Document:

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                                                                    EXHIBIT 10.4

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (this "AGREEMENT"), dated as of the 24th day
of June, 1999, is between I 3S, Inc., a Texas corporation (the Company with
offices at 1440 Corporate Drive, Irving, Texas 75038, and Daniel A. Gillett, an
individual, with an address at 848 Pimernel Lane, Plano, TX 75075 ("EXECUTIVE").
                                   WITNESSETH:

         WHEREAS, in recognition of the valuable nature of Executive's
management capabilities to the business of Company, Company desires to enter
into this Agreement with Executive to be effective as of the date above first
written (the "EFFECTIVE DATE"); and

         WHEREAS, Executive desires to enter into this Agreement with Company
and to be employed by Company in the capacity, for the period, and on the terms
and conditions set forth herein;

         NOW THEREFORE, in consideration of the mutual covenants, agreements and
conditions contained herein, the parties hereto intending to be legally bound do
hereby covenant and agree as follows:

         1. Employment.

            (a) Company hereby agrees to employ Executive, and Executive hereby
         agrees to serve Company, as Vice President of Corporate Development and
         Chief Financial Officer (subject to approval by the Board of Directors
         of Company from time to time hereafter), and, subject to the direction
         of the Board of Directors of Company and their designates, to perform
         such duties, functions and responsibilities commensurate with and
         appropriate to such position, and as the same may be from time to time
         set forth in the By-laws of Company or otherwise delegated to Executive
         by the Board of Directors of Company or their designates. As of the
         effective date of this Agreement, said duties, responsibilities and
         functions of Executive are set forth in SCHEDULE A attached hereto and
         incorporated herein by reference for all purposes.

            (b) Executive shall receive from Company the necessary power and
         authority to carry out and discharge such duties, functions and
         responsibilities.

            (c) Executive shall be a full time employee of Company and shall
         devote his commercially reasonable efforts to the performance,
         discharge and fulfillment of all such duties, functions and
         responsibilities.

            (d) Executive will perform his services in Dallas County, Texas,
         U.S.A., or at such other location as may be mutually agreed upon by the
         Board of Directors of Company, or their designates, and Executive.

         2. Term of Employment.

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            (a) Subject to the provisions for termination as hereinafter
         provided, the term of employment under this Agreement shall be
         effective as of the date first above written and shall continue through
         June 30, 2001, provided, however, that beginning on June 30, 2000 and
         on June 30 each year thereafter (each such June 30 being referred to as
         a "RENEWAL DATE"), the term of this Agreement shall automatically be
         extended for an additional one year so that on each Renewal Date the
         then remaining unexpired term of this Agreement shall be two years,
         unless either party gives the other written notice of non-renewal at
         least ninety (90) days prior to any such Renewal Date.

            (b) This Agreement shall terminate prior to the expiration of the
         initial term or any renewal term of this Agreement upon the earliest to
         occur of the following:

                (i) the death or permanent disability (as defined in Company's
            permanent disability insurance program then in effect covering
            Executive) of Executive; provided, however, that Company shall
            remain responsible for and shall satisfy its obligations under its
            life and permanent disability insurance programs then in effect
            covering Executive as are referred to in SCHEDULE B attached hereto
            and incorporated herein by reference for all purposes; and further
            provided, however, that in addition to Company's obligations to
            Executive under its life and permanent disability insurance programs
            then in effect covering Executive, Company shall pay (a) to any
            beneficiary or beneficiaries designated by the Executive in writing
            or, if none, to his estate or other legal representative in the
            event of Executive's death, or (b) to Company in the event of his
            permanent disability a pro rata portion of the Annual Base Salary to
            the last day of the month in which his death occurs and, in lieu of
            the maximum bonus provided for in SUBSECTION 3(c), an amount equal
            to a pro rata portion (based on the number of months or portions
            thereof elapsed to the date of the Executive's death) of the Annual
            Incentive Bonus, if any, paid or anticipated to be payable to the
            Executive in respect of the then current year of Executive's
            employment hereunder;

                (ii) as permitted by SECTION 6 hereof by Executive for "Good
            Reason" (as hereinafter defined) pursuant to SECTION 6;

                (iii) as permitted by Section 7 hereof by Executive upon a
            "Change of Control of the Company" (as hereinafter defined pursuant
            to SECTION 7; or

                (iv) as permitted by SECTION 7 hereof, by Company for "Cause"
            (as hereinafter defined) pursuant to SECTION 7.

         SECTIONS 6, 7, 8, 11 AND 12 shall survive the termination of this
Agreement.

         3. Compensation.

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            (a) In consideration for all of the services to be rendered by
         Executive to Company, Company shall pay Executive an annual base salary
         of Two Hundred Thousand Dollars ($200,000.00), subject to such annual
         increases as approved by the Board of Directors or any authorized
         committee thereof (the "COMPENSATION COMMITTEE"), but no less than the
         increase in the U.S. government's Consumer Price Index, all markets,
         for the prior twelve months (such annual base salary, as it may be
         increased from time to time hereafter, being herein referred to as the
         "ANNUAL BASE SALARY").

            (b) The Annual Base Salary shall be paid to Executive in periodic
         installments throughout the year in accordance with Company's normal
         and customary pay policy for executive officers of Company.

            (c) In addition to the Annual Base Salary to be paid pursuant to
         SUBSECTION 3(a) of this Agreement, during the term of this Agreement or
         any renewal or extension, the Company shall pay to the Executive as
         incentive compensation annual bonuses in accordance with the incentive
         bonus plan(s) adopted from time to time by the Board or the
         Compensation Committee of the Board, as the case may be. Such plan,
         among other things, shall establish a maximum bonus equal to 50% of the
         Executive's Annual Base Salary.

            (d) The amount of the Annual Base Salary and any other amounts
         payable pursuant to this Agreement are gross amounts due by Company to
         Executive hereunder, and Company shall have the right to deduct
         therefrom all taxes and other amounts which may be required to be
         deducted or withheld by law (including, but not limited to, federal
         income tax withholding and social security payments), whether such law
         is now in effect or becomes effective after the date of this Agreement.

            (e) Company has adopted certain equity-based incentive compensation
         plans (collectively, the "PLAN") providing for annual or other periodic
         awards to key employees of, among other things, options to purchase the
         Company's common stock. The Executive has previously been granted under
         the Plan options to purchase 30,000 shares of the Company's Class A
         Common Stock, no par value ("COMMON STOCK"). Upon the execution of this
         Agreement, the Company shall grant Executive an option or options to
         purchase 470,000 shares of Common Stock under the Plan. The exercise
         price of such newly granted options shall be $18.80 per share, the
         current fair market value. To the extent possible, such options shall
         be "incentive stock options." Such options shall vest upon the earlier
         of (i) an initial public offering; (ii) a Change of Control of the
         Company (as hereinafter defined); or (iii) one-third of the options to
         be granted hereunder at the end of each year of the three-year period
         commencing upon the date of this Agreement.

            (f) In addition to the foregoing, in the event that Company grants
         stock options or similar incentives to its officers and employees from
         time to time hereafter, Executive shall be allowed to participate in
         any such future stock options or similar

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         incentives on such terms as are approved by the Board of Directors of
         Company or the Compensation Committee and are offered to other
         executive officers of Company.

         4. Executive Benefits and Business Expenses.

            (a) During the term hereof, Executive shall be entitled to
         participate in such employee benefit plans and programs maintained by
         the Company for the benefit of its executive officers, and to
         participate in applicable new or amended programs, including, but not
         limited to, medical, dental, health, life, accident and disability
         insurance programs, savings for retirement plans, bonus, stock option
         plans, and any other incentive compensation plans.

            (b) Executive shall be reimbursed for any necessary business
         expenses reasonably incurred by Executive in carrying out Executive's
         duties, functions and responsibilities hereunder except for expenses
         related to local business travel (excluding taxi fares to and from the
         airport and parking and toll charges).

            (c) Executive shall receive a cash allowance of $650 per month to
         cover all costs of local business travel, excluding taxi fares to and
         from the airport and parking and toll charges.

         5. Vacation and Sick Leave Time.

         Executive shall be entitled to annual vacation and sick leave time
pursuant to the plan or policy currently in effect, or as hereafter may be
amended, available for other executive officers of Company. Vacation time shall
accrue monthly at a rate equal to four (4) weeks paid vacation every year
throughout the term of this Agreement.

         6. Termination. In the event of (a) termination by the Company or any
successor of the Executive's employment hereunder without Cause, or (b)
Executive terminates his employment for Good Reason, then Executive shall be
entitled to receive: (i) 24 equal monthly installments beginning on the date of
such termination an amount (the "TERMINATION AMOUNT") equal to (x) the sum of
one-twelfth of the then Annual Base Salary plus (y)100% of the maximum bonus
provided in SUBSECTION 3(b); (ii) Executive's outstanding stock options and any
stock subject to restricted stock purchase agreements shall accelerate and fully
vest; and (iii) to the extent permitted by law, accounts under any Company
deferred compensation plans or arrangements shall accelerate and fully vest,
including as to any amounts contributed by the Company for the year in which the
termination occurs.

         For the purpose of this Agreement, "GOOD REASON" is defined as (a) the
significant reduction of the Executive's title, duties, authority or
responsibilities, relative to the Executive's title, duties, authority or
responsibilities as in effect immediately prior to such reduction; (b) a
reduction by the Company in the Base Salary or bonus target amount of the
Executive as in effect immediately prior to such reduction; (c) the relocation
of the Executive to a facility or a location more than thirty (30) miles from
the Executive's then present location for a period in

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excess of 120 days, without the Executive's express written consent; (d) any
material breach of this Agreement by the Company, or (e) any act or set of facts
or circumstances which would, under Texas case law or statute, constitute a
constructive termination of the Executive.

         7. Change of Control. In the event of a Change of Control of the
Company, at the option of the Executive, (a) the term of employment shall
terminate, (b) Executive's outstanding stock options and any stock subject to
restricted stock purchase agreements shall accelerate and fully vest, and (c)
the Company shall pay Executive an amount equal to two times the sum of (i) the
Annual Base Salary as in effect as of the date immediately prior to such Change
of Control, plus (ii) 100% of Executive's maximum bonus provided for in
SUBSECTION 3(c).

         For this purpose, "CHANGE OF CONTROL OF THE COMPANY" is defined as:

            (a) Any "person" (as such term is used in Sections 13(d) and 14(d)
         of the Securities Exchange Act of 1934, as amended) becomes the
         "beneficial owner" (as defined in Rule 13d-3 under said Act), directly
         or indirectly, of securities of the Company representing 50% or more of
         the total voting power represented by the Company's then outstanding
         voting securities; or

            (b) A change in the composition of the Board of Directors of the
         Company occurring within a two-year period, as a result of which fewer
         than a majority of the directors are Incumbent Directors. "INCUMBENT
         DIRECTORS" means directors who either (i) are directors of the Company
         as of the date hereof, or (ii) are elected, or nominated for election,
         to the Board of Directors of the Company with the affirmative votes of
         at least a majority of the Incumbent Directors at the time of such
         election or termination (but shall not include an individual whose
         election or nomination is in connection with an actual or threatened
         proxy contest relating to the election of directors to the Company); or

            (c) The consummation of a merger or consolidation of the Company
         with any other corporation other than a merger or consolidation which
         would result in the voting securities of the Company outstanding
         immediately prior thereto continuing to represent (either by remaining
         outstanding or by being converted into voting securities of the
         surviving entity) at least fifty percent (50%) of the total voting
         power represented by the voting securities of the Company or such
         surviving entity outstanding immediately after such merger or
         consolidation; or

            (d) The consummation of the sale or disposition by the Company of
         all or substantially all of the Company's assets.

         8. Golden Parachute Gross-Up for Taxes. In the event that the benefits
provided for in this Agreement or otherwise payable to the Executive constitute
"parachute payments" within the meaning of Section 280G of the Internal Revenue
Code of 1986, as amended (the "CODE") or any successor provision and as a result
are subject to the excise tax imposed by Section 4999 of

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the Code or any successor provision, then the Executive shall receive (a) a
lump-sum cash payment from the Company sufficient to pay such excise tax, and
(b) an additional lump-sum cash payment from the Company sufficient to pay the
excise tax and all federal and state income taxes arising from the payments made
by the Company to Executive pursuant to this sentence. Unless the Company and
the Executive otherwise agree in writing, the determination of Executive's tax
liability arising from such taxes, and the amount required to be paid under this
SECTION 8, shall be made in writing by the Accountants. For purposes of making
the calculations required by this SECTION 8, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Sections
280G and 4999 of the Code or any successor provision. The Company and the
Executive shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this
SECTION 8. The Company shall bear all costs the Accountants may reasonably incur
in connection with any calculations contemplated by this SECTION 8.

         9. Breach by Company; Nonexclusive Remedy.

            (a) In the event of a material breach of this Agreement by Company
         which remains uncured after written notice thereof by Executive to
         Company and the expiration of thirty (30) days opportunity to cure such
         breach, Company shall be obligated to pay Executive as liquidated
         damages, and not as a penalty, in a lump sum or on an annuity basis, at
         Executive's sole option, an amount equal to the Termination Amount. It
         is acknowledged and agreed to by the parties hereto that because actual
         damages would be difficult to ascertain in the event that Company
         materially breaches this Agreement, the amount of liquidated damages
         provided for herein is reasonable and appropriate to remedy any such
         breach and to compensate Executive for any damages incurred by him
         hereunder.

            (b) In the event that Company, or its successor or assigns, fails to
         perform or breaches this Agreement in any material respect and
         Executive shall file any judicial action for enforcement of this
         Agreement and successfully recovers compensation or damages, Executive
         shall be entitled to recover an additional amount as interest at ten
         percent (10%) per annum on the amount owed from the date such amount
         was due and payable, together with all actual expenses and attorneys'
         fees reasonably incurred by Executive in obtaining legal advice
         regarding his rights under this Agreement and in prosecuting and
         disposing of such action.

            (c) The provisions of this SECTION 6 shall not constitute the
         exclusive remedy of Executive for Company's breach of this Agreement.

         10. Breach by Executive.

            (a) In the event that Executive willfully and materially breaches
         this Agreement, Company may terminate this Agreement, at the option of
         Company, (i) effective thirty (30) days after Company gives written
         notice of such termination to

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         Executive, or (ii) effective upon payment of thirty (30) days' pay in
         lieu of notice; provided, however, that Company shall pay to Executive
         all cash and non-cash compensation then accrued under this Agreement to
         the date of such termination.

            (b) A material breach of this Agreement by Executive, in either case
         that is materially detrimental to Company as determined in good faith
         by the Board of Directors of the Company, shall be deemed to have
         occurred upon the happening of any of the following events (for
         "CAUSE"), and the continuation thereof for a period of twenty (20) days
         after notice of such breach from the Company is received by Executive,
         to-wit:

                (i) Executive's wanton or willful misconduct in the performance
            or discharge of any of Executive's duties, functions and
            responsibilities hereunder; or

                (ii) Executive's conviction of any felony offense during the
            term of this Agreement that adversely affects his ability to perform
            and discharge his duties under this Agreement; or

                (iii) Executive's breach of any of Executive's material
            obligations hereunder, including, without limitation, Executive's
            obligations under SECTIONS 11 AND 12 hereof.

         In the event Company elects to terminate Executive pursuant to this
SECTION 7, Company shall give written notice to Executive specifically stating
each fact and reason which is the basis for such termination. Following such
termination, Company shall have no further obligation to Executive under this
Agreement except for accrued and unpaid cash and non-cash compensation payments
then due and owing to Executive.

         11. Covenant not to Compete.

            (a) Executive covenants and agrees that Executive will not during
         the term of this Agreement and for a period of two (2) years following
         the termination of this Agreement, directly or indirectly in the United
         States of America or Canada, as a principal, partner, agent, consultant
         or otherwise of any person, partnership, corporation or other entity,
         engage in or be financially interested in any business or group of
         affiliated or unaffiliated businesses (other than Company) that engages
         in a business which is competitive with any material line or business
         in which the Company or its affiliates then currently engages or which
         the Company or its affiliates are then currently developing.

            (b) Company and Executive hereby agree that in the event that either
         the length of, time or geographical area set forth herein is deemed too
         restrictive by any court of competent jurisdiction, the court may
         reduce such restriction to those which it deems reasonable under the
         circumstances. This SECTION 11 shall not prohibit Executive from
         investing in less than five percent (5%) of any class of equity
         security of a company that

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         has a class of equity security registered pursuant to Section 12(b) or
         12(g) of the Securities Exchange Act of 1934.

         12. Confidentiality, Proprietary Information and Trade Secrets.

            (a) During the term of this Agreement and for a period of two (2)
         years after the termination of this Agreement, Executive shall not use
         for his personal benefit, or disclose, communicate or divulge to, or
         use for the direct or indirect benefit of any person, firm, association
         or company other than Company, any material referred to in SUBSECTIONS
         12(F), (G) AND (H), or any proprietary information regarding the
         business methods, business, policies, procedures, techniques, research
         or development projects or results, trade secrets or other knowledge or
         processes of, or developed by, Company or any names and addresses of
         customers or clients or any data on or relating to past, present or
         prospective customers or clients or any other confidential information
         relating to or dealing with the business operations or activities of
         Company, made known to Executive or learned or acquired by Executive
         while employed by Company.

            (b) During the term of this Agreement and for a period of two (2)
         years after the termination of this Agreement, Executive shall not,
         directly or indirectly, in any geographic area served by Company or its
         affiliates induce or attempt to influence any employee of Company or
         its affiliates to terminate his or her employment with Company or its
         affiliates or to hire any such employee of Company or its affiliates.

            (c) Executive acknowledges and agrees that the restrictions
         contained in SECTION 11 hereof and in SUBSECTIONS 12(A) AND (B) (the
         "RESTRICTIONS"), in view of the nature of the business in which Company
         is engaged, are reasonable and necessary in order to protect the
         legitimate business interests of Company, and that any violation
         thereof would result in irreparable harm to Company, and Executive
         therefore further acknowledges and agrees that, in the event Executive
         violates, or threatens to violate, any of such Restrictions, Company
         shall be entitled to obtain from any court of competent jurisdiction,
         without the posting of any bond or other security, preliminary and
         permanent injunctive or equitable relief as well as damages and an
         equitable accounting of all earnings, profits and other benefits
         arising from such violation, which rights shall be cumulative and in
         addition to any other rights or remedies at law or in equity to which
         Company may be entitled.

            (d) If any Restriction, or any part thereof, is determined in any
         judicial or administrative proceeding to be invalid or unenforceable,
         the remainder of the Restrictions shall not thereby be affected and
         shall be given full effect, without regard to the invalid provisions.

            (e) If Executive violates any of the Restrictions, the restrictive
         period shall not run in favor of Executive from the time of the
         commencement of any such violation until such time as such violation
         shall be cured by Executive to the satisfaction of Company.

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            (f) It is recognized that Executive will have access to certain
         confidential information of Company and its affiliates, and that such
         information constitutes valuable, special and unique property of
         Company and its affiliates. Executive shall not at any time during the
         term of this Agreement and for a period of two years after the
         termination of this Agreement disclose any such confidential
         information to any party for any reason or purpose except as may be
         made in the normal cause of business of Company and for its benefit.

            (g) All advertising, sales, and other materials or articles,
         including, without limitation, data processing reports, customer sales
         analyses, invoices, or any other materials or data of any kind
         furnished to Executive by Company or developed by Executive on behalf
         of Company or at Company's direction or for Company's use or otherwise
         in connection with Executive's employment hereunder, are and shall
         remain the sole, exclusive and confidential property of Company. In the
         event that Company requests the return of such materials at any time
         during, upon or after the termination of Executive's employment,
         Executive shall immediately deliver the same, and any and all copies
         thereof, to Company.

            (h) For purposes of this Agreement, Confidential Information shall
         include the Company's trade secrets and proprietary information,
         techniques, sketches, drawings, know-how, processes, apparatus,
         equipment, algorithms, software programs, software source documents and
         formulae related to the current, future and proposed products and
         services of the Company, and/or the Company's parents, subsidiaries,
         customers and/or vendors, whether delivered in written (or other
         tangible) form or verbally, and includes, without limitation,
         information concerning research, design details and specifications,
         financial data, procurement requirements, customer lists, business
         forecasts and purchasing, sales, merchandising, development and
         marketing plans, but shall exclude (i) confidential information that
         was in the public domain at the time it was communicated to the
         Executive; (ii) confidential information that enters the public domain
         subsequent to the time it was communicated to Executive through no
         fault of the Executive; or (iii) confidential information that was in
         Executive's possession free of any obligation of confidence at the time
         it was communicated to Executive.

         13. Representations and Warranties of Executive. Except for
restrictions heretofore disclosed in writing by Executive to Company, Executive
represents and warrants to Company that (a) there are no restrictions,
agreements or understandings whatsoever to which Executive is a party which
would prevent or make unlawful the execution or performance of this Agreement or
his employment hereunder; (b) his execution of this Agreement and his employment
hereunder shall not constitute a breach of any contract, agreement or
understanding to which he is a party or by which he may be bound; and (c) he is
free and able to execute and perform this Agreement in all respects.

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         14. Successors.

            (a) This Agreement shall inure to the benefit of and be binding upon
         Company and Executive. This Agreement and the benefits and obligations
         of Company hereunder may be assigned by Company to any person acquiring
         all or substantially all of the assets or all of the issued and
         outstanding equity securities of Company; provided, however, that
         Company shall remain jointly and severally liable to Executive with
         such assignee for the fulfillment of Company's obligations under this
         Agreement, or to any corporation with which Company may be merged or
         consolidated.

            (b) This Agreement shall inure to the benefit of and be binding upon
         Executive and Executive's executors, administrators, trustees, heirs
         and legal representatives. Because Executive's duties, functions,
         responsibilities, and services hereunder are special, personal and
         unique in nature, Executive shall not transfer, sell or assign, by
         operation of law or otherwise, Executive's obligations under this
         Agreement.

            15. Waivers. Neither the failure nor any delay on the part of either
party hereto to exercise any right, remedy, power or privilege (collectively,
"RIGHT") under this Agreement shall operate as a waiver, abandonment or release
thereof; nor shall any single or partial exercise of any Right preclude any
other or further exercise of the same or of any other Right, nor shall any
waiver of any Right with respect to any occurrence be construed as a waiver of
such Right with respect to any other occurrence.

            16. Severability. If any provision of this Agreement shall be held
to be invalid or unenforceable, such invalidity or unenforceability shall not
affect or impair the validity or enforceability of the remaining provisions of
this Agreement, which provisions shall remain in full force and effect and the
parties hereto shall continue to be bound thereby.

            17. Entire Agreement. This Agreement contains the entire agreement
between the parties relating to the subject matter hereof and supersedes all
previous agreements and understandings between the parties, whether written or
oral, with respect to the subject matter hereof. This Agreement shall not be
modified, altered or amended except by a writing executed by both parties.

            18. Notices. Any notice or other communication provided for in this
Agreement or contemplated hereby shall be sufficiently given if given in writing
and delivered personally or by certified mail, return receipt requested, and
addressed, in the case of the Company, to the Company at:

                I 3S, Inc.
                1440 Corporate Drive
                Irving, Texas  75038

and in the case of Executive, to the address set forth in the introductory
paragraph. Notice shall be effective when so delivered personally. Either party
may designate a different address by giving notice of change of address in the
manner provided above.

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            19. Construction of Agreement. This Agreement shall be governed by,
construed and enforced in accordance with the laws of the State of Texas.

                   [Balance of page intentionally left blank]

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         IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
and as of the day and year above first written,

                                "Company"

                                I 3S, INC.

                                By:  /s/ JAMES R. PRICE
                                     -------------------------------------------
                                     Printed Name: James R. Price
                                     Title: Chief Executive Officer and Chairman

                                "Executive"

                                By: /s/ DANIEL A. GILLETT
                                    --------------------------------------------
                                                  Daniel A. Gillett

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                                   SCHEDULE A
                                       TO
                             EMPLOYMENT AGREEMENT BY
                       AND BETWEEN I 3S, INC., AS COMPANY,
                                       AND
                         DANIEL A. GILLETT, AS EXECUTIVE

       DESCRIPTION OF FUNCTIONS, DUTIES AND RESPONSIBILITIES OF EXECUTIVE

     Executive shall oversee all financial functions and operations of the
Company, including all aspects of financing transactions, accounting, budgeting
and planning and management information systems.

Schedule A, Description of Functions, Duties and Responsibilities of Executive -
Solo Page

<PAGE>   14

                                   SCHEDULE B
                                       TO
                              EMPLOYMENT AGREEMENT
                                 BY AND BETWEEN
                             I 3S, INC., AS COMPANY
                                       AND
                         DANIEL A. GILLETT, AS EXECUTIVE

                      EXECUTIVE OFFICER BENEFITS OF COMPANY

1.       Life insurance

2.       Medical insurance

3.       Dental insurance

Schedule B, Executive Officer Benefits of Company - Solo Page<PAGE>   1

                                                                    EXHIBIT 10.5

                            INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (this "AGREEMENT") is made and entered into
as of the ____ day of _______________, 1999, by and between BroadbandNOW, Inc.,
a Delaware corporation (the "COMPANY"), and ______________________ (the
"INDEMNITEE").

                              W I T N E S S E T H:

     WHEREAS, the interpretation of ambiguous statutes, regulations and bylaws
regarding indemnification of directors and officers may be too uncertain to
provide such directors and officers with adequate notice of the legal, financial
and other risks to which they may be exposed by virtue of their service as such;
and

     WHEREAS, damages sought against directors and officers in shareholder or
similar litigation by class action plaintiffs may be substantial, and the costs
of defending such actions and of judgments in favor of plaintiffs or of
settlement therewith may be prohibitive for individual directors and officers,
without regard to the merits of a particular action and without regard to the
culpability of, or the receipt of improper personal benefit by, any named
director or officer to the detriment of the corporation; and

     WHEREAS, the issues in controversy in such litigation usually relate to the
knowledge, motives and intent of the director or officer, who may be the only
person with firsthand knowledge of essential facts or exculpating circumstances
who is qualified to testify in such person's defense regarding matters of such a
subjective nature, and the long period of time which may elapse before final
disposition of such litigation may impose undue hardship and burden on a
director or officer or on such person's estate in launching and maintaining a
proper and adequate defense for a director or officer or for such person's
estate against claims for damages; and

     WHEREAS, the Company is organized under the Delaware General Corporation
Law (the "DGCL") and Section 145 of the DGCL empowers corporations to indemnify
and advance expenses to a person serving as a director, officer, employee or
agent of a corporation and to persons serving at the request of the corporation
as a director, officer, partner, trustee, employee or agent of another
corporation, partnership, joint venture, trust, other enterprise or employee
benefit plan, and further provides that the indemnification and advancement of
expenses provided by, or granted pursuant to, said section "shall not be deemed
exclusive of any other rights to which those seeking indemnification or
advancement of expenses may be entitled under any bylaw, agreement, vote of
stockholders or disinterested directors or otherwise, both as to action in such
person's official capacity and as to action in another capacity while holding
such office"; and

     WHEREAS, the Board of the Company have concluded that it is reasonable and
prudent for the Company contractually to obligate itself to indemnify in a
reasonable and adequate manner the Indemnitee and to assume for itself maximum
liability for expenses and damages in connection with claims lodged against the
Indemnitee for such person's decisions and actions as a director, officer,
employee or agent of the Company and its subsidiaries.

     NOW, THEREFORE, in consideration of the foregoing, and of other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by each of the parties hereto, the parties agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

     For purposes of this Agreement, the following terms shall have the meanings
set forth below:

                                       1

<PAGE>   2

     A. "AGREEMENT" means this Indemnification Agreement, as it may be amended
from time to time.

     B. "BOARD" means the Board of Directors of the Company.

     C. "CERTIFICATE OF INCORPORATION" means the Certificate of Incorporation of
the Company (as it may be amended or amended and restated from time to time).

     D. "CHANGE IN CONTROL" is defined as:

        (a) Any "person" (as such term is used in Sections 13(d) and 14(d) of
     the Exchange Act of 1934) becomes the "beneficial owner" (as defined in
     Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
     of the Company representing 50% or more of the total voting power
     represented by the Company's then outstanding voting securities; or

        (b) A change in the composition of the Board occurring within a two-year
     period, as a result of which fewer than a majority of the directors are
     Incumbent Directors.

        (c) The consummation of a merger or consolidation of the Company with
     any other corporation other than a merger or consolidation which would
     result in the voting securities of the Company outstanding immediately
     prior thereto continuing to represent (either by remaining outstanding or
     by being converted into voting securities of the surviving entity) at least
     fifty percent (50%) of the total voting power represented by the voting
     securities of the Company or such surviving entity outstanding immediately
     after such merger or consolidation; or

        (d) The consummation of the sale or disposition by the Company of all or
     substantially all of the Company's assets.

     E. "COMPANY" has the meaning in the introductory paragraph of this
Agreement.

     F. "CORPORATE STATUS" means the status of a person who is or was a
director, officer, employee or agent of the Company, or is or was a member of
any committee of the Board, and the status of a person who is or was serving at
the request of the Company as a director, officer, partner (including service as
a general partner of any limited partnership), member, trustee, employee, or
agent of another foreign or domestic corporation, partnership, limited liability
company, joint venture, trust, other incorporated or unincorporated entity or
enterprise or employee benefit plan. For the purposes of this Agreement, any
person serving as a director, officer, partner, member, trustee, employee, or
agent of any subsidiary of the Company or any employee benefit plan of the
Company or any of its subsidiaries shall be deemed to be so serving at the
request of the Company, and no corporate or other action shall be or be deemed
to be required to evidence any such request.

     G. "DGCL" means the Delaware General Corporation Law.

     H. "DISINTERESTED DIRECTOR" means a director of the Company who is not a
party to the Proceeding in respect of which indemnification is being sought by
the Indemnitee.

     I. "EXCHANGE ACT" means the Securities and Exchange Act of 1934, as amended
from time to time.

     J. "EXPENSES" means any and all expenses actually and reasonably incurred
directly or indirectly in connection with a Proceeding, including, without
limitation, all attorneys' fees, retainers, court costs, transcript costs, fees
of experts, investigation fees and expenses, accounting and witness fees, travel
expenses, duplicating

                                       2

<PAGE>   3

costs, printing and binding costs, telephone charges, postage, delivery service
fees and all other disbursements or expenses of the types customarily incurred
in connection with prosecuting, defending, preparing to prosecute or defend,
investigating or being or preparing to be a witness in a Proceeding.

     K. "GOOD FAITH" means, when used with reference to an act or omission of
the Indemnitee, an act or omission other than (i) an act or omission committed
in bad faith and in a manner the Indemnitee believed to be opposed to the best
interests of the Company; (ii) an act or omission that was the result of
intentional misconduct involving active or deliberate dishonesty; (iii) an act
or omission from which the Indemnitee actually received an improper personal
benefit in money, property or services; or (iv) in the case of a criminal
Proceeding, an act or omission which involves a knowing violation of law.

     L. "INCUMBENT DIRECTORS" means directors who either (i) are directors of
the Company as of the date hereof, or (ii) are elected, or nominated for
election, to the Board with the affirmative votes of at least a majority of the
Incumbent Directors at the time of such election or termination (but shall not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the
Company); or

     M. "INDEMNIFICATION ARRANGEMENT"

     N. "INDEMNITEE"

     O. "LIABILITIES" means liabilities of any type whatsoever, including,
without limitation, any judgments, fines, excise taxes and penalties under the
Employee Retirement Income Security Act of 1974, as amended (or any successor
statute or act), penalties and amounts paid in settlement (including all
interest, assessments and other charges paid or payable in connection with or in
respect of such judgments, fines, penalties or amounts paid in settlement)
actually and reasonably incurred directly or indirectly in connection with the
investigation, defense, settlement or appeal of any Proceeding or any claim,
issue or matter therein.

     P. "PROCEEDING" means any threatened, pending or completed action, suit,
proceeding, arbitration, alternate dispute resolution mechanism, investigation,
administrative hearing or any other actual, threatened or completed proceeding,
whether civil, criminal, administrative, arbitrative or investigative, any
appeal or appeals therefrom, and any inquiry or investigation that could lead to
any of the foregoing.

     Q. "UNDERTAKING"

     R. "VOTING SECURITIES" means any securities of the Company that are
entitled to vote generally in the election of directors.

                                   ARTICLE II
                                TERM OF AGREEMENT

     This Agreement shall continue until, and terminate upon the later to occur
of (i) the death of the Indemnitee; or (ii) the final termination of all
Proceedings (including possible Proceedings) in respect of which the Indemnitee
is granted rights of indemnification or advancement of Expenses hereunder and of
any Proceeding commenced by the Indemnitee regarding the interpretation or
enforcement of this Agreement. This Agreement shall govern the indemnification
rights of the Indemnitee for all Liabilities and Expenses in connection with any

                                       3

<PAGE>   4

Proceeding instituted or commenced on or after the date hereof notwithstanding
that any alleged act or omission of the Indemnitee occurred prior to the date
hereof.

                                   ARTICLE III
                    NOTICE OF PROCEEDINGS; DEFENSE OF CLAIMS

     SECTION 3.1 NOTICE OF PROCEEDINGS. The Indemnitee will notify the Company
promptly in writing upon being served with any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding
or matter which may be subject to indemnification or advancement of Expenses
covered hereunder, but the Indemnitee's failure to so notify the Company shall
not relieve the Company from any liability to the Indemnitee under this
Agreement.

     SECTION 3.2 DEFENSE OF CLAIMS. The Company will be entitled to participate,
at the expense of the Company, in any Proceeding of which the Company has
notice. The Company jointly with any other indemnifying party similarly notified
of any Proceeding will be entitled to assume the defense of the Indemnitee
therein, with counsel reasonably satisfactory to the Indemnitee; provided,
however, that the Company shall not be entitled to assume the defense of the
Indemnitee in any Proceeding if there has been a Change in Control or if the
Indemnitee has reasonably concluded that there may be a conflict of interest
between the Company and the Indemnitee with respect to such Proceeding. The
Company will not be liable to the Indemnitee under this Agreement for any
Expenses incurred by the Indemnitee in connection with the defense of any
Proceeding, other than reasonable costs of investigation or as otherwise
provided below, after notice from the Company to the Indemnitee of its election
to assume the defense of the Indemnitee therein. The Indemnitee shall have the
right to employ his or her own counsel in any such Proceeding, but the fees and
expenses of such counsel incurred after notice from the Company of its
assumption of the defense thereof shall be at the expense of the Indemnitee
unless (i) the employment of counsel by the Indemnitee has been authorized by
the Company; (ii) the Indemnitee shall have reasonably concluded that counsel
employed by the Company may not adequately represent the Indemnitee and shall
have so informed the Company; or (iii) the Company shall not in fact have
employed counsel to assume the defense of the Indemnitee in such Proceeding or
such counsel shall not, in fact, have assumed such defense or such counsel shall
not be acting, in connection therewith, with reasonable diligence; and in each
such case the fees and expenses of the Indemnitee's counsel shall be advanced by
the Company.

     SECTION 3.3 SETTLEMENT OF CLAIMS. The Company shall not settle any
Proceeding in any manner which would impose any Liability, penalty or limitation
on the Indemnitee, or cause the Indemnitee to become subject to or bound by any
injunction, order, judgment or decree, without the written consent of the
Indemnitee, which consent shall not be unreasonably withheld or delayed. The
Company shall not be liable to indemnify the Indemnitee under this Agreement or
otherwise for any amounts paid in settlement of any Proceeding effected by the
Indemnitee without the Company's written consent, which consent shall not be
unreasonably withheld or delayed.

                                   ARTICLE IV
                                 INDEMNIFICATION

     SECTION 4.1 IN GENERAL. Upon the terms and subject to the conditions set
forth in this Agreement, the Company shall hold harmless and indemnify the
Indemnitee against any and all Liabilities and Expenses actually incurred by or
for the Indemnitee in connection with any Proceeding (whether the Indemnitee is
or becomes a party, a witness or otherwise is a participant in any role) to the
fullest extent required or permitted by applicable law in effect on the date
hereof and to such greater extent as applicable law may hereafter from time to
time require or permit. To the extent that the Indemnitee has at any time
heretofore served or at any time hereafter serves as a director, officer,
employee, partner, trustee or agent of, for, or on behalf of any subsidiary

                                       4

<PAGE>   5

of the Company, the Company expressly agrees and acknowledges that Indemnitee
was or is serving in each such capacity at the request of the Company.

     SECTION 4.2 PROCEEDING OTHER THAN A PROCEEDING BY OR IN THE RIGHT OF THE
COMPANY. Without limiting the generality of SECTION 4.1, if the Indemnitee was
or is a party or is threatened to be made a party to any Proceeding (whether the
Indemnitee is or becomes a party, a witness or otherwise is a participant in any
role) (other than a Proceeding by or in the right of the Company) by reason of
the Indemnitee's Corporate Status, or by reason of any alleged act or omission
by the Indemnitee in any such capacity, the Company shall, subject to the
limitations set forth in SECTION 4.6 below, hold harmless and indemnify the
Indemnitee against any and all Liabilities and Expenses of the Indemnitee in
connection with the Proceeding if the Indemnitee acted in Good Faith.

     SECTION 4.3 PROCEEDING BY OR IN THE RIGHT OF THE COMPANY. Without limiting
the generality of SECTION 4.1, if the Indemnitee was or is a party or is
threatened to be made a party to any Proceeding (whether the Indemnitee is or
becomes a party, a witness or otherwise is a participant in any role) by or in
the right of the Company to procure a judgment in its favor by reason of the
Indemnitee's Corporate Status, or by reason of any alleged act or omission by
the Indemnitee in any such capacity, the Company shall, subject to the
limitations set forth in SECTION 4.6 below, hold harmless and indemnify the
Indemnitee against any and all Expenses of the Indemnitee in connection with the
Proceeding if the Indemnitee acted in Good Faith; except that no indemnification
under this SECTION 4.3 shall be made in respect of any claim, issue or matter as
to which the Indemnitee shall have been finally adjudged, pursuant to a judgment
or other adjudication which is final and has become nonappealable, to be liable
to the Company, unless a court of appropriate jurisdiction (including, but not
limited to, 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, the Indemnitee is fairly and reasonably entitled to
indemnification for such Expenses which such court shall deem proper.

     SECTION 4.4 INDEMNIFICATION OF A PARTY WHO IS WHOLLY OR PARTLY SUCCESSFUL.
Notwithstanding any other provision of this Agreement, to the extent that the
Indemnitee is or has been successful on the merits or otherwise in defense of
any Proceeding, the Indemnitee shall be indemnified by the Company to the
maximum extent consistent with law against all Expenses of the Indemnitee in
connection therewith. If the Indemnitee is not wholly successful in such
Proceeding but is or has been successful on the merits or otherwise in defense
of one or more but less than all claims, issues or matters in such Proceeding,
the Company shall hold harmless and indemnify the Indemnitee to the maximum
extent consistent with law against all Expenses of the Indemnitee in connection
with each successfully resolved claim, issue or matter in such Proceeding.
Resolution of a claim, issue or matter by dismissal, with or without prejudice,
shall be deemed a successful result as to such claim, issue or matter.

     SECTION 4.5 INDEMNIFICATION FOR EXPENSES OF WITNESS. Notwithstanding any
other provision of this Agreement, to the extent that the Indemnitee, by reason
of the Indemnitee's Corporate Status, has prepared to serve or has served as a
witness in any Proceeding, or has participated in discovery proceedings or other
trial preparation, the Indemnitee shall be held harmless and indemnified against
all Expenses of the Indemnitee in connection therewith.

     SECTION 4.6 SPECIFIC LIMITATIONS ON INDEMNIFICATION. In addition to the
other limitations set forth in this ARTICLE IV, and notwithstanding anything in
this Agreement to the contrary, the Company shall not be obligated under this
Agreement to make any payment to the Indemnitee for indemnification of
Liabilities or Expenses, or both, in connection with any Proceeding:

        1. To the extent that payment of any of the Liabilities or Expenses of
     the Indemnitee is actually made to the Indemnitee under any insurance
     policy or is made on behalf

                                       5

<PAGE>   6

     of the Indemnitee by or on behalf of the Company otherwise than pursuant to
     this Agreement; or

        2. For an accounting of profits made from the purchase or sale by the
     Indemnitee of securities of the Company within the meaning of section 16(b)
     of the Securities Exchange Act of 1934, as amended, or similar provisions
     of any federal, state or local statute or regulation.

                                    ARTICLE V
                             ADVANCEMENT OF EXPENSES

     Notwithstanding any provision to the contrary in ARTICLE VI hereof, the
Company shall pay or reimburse all Expenses of the Indemnitee incurred by or for
the Indemnitee in connection with any Proceeding in advance of the final
disposition of such Proceeding, provided that the Company receives an
undertaking by or on behalf of the Indemnitee to repay such amounts if it shall
ultimately be determined that the Indemnitee is not entitled to be indemnified
by the Company under applicable law (the "UNDERTAKING"). The Undertaking shall
reasonably evidence the Expenses incurred by or for the Indemnitee. The Company
shall pay all such Expenses within five (5) business days after the receipt by
the Company of the Undertaking. The Undertaking shall be unsecured and interest
free, and shall be made and accepted by the Company without reference to the
Indemnitee's financial ability to make repayment.

                                   ARTICLE VI
                             PROCEDURE FOR PAYMENT;
                    DETERMINATION OF RIGHT TO INDEMNIFICATION

     SECTION 6.1 PROCEDURE FOR PAYMENT. To obtain indemnification for
Liabilities under this Agreement, and to obtain indemnification for Expenses not
paid in advance of the final disposition of any Proceeding pursuant to ARTICLE
V, the Indemnitee shall submit to the Company a written request for payment,
including with such request such documentation as is reasonably available to the
Indemnitee and reasonably necessary to determine whether, and to what extent,
the Indemnitee is entitled to indemnification and payment hereunder. The
Secretary of the Company, or such other person as shall be designated by the
Board of Directors, promptly upon receipt of a request for indemnification shall
advise the Board of Directors, in writing, of such request. Any indemnification
payment due hereunder shall be paid by the Company no later than five (5)
business days following the determination, pursuant to this ARTICLE VI, that
such indemnification payment is proper hereunder.

     SECTION 6.2 NO DETERMINATION NECESSARY WHEN THE INDEMNITEE WAS SUCCESSFUL.
To the extent the Indemnitee is or has been successful on the merits or
otherwise in defense of any Proceeding, or in defense of any claim, issue or
matter therein, the Company shall indemnify the Indemnitee against Expenses of
the Indemnitee in connection with any such Proceeding or any claim, issue or
matter therein as provided in SECTION 4.4.

     SECTION 6.3 DETERMINATION OF GOOD FAITH ACT OR OMISSION. In the event that
SECTION 6.2 is inapplicable with respect to any Proceeding, or any claim, issue
or matter therein, the Company shall hold harmless and indemnify the Indemnitee
as provided herein unless the Company shall prove by clear and convincing
evidence to a forum listed in SECTION 6.4 that the Indemnitee did not act in
Good Faith.

     SECTION 6.4 FORUM FOR DETERMINATION. If the Indemnitee is serving as a
director or officer of the Company at the time the determination is to be made,
the Indemnitee shall be entitled to select from among the

                                       6

<PAGE>   7

following the forum in which the validity of the Company's claim under SECTION
6.3 that the Indemnitee is not entitled to indemnification will be heard:

        1. A majority vote of the Directors who are Disinterested Directors,
     even though less than a quorum;

        2. By a committee of Disinterested Directors designated by a majority
     vote of the Directors who are Disinterested Directors, even though less
     than a quorum;

        3. If there are no Disinterested Directors, or if such Directors so
     direct, independent legal counsel selected by the Indemnitee, subject to
     the approval of the Board, which approval shall not be unreasonably delayed
     or denied, which counsel shall make such determination in a written
     opinion; or

        4. The stockholders of the Company, by the affirmative vote of the
     majority of the Voting Securities present in person or by proxy and
     entitled to vote on the subject matter.

     If the Indemnitee is not serving as a director or officer at the time the
determination is to be made, the Indemnitee shall be entitled to select from
among the forums set forth above, or to select any other person or persons
having corporate authority to act on the matter, including, without limitation,
the Board or any committee thereof or those persons who are authorized by
statute to determine whether to indemnify directors and officers.

     As soon as practicable, and in no event later than thirty (30) days after
written notice of the Indemnitee's choice of forum pursuant to this SECTION 6.4,
the Company shall, at the expense of the Company, submit to the selected forum,
in such manner as the Indemnitee or the Indemnitee's counsel may reasonably
request, its claim that the Indemnitee is not entitled to indemnification, and
the Company shall act in the utmost good faith to assure the Indemnitee a
complete opportunity to defend against such claim. The fees and expenses of the
selected forum in connection with making the determination contemplated
hereunder shall be paid by the Company. If the Company shall fail to submit the
matter to the selected forum within thirty (30) days after the Indemnitee's
written notice, or if the forum so empowered to make the determination shall
have failed to make the requested determination within thirty (30) days after
the matter has been submitted to it by the Company, the requisite determination
that the Indemnitee has the right to indemnification hereunder shall be deemed
to have been made by a majority vote of the Directors who are Disinterested
Directors, even though less than a quorum.

     SECTION 6.5 RIGHT TO APPEAL. Notwithstanding a determination by any forum
listed in SECTION 6.4 that the Indemnitee is not entitled to indemnification
with respect to a specific Proceeding, or any claim, issue or matter therein,
the Indemnitee shall have the right to apply to the court in which that
Proceeding is or was pending, or to any other court of competent jurisdiction,
for the purpose of enforcing the Indemnitee's right to indemnification pursuant
to this Agreement. Such enforcement action shall consider the Indemnitee's
entitlement to indemnification de novo, and the Indemnitee shall not be
prejudiced by reason of a prior determination that the Indemnitee is not
entitled to indemnification. The Company shall be precluded from asserting that
the procedures and presumptions of this Agreement are not valid, binding and
enforceable. The Company further agrees to stipulate in any such judicial
proceeding that the Company is bound by all the provisions of this Agreement and
is precluded from making any assertion to the contrary.

     SECTION 6.6 RIGHT TO SEEK JUDICIAL DETERMINATION. Notwithstanding any other
provision of this Agreement to the contrary, at any time after sixty (60) days
after a request for indemnification has been made to the Company (or upon
earlier receipt of written notice that a request for indemnification has been
rejected or the expiration of time within which any such payment must be made
hereunder) and before the third (3rd) anniversary of the making of such
indemnification request, the Indemnitee may petition a court of competent
jurisdiction, whether or not such court has jurisdiction over, or is the forum
in which is pending, the Proceeding, to determine whether the Indemnitee is
entitled to indemnification hereunder, and such court thereupon shall have the
exclusive

                                       7

<PAGE>   8

authority to make such determination, unless and until such court dismisses or
otherwise terminates the Indemnitee's action without having made such
determination. The court, as petitioned, shall make an independent determination
of whether the Indemnitee is entitled to indemnification hereunder, without
regard to any prior determination in any other forum as provided hereby.

     SECTION 6.7 EXPENSES UNDER THIS AGREEMENT. Notwithstanding any other
provision in this Agreement to the contrary, the Company shall indemnify the
Indemnitee against all Expenses incurred by the Indemnitee in connection with
any hearing, action, suit or proceeding under this ARTICLE VI involving the
Indemnitee and against all Expenses incurred by the Indemnitee in connection
with any other hearing, action, suit or proceeding between the Company and the
Indemnitee involving the interpretation or enforcement of the rights of the
Indemnitee under this Agreement, even if it is finally determined that the
Indemnitee is not entitled to indemnification in whole or in part hereunder.

                                   ARTICLE VII
                 PRESUMPTIONS AND EFFECT OF CERTAIN PROCEEDINGS

     SECTION 7.1 BURDEN OF PROOF. In making a determination with respect to
entitlement to indemnification hereunder, the person, persons, entity or
entities making such determination shall presume that the Indemnitee is entitled
to indemnification under this Agreement and the Company shall have the burden of
proof to overcome that presumption.

     SECTION 7.2 STANDARDS FOR DETERMINING IF EXPENSES REASONABLY INCURRED. It
is a purpose of this Agreement to induce the most highly qualified individuals
to accept positions of responsibility with the Company and, in so doing, to
serve as directors, officers, employees and agents of the Company. Accordingly,
the Company desires to provide the Indemnitee with the highest quality
professional services available if the Indemnitee becomes a party to or is
otherwise involved in a Proceeding because of the Indemnitee's Corporate Status
without the Indemnitee's incurring any personal Expense in connection therewith.
The Company therefore agrees that the Indemnitee may retain attorneys,
accountants, investment bankers, and other professionals and experts anywhere
within the United States to represent the Indemnitee in any Proceeding in the
United States, that the Indemnitee may retain attorneys, accountants, investment
bankers, and other professionals without regard to location if the Proceeding is
not in the United States, and that the Company will not deny any request for
indemnification hereunder on the basis that the Expenses of any such attorneys,
accountants, investment bankers, or other professionals and experts are not or
have not been reasonably incurred because of the location of any such attorneys,
accountants, investment bankers, or other professionals and experts. The Company
further agrees that, for the purpose of determining if an Expense for
professional services, including, without limitation, fees of attorneys,
accountants, investment bankers, and other professionals and experts, is or has
been reasonably incurred, or for the purpose of determining the reasonableness
of any such Expense, the standard to be used shall be the highest rates per hour
or fees charged by attorneys specializing in the defense of individuals in
Proceedings similar to the Proceeding to which the Indemnitee is a party or
otherwise involved in the city or cities in which such attorneys are located,
and the highest rates per hour or fees charged by accountants, investment
bankers, and other professionals and experts assisting or participating in the
defense of individuals in Proceedings similar to the Proceeding to which the
Indemnitee is a party or otherwise involved in the city or cities in which such
accountants, investment bankers, and other professionals and experts are
located. In addition to the foregoing, the Company has determined that it is in
the Company's best interests that any director, officer, employee or agent of
Company who is involved in any Proceeding because of such person's Corporate
Status maintain to the greatest extent possible the confidentiality of matters
pertaining to such Proceeding, and that such person's participation in such
Proceeding be on conditions as similar as reasonably possible to conditions as
if such person were participating in the city of such person's personal
residence. Due to the continuing deterioration in commercial travel conditions,
however, it is increasingly more difficult to achieve this result, and,
accordingly, the Company desires to provide the Indemnitee with travel
arrangements that come most closely to achieving this result. The

                                       8

<PAGE>   9

Company therefore agrees that, for the purpose of determining whether any
Expense hereunder for travel related items is or has been reasonably incurred,
or for the purpose of determining the reasonableness of any such Expense, the
standards to be used shall be the non-stop first class airfare between
destinations and the daily non-discounted room rates charged by the highest
rated hotel in the destination city. Any Expense actually incurred for or on
behalf of the Indemnitee by any firm providing professional services, including,
without limitation, attorneys, accountants, investment bankers, and other
professionals and experts, to the Indemnitee in any Proceeding shall be deemed
to be reasonably incurred and reasonable. In determining whether any other
Expense is or has been reasonably incurred, or whether any such other Expense is
reasonable, the standard to be used shall be commensurate with the foregoing. In
the event the Company determines not to indemnify the Indemnitee hereunder for
any Expense on the basis that any such Expense was or has not been reasonably
incurred, the Company agrees that it must prove by clear and convincing evidence
that the professional or other services rendered for and on behalf of the
Indemnitee, or the goods or services received by or provided for or on behalf of
the Indemnitee, provided (i) no value whatsoever, and (ii) bore no reasonable
relationship whatsoever, to the defense of the Indemnitee in the Proceeding. In
the event the Company determines not to indemnify the Indemnitee hereunder for
any Expense on the basis that any such Expense is or was not reasonable, the
Company agrees that it must prove by clear and convincing evidence that the
challenged Expense is so grossly in excess of the fair market value for the same
or similar Expense as to be manifestly unfair.

     SECTION 7.3 EFFECT OF OTHER PROCEEDINGS. The termination of any Proceeding
or of any claim, issue or matter therein, by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that the Indemnitee did not act in Good Faith.

     SECTION 7.4 RELIANCE AS SAFE HARBOR. For purposes of any determination of
whether any act or omission of the Indemnitee was done or made in Good Faith,
each act or omission of the Indemnitee shall be deemed to be in Good Faith if
the Indemnitee's act or omission is based on the records or books of accounts of
the Company, including financial statements, or on information supplied to the
Indemnitee by the officers of the Company in the course of their duties, or on
the advice of legal counsel for the Company, or on information or records given
or reports made to the Company by an independent certified public accountant or
by an appraiser or other expert selected with reasonable care by the Company.
The provisions of this SECTION 7.4 shall not be deemed to be exclusive or to
limit in any way the other circumstances in which the Indemnitee may be deemed
to have met the applicable standard of conduct set forth in this Agreement or
under applicable law.

     SECTION 7.5 ACTIONS OF OTHERS. The knowledge and/or actions, or failure to
act, of any other director, officer, agent or employee of the Company shall not
be imputed to the Indemnitee for purposes of determining the right to
indemnification under this Agreement.

                                  ARTICLE VIII
                  INSURANCE; OTHER INDEMNIFICATION ARRANGEMENTS

     SECTION 8.1 INSURANCE. In the event that the Company maintains officers'
and directors' or similar liability insurance to protect itself and any director
or officer of the Company against any expense, liability or loss, such insurance
shall cover the Indemnitee to at least the same degree as each other director
and/or officer of the Company.

     SECTION 8.2 OTHER ARRANGEMENTS. The Certificate of Incorporation and Bylaws
of the Company and the DGCL permit the Company to purchase and maintain
insurance on behalf of the Indemnitee against any Liability asserted against or
incurred by him or any Expenses incurred by him or on his behalf in connection
with actions taken or omissions by the Indemnitee in his Corporate Status,
whether or not the Company would have the power to indemnify the Indemnitee
under this Agreement or under the DGCL, as they may be in effect from time to
time. The purchase of any such insurance shall in no way affect or limit the
rights and obligations of the

                                       9

<PAGE>   10

Indemnitee and the Company hereunder, except as expressly provided herein, and
the execution and delivery of this Agreement by the Indemnitee and the Company
shall in no way affect or limit the rights and obligations of such parties under
or with respect to any other such Indemnification Arrangement.

                                   ARTICLE IX
               OBLIGATIONS OF THE COMPANY UPON A CHANGE IN CONTROL

     In the event of a Change in Control, upon written request of the Indemnitee
the Company shall establish a trust for the benefit of the Indemnitee hereunder
(a "TRUST") and from time to time, upon written request from the Indemnitee,
shall fund the Trust in an amount sufficient to satisfy all amounts that may
from time to time be payable to the Indemnitee hereunder as indemnification for
Liabilities or Expenses (including those that are required to be paid in advance
hereunder). The amount or amounts to be deposited in the Trust shall be
determined by legal counsel selected by the Indemnitee and approved by the
Company, which approval shall not be unreasonably withheld. The terms of the
Trust shall provide that (i) the Trust shall not be dissolved or the principal
thereof invaded without the written consent of the Indemnitee; (ii) the trustee
of the Trust (the "TRUSTEE") shall be selected by the Indemnitee; (iii) the
Trustee shall make advances to the Indemnitee for Expenses within five (5)
business days following receipt of a written request therefor and the
Undertaking; (iv) the Company shall continue to fund the Trust from time to time
in accordance with its funding obligations hereunder; (v) the Trustee promptly
shall pay to the Indemnitee all amounts as to which indemnification is due under
this Agreement; (vi) unless the Indemnitee agrees otherwise in writing, the
Trust for the Indemnitee shall be kept separate from any other trust established
for any other person to whom indemnification might be due by the Company; and
(vii) all unexpended funds in the Trust shall revert to the Company upon final,
nonappealable determination by a court of competent jurisdiction that the
Indemnitee has been indemnified to the full extent required under this
Agreement.

                                    ARTICLE X
                 NON-EXCLUSIVITY, SUBROGATION AND MISCELLANEOUS

     SECTION 10.1 NON-EXCLUSIVITY. The rights of the Indemnitee hereunder shall
not be deemed exclusive of any other rights to which the Indemnitee may at any
time be entitled under any provision of law, the Certificate of Incorporation,
the Bylaws of the Company, as the same may be in effect from time to time, any
other agreement, a vote of stockholders of the Company or a resolution of
directors of the Company or otherwise (each an "INDEMNIFICATION ARRANGEMENT"),
and to the extent that during the term of this Agreement the rights of the
then-existing directors and officers of the Company are more favorable to such
directors or officers than the rights currently provided to the Indemnitee under
this Agreement, the Indemnitee shall be entitled to the full benefits of such
more favorable rights. No amendment, alteration, rescission or replacement of
this Agreement or any provision hereof which would in any way limit the benefits
and protections afforded to an Indemnitee hereby shall be effective as to such
Indemnitee with respect to any act or omission by such Indemnitee in the
Indemnitee's Corporate Status prior to such amendment, alteration, rescission or
replacement.

     SECTION 10.2 SUBROGATION. In the event of any payment under this Agreement,
the Company shall be subrogated to the extent of such payment to all of the
rights of recovery of the Indemnitee, who shall execute all documents required
and take all action necessary to secure such rights, including execution of such
documents as are necessary to enable the Company to bring suit to enforce such
rights.

     SECTION 10.3 NOTICES. All notices, requests, consents and other
communications herein (except as stated in the last sentence of this SECTION
10.3) shall be in writing and shall be mailed by first class or certified mail,
postage prepaid, sent by a nationally recognized overnight delivery service, or
personally delivered, as follows:

                                       10

<PAGE>   11

        (a) If to the Company:

            BroadbandNOW, Inc.
            1440 Corporate Drive
            Irving, Texas 75038
            Attn: James R. Price, Chairman

            with a copy which shall not constitute notice to:

            Winstead Sechrest & Minick, P.C.
            1201 Elm Street
            5400 Renaissance Tower
            Dallas, Texas 75270
            Attn: Thomas W. Hughes, Esq.

        (b) If to the Indemnitee at the address shown in the address shown in
            the Indemnitee's signature below.

or such other addresses as each of the parties hereto may provide from time to
time in writing to the other parties. For purposes of computing the time periods
set forth herein, the date of mailing shall be deemed to be the delivery date.

     SECTION 10.4 GOVERNING LAW. The parties agree that this Agreement shall be
governed by, construed and enforced in accordance with, the substantive laws of
the State of Delaware, without regard to the principles of choice of laws
thereof.

     SECTION 10.5 CONSOLIDATION, MERGER OR SALE OF ASSETS. The Company shall not
consolidate with or merge into any other corporation, partnership, limited
liability company or other entity or convey or transfer its properties and
assets substantially as an entirety to any individual, corporation, partnership,
limited liability company or other entity, unless (i) the entity formed by such
consolidation or into which the Company is merged or the individual or entity
who or which acquires by conveyance or transfer the properties and assets of the
Company substantially as an entirety (in either case, a "SUCCESSOR") shall be a
citizen of or entity organized under the laws of the United States of America,
or any state thereof or the District of Columbia, and shall by written agreement
executed and delivered to the Indemnitee, in form, scope and substance
satisfactory to the Indemnitee and the Indemnitee's legal counsel, expressly
assume and agree to be bound by and to perform this Agreement in the same manner
and to the same extent as the Company would be required to perform absent such
consolidation, merger, conveyance or transfer, and (ii) the Indemnitee shall
have received an opinion, in form, scope and substance satisfactory to the
Indemnitee and the Indemnitee's legal counsel, from counsel acceptable to the
Indemnitee, that such written agreement to assume and be bound by and perform
this Agreement has been duly authorized by all requisite actions, has been duly
executed and delivered by the Successor and is enforceable against the Successor
(except to the extent enforceability may be limited by bankruptcy or similar
laws, general principles of equity or the federal securities laws).

     SECTION 10.6 BINDING EFFECT. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their heirs, executors, administrators,
legal representatives, successors and permitted assigns. This Agreement cannot
be assigned by the Company, either directly or indirectly, by purchase, merger,
consolidation or otherwise, without the express written consent of the
Indemnitee unless the Company shall have received, prior to such assignment,
from any successor or assignee (whether direct or indirect, by purchase, merger,
consolidation or otherwise) a written agreement, in form, scope and substance
reasonably satisfactory to the Indemnitee, expressly to assume and agree to be
bound by and to perform this Agreement in the same

                                       11

<PAGE>   12

manner and to the same extent as the Company would be required to perform absent
such succession or assignment.

     SECTION 10.7 SEVERABILITY. If any provision of this Agreement is held
invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.
It is the express intention and agreement of the Company and the Indemnitee that
any court of competent jurisdiction that interprets or enforces this Agreement
have full power and authority to reform any provision of this Agreement to
modify the invalid or unenforceable provision to achieve the parties' intent to
provide the Indemnitee with indemnification for Liabilities and Expenses to the
maximum extent permitted by applicable law.

     SECTION 10.8 WAIVER. No termination, cancellation, modification, amendment,
deletion, addition or other change in this Agreement, or any provision hereof,
or waiver of any right or remedy herein, shall be effective for any purpose
unless specifically set forth in a writing signed by the party or parties to be
bound thereby. The waiver of any right or remedy with respect to any occurrence
on one occasion shall not be deemed a waiver of such right or remedy with
respect to such occurrence on any other occasion.

     SECTION 10.9 ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement and understanding among the parties hereto in reference to the subject
matter hereof; provided, however, that the parties acknowledge and agree that
the DGCL and the Certificate of Incorporation and Bylaws of the Company and each
of its subsidiaries contain provisions on the subject matter hereof and that
this Agreement is not intended to, and does not, limit the rights or obligations
of the parties hereto pursuant to the DGCL or such instruments, or under any
other contract, agreement, insurance policy or other instrument or document
heretofore or hereafter existing which provides to the Indemnitee any right of
indemnification or reimbursement of any nature whatsoever.

     SECTION 10.10 TITLES. The titles to the articles and sections of this
Agreement are inserted for convenience of reference only and should not be
deemed a part hereof or affect the construction or interpretation of any
provisions hereof.

     SECTION 10.11 PRONOUNS AND PLURALS. Whenever the context may require, any
pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs
shall include the plural and vice versa.

     SECTION 10.12 COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together constitute one agreement binding on all the parties hereto.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       12

<PAGE>   13

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

                                       BROADBANDNOW, INC.

                                       By:
                                           -------------------------------------
                                           Name:
                                                 -------------------------------
                                           Title:
                                                  ------------------------------

                                       INDEMNITEE

                                       -----------------------------------------
                                       [Name]
                                       [Address]

                                       13

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