The Company shall appoint a nationally recognized independent accounting firm to make
the determinations required hereunder, which accounting firm shall not then be serving as
accountant or auditor for the individual, entity or group that effected the Change in Control. The
Company shall bear all expenses with respect to the determinations by such accounting firm required
to be made hereunder.

2.4.3 The accounting firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Company and the Employee
within fifteen (15) calendar days after the date on which the Employee’s right to a Payment is
triggered (if requested at that time by the Company or the Employee) or such other time as
requested by the Company or the Employee. If the accounting firm determines that no Excise Tax is
payable with respect to a Payment, either before or after the application of the Reduced Amount, it
shall furnish the Company and the Employee with an opinion reasonably acceptable to the Employee
that no Excise Tax will be imposed with respect
to such Payment. The Company shall be entitled to rely upon the accounting firm’s
determinations, which shall be final and binding on all persons.

 

6.

 

2.5 Mitigation; Exclusivity of Benefits.

2.5.1 The Employee shall not be required to mitigate the amount of any benefits under this
Agreement by seeking other employment or otherwise. The benefits to be provided pursuant to
Section 2.1 hereof shall not be reduced by any compensation or benefits payable or provided to the
Employee as a result of employment by another employer after the date of termination or otherwise.

2.5.2 The specific arrangements referred to in this Agreement are not intended to exclude any
other benefits which may be available to the Employee upon a termination of employment with the
Company pursuant to any other agreement between the Company and the Employee, including any
employment or severance agreement.

3. Withholding.

All payments required to be made by the Company under this Agreement to the Employee shall be
subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as
the Company may reasonably determine should be withheld pursuant to any applicable law or
regulation.

4. Nature of Employment and Obligations.

4.1 Nothing contained in this Agreement shall be deemed to create anything other than a
terminable at will employment relationship between the Company and the Employee, and the Company
may terminate the Employee’s employment at any time, subject to providing any benefits specified in
this Agreement in accordance with the terms of this Agreement and subject to any other agreement
between the Company and the Employee.

4.2 Nothing contained in this Agreement shall create or require the Company to create a trust
of any kind to fund any benefits which may be payable under this Agreement, and to the extent that
the Employee acquires a right to receive benefits from the Company under this Agreement, such right
shall be no greater than the right of any unsecured general creditor of the Company.

5. Assignment and Binding Effect.

This Agreement shall be binding upon and inure to the benefit of the Employee and the
Employee’s heirs, executors, personal representatives, assigns, administrators and legal
representatives. Neither this Agreement nor any rights or obligations under this Agreement shall
be assignable by the Employee. This Agreement shall be binding upon and inure to the benefit of
the Company and its successors, assigns and legal representatives. The Company shall use its best
efforts to require any successors and assigns to all or substantially all of the business or assets
of the Company (whether direct or indirect, by purchase, merger, consolidation or otherwise) to
expressly assume and agree in writing to be bound by this Agreement and to perform the Company’s
obligations under this Agreement in the same manner and to the same
extent that the Company would have been required to perform such obligations had no succession
or assignment taken place; provided that no such assumption or agreement by such successors and
assigns shall relieve the Company of any of its obligations under this Agreement.

 

7.

 

6. Choice of Law, Jurisdiction and Waiver of Jury Trial.

This Agreement is made and intended to be performed primarily within the state of
Pennsylvania. This Agreement shall be construed and interpreted in accordance with the internal
laws of the state of Pennsylvania (without giving effect to principles of conflicts of law). Each
of the parties irrevocably consents to service of process by certified mail, return receipt
requested, postage prepaid, to the address at which such party is to receive notice in accordance
herewith. Each of the parties irrevocably consents to the jurisdiction of the state courts in
Montgomery County, Pennsylvania and the federal courts in the Eastern District of Pennsylvania in
any and all actions between the parties arising hereunder. THE PARTIES IRREVOCABLY WAIVE ANY RIGHT
TO TRIAL BY JURY AS TO ALL CLAIMS UNDER THIS AGREEMENT.

7. Legal Fees and Expenses. 

The Company shall pay or reimburse the Employee on an after-tax basis for all costs and
expenses (including court costs and reasonable legal fees and expenses that reflect common practice
with respect to the matters involved) incurred by the Employee as a result of any claim, action or
proceeding arising out of this Agreement or the contesting, disputing or enforcing of any
provision, right or obligation under this Agreement, except where it is finally determined that the
Employee’s position was substantially without merit and asserted in bad faith.

8. Integration.

Except as may otherwise be provided herein, this Agreement, including Exhibit A, contains the
complete, final and exclusive agreement of the Parties relating to the terms and conditions
contained herein, and supersedes all prior and contemporaneous oral and written agreements or
arrangements between the Parties relating to the matters agreed to in this Agreement.
Notwithstanding the foregoing, this Agreement shall not have any effect upon any other employment
agreement, severance agreement, employee agreement, indemnification agreement, confidentiality
agreement, Equity Awards, Equity Plan, bonus plans, benefit plans and other agreements or
arrangements in effect between the Company and the Employee other than as expressly provided for in
this Agreement. No provision of any future Equity Award, Equity Plan or other agreement between
the Company and the Employee shall constitute a modification to any provision of this Agreement,
even if such future provision is inconsistent with a provision of this Agreement, unless and only
to the extent that such future provision specifically refers to this Agreement and includes a
statement that the parties expressly intend to modify a provision of this Agreement. No agreements
or representations, oral or otherwise, express or implied, with respect to the subject matter
hereof have been made by either party that are not expressly set forth in this Agreement.

 

8.

 

9. Amendment.

This Agreement cannot be amended or modified except by a written agreement signed by the
Employee and a director who is duly authorized by the Board to sign on their behalf.

10. Waiver.

No term, covenant or condition of this Agreement or any breach thereof shall be deemed waived,
except with the written consent of the Party against whom the waiver is claimed, and any waiver of
any such term, covenant, condition or breach shall be narrowly construed to apply only to the
specific circumstances in which it is given and shall not be deemed to be a waiver of any preceding
or succeeding breach of the same or any other term, covenant, condition or breach. No failure to
exercise or delay in exercising any power, right, privilege or remedy under this Agreement, and no
course of dealing between the Parties with respect to any power, right, privilege or remedy under
this Agreement, shall operate as a waiver of such power, right, privilege or remedy; and no single
or partial exercise of any such power, right, privilege or remedy shall preclude any other or
further exercise thereof or of any other power, right, privilege or remedy under this Agreement.

11. Severability.

The finding by a court of competent jurisdiction or other authorized body of the
unenforceability, invalidity or illegality of any provision of this Agreement shall not render any
other provision of this Agreement unenforceable, invalid or illegal. The invalid or unenforceable
term or provision shall be modified or replaced with a valid and enforceable term or provision
which most accurately represents the Parties’ intention with respect to the invalid or
unenforceable term or provision.

12. Interpretation and Construction.

The headings set forth in this Agreement are for convenience of reference only and shall not
be used in interpreting this Agreement. The Employee has been encouraged to consult with the
Employee’s own independent counsel and tax advisors with respect to the terms of this Agreement.
The Parties acknowledge that each Party or its counsel has reviewed and revised, or had an
opportunity to review and revise, this Agreement, and any rule of construction to the effect that
any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this Agreement.

 

9.

 

13. Section 409A.

This Agreement is intended to comply with the applicable requirements of Section 409A of the
Code and the regulations thereunder, and shall be administered in accordance with Section 409A of
the Code and the regulations thereunder to the extent Section 409A of the Code and the regulations
thereunder apply to this Agreement. If any payment or benefit cannot be provided or made at the
time specified herein without incurring sanctions under Section 409A, then such benefit or payment
shall be provided in full at the earliest time thereafter when such sanctions will not be imposed.
To the extent that any provision of this
Agreement would cause a conflict with the applicable requirements of Section 409A of the Code,
such provision shall be deemed null and void. All reimbursements and in-kind benefits provided
under this Agreement shall be made or provided in accordance with the requirements of Section 409A,
including, where applicable, the requirement that (i) any reimbursement is for expenses incurred
during the Employee’s lifetime (or during a shorter period of time specified in this Agreement),
(ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a
calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be
provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made
on or before the last day of the calendar year following the year in which the expense is incurred,
and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange
for another benefit. For purposes of Section 409A of the Code, all payments to be made upon a
termination of employment under this Agreement may only be made upon a “separation from service”
within the meaning of such term under Section 409A of the Code, each payment made under this
Agreement shall be treated as a separate payment and the right to a series of installment payments
under this Agreement is to be treated as a right to a series of separate payments. In no event
shall the Employee, directly or indirectly, designate the calendar year of payment. Benefits
payable under this Agreement will be subject to the distribution requirements of Section
409A(a)(2)(A) of the Code, including, without limitation, the requirement of Section
409A(a)(2)(B)(i) of the Code that payment to the Employee be delayed until six (6) months after
separation from service if the Employee is a “specified employee” within the meaning of the
aforesaid Section of the Code at the time of such separation from service. If Employee dies during
the postponement period prior to the payment of postponed amount, the amounts withheld on account
of Section 409A of the Code shall be paid to the personal representative of Employee’s estate
within sixty (60) days after the date of the Employee’s death.

14. Counterparts.

This Agreement may be executed in two counterparts, each of which shall be deemed an original,
all of which together shall constitute one and the same instrument, and it shall not be necessary
in making proof of this Agreement to produce or account for more than one original counterpart
hereof.

 

10.

 

15. Notices.

All notices and all other communications provided for in this Agreement (including any notice
of termination or resignation of employment) shall be in writing and shall be deemed to be duly
given, delivered and received by the intended recipient as follows: (a) if personally delivered, on
the business day after it is sent (as evidenced by the receipt of a reputable personal delivery
service); (b) if mailed by certified or registered mail, postage prepaid, return receipt requested,
four (4) business days after such mailing (as evidenced by the receipt for the certified or
registered mail); (c) if sent by overnight delivery service, delivery charges prepaid, on the
second business day after it is sent (as evidenced by the receipt of a reputable overnight delivery
service); or (d) if sent by fax or e-mail, on the business day after it is sent, if confirmed
within forty-eight (48) hours thereafter by a signed original sent in one of the manners set forth
in clauses (a) through (c) above. Notices shall be addressed to the parties at their respective
addresses last given by each party to the other, and all notices to the Company
shall be directed to the attention of the Chairman of the Board with a copy to the Secretary.
Each party shall keep the other informed of its current mailing address, street address (if
different), fax number (if available) and e-mail address.

[Signature page follows]

 

11.

 

In Witness Whereof, the Parties have executed this Agreement as of the date first
written above.

GSI Commerce, Inc.

	 	 	 
	 
 

[Name]

	 	 
	[Title]
	 	 
	 
	 	 
	Employee
	 	 
	 
	 	 
	 
 

[Name]

	 	 
	[Title]
	 	 

[Signature page to Change in Control Agreement]

 

12.

 

EXHIBIT A

RELEASE AND WAIVER OF CLAIMS

In consideration of the benefits and mutual agreements set forth in the Change in Control
Agreement dated [month] 
 _____, 20_____ 
(the “Agreement”), between GSI Commerce, Inc, (the “Company”) and
                     (the “Employee”), to which this form is attached, the Employee, intending to be
legally bound, agrees to the following release and waiver (“Release and Waiver”):

1. In exchange for the consideration provided to the Employee by the Agreement that the
Employee is not otherwise entitled to receive and the other commitments of the Company in the
Agreement, the Employee and his or her heirs, representatives, agents and attorneys hereby
generally and completely release the Company and its directors, officers, employees, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates and assigns from any and all claims, liabilities and obligations, both known and
unknown, that arise out of or are in any way related to events, acts, conduct or omissions
occurring prior to the Employee signing this Release and Waiver. This general release includes,
but is not limited to: (1) all claims arising out of or in any way related to the Employee’s
employment with the Company or the termination of that employment; (2) all claims related to the
Employee’s compensation or benefits from the Company, including, but not limited to, salary,
bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe benefits, stock,
stock options, or any other ownership interests in the Company; (3) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith and fair dealing;
(4) all tort claims, including, but not limited to, claims for fraud, defamation, emotional
distress, and discharge in violation of public policy; and (5) all federal, state, and local
statutory claims, including, but not limited to, claims for discrimination, harassment,
retaliation, attorneys’ fees, or other claims arising under the federal Civil Rights Act of 1964
(as amended), the federal Americans with Disabilities Act of 1990, the federal Age Discrimination
in Employment Act of 1967 (as amended) (“ADEA”), and the Pennsylvania Fair Employment and Housing
Act (as amended). Notwithstanding the foregoing, this general release specifically excludes any
and all claims that the Employee may have in regard to (a) any ongoing severance or employment
obligations of the Company or any of its subsidiaries to the Employee under the Agreement or any
other written agreement or arrangement between the Company or any of its subsidiaries and the
Employee, including any bonus plan, benefit plan and other agreement or arrangement, (b) any
ongoing obligations of the Company or any of its subsidiaries to the Employee under any written
stock option agreement, restricted stock award agreement, restricted stock unit award agreement or
other equity award agreement evidencing an option or other equity award granted or awarded by the
Company to the Employee, (c) any indemnification obligations of Employer to the Employee as a
former director, officer and/or employee of the Company or any of its subsidiaries pursuant to the
Company’s or any of its subsidiaries’ certificate of incorporation or bylaws or any indemnification
or other written agreement, and (d) any rights the Employee may have under any directors and
officers liability insurance policy of the Company.

 

1.

 

The Employee also acknowledges that he or she has read and understands Section 1542 of the
Pennsylvania Civil Code which reads as follows: “A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of
executing the release, which if known by him must have materially affected his settlement with the
debtor.” The Employee hereby expressly waives and relinquishes all rights and benefits under that
section and any law of any jurisdiction of similar effect with respect to any claims he or she may
have against the Company.

The Employee acknowledges that, among other rights, he or she is waiving and releasing any
rights he or she may have under ADEA, that this Release and Waiver is knowing and voluntary, and
that the consideration given for this Release and Waiver is in addition to anything of value to
which he or she was already entitled as an employee of the Company. The Employee further
acknowledges that he or she has been advised, as required by the Older Workers Benefit Protection
Act, that: (a) the release and waiver granted herein does not relate to claims under the ADEA
which may arise after this Release and Waiver is executed; (b) he or she should consult with an
attorney prior to executing this Release and Waiver; (c) he or she has twenty-one (21) days in
which to consider this Release and Waiver (although he or she may choose voluntarily to execute
this Release and Waiver earlier); (d) he or she has seven (7) days following the execution of this
Release and Waiver to revoke his or her consent to this Release and Waiver; and (e) this Release
and Waiver shall not be effective until the eighth day after he or she executes this Release and
Waiver and the revocation period has expired (the “Effective Date”).

2. This Release and Waiver, including any referenced documents, constitute the complete, final
and exclusive embodiment of the entire agreement between the Company and the Employee with regard
to the subject matter hereof. The Employee is not relying on any promise or representation by the
Company that is not expressly stated herein. This Release and Waiver may only be modified by a
writing signed by both the Employee and a duly authorized member of the Board of Directors of the
Company.

	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 
 

	 	 	 	By:
	 	 
 

Employee
	 	 

 

2.exv10w1

Exhibit 10.1

SEPARATION AGREEMENT, INCLUDING RELEASE

AND WAIVER OF CLAIMS

March 5, 2010

This Separation Agreement Including Release and Waiver of Claims (the “Agreement”) is between the
undersigned employee, Frank Forkin (hereinafter referred to as “you”), and Harris Interactive Inc.,
and any and all of its respective parents, subsidiaries or affiliates, on behalf of itself and its
agents, employees, officers, directors, representatives, predecessors, successors, and assigns
(hereinafter referred to as “the Company”).

Although the Agreement and the Company’s severance policies would provide no post-termination
compensation to you, in recognition and appreciation of your service to the Company, the Company is
prepared to make the arrangements with you provided in this Agreement. In consideration of your
agreement to the terms and conditions contained in this Agreement, you will be entitled to the
benefits described below. This Agreement will not be effective and you will not receive the
benefits under it (i) unless you have executed and returned this Agreement to the Company, and (ii)
the seven-day revocation period described below has expired and you have not revoked this Agreement
during that period.

The terms of this Agreement are as follows:

	1.	 	This Agreement replaces and supersedes in all respects any Employment Agreement, if
applicable, which will be of no further force and effect. This Agreement does not affect the
amount of your vested benefits under any other employee benefit plan, such as the 401(k) plan,
in which you were a participant and does not replace agreements, if any, related to the stock
options and restricted stock held by you. The Confidentiality of Information and
Non-Disclosure Policy to which you are a party remains in effect.
	 
	2.	 	Your last day of active employment with the Company will be March 5, 2010. You will be paid
for all unpaid vacation accrued and prorated through March 5, 2010. You will also receive
payment for all unused “carry over” vacation time up to a maximum of 5 days, per the Company
policy. After March 5, 2010, you agree to cooperate with any reasonable request of the Company
to continue to aid in the transition of your function or to answer questions regarding your
functional area.
	 
	3.	 	In consideration for your agreement to this Agreement, including but not limited to the
release and waiver included in paragraph 5, and the non-compete, non-solicitation, and
confidentiality restrictions contained in paragraphs 10 and 11 below, and in lieu of any other
Company post-termination payments or benefits, you will receive only the benefits outlined
below.

	 	a.	 	After March 5, 2010 the Company will continue to pay you your current bi-weekly
salary, less standard deductions, up to and including October 18, 2010 (the “Severance
Period”), in the same manner and frequency as you were compensated prior to March 5,
2010.
	 
	 	b.	 	If you are a participant in the Company’s health insurance plans, your medical
and dental coverage will end on the last day of the month following your last day of
active employment with the Company. The Company will no longer provide you with such
health insurance benefits beyond your March 5, 2010. Should you become eligible under
COBRA for continuation of your health insurance coverage after March 5, 2010, you will
be notified of such right. You will not participate in the Company’s short term and
long term disability plans or life insurance plans after March 5, 2010.
	 
	 	c.	 	If you are a participant in the Company’s 401(k) plan, you will not be eligible
to continue your contributions after March 5, 2010 and the Company will make no further
matching

1

 

	 	 	 	contributions. Should you have a loan with the 401(k) plan, you may either (i) pay off
the loan balance immediately, or (ii) pay off the loan within the 90 days after March 5,
2010. Should you not pay off the loan, the outstanding loan will be treated as a
distribution from the plan and may be subject to income taxes and penalties.

	 	d.	 	For purposes of accruing 401(k) benefits, vacation, or other employee benefits,
your last day of work shall be deemed March 5, 2010. You will not accrue seniority or
other benefits during any period of salary continuation.
	 
	 	e.	 	Any existing stock option and restricted stock agreements between you and the
Company remain in effect. However, effective March 5, 2010, all vesting of Company
stock options and restricted stock held by you will cease. You will be eligible to
exercise any vested Company stock options within 60 days of your separation date.
Failure to exercise vested options within 60 days of your separation date will result
in forfeiture of all or any portion of stock options not exercised.
	 
	 	f.	 	All vested restricted stock from previous grants has been transferred to your
personal brokerage account in accordance with your instructions.

	4.	 	You understand and agree that you would not receive the monies and benefits specified in
paragraph 3(a)-(f) above except for your execution of this Agreement and the fulfillment of
the promises contained herein, and that the payments and benefits under this Agreement are
over and above any consideration or payments owed to you by the Company arising out of your
employment. You understand that all wages and benefits received from the Company, except for
those outlined in paragraph 3(a)-(f) above will expire as of March 5, 2010.
	 
	5.	 	Release and Waiver of All Claims. You knowingly and voluntarily release and forever
discharge the Company from any and all claims, known and unknown, which you have or may have
against the Company at any time prior to the date of the execution of this Agreement,
including, but not limited to:

	 	•	 	a release of any rights or claims he/she may have under the Americans with
Disabilities Act (“ADA”), which prohibits discrimination on the basis of disability;
	 
	 	•	 	the Age Discrimination in Employment Act (“ADEA”), which prohibits age
discrimination in employment;
	 
	 	•	 	the Older Worker’s Benefit Protection Act;
	 
	 	•	 	Title VII of the Civil Rights Act of 1964, as amended, which prohibits
retaliation and discrimination in employment based on race, color, national origin,
religion or sex;
	 
	 	•	 	the Family and Medical Leave Act;
	 
	 	•	 	the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended;
	 
	 	•	 	the Fair Labor Standards Act (“FLSA”);
	 
	 	•	 	the New York Human Rights Law (“NYHRL”);
	 
	 	•	 	the New York Executive Law;
	 
	 	•	 	the New York Labor Law;
	 
	 	•	 	any other federal, state or local law or regulation prohibiting employment discrimination;

2

 

	 	•	 	claims for wrongful discharge, whether based on claimed violations of statute
or based on claims in contract or tort, common law or equity;
	 
	 	•	 	claims for failure to pay wages due or other moneys owed (including claims for
unpaid vacation pay);
	 
	 	•	 	claims of fraud, misrepresentation, defamation, interference with prospective
economic advantage;
	 
	 	•	 	claims of intentional or negligent infliction of emotional distress; and
	 
	 	•	 	claimed violations of any other federal, state, civil or human rights law, or
any other alleged violation of any local, state or federal law, regulation or
ordinance, and/or public policy, contract, or tort, or common law having any bearing
whatsoever on the terms and conditions and/or cessation of employment with the Company,
including but not limited to, any allegations for costs, fees or other expenses,
including attorneys’ fees, incurred in these matters which you ever had, now have, or
may have as of the date you execute this release.

	 	 	With the sole exception of a claim under the Older Workers Benefit Protection Act (“OWBPA”),
which is discussed in the next paragraph below, you agree not to initiate any legal action,
charge or complaint (“action”) against the Company in any forum whatsoever and to
immediately discontinue any such action previously commenced. Further, to the extent any
such action has been or is brought, you expressly waive any claim to any form of monetary or
other damages or any other form of recovery or relief in connection with any such action, or
in connection with any action brought by a third party.
	 
	 	 	If you challenge the age claim release in this Agreement as being inconsistent with the
Older Workers Benefit Protection Act (“OWBPA”), you do not first have to give back of any
payments received under this Agreement. An OWPBA claim is the only claim that you might make
in which you would not first have to return to the Company all sums paid to you under this
Agreement. If you lose your OWBPA claim or lawsuit and/or it is found to have been brought
in bad faith, then in addition to paying all of the Company’s legal fees and other costs
incurred by the Company in defending against your claim, you will be required to immediately
return to the Company all sums paid to you under this Agreement.
	 
	6.	 	You agree that you will not make to any person, group, or entity any statement, whether oral
or written, that directly or indirectly denigrates or disparages the Company or any of its
officers, directors, employees, or agents. The Company in turn will not make to any person,
group, or entity any statement, whether oral or written, that directly or indirectly
denigrates or disparages you.
	 
	7.	 	You agree not to disclose any information regarding the existence or substance of this
Agreement, except as required by law or, in your case, to: (i) your spouse; or (ii) to an
attorney or accountant with whom you chooses to consult regarding your consideration of this
Agreement. You also agree that no disclosure shall be made to any such persons unless they
have first agreed to abide by this confidentiality provision, and that you shall be held
liable for any disclosure that any such person makes. The Company may disclose the terms of
this Agreement and the consideration therefore to any federal, state, and/or local taxing
authority in connection with an audit of tax returns involving the consideration provided for
in this Agreement, and as otherwise permitted or required by law.
	 
	8.	 	You agree to refer any requests for references to the Company’s Human Resources Department,
and that the Company will not be held liable for any reference requests that are directed to
anyone other than someone in Human Resources.

3

 

	9.	 	By entering into this Agreement, you agree to return to the Company any and all of its
property, including documents and software, which you have in your possession or under your
control, and affirm that you have not transferred any Company property to anyone prior to
executing this Agreement.
	 
	10.	 	You agree that your services hereunder are of a special, unique, extraordinary and
intellectual character, and that your position with the Company placed you in a position of
confidence and trust with the clients and employees of the Company. You also acknowledge that
the clients serviced by the Company are located throughout the world and accordingly, it is
reasonable that the restrictive covenants set forth below are not limited by specific
geographic area but by the location of the Company’s clients and potential clients. You
further acknowledge that the rendering of services to the Company’s clients necessarily
required the disclosure of confidential information and trade secrets of those clients (such
as without limitation, marketing plans, budgets, designs, client preferences and policies, and
identity of appropriate personnel of clients with sufficient authority to influence a shift in
suppliers). You and the Company agree that in the course of your employment with the Company,
you have developed a personal acquaintanceship and relationship with the Company’s clients,
and a knowledge of those clients’ affairs and requirements, which in some cases may constitute
the Company’s primary or only contact with such clients. You acknowledge that the Company’s
relationships with its established clientele have therefore been placed in your hands in
confidence and trust. You consequently agree that it is reasonable and necessary for the
protection of the goodwill and business of the Company that you continue to make the covenants
contained herein; that the covenants are given as an integral part of and incident to this
Agreement, that there is adequate consideration for such covenants including the benefits
provided by this Agreement, and that in making its decision to offer you the benefits outlined
above the Company relied upon and was induced by the covenants made by you in this section.
	 
	 	 	For purposes of this section 10 the term “Competing Business” shall mean any business or
venture whose business is substantially similar to the whole or any significant part of the
business conducted by Company, and which is in material competition with the Company.
	 
	 	 	The restrictions in this paragraph are in addition to and apart from the restrictions you
may be subject to in any other agreement, such as for example, but not limited to, any
existing stock option agreements.
	 
	 	 	Accordingly:

	 	a.	 	You agree that, for a period of one year from March 5, 2010, you shall not,
directly or indirectly, including without limitation on behalf of, for the benefit of,
or in conjunction with, any other person or entity:

	 	(i)	 	solicit, assist, discuss with or advise, influence, induce or
otherwise encourage in any way, any employee of Company (including particularly
but without limitation any employee who reported to or through you) to
terminate such employee’s relationship with Company for any reason, or assist
any person or entity in doing so,
	 
	 	(ii)	 	employ, assist or have involvement with any other person in
connection with, engage or otherwise contract with any employee or former
employee of Company in a Competing Business unless such former employee shall
not have been employed by Company for a period of at least one year and no
solicitation prohibited hereby shall have occurred prior to the end of such one
year period, or
	 
	 	(iii)	 	interfere in any manner with the relationship between any
employee and Company.

4

 

	 	b.	 	You agree that, during the Severance Period, you shall not, directly or
indirectly, including without limitation on behalf of, for the benefit of, or in
conjunction with, any other person or entity solicit or otherwise deal in any way with
any of the clients or customers of the Company:

	 	(i)	 	with whom you in the course of employment by the Company
acquired a relationship or had dealings,
	 
	 	(ii)	 	with respect to whom you in the course of employment by the
Company were privy to material or proprietary information, or
	 
	 	(iii)	 	with respect to whom you were otherwise involved in the course
of employment by the Company, whether in a supervisory, managerial,
consultative, policy-making, or other capacity involving other Company
employees who had direct dealings with such clients and customers.

	 	 	 	Such clients and customers include any client or customer to whom the Company sold
services or products in the two years prior to March 5, 2010, any prospective client
or customer of the Company for whom a proposal was prepared or to whom any other
marketing presentation was made within the year prior to March 5, 2010, or any
prospective client or customer for whom pursuit was actively planned by the Company
within the year prior to March 5, 2010 and in respect of whom the Company has not
determined to cease such pursuit.
	 
	 	c.	 	The non-solicitation and non-competition restrictions set forth in this Section
10 shall supersede any non-solicitation and/or non-competition restrictions contained
in any other agreement entered into by you and the Company.

	11.	 	You also agree not to use or disclose to any other person, business, or legal entity, any of
the Company’s confidential, proprietary, or trade secret information, including, but not
limited to, customer lists, customer information, processes and techniques, product
information and plans, sales techniques, pricing strategies, and financial or marketing
information. The parties agree that the Company is entitled to an injunction and attorney’s
fees in the event of a breach of this Agreement. The restrictions in this paragraph are in
addition to and apart from the restrictions you may be subject to in any other agreement, such
as for example, but not limited to, any existing stock option agreements.
	 
	12.	 	You agree that in addition to its rights to terminate benefits under this Agreement and any
other legal rights it may have, the Company may advise third parties of the restrictions
contained in sections 10, 11, and 12 of this Agreement in connection with protection of its
rights hereunder, and shall be entitled to an injunction to prevent any violation of the
provisions of such sections.
	 
	13.	 	With the sole exception of a claim under the Older Workers Benefit Protection Act (“OWBPA”),
which is discussed in and governed by the language in paragraph “5” above, if you file a
lawsuit, charge, complaint or other claim asserting any claim or demand which is within the
scope of the release and waiver, whether or not such claim is valid, or breaches any terms of
this Agreement, the Company shall: (i) retain all rights and benefits of this Agreement, (ii)
be entitled to cancel any and all future obligations of this Agreement, and (iii) be entitled
to recoup the value of all payments and benefits paid hereunder, together with the Company’s
costs and attorneys’ fees.
	 
	14.	 	You agree that neither this Agreement nor the furnishing of the consideration under this
Agreement shall be deemed or construed at any time for any purposes as an admission by the
Company of any liability or unlawful conduct of any kind.

5

 

	15.	 	If any provision of this Agreement is declared invalid by any court of competent jurisdiction
for any reason, such invalidity shall not affect the remaining provisions of this Agreement,
which shall be fully severable, given full force and effect.
	 
	16.	 	No modification, amendment or waiver of any of the provisions contained in this Agreement, or
any future representation, promise or condition in connection with the subject matter of this
Agreement, shall be binding upon any party hereto unless made in writing and signed by such
party or by a duly authorized officer or agent of such party.
	 
	17.	 	The parties agree that this Agreement shall be governed and interpreted by the laws of the
State of New York, without regard to conflict of laws doctrines. The parties irrevocably
consent to jurisdiction and venue of any action or proceeding brought to enforce any rights,
duties or obligations under this Agreement in the Supreme Court of the State of New York for
the County of Monroe or in the United States District Court for the Western District in
Rochester, New York.
	 
	18.	 	You acknowledge that you are voluntarily signing this Agreement, that you have not been
pressured into agreeing to its terms, and that you have enough information about this
Agreement and the benefits offered under it to decide whether to sign this Agreement. If,
after full consideration of this Separation Agreement, including the release and waiver of
claims in paragraph 5, you voluntarily choose to accept the terms of this Agreement, you will
sign and date this Agreement in the presence of a notary public, in the spaces provided below.
	 
	19.	 	By signing below, you acknowledge that you have been advised to consult an attorney of your
choice and that the Company recommends that you consult an attorney of your choice before
entering into this Agreement.
	 
	20.	 	You understand that you have twenty-one (21) days to consider this Agreement. You may use as
much of this period as you choose. You may also waive all or part of this twenty-one (21) day
period, and if after receiving this Agreement you sign the agreement before twenty-one (21)
days have elapsed, you signature shall be evidence that you have waived the balance of the
twenty-one (21) day period after having had a full opportunity to consult the attorney of your
choice concerning its terms. If you elect to accept the terms of this Agreement, including the
release and waiver included in paragraph 5 and the non-compete, non-solicitation, and
confidentiality restrictions contained in paragraphs 10, 11, and 12 above, you will sign and
date the Agreement in the space provided below.
	 
	 	 	Once you sign this Agreement, it will become effective, enforceable, and irrevocable upon
the expiration of seven (7) days following the date of your signature. If you decide to
revoke this Agreement, you will personally deliver a written notice of revocation to the
Human Resources Department, within seven (7) days after you sign this Agreement.
	 
	21.	 	This Agreement is binding upon and shall inure to benefit of (i) you and your heirs, legal
representatives, and assigns, and (ii) the Company and its successors, assigns, subsidiaries,
affiliates, agents, employees, officers, directors, representatives, and predecessors.
	 
	22.	 	This Agreement constitutes the entire agreement between the parties on the subject matters
contained herein.

6

 

BY SIGNING BELOW, I ACKNOWLEDGE THAT I HAVE READ AND UNDERSTOOD THIS AGREEMENT, INCLUDING, WITHOUT
LIMITATION, THE WAIVER AND RELEASE IN PARAGRAPH 5 AND THE NON-COMPETE, NON-SOLICITATION, AND
CONFIDENTIALITY RESTRICTIONS CONTAINED IN SECTIONS 10 AND 11 AND I VOLUNTARILY CHOOSE TO ACCEPT THE
TERMS OF THIS AGREEMENT IN CONNECTION WITH MY SEPARATION FROM EMPLOYMENT.

IN WITNESS WHEREOF, the parties have executed this Separation Agreement and General Release as of
the date(s) set forth below.

	 	 	 	 	 	 	 	 	 

	Dated: 3/10/10	 	 	 	Dated: 3/11/10	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	HARRIS INTERACTIVE INC.	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Frank E. Forkin

	 	 	 	By:
	 	/s/ Marc H. Levin	 	 
	 

	 	 	 	 	 	 	 	 
	Frank Forkin

	 	 	 	 	 	Human Resources	 	 

	 	 	 	 	 

	STATE OF: Michigan

	 	)
	COUNTY OF: Oakland

	 	) ss:

On this 10th day of March, 2010 before me personally came Frank E. Forkin to me known and known to
me to be the individual described in and who executed the foregoing instrument, and the above-named
person acknowledged to me that said person executed the same.

	 	 	 	 	 	 	 	 	 

	Notary Public	 	 	 	/s/ Darlene F. Darling	 	 
	 	 	 	 	 	 	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]