Document:

exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS AGREEMENT, made and entered into on June 5, 2005 by and between Ted R. Antennuci (the
“Executive”) and ProLogis, a Maryland real estate investment trust (the “Company”), effective as of
and contingent upon the consummation of the transaction contemplated by the agreement and plan of
merger dated as of the date hereof, by and among the Company, Palmtree Acquisition Corporation
(“Merger Sub”) and Catellus Development Corporation (“the Merger Agreement”).

WITNESSETH THAT:

     WHEREAS, pursuant to the Merger Agreement, Catellus Development Corporation (“Cactus”) will
merge with and into Merger Sub;

     WHEREAS, the Executive has valuable experience relating to the business of Cactus and other
businesses in which the Company is or may become involved; and

     WHEREAS, following the Merger (as defined in the Merger Agreement) the Company desires to
employ the Executive, the Executive desires to be employed by the Company, and the parties desire
to enter into this Agreement pertaining to such continued employment.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, it is
hereby covenanted and agreed by the Executive and the Company as follows:

     1. Term. Subject to the terms and conditions of this Agreement, the Company hereby
agrees to employ the Executive as its President of Global Development for the Agreement Term (as
defined below), and the Employee hereby agrees to remain in the employ of the Company and to
provide services during the Agreement Term in accordance with this Agreement. The “Agreement Term”
shall be the period beginning on the Closing Date (as defined in the Merger Agreement, also called
the “Effective Date” for purposes of this Agreement) and ending on December 31, 2007. Thereafter,
the Agreement Term will be automatically extended for 12-month periods, unless one party to this
Agreement provides notice of non-renewal to the other at least three months before the last day of
the then current Agreement Term.

     2. Performance of Services. The Executive’s employment with the Company shall be
subject to the following:

	(a)	 	During the Agreement Term, while the Executive is employed by the Company, the Executive
shall devote his full time, energies and talents to serving as its President of Global
Development.
	 
	(b)	 	The Executive shall report to the Chief Executive Officer of the Company. The Executive
agrees that he shall perform his duties faithfully and efficiently subject to the directions
of the Chief Executive Officer of the Company. The Executive’s duties may include providing
services for both the Company and the Subsidiaries (as defined below), as determined by the
Board of Trustees of the Company (the “Board”); provided, that the Executive shall not,
without his consent, be assigned tasks that would be inconsistent with those of President of
Global Development. The Executive shall have such authority,

 

 

	 	 	power, responsibilities and duties as are inherent in his positions (and the undertakings
applicable to his positions) and necessary to carry out his responsibilities and the duties
required of him hereunder.
	 
	(c)	 	Notwithstanding the foregoing provisions of this paragraph 2, during the Agreement Term, the
Executive may devote reasonable time to activities other than those required under this
Agreement, including the supervision of his personal investments, and activities involving
professional, charitable, community, educational, religious and similar types of
organizations, speaking engagements, membership on the boards of directors of other
organizations, and similar types of activities, to the extent that such other activities do
not in the judgment of the Board, inhibit or prohibit the performance of the Executive’s
duties under this Agreement, or conflict in any material way with the business of the Company
or any Subsidiary; provided, however, that the Executive shall not serve on the board of any
business, or hold any other position with any business, without the consent of the Board.
	 
	(d)	 	For purposes of this Agreement, the term “Subsidiary” shall mean any corporation,
partnership, joint venture or other entity during any period in which at least a fifty percent
interest in such entity is owned, directly or indirectly, by the Company (or a successor to
the Company).

     3. Compensation. Subject to the terms of this Agreement, during the Agreement Term,
while the Executive is employed by the Company, the Company shall compensate him for his services
as follows:

	(a)	 	The Executive shall receive, for each 12-consecutive month period beginning on the Effective
Date and ending on each anniversary thereof, in substantially equal monthly or more frequent
installments, an annual base salary of not less than $525,000 (the “Salary”).
	 
	(b)	 	The Executive may receive an annual target bonus of $787,500 (the “Target Bonus”); provided,
however, that the actual amount of the Target Bonus that will be earned by and payable to the
Executive in any year will be determined upon the satisfaction of goals and objectives
established by the Chief Executive Officer or a duly authorized committee of the Board thereof
for such year and communicated to the Executive and shall be subject to such other terms and
conditions of the Company’s bonus plan as in effect from time to time. The goals and
objectives established for the Executive shall be similar in magnitude to the magnitude of the
goals and objectives established for other members of the senior management of the Company.
	 
	(c)	 	As of the Effective Date, the Executive shall be granted a Non-Qualified Share Option (within
the meaning of the Company’s 1997 Long-Term Incentive Plan (the “LTIP”)), under and subject to
the terms and conditions of the LTIP and such other terms and conditions specified by the
Management Development and Compensation Committee of the Board (the “Committee”) at the time
of grant, with respect to 80,000 common shares of beneficial interest, par value $0.01 per
share, of the Company (“Shares”). For each 12-consecutive-month period during the Agreement
Term beginning on the first anniversary of the Effective Date, the Executive shall be eligible
for grants of Non-Qualified Share Options

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	 	 	with respect to 80,000 Shares, provided that the actual number
of Shares subject to such Non-Qualified Share Options and the date on which such grant shall
occur shall be determined by the Committee in its discretion under the LTIP (or a successor
plan thereto) and any such Non-Qualified Share Options shall be subject to the terms and
conditions of the LTIP and such other terms specified by the Committee at the time of the
grant. Subject to the limitations of this subparagraph 3(c) describing the earlier
forfeiture of a Non-Qualified Share Option if the Executive voluntarily terminates
employment (as described in subparagraph 4(e) herein) or if the Executive’s employment is
terminated by the Company for Cause (as defined in subparagraph 4(c) herein) prior to
December 31, 2007, the Non-Qualified Share Options awarded to the Executive under this
subparagraph 3(c) shall become exercisable with respect to 25% of the Shares subject thereto
on each of the first through the fourth anniversaries of the grant date if the Participant’s
Date of Termination (as defined in subparagraph 4(h) herein) has not occurred before such
date; provided, however, that the Non-Qualified Share Option shall vest and become
immediately exercisable if the Participant’s Date of Termination occurs by reason of death
or Permanent Disability (as defined in subparagraph 4(b) herein). Notwithstanding the
foregoing, if the Executive’s Date of Termination occurs prior to December 31, 2007 as a
result of termination by the Company for Cause or as a result of Executive’s voluntary
termination then, upon such Date of Termination, all outstanding Non-Qualified Share Options
granted to the Executive pursuant to this subparagraph 3(c) shall immediately be forfeited
and shall no longer be exercisable.
	 
	(d)	 	As of the Effective Date, the Executive shall be granted a special Performance Share Award
(within the meaning of the LTIP) (the “Restricted Share Award”) with respect to 16,000 Shares.
The Restricted Share Award shall be subject to the terms and conditions of the LTIP and such
other terms specified by the Committee at the time of the grant and the Executive shall become
vested in the Restricted Share Award on December 31, 2007; provided, however, that if the
Executive’s Date of Termination occurs prior to December 31, 2007 as a result of termination
by the Company for Cause or as a result of Executive’s voluntary termination then, upon such
Date of Termination, the Restricted Share Award shall immediately be forfeited.
	 
	(e)	 	For each 12-consecutive-month period during the Agreement Term beginning on the Effective
Date, the Executive shall be eligible for grants of Performance Share Awards with respect to
16,000 Shares, provided that the actual number of such Performance Share Awards, the date on
which such grant shall occur and the performance criteria applicable thereto shall be
determined by the Committee in its discretion under the LTIP (or a successor plan thereto) and
any such Performance Share Awards shall be subject to the terms and conditions of the LTIP and
such other terms specified by the Committee at the time of the grant. The Executive shall
become vested in a Performance Share Award on the second annual anniversary of the date on
which the Committee determines that the Executive has earned the Performance Share Award by
satisfying the performance criteria established by the Committee at the time of grant;
provided, however, that if the Executive’s Date of Termination occurs prior to December 31,
2007 as a result of termination by the Company for Cause or as a result of Executive’s
voluntary termination
then, upon such Date of Termination, all outstanding Performance Share Awards shall
immediately be forfeited.

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	(f)	 	Except as otherwise specifically provided to the contrary in this Agreement, the Executive
shall be eligible to participate in the Company’s employee benefit plans, programs, policies
and arrangements to the same extent and on the same terms as those benefits are provided by
the Company from time to time to the Company’s other similarly situated senior management
employees. However, the Company shall not be required to provide a benefit under this
subparagraph 3(f) if such benefit would duplicate (or otherwise be of the same type as) a
benefit specifically required to be provided under another provision of this Agreement. The
Executive shall complete all forms and physical examinations, and otherwise take all other
similar actions to secure coverage and benefits described in this subparagraph 3(f), to the
extent determined to be necessary or appropriate by the Company.
	 
	(g)	 	The Executive shall be provided, with a monthly car allowance of $750.000, a monthly health
club allowance of $400.00 and a monthly country club allowance of $390.00 and the Executive is
authorized to incur reasonable expenses for entertainment, traveling, meals, lodging and
similar items in promoting the Company’s business. The Company will reimburse the Executive
for all reasonable expenses so incurred.
	 
	(h)	 	As of the Effective Date, the Company shall pay the Executive a lump sum cash payment equal
to $3.8 million.
	 
	(i)	 	Change in Control. Notwithstanding the foregoing provisions of subparagraphs 3(c),
3(d) and 3(e), in the event that (i) following a Change in Control, the Executive’s Date of
Termination occurs as a result of termination by the Company (or a successor) for reasons
other than Cause or the Executive terminates his employment for Good Reason (as defined in
subparagraph 4(d)), or (ii) the LTIP is terminated by the Company or a successor following a
Change in Control without provision for the continuation of outstanding Non-Qualified Share
Options, Performance Share Awards or Restricted Share Award granted to the Executive under
this Agreement, any portion of the outstanding Non-Qualified Share Options granted to the
Executive hereunder and any portion of the outstanding Performance Share Awards granted to the
Executive hereunder and any portion of the outstanding Restricted Share Award shall become
immediately fully vested and, to the extent applicable, exercisable. For purposes of this
Agreement, a “Change in Control” means the happening of any of the following:

	 	(i)	 	The consummation of a transaction, approved by the shareholders of the Company,
to merge the Company into or consolidate the Company with another entity, sell or
otherwise dispose of all or substantially all of its assets or adopt a plan of
liquidation, provided, however, that a Change in Control shall not be deemed to have
occurred by reason of a transaction, or a substantially concurrent or otherwise related
series of transactions, upon the completion of which 50% or more of the beneficial
ownership of the voting power of the Company, the surviving corporation or corporation
directly or indirectly controlling the Company or the surviving corporation, as the
case may be, is held by the same persons (as defined below) (although not necessarily in the same proportion) as held
the beneficial ownership of the voting power of the Company immediately prior to the
transaction or the substantially concurrent or otherwise related series

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	 	 	 	of transactions, except that upon the completion thereof, employees or employee benefit
plans of the Company may be a new holder of such beneficial ownership.
	 
	 	(ii)	 	The “beneficial ownership” (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) of securities representing 50%
of more of the combined voting power of the Company is acquired, other than from the
Company, by any “person” as defined in Sections 13(d) and 14(d) of the Exchange Act
(other than any trustee or other fiduciary holding securities under an employee benefit
or other similar stock plan of the Company).
	 
	 	(iii)	 	At any time during any period of two consecutive years, individuals who at the
beginning of such period were members of the Board cease for any reason to constitute
at least a majority thereof (unless the election, or the nomination for election by the
Company’s shareholders, of each new trustee was approved by a vote of at least
two-thirds of the trustees still in office at the time of such election or nomination
who were trustees at the beginning of such period).
	 
	 	(iv)	 	For purposes of this Agreement, the following terms shall be defined as
indicated:

               (1) The term “Beneficial Owner” shall mean beneficial owner as defined in Rule 13d-3 under the
Exchange Act.

               (2) Entities shall be treated as being under “common control” during any period in which they
are “affiliates” of each other as that term is defined in the Exchange Act.

               (3) The term “person” shall be as defined in Sections 13(d) and 14(d) of the Exchange Act, but
shall exclude any trustee or other fiduciary holding securities under an employee benefit or other
similar stock plan of the Company.

If, upon a Change in Control, awards in other shares or securities are substituted pursuant to the
LTIP for outstanding Non-Qualified Share Options or Performance Share Awards granted hereunder ,
and immediately following the Change in Control, the Executive becomes employed by the entity into
which the Company merged, or the purchaser of substantially all of the assets of the Company, or a
successor to such entity or purchaser, the Executive shall not be treated as having terminated
employment for purposes of this subparagraph 3(i) until such time as the Executive terminates
employment with the merged entity or purchaser (or successor), as applicable.

	(j)	 	Executive Protection Agreement. On or prior to the Effective Date, the Company and
the Executive shall enter into an Executive Protection Agreement in the Company’s standard
form, which form has been provided to the Executive.

     4. Termination. The Executive’s employment with the Company during the Agreement
Term may be terminated by the Company or the Executive without any breach of this Agreement only
under the circumstances described in subparagraphs 4(a) through 4(f):

	(a)	 	Death. The Executive’s employment hereunder will terminate upon his death.

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	(b)	 	Permanent Disability. The Company may terminate the Executive’s employment during
any period in which he is Permanently Disabled. The Executive shall be considered
“Permanently Disabled” during any period in which he is unable, by reason of a medically
determinable physical or mental impairment, to engage in the material and substantial duties
of his regular occupation, and such condition is expected to be permanent, as determined by
the Board.
	 
	(c)	 	Cause. The Company may terminate the Executive’s employment hereunder at any time
for Cause. For purposes of this Agreement, the term “Cause” shall mean in the reasonable
judgment of the Board (i) the willful and continued failure by the Executive to substantially
perform his duties with the Company or any subsidiary after written notification by the
Company or subsidiary, (ii) the willful engaging by the Executive in conduct which is
demonstrably injurious to the Company or any subsidiary, monetarily or otherwise, or (iii) the
engaging by the Executive in egregious misconduct involving serious moral turpitude. For
purposes hereof, no act, or failure to act, on the Executive’s part shall be deemed “willful”
unless done, or omitted to be done, by the Executive not in good faith and without reasonable
belief that such action was in the best interest of the Company or subsidiary.
	 
	(d)	 	Constructive Discharge. If (I) the Executive provides written notice to the Company
of the occurrence of Good Reason (as defined below) within a reasonable time after the
Executive has knowledge of the circumstances constituting Good Reason, which notice shall
specifically identifies the circumstances which the Executive believes constitute Good Reason;
(II) the Company fails to notify the Executive of the Company’s intended method of correction
within a reasonable period of time after the Company receives the notice, or the Company fails
to correct the circumstances within a reasonable time after such notice (except that no such
opportunity to correct shall be applicable if the circumstances constituting Good Reason are
those described in clause (iii) below, relating to relocation); and (III) the Executive
resigns within a reasonable time after receiving the Company’s response, if such notice does
not indicate an intention to correct such circumstances, or within a reasonable time after the
Company fails to correct such circumstances; then the Executive shall be considered to have
been subject to a Constructive Discharge by the Company. For purposes of this Agreement,
“Good Reason” shall mean, without the Executive’s express written consent (and except in
consequence of a prior termination of the Executive’s employment), the occurrence of any of
the following circumstances:

	 	(i)	 	The assignment to the Executive of any duties inconsistent with the Executive’s
position and status as President of Global Development of the Company.
	 
	 	(ii)	 	A reduction by the Company in the Executive’s Salary to an amount that is less
than required under subparagraph 3(a).
	 
	 	(iii)	 	The relocation of the Executive’s base office to an office that is more than
30 highway miles of the Executive’s base office on the Effective Date.

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	 	(iv)	 	The failure of the Company to obtain a satisfactory agreement from any
successor to assume and agree to perform this Agreement.
	 
	 	(v)	 	Any purported termination of the Executive’s employment which is not effected
pursuant to a Notice of Termination satisfying the requirements of subparagraph 4(h)
below (and, if applicable, the requirements of subparagraph 4(b) above), and for
purposes of this Agreement, no such purported termination shall be effective.

	 	 	The Executive’s right to terminate his employment pursuant to this subparagraph 4(d) shall
not be affected by his incapacity due to physical or mental illness. The Executive’s
continued employment shall not constitute consent to, or a waiver of rights with respect to,
any circumstance constituting Good Reason hereunder.
	 
	(e)	 	Termination by Executive. The Executive may terminate his employment hereunder at
any time for any reason by giving the Company prior written Notice of Termination (as defined
in subparagraph 4(g)), which Notice of Termination shall be effective not less than 30 days
after it is given to the Company, provided that nothing in this Agreement shall require the
Executive to specify a reason for any such termination. However, to the extent that the
procedures specified in subparagraph 4(d) are required, the procedures of this subparagraph
4(e) may not be used in lieu of the procedures required under subparagraph 4(d).
	 
	(f)	 	Termination by Company. The Company may terminate the Executive’s employment
hereunder at any time for any reason, by giving the Executive prior written Notice of
Termination, which Notice of Termination shall be effective immediately, or such later time as
is specified in such notice. The Company shall not be required to specify a reason for the
termination under this subparagraph 4(f), provided that termination of the Executive’s
employment by the Company shall be deemed to have occurred under this subparagraph 4(f) only
if it is not for reasons described in subparagraph 4(b), 4(c), 4(d), or 4(e). Notwithstanding
the foregoing provisions of this subparagraph 4(f), if the Executive’s employment is
terminated by the Company in accordance with this subparagraph 4(f), and within a reasonable
time period thereafter, it is determined by the Board that circumstances existed which would
have constituted a basis for termination of the Executive’s employment for Cause in accordance
with subparagraph 4(c) disregarding circumstances which could have been remedied if notice had
been given in accordance with subparagraph 4(c), the Executive’s employment will be deemed to
have been terminated for Cause in accordance with subparagraph 4(c).
	 
	(g)	 	Notice of Termination. Any termination of the Executive’s employment by the Company
or the Executive (other than a termination pursuant to subparagraph 4(a)) must be communicated
by a written Notice of Termination to the other party hereto. For purposes
of this Agreement, a “Notice of Termination” means a dated notice which indicates the Date
of Termination (not earlier than the date on which the notice is provided), and which
indicates the specific termination provision in this Agreement relied on and which sets
forth in reasonable detail the facts and circumstances, if any, claimed to provide a basis
for termination of the Executive’s employment under the provision so indicated.

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	(h)	 	Date of Termination. “Date of Termination” means the last day the Executive is
employed by the Company and its affiliates, provided that the Executive’s employment is
terminated in accordance with the foregoing provisions of this paragraph 4.
	 
	(i)	 	Effect of Termination. If, on the Date of Termination, the Executive is a member of
the Board or the board of trustees or board of directors any of the Subsidiaries, or holds any
other position with the Company and the Subsidiaries (other than the position described in
subparagraph 2(a)), the Executive shall resign from all such positions as of the Date of
Termination.

     5. Rights Upon Termination. The Executive’s right to payment and benefits under this
Agreement for periods after his Date of Termination shall be determined in accordance with the
following provisions of this paragraph 5:

	(a)	 	If the Executive’s Date of Termination occurs during the Agreement Term for any reason, the
Company shall pay to the Executive:

	 	(i)	 	The Executive’s Salary (to the extent not previously paid) for the period
ending on the Date of Termination.
	 
	 	(ii)	 	Payment for unused vacation days, as determined in accordance with Company
policy as in effect from time to time.
	 
	 	(iii)	 	If the Date of Termination occurs after the end of a performance period and
prior to the payment of the Target Bonus (as described in subparagraph 3(b)) for the
period, the Executive shall be paid such bonus amount at the regularly scheduled time.
	 
	 	(iv)	 	Any other payments or benefits to be provided to the Executive by the Company
pursuant to any employee benefit plans or arrangements adopted by the Company, to the
extent such amounts are due from the Company.

	 	 	Except as may otherwise be expressly provided to the contrary in this Agreement, nothing in
this Agreement shall be construed as requiring the Executive to be treated as employed by
the Company for purposes of any employee benefit plan or arrangement following the date of
the Executive’s Date of Termination.
	 
	(b)	 	If the Executive’s Date of Termination occurs during the Agreement Term under circumstances
described in subparagraph 4(a) (relating to the Executive’s death), subparagraph 4(b)
(relating to the Executive’s being Permanently Disabled), subparagraph 4(c) (relating to the
Executive’s termination for Cause), subparagraph 4(e) (relating to the Executive’s
resignation), or if the Executive’s employment with the
Company terminates after the end of the Agreement Term then, except as otherwise expressly
provided in this Agreement or otherwise agreed in writing between the Executive and the
Company, the Company shall have no obligation to make payments under the Agreement for
periods after the Executive’s Date of Termination.

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	(c)	 	If the Executive’s Date of Termination occurs during the Agreement Term under circumstances
described in subparagraph 4(d) (relating to Constructive Discharge) or subparagraph 4(f)
(relating to termination by the Company without Cause), then, in addition to the amounts
payable in accordance with subparagraph 5(a):

	 	(i)	 	The Executive shall receive from the Company for the period (the “Severance
Period”) from the Date of Termination continuing through the end of the Agreement Term,
or, if later, the six-month anniversary of the Date of Termination, the Salary amount
described in subparagraph 3(a), as in effect on his Date of Termination, in monthly or
more frequent installments as is required under that subparagraph. The Severance
Period, and the Company’s obligation to make payments under this clause (i) shall cease
with respect to periods after the earlier to occur of the date of the Executive’s
death, or a date, if any, of the breach by the Executive of the provisions of
paragraphs 8 or 9 of this Agreement. In no event, however, shall the Executive be
entitled to receive any amounts, rights, or benefits under this subparagraph 5(c)
unless he executes a release of claims against the Company in a form prepared by the
Company.
	 
	 	(ii)	 	Continuation of coverage under the employee benefit plans and arrangements of
the Company in which the Executive was participating at the time of his termination of
employment for the Severance Period; provided that in no event shall the benefits
provided (or made available) with respect to any plan or arrangement under this clause
(c)(ii) be materially less favorable to the Executive than the benefits most favorable
to the Executive that are provided (or were available) during the one-year period prior
to such termination of employment. In determining the amount of benefits to which the
Executive is entitled under this clause (c)(ii), it shall be assumed that the Executive
shall continue to be entitled to the salary that he was receiving immediately prior to
the termination, and the bonus for the year prior to the year in which the termination
occurs. If the Company reasonably determines that the Executive cannot participate in
any benefit plan because he is not actively performing services for the Company, then,
in lieu of providing benefits under any such plan, the Company shall make payments to
the Executive equal to the reduction in funding cost resulting from the Executive’s
exclusion from such plan, which payments shall fully satisfy any obligation of the
Company to continue benefits under such plans; provided that the Company shall not be
permitted to provide substitute benefits under this clause (c)(ii) with respect to
medical insurance, life insurance or disability benefits.

	(d)	 	Except as may be otherwise specifically provided in an amendment of this subparagraph 5(d)
adopted in accordance with paragraph 16, the Executive’s rights under this paragraph 5 shall
be in lieu of any benefits that may be otherwise payable to or on behalf
of the Executive pursuant to the terms of any severance pay arrangement of the Company or
any Subsidiary or any other, similar arrangement of the Company or any Subsidiary providing
benefits upon involuntary termination of employment , other than the benefits provided by
the Executive Protection Agreement. Notwithstanding any other provision of this Agreement,
in the event that the Executive becomes entitled to benefits under the 

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	 	 	Executive Protection
Agreement, the Executive shall not be entitled to any benefits under this Agreement on
account of his termination of employment with the Company and its affiliates but rather all
such benefits shall be provided in accordance with the terms of the Executive Protection
Agreement.

     6. Duties on Termination. Subject to the terms and conditions of this Agreement,
during the period beginning on the date of delivery of a Notice of Termination, and ending on the
Date of Termination, the Executive shall continue to perform his duties as set forth in this
Agreement, and shall also perform such services for the Company as are necessary and appropriate
for a smooth transition to the Executive’s successor, if any. Notwithstanding the foregoing
provisions of this paragraph 6, the Company may suspend the Executive from performing his duties
under this Agreement following the delivery of a Notice of Termination providing for the
Executive’s resignation, or delivery by the Company of a Notice of Termination providing for the
Executive’s termination of employment for any reason; provided, however, that during the period of
suspension (which shall end on the Date of Termination), the Executive shall continue to be treated
as employed by the Company for other purposes, and his rights to compensation or benefits shall not
be reduced by reason of the suspension.

     7. Mitigation and Set-Off. The Executive shall not be required to mitigate the amount
of any payment provided for in this Agreement by seeking other employment or otherwise. The
Company shall not be entitled to set off against the amounts payable to the Executive under this
Agreement any amounts owed to the Company by the Executive, any amounts earned by the Executive in
other employment after termination of his employment with the Company, or any amounts which might
have been earned by the Executive in other employment had he sought such other employment.

     8. Confidential Information. The Executive agrees that, during the Agreement Term,
and at all times thereafter:

	(a)	 	Except as may be required by the lawful order of a court or agency of competent jurisdiction,
except as necessary to carry out his duties to the Company and its Subsidiaries, or except to
the extent that the Executive has express authorization from the Company, the Executive agrees
to keep secret and confidential indefinitely, all Confidential Information, and not to
disclose the same, either directly or indirectly, to any other person, firm, or business
entity, or to use it in any way.
	 
	(b)	 	To the extent that any court or agency seeks to have the Executive disclose Confidential
Information, he shall promptly inform the Company, and he shall take such reasonable steps to
prevent disclosure of Confidential Information until the Company has been informed of such
requested disclosure, and the Company has an opportunity to respond to such court or agency.
To the extent that the Executive obtains information on behalf of the Company or any of the
Subsidiaries that may be subject to attorney-client privilege as
to the Company’s attorneys, the Executive shall take reasonable steps to maintain the
confidentiality of such information and to preserve such privilege.
	 
	(c)	 	Nothing in the foregoing provisions of this paragraph 8 shall be construed so as to prevent
the Executive from using, in connection with his employment for himself or an

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	 	 	employer other
than the Company or any of the Subsidiaries, knowledge which was acquired by him during the
course of his employment with the Company and the Subsidiaries, and which is generally known
to persons of his experience in other companies in the same industry.
	 
	(d)	 	For purposes of this Agreement, the term “Confidential Information” shall include all
non-public information (including, without limitation, information regarding litigation and
pending litigation) concerning the Company and the Subsidiaries which was acquired by or
disclosed to the Executive during the course of his employment with the Company, or during the
course of his consultation with the Company following his Date of Termination (regardless of
whether consultation is pursuant to paragraph 10).
	 
	(e)	 	This paragraph 8 shall not be construed to unreasonably restrict the Executive’s ability to
disclose confidential information in an arbitration proceeding or a court proceeding in
connection with the assertion of, or defense against any claim of breach of this Agreement in
accordance with paragraph 23. If there is a dispute between the Company and the Executive as
to whether information may be disclosed in accordance with this subparagraph 8(e) the matter
shall be submitted to the arbitrators or the court (whichever is applicable) for decision.

     9. Noncompetition. During the Restricted Period (as defined below) the Executive will
not, without the Company’s prior written consent (which consent shall not be unreasonably
withheld), directly or indirectly, for the Executive’s own account or for or on behalf of any other
person or entity, whether an officer, director, employee, partner, consultant, or otherwise:

	 	(a)	 	engage or participate in, directly or indirectly, alone or as principal, agent,
employee, employer, consultant, investor or partner of, or assist in the management of,
or provide advisory or other services to, or own any stock or any other ownership
interest in, or make any financial investment in, any business or entity which is
Competitive with the Company (as defined below) or purchase any property which could
reasonably be used to provide or develop a business that is Competitive with the
Company; or
	 
	 	(b)	 	solicit or attempt to hire or employ, in any fashion (whether as an employee,
independent contractor or otherwise), any employee or independent contractor of the
Company or the Subsidiaries, or solicit or induce, or attempt to solicit or induce, any
of the Company’s or the Subsidiaries’ employees, consultants, clients, customers,
vendors, suppliers or independent contractors to terminate their relationship with the
Company and/or the Subsidiaries; or

     For purposes of this Agreement:

	 	(i)	 	With respect to paragraph 9(a) above, the “Restricted Period” means the period
during which the Executive is employed by the Company and, if the Executive’s Date of
Termination occurs prior to December 31, 2007 other than on account of termination by
the Company for reasons other than Cause, the period following the Executive’s Date of
Termination and ending on December 31, 2007.

11

 

	 	(ii)	 	With respect to paragraph 9(b) above, the “Restricted Period” means the period
during which the Executive is employed by the Company and, if the Executive’s Date of
Termination occurs prior to December 31, 2008, the period following the Executive’s
Date of Termination and ending on December 31, 2008.
	 
	 	(iii)	 	A business or entity shall be considered “Competitive with the
Company” if it engages in any of the businesses in which the Company or any of its
affiliates engages, including the business of providing distribution facilities or
services, the acquisitions of properties for such purpose and the design of business
strategies for such purpose. For purposes of the portion of the Restricted Period
following the Executive’s Date of Termination, the businesses in which the Company or
any of its affiliates engages shall be determined as of the Executive’s Date of
Termination.
	 
	 	(iv)	 	For periods after the Executive’s Date of Termination, a business entity shall
not be considered “Competitive with the Company” (as defined in clause (iii)
above) for purposes of this Agreement if it builds anything other than industrial
warehouses or acquires property for purposes of developing anything other than
industrial warehouses and the Executive’s investment in such business or entity does
not exceed $10,000,000 with respect to any one transaction or $20,000,000 in the
aggregate for all transactions for the portion of the Restricted Period following his
Date of Termination.

     10. Assistance with Claims. The Executive agrees that, for the period beginning on
the Effective Date, and continuing for a reasonable period after the Executive’s Date of
Termination, the Executive will assist the Company and the Subsidiaries in defense of any claims
that may be made against the Company and the Subsidiaries, and will assist the Company and the
Subsidiaries in the prosecution of any claims that may be made by the Company or the Subsidiaries,
to the extent that such claims may relate to services performed by the Executive for the Company
and the Subsidiaries. The Executive agrees to promptly inform the Company if he becomes aware of
any lawsuits involving such claims that may be filed against the Company or any Subsidiary. The
Company agrees to provide legal counsel to the Executive in connection with such assistance (to the
extent legally permitted), and to reimburse the Executive for all of the Executive’s reasonable
out-of-pocket expenses associated with such assistance, including travel expenses and reasonable
legal expenses. The Executive shall choose his legal counsel in his reasonable sole discretion.
For periods after the Executive’s employment with the Company terminates, the Company agrees to
provide reasonable compensation to the Executive for such assistance. The Executive also agrees to
promptly inform the Company if he is asked to assist in any investigation of the Company or the
Subsidiaries (or their actions) that may relate to services performed by the Executive for the
Company or the Subsidiaries, regardless of whether a lawsuit has then been filed against the
Company or the Subsidiaries with respect to such investigation.

     11. Directors and Officers Insurance. The Executive shall be named as an insured and
covered against the same claims and at the same level of insurance under the Directors and Officers
insurance purchased by the Company for other senior executives of the Company.

12

 

     12. Equitable Remedies. The Executive acknowledges that the Company would be
irreparably injured by a violation of paragraphs 8 or 9 and he agrees that the Company, in addition
to any other remedies available to it for such breach or threatened breach, shall be entitled to a
preliminary injunction, temporary restraining order, or other equivalent relief, restraining the
Executive from any actual or threatened breach of either paragraphs 8 or 9. If a bond is required
to be posted in order for the Company to secure an injunction or other equitable remedy, the
parties agree that said bond need not be more than a nominal sum.

     13. Nonalienation. The interests of the Executive under this Agreement are not
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment, or garnishment by creditors of the Executive or the Executive’s beneficiary.

     14. Withholding. All payments and benefits under this Agreement are subject to
withholding of all applicable taxes.

     15. Indemnity. The Company indemnify the Executive against and shall pay and advance
all expenses, including, without limitation, attorneys’ fees, disbursements and retainers,
accounting and witness fees, travel and deposition costs, expenses of investigations, judicial or
administrative proceedings and appeals, amounts paid in settlement by the Executive or on behalf of
the Executive, actually incurred by the Executive in connection with any threatened, pending or
completed claim, action, suit or proceeding, formal or informal, whether brought in the right of
the Company or otherwise and whether of a civil, criminal, administrative or investigative nature,
by reason of the fact that the Executive as a director, officer, employee or agent of the Company
or its affiliates or as serving at the Company’s request as a director, officer, employee, or agent
of another corporation, limited liability company, partnership, joint venture, trust, or other
enterprise.

     16. Amendment. This Agreement may be amended or cancelled only by mutual agreement of
the parties in writing without the consent of any other person. So long as the Executive lives, no
person, other than the parties hereto, shall have any rights under or interest in this Agreement or
the subject matter hereof. Without limiting the generality of the foregoing, it is the intent of
the parties that all payments hereunder comply with the requirements of section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), and applicable guidance issued thereunder
and, to the extent applicable, this Agreement shall be amended as the parties deem necessary or
appropriate to comply with the requirements of section 409A and applicable guidance issued
thereunder in a manner that preserves to the extent possible the intended benefits of this
Agreement for the parties.

     17. Applicable Law. The provisions of this Agreement shall be construed in accordance
with the laws of the State of Colorado, without regard to the conflict of law provisions of any
state.

     18. Severability. The invalidity or unenforceability of any provision of this
Agreement will not affect the validity or enforceability of any other provision of this Agreement,
and this Agreement will be construed as if such invalid or unenforceable provision were omitted
(but only to the extent that such provision cannot be appropriately reformed or modified).

13

 

     19. Waiver of Breach. No waiver by any party hereto of a breach of any provision of
this Agreement by any other party, or of compliance with any condition or provision of this
Agreement to be performed by such other party, will operate or be construed as a waiver of any
subsequent breach by such other party of any similar or dissimilar provisions and conditions at the
same or any prior or subsequent time. The failure of any party hereto to take any action by reason
of such breach will not deprive such party of the right to take action at any time while such
breach continues.

     20. Successors. This Agreement shall be binding upon, and inure to the benefit of,
the Company and its successors and assigns and upon any person acquiring, whether by merger,
consolidation, purchase of assets or otherwise, all or substantially all of the Company’s assets
and business , and the successor shall be substituted for the Company under this Agreement.

     21. Notices. Notices and all other communications provided for in this Agreement
shall be in writing and shall be delivered personally or sent by registered or certified mail,
return receipt requested, postage prepaid (provided that international mail shall be sent via
overnight or two-day delivery), or sent by facsimile or prepaid overnight courier to the parties at
the addresses set forth below (or such other addresses as shall be specified by the parties by like
notice). Such notices, demands, claims and other communications shall be deemed given:

	(a)	 	in the case of delivery by overnight service with guaranteed next day delivery, the next day
or the day designated for delivery;
	 
	(b)	 	in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail;
or
	 
	(c)	 	in the case of facsimile, the date upon which the transmitting party received confirmation of
receipt by facsimile, telephone or otherwise;

provided, however, that in no event shall any such communications be deemed to be given later than
the date they are actually received. Communications that are to be delivered by the U.S. mail or
by overnight service or two-day delivery service are to be delivered to the addresses set forth
below:

	 	 	 
	to the Company:
	

	 	 
	

	 	14100 East 35th Place
	

	 	Aurora, Colorado 80011
	

	 	Attn:  General Counsel
	

	 	Fax:  (303) 576-2761
	

	 	 
	or to the Executive:
	

	 	 
	

	 	29029 Upper Bear Creek Road, #203
	

	 	Evergreen, Colorado 80439
	

	 	Fax:  (303) 980-3493

All notices to the Company shall be directed to the attention of the General Counsel of the
Company, with a copy to the Secretary of the Company. Each party, by written notice furnished

14

 

to the other party, may modify the applicable delivery address, except that notice of change of
address shall be effective only upon receipt.

     22. Arbitration of All Disputes. Any controversy or claim arising out of or relating
to this Agreement (or the breach thereof) shall be settled by final, binding and non-appealable
arbitration in Colorado by three arbitrators. Except as otherwise expressly provided in this
paragraph 22, the arbitration shall be conducted in accordance with the rules of the American
Arbitration Association (the “Association”) then in effect. One of the arbitrators shall be
appointed by the Company, one shall be appointed by the Executive, and the third shall be appointed
by the first two arbitrators. If the first two arbitrators cannot agree on the third arbitrator
within 30 days of the appointment of the second arbitrator, then the third arbitrator shall be
appointed by the Association.

     23. Legal and Enforcement Costs. The provisions of this paragraph 23 shall apply if
it becomes necessary or desirable for the Executive to retain legal counsel or incur other costs
and expenses in connection with either enforcing any and all of his rights under this Agreement or
defending against any allegations of breach of this Agreement by the Company:

	(a)	 	The Executive shall be entitled to recover from the Company reasonable attorneys’ fees, costs
and expenses incurred by him in connection with such enforcement or defense.
	 
	(b)	 	Payments required under this paragraph 23 shall be made by the Company to the Executive (or
directly to the Executive’s attorney) promptly following submission to the Company of
appropriate documentation evidencing the incurrence of such attorneys’ fees, costs, and
expenses.
	 
	(c)	 	The Executive shall be entitled to select his legal counsel; provided, however, that such
right of selection shall not affect the requirement that any costs and expenses reimbursable
under this paragraph 23 be reasonable.
	 
	(d)	 	The Executive’s rights to payments under this paragraph 23 shall not be affected by the final
outcome of any dispute with the Company; provided, however, that to the extent that the
arbitrators shall determine that under the circumstances recovery by the Executive of all or a
part of any such fees and costs and expenses would be unjust or inappropriate, the Executive
shall not be entitled to such recovery; and to the extent that such amount have been recovered
by the Executive previously, the Executive shall repay such amounts to the Company.

     24. Survival of Agreement. Except as otherwise expressly provided in this Agreement,
the rights and obligations of the parties to this Agreement shall survive the termination of the
Executive’s employment with the Company.

     25. Entire Agreement; Waiver of Rights Under MOU. Except as otherwise noted herein or
in any separation agreement subsequently entered into by the Executive and the Company, this
Agreement, including any Exhibit(s) attached hereto, constitutes the entire agreement between the
parties concerning the subject matter hereof and supersedes all prior and contemporaneous
agreements, if any, between the parties relating to the subject matter hereof;

15

 

provided, however,
that nothing in this Agreement shall be construed to limit any policy or agreement that is
otherwise applicable relating to confidentiality, rights to inventions, copyrightable material,
business and/or technical information, trade secrets, solicitation of employees, interference with
relationships with other businesses, competition, and other similar policies or agreement for the
protection of the business and operations of the Company and the Subsidiaries. In consideration of
the Company’s obligations under this Agreement, the Executive agrees that he hereby waives all
rights under that certain Memorandum of Understanding dated March 26, 2004, as amended as of
February 16, 2005 (the “MOU”), between the Executive and Cactus and hereby releases the Cactus and
the Company from any and all obligations under the MOU; provided, however, that the provisions of
Paragraph 8 of the MOU (relating to indemnification) shall continue to apply, Appendix B of the MOU
(relating to the Tax Protection Policy) will continue to apply in all respects without limitation
to any payment, distribution or benefit which is determined to be subject to excise tax under
section 4999 of the Code as a result of the Merger and Paragraph 10.3(b) of the MOU will continue
to apply with respect to awards referenced therein that are outstanding immediately prior to the
Merger. The parties agree and intend that, to the extent the payment described in subparagraph
3(h) hereof is considered to be deferred compensation within the meaning of section 409A of the
Code, it is being paid to the Executive pursuant to and in accordance with the guidance issued in
Notice 2005-1.

     IN WITNESS THEREOF, the Executive has hereunto set his hand, and the Company has caused these
presents to be executed in its name and on its behalf, all as of the Effective Date.

	 	 	 	 	 
	 	 	 
	 	                                                                        /s/ Ted R. Antenucci
 	 
	 	Executive 	 
	 	 	 
	 

	 	 	 	 	 
	 	PROLOGIS

 	 
	 	By:  	/s/ Jeffrey H. Schwartz
 	 
	 	Its: 	Chief Executive Officer 	 
	 	 	 	 
	 

16Exhibit
4.02

 

 

AMENDED
AND RESTATED

STOCKHOLDERS AGREEMENT

 

By
and Among

 

IGN
Entertainment, Inc.,

The Management Stockholders

 

and

 

The
Investors

as defined herein

 

Dated
as of March 3, 2004

 

 

TABLE
OF CONTENTS

 

	
  SECTION I
  -  DEFINITIONS

  	
   

  
	
   

  	
  Section 1.1

  	
  Construction of Terms

  	
   

  
	
   

  	
  Section 1.2

  	
  Terms Not Defined

  	
   

  
	
   

  	
  Section 1.3

  	
  Number of Shares of Stock

  	
   

  
	
   

  	
  Section 1.4

  	
  Defined Terms

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION II
  -  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
  Section 2.1

  	
  Representations and Warranties of the
  Investors

  	
   

  
	
   

  	
  Section 2.2

  	
  Representations and Warranties of the
  Management Stockholders

  	
   

  
	
   

  	
  Section 2.3

  	
  Representations and Warranties of the
  Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION III
  -  TRANSFER OF SECURITIES

  	
   

  
	
   

  	
  Section 3.1

  	
  Restrictions on Transfer

  	
   

  
	
   

  	
  Section 3.2

  	
  Permitted Transfers

  	
   

  
	
   

  	
  Section 3.3

  	
  Right of First Refusal

  	
   

  
	
   

  	
  Section 3.4

  	
  Co-Sale Option of Stockholders

  	
   

  
	
   

  	
  Section 3.5

  	
  Contemporaneous Transfers

  	
   

  
	
   

  	
  Section 3.6

  	
  Effect of Prohibited Transfers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION IV -  RIGHTS AND
  OBLIGATIONS TO SELL

  	
   

  
	
   

  	
  Section 4.1

  	
  Liberty and BACI Tag-Along Right

  	
   

  
	
   

  	
  Section 4.2

  	
  Drag-Along Rights

  	
   

  
	
   

  	
  Section 4.3

  	
  Conditions to Obligation to Participate

  	
   

  
	
   

  	
  Section 4.4

  	
  Stockholder Tag-Along Right

  	
   

  
	
   

  	
  Section 4.5

  	
  Procedure

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION V - 
  RIGHTS TO PURCHASE

  	
   

  
	
   

  	
  Section 5.1

  	
  Right to Participate in Certain Sales of
  Additional Securities

  	
   

  
	
   

  	
  Section 5.2

  	
  Stockholder Acceptance

  	
   

  
	
   

  	
  Section 5.3

  	
  Calculation of Pro Rata Allotment

  	
   

  
	
   

  	
  Section 5.4

  	
  Sale to Third Party

  	
   

  
	
   

  	
  Section 5.5

  	
  Exceptions to Pre-emptive Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION VI -  ELECTION OF DIRECTORS

  	
   

  
	
   

  	
  Section 6.1

  	
  Board Composition

  	
   

  
	
   

  	
  Section 6.2

  	
  Board Observer Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION VII -  COVENANTS OF THE
  COMPANY

  	
   

  
	
   

  	
  Section 7.1

  	
  Financial Statements, Reports, Etc

  	
   

  
	
   

  	
  Section 7.2

  	
  Corporate Existence

  	
   

  
	
   

  	
  Section 7.3

  	
  Properties, Business Insurance

  	
   

  
	
   

  	
  Section 7.4

  	
  Key Person Insurance

  	
   

  
	
   

  	
  Section 7.5

  	
  Inspection, Consultation and Advice

  	
   

  

 

i

 

	
   

  	
  Section 7.6

  	
  Compensation of Directors

  	
   

  
	
   

  	
  Section 7.7

  	
  Board of Directors Meetings

  	
   

  
	
   

  	
  Section 7.8

  	
  By-laws

  	
   

  
	
   

  	
  Section 7.9

  	
  Restrictive Agreements Prohibited

  	
   

  
	
   

  	
  Section 7.10

  	
  Compliance with Laws

  	
   

  
	
   

  	
  Section 7.11

  	
  Keeping of Records and Books of Account

  	
   

  
	
   

  	
  Section 7.12

  	
  Qualified Small Business Stock

  	
   

  
	
   

  	
  Section 7.13

  	
  Lock-Up Agreements

  	
   

  
	
   

  	
  Section 7.14

  	
  Affiliated Transactions

  	
   

  
	
   

  	
  Section 7.15

  	
  Management Compensation

  	
   

  
	
   

  	
  Section 7.16

  	
  Financings

  	
   

  
	
   

  	
  Section 7.17

  	
  Expenses

  	
   

  
	
   

  	
  Section 7.18

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION VIII -  MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
  Section 8.1

  	
  Survival of Covenants

  	
   

  
	
   

  	
  Section 8.2

  	
  Legend on Securities

  	
   

  
	
   

  	
  Section 8.3

  	
  Term; Termination

  	
   

  
	
   

  	
  Section 8.4

  	
  Amendment and Waiver; Actions of the Board

  	
   

  
	
   

  	
  Section 8.5

  	
  Notices

  	
   

  
	
   

  	
  Section 8.6

  	
  Headings

  	
   

  
	
   

  	
  Section 8.7

  	
  Counterparts

  	
   

  
	
   

  	
  Section 8.8

  	
  Remedies; Severability

  	
   

  
	
   

  	
  Section 8.9

  	
  Entire Agreement

  	
   

  
	
   

  	
  Section 8.10

  	
  Adjustments

  	
   

  
	
   

  	
  Section 8.11

  	
  Law Governing

  	
   

  
	
   

  	
  Section 8.12

  	
  Successors and Assigns; Assignment

  	
   

  
	
   

  	
  Section 8.13

  	
  Dispute Resolution

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Joinder Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule A

  	
  -

  	
  Investors and Management Stockholders

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

ii

 

AMENDED
AND RESTATED STOCKHOLDERS AGREEMENT

 

THIS AMENDED AND RESTATED
STOCKHOLDERS AGREEMENT (the “Agreement”) is made as of March 3, 2004, by
and among IGN Entertainment, Inc., a Delaware corporation formerly known as GHP
Acquisition Corp. (the “Company”), the individuals identified on Schedule A
hereto as Management Stockholders (collectively, the “Management Stockholders,”
and each individually, a “Management Stockholder”), the Persons identified on Schedule A
hereto as the Investors (each, an “Investor” and collectively, the “Investors”)
and any other stockholder or option holder who from time to time becomes party
to this Agreement by execution of a Joinder Agreement in substantially the form
attached hereto as Exhibit A.  The Management Stockholders and the
Investors are sometimes referred to herein collectively as the “Stockholders,”
and each individually, a “Stockholder.”

 

WHEREAS, Great Hill
Equity Partners II L.P., Great Hill Affiliate Partners II L.P. (collectively,
“Great Hill”), Liberty Mutual Insurance Company (“Liberty Mutual”), and certain
other parties named in the Prior Agreement (as defined below) hold shares of
the Company’s Series A Redeemable Preferred Stock, par value $0.01 per share
(the “Series A Preferred Stock”) and shares of the Company’s Common Stock, par
value $0.01 per share (the “Common Stock”) and possess certain rights provided
pursuant to a Stockholder Agreement entered into with the Company, dated as of
August 28, 2003 and as amended and restated on December 3, 2003 (the
“Prior Agreement”);

 

WHEREAS, the Company,
Great Hill, Liberty Mutual and certain Investors and Management Stockholders
named therein (the “Additional Series A Purchasers”) have entered into that
certain Securities Purchase Agreement, dated as of the date hereof (the
“Additional Series A Purchase Agreement”) pursuant to which the Additional
Series A Purchasers have purchased (i) shares of Series A Preferred Stock, and
(ii) shares of Common Stock;

 

WHEREAS, the Company and
Banc of America Capital Investors, L.P. (“BACI”) have entered into that certain
Securities Purchase Agreement, dated as of the date hereof (the “Series B
Purchase Agreement”), whereby BACI has agreed to purchase (i) shares of the
Company’s Series B Participating Preferred Stock, par value $0.01 per share
(the “Series B Preferred Stock”) and (ii) a warrant to purchase shares of the
Company’s Common Stock;

 

WHEREAS, the Company and
the parties to the Prior Agreement desire to amend and restate the Prior
Agreement to provide such Stockholders the rights created pursuant to this
Agreement in lieu of rights granted under the Prior Agreement; and

 

WHEREAS, it is a
condition to the obligations of BACI under the Series B Purchase Agreement that
the Agreement be entered into by the parties hereto.

 

NOW, THEREFORE, in
consideration of the premises, as an inducement to the parties hereto to
consummate the transactions contemplated, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Company and the Stockholders hereby covenant and agree with each other as
follows:

 

 

SECTION I - DEFINITIONS

 

Section 1.1                                     
Construction of
Terms.  As
used herein, the masculine, feminine or neuter gender, and the singular or
plural number, shall be deemed to be or to include the other genders or number,
as the case may be, whenever the context so indicates or requires.

 

Section 1.2                                     
Terms Not Defined.  Capitalized terms used herein and
not otherwise defined shall have the meanings ascribed to them in the Series B
Purchase Agreement.

 

Section 1.3                                     
Number of Shares
of Stock. 
Whenever any provision of this Agreement calls for any calculation based on a
number of shares of Common Stock issued and outstanding or held by a
Stockholder, the number of shares deemed to be issued and outstanding or held
by that Stockholder, as applicable, shall be the total number of shares of
Common Stock then issued and outstanding or owned by the Stockholder, as
applicable, on a Fully-Diluted basis.

 

Section 1.4                                     
Defined Terms.  The following capitalized terms,
as used in this Agreement, shall have the meanings set forth below.

 

An “Affiliate” of
any Person means a Person that, directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with the
first mentioned Person; provided, that in no event shall any portfolio company
of any Investor be deemed to be an Affiliate of such Investor for purposes of
Section 3.2.  A Person shall be deemed to control another Person if
such first Person possesses, directly or indirectly, the power to direct, or
cause the direction of, the management and policies of the second Person,
whether through the ownership of voting securities, by contract or otherwise.

 

“BACI Common
Equivalents” means the shares of Common
Stock held by BACI and its Affiliates, on a Fully-Diluted basis, including the
shares issuable upon conversion of the Series B Preferred Stock
and the exercise of the Warrants;

 

“Board of Directors”
means the Board of Directors of the Company.

 

“Change in Control”
means any transaction pursuant to or as a result of which a single person (or
group of affiliated persons) other than Great Hill acquires or holds capital
stock of the Company representing a majority of votes entitled to be cast in
any election of directors of the Company.

 

“Charter” means
the Company’s Amended and Restated Certificate of Incorporation in the form
filed on the date hereof.

 

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

 

“Common Stock”
means the Common Stock, and any other shares of stock issued or issuable with
respect thereto (whether by way of a stock dividend or stock split or in
exchange for or upon conversion of such shares or otherwise in connection with
a combination of shares, recapitalization, merger, consolidation or other
corporate reorganization).

 

2

 

“Company” means
IGN Entertainment, Inc., a Delaware corporation and any successors thereto.

 

“Equity Incentive
Plans” means stock option plans of the Company approved by its Board of
Directors.

 

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

 

“Fully Diluted”
means, with respect to the Common Stock, as of a particular time the total
outstanding shares of Common Stock as of such time, determined by treating all
outstanding options (irrespective of whether then vested), warrants and other
rights for the purchase or other acquisition of Common Stock as having been
exercised and by treating all outstanding securities convertible into Common
Stock as having been so converted.

 

“Investor Majority
Interest” means the Investors holding or deemed to hold not less than a
majority of the outstanding shares of Common Stock on a Fully Diluted basis
held by all Investors.

 

“Person” means an
individual, a corporation, an association, a joint venture, a partnership, a
limited liability company, an estate, a trust, an unincorporated organization
and any other entity or organization, governmental or otherwise.

 

“Sale Event” means
a bona fide negotiated transaction in which an Investor Majority Interest has
determined (i) to sell or otherwise dispose of all or substantially all of the
assets of the Company, (ii) to sell sufficient capital stock of the Company to
constitute a Change in Control or (iii) to cause the Company to merge with or
into or consolidate with any non-Affiliate(s) of the Company or any of the
Investors constituting a Change in Control.

 

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

 

“Shares” means, at
any time, (i) shares of Common Stock, (ii) shares of Series A Preferred
Stock, (iii) shares of Series B Preferred Stock, (iv) the Warrants and
(v) any other equity securities now or hereafter issued by the Company,
together with any options thereon and any other shares of stock issued or
issuable with respect thereto (whether by way of a stock dividend, stock split
or in exchange for or upon conversion of such shares or otherwise in connection
with a combination of shares, recapitalization, merger, consolidation or other
corporate reorganization).

 

“Transfer” means
any direct or indirect transfer, donation, sale, assignment, pledge,
hypothecation, grant of a security interest in or other disposal or attempted
disposal of all or any portion of a security, any interest or rights in a
security, or any rights under this Agreement.  “Transferred” means the
accomplishment of a Transfer, and “Transferee” means the recipient of a
Transfer.

 

“Warrants” means
the Warrants to purchase Common Stock issued under the Warrant Agreement (as
defined in the Series B Purchase Agreement).

 

3

 

SECTION II - REPRESENTATIONS AND WARRANTIES

 

Section 2.1                                     
Representations
and Warranties of the Investors.  Each of the Investors, individually as to
itself only and not jointly or as to any other Investor, hereby represents,
warrants and covenants to the Company and the Management Stockholders as
follows:  (a) such Investor has full authority, power and capacity to
enter into this Agreement and perform its obligations hereunder; (b)this Agreement
constitutes the valid and binding obligation of such Investor enforceable
against it in accordance with its terms, except: (i) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as
limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies, and (iii) to the extent the
indemnification provisions may be limited by applicable federal or state
securities laws; and (c)the execution, delivery and performance by such
Investor of this Agreement: (i)does not and will not violate any laws, rules or
regulations of the United States or any state or other jurisdiction applicable
to such Investor, or require such Investor to obtain any approval, consent or
waiver of, or to make any filing with, any Person that has not been obtained or
made; and (ii) does not and will not result in a breach of, constitute a
default under, accelerate any obligation under or give rise to a right of
termination of any indenture or loan or credit agreement or any other material
agreement, contract, instrument, mortgage, lien, lease, permit, authorization,
order, writ, judgment, injunction, decree, determination or arbitration award
to which such Investor is a party or by which the property of such Investor is
bound or affected, or result in the creation or imposition of any mortgage,
pledge, lien, security interest or other charge or encumbrance on any of the
assets or properties of such Investor.

 

Section 2.2                                     
Representations
and Warranties of the Management Stockholders.  Each of the Management Stockholders,
individually as to himself or herself only and not jointly or as to any other
Management Stockholder, hereby represents, warrants and covenants to the
Company and the Investors as follows: (a) such Management Stockholder has full
authority, power and capacity to enter into this Agreement and perform its
obligations hereunder; (b)this Agreement constitutes the valid and binding
obligation of such Management Stockholder enforceable against him or her in
accordance with its terms, except: (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief, or
other equitable remedies, and (iii) to the extent the indemnification provisions
may be limited by applicable federal or state securities laws; and (c)the
execution, delivery and performance by such Management Stockholder of this
Agreement: (i)does not and will not violate any laws, rules or regulations of
the United States or any state or other jurisdiction applicable to such
Management Stockholder, or require such Management Stockholder to obtain any
approval, consent or waiver of, or to make any filing with, any Person that has
not been obtained or made; and (ii) does not and will not result in a breach
of, constitute a default under, accelerate any obligation under or give rise to
a right of termination of any indenture or loan or credit agreement or any
other material agreement, contract, instrument, mortgage, lien, lease, permit,
authorization, order, writ, judgment, injunction, decree, determination or
arbitration award to which such Management Stockholder is a party or by which
the property of such Management Stockholder is bound or affected, or result in
the creation or imposition of any mortgage, pledge, lien, security interest or
other charge or encumbrance on any of the assets or properties of such
Management Stockholder.

 

4

 

Section 2.3                                     
Representations
and Warranties of the Company.  The Company hereby represents, warrants and
covenants to the Management Stockholders and the Investors as follows: 
(a)the Company has full corporate authority and power to enter into this
Agreement and perform its obligations hereunder; (b)this Agreement constitutes
the valid and binding obligation of the Company enforceable against it in
accordance with its terms, except: (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive relief, or
other equitable remedies, and (iii) to the extent the indemnification provisions
may be limited by applicable federal or state securities laws; and (c)the
execution, delivery and performance by the Company of this Agreement: (i)does
not and will not violate any laws, rules or regulations of the United States or
any state or other jurisdiction applicable to the Company, or require the
Company to obtain any approval, consent or waiver of, or to make any filing
with, any Person that has not been obtained or made; and (ii) does not and will
not result in a breach of, constitute a default under, accelerate any
obligation under or give rise to a right of termination of any indenture or
loan or credit agreement or any other material agreement, contract, instrument,
mortgage, lien, lease, permit, authorization, order, writ, judgment, injunction,
decree, determination or arbitration award to which the Company is a party or
by which the property of the Company is bound or affected, or result in the
creation or imposition of any mortgage, pledge, lien, security interest or
other charge or encumbrance on any of the assets or properties of the Company.

 

SECTION III - TRANSFER OF SECURITIES

 

Section 3.1                                     
Restrictions on
Transfer. 
Each Management Stockholder agrees that such Management Stockholder will not,
without the prior written consent of an Investor Majority Interest, Transfer
all or any portion of the Shares now owned or hereafter acquired by such
Stockholder, except in connection with, and strictly in compliance with the
conditions of this Agreement.  The Company shall cause each Person
hereafter becoming a holder of any Shares, whether via Transfer or by purchase
or other issuance from the Company, to execute a Joinder Agreement,
substantially in the form attached as Exhibit A, providing that all such shares
acquired by such Person shall be subject to the provisions of this Agreement
and in furtherance thereof and notwithstanding anything to the contrary in this
Agreement, no Stockholder may
Transfer all or any portion of Shares now owned or hereafter
acquired by any Stockholder as permitted under this Agreement, unless the
Transferee thereof has executed and
delivered to the Company such a Joinder Agreement.

 

Section 3.2                                     
Permitted
Transfers. 
Notwithstanding anything herein to the contrary, the provisions of Sections 3.3
and 3.4 shall not apply to either of the Transfers listed below, except that no
further Transfer shall thereafter be permitted hereunder except in compliance
with Sections 3.3 and 3.4:

 

(a)                                 
Transfers
by any Management Stockholder to the spouse, children or siblings of such
Stockholder or to a trust or family limited partnership for the benefit of any
of them; and

 

(b)                                
Transfers
upon the death of any Management Stockholder to such Management Stockholder’s
heirs, executors or administrators or to a trust under such

 

5

 

Management Stockholder’s will, or Transfers between
such Management Stockholder and such Management Stockholder’s guardian or
conservator.

 

Section 3.3                                     
Right of First
Refusal.  In
the event that any Management Stockholder desires to Transfer all or any
portion of the Shares held by such Management Stockholder pursuant to a bona
fide offer (a “Transaction Offer”) from any other Person (a “Buyer”), such
Management Stockholder (a “Transferor”) may, subject to the provisions of
Section 3.4 hereof, Transfer such Shares pursuant to and in accordance
with the following provisions of this Section 3.3:

 

(a)                                 
Offer
Notice.  The Transferor shall cause the Transaction Offer and all of the
terms thereof to be reduced to writing and shall promptly notify the Company
and each of the Investors of such Transferor’s desire to effect the Transaction
Offer and otherwise comply with the provisions of this Section 3.3 and, if
applicable, Section 3.4 (such notice, the “Offer Notice”).  The
Transferor’s Offer Notice shall constitute an irrevocable offer to sell all but
not less than all of the Shares which are the subject of the Transaction Offer
(the “Offered Shares”) first to the Company and then, in the event that the
Company fails to purchase all of the Offered Shares, to the Investors, on the
basis described below, at a purchase price equal to the price contained in, and
on the same terms and conditions of, the Transaction Offer.  The Offer
Notice shall be accompanied by a true copy of the Transaction Offer (which
shall identify the Buyer and all relevant information in connection therewith).

 

(b)                                
Company
Option. The Company shall have the first option to purchase all but not less
than all of the Offered Shares.  At any time within ten (10) days after
receipt by the Company of the Offer Notice (the “Company Option Period”), the
Company may elect to accept the offer to purchase with respect to any or all of
the Offered Shares by giving written notice of such election (the “Company
Acceptance Notice”) to the Transferor within the Company Option Period. 
The Company Acceptance Notice shall constitute a valid, legally binding and
enforceable agreement for the sale and purchase of the Shares covered by the
Company Acceptance Notice. If the Company accepts the offer to purchase all of
the Offered Shares, the closing for such purchase of the Offered Shares by the
Company under this Section 3.3(b) shall take place within thirty (30) days
following the expiration of the Company Option Period, at the offices of the
Company or on such other date or at such other place as may be agreed to by the
Transferor and the Company.  If the Company fails to purchase all of the
Offered Shares by exercising its option under this Section 3.3(b) within
the period provided, the Transferor shall so notify the Investors promptly (the
“Additional Offer Notice”) and the Remaining Shares shall be subject to the
options granted to the Investors pursuant to Section 3.3(c) below.

 

(c)                                 
Investors’
Option. If the Company fails to purchase the Offered Shares under
Section 3.3(b) above, at any time within fifteen (15) days after receipt
by the Investors of the Additional Offer Notice (the “Investor Option Period”),
each Investor may elect to accept the offer to purchase with respect to any or
all of the Remaining Shares by giving written notice of such election (the
“Investor Acceptance Notice”) to the Transferor and each Investor within the
Investor Option Period, which notice shall indicate the maximum number of
Shares that the Investor is willing to purchase, including the number of Shares
it would purchase if one or more other Investors do not elect to purchase their
Pro Rata Fractions (as defined in paragraph (d) below).  If, and only if,
the Investor Acceptance Notices delivered pursuant to this Section 3.3(c)

 

6

 

taken together indicate a desire to purchase all but
not less than all of the Offered Shares, the Investor Acceptance Notice shall
constitute a valid, legally binding and enforceable agreement for the sale and
purchase of the Shares covered by the Investor Acceptance Notice.  The
closing for any purchase of Shares by the Investors under this
Section 3.3(c) shall take place within thirty (30) days following the
expiration of Investor Option Period, at the offices of the Company or on such
other date or at such other place as may be agreed to by the Transferor and
such Investors.  The Transferor shall notify the Investors promptly if any
Investor fails to offer to purchase all of its Pro Rata Fraction.

 

(d)                                
Allocation
of Shares among Investors.  Upon the expiration of the Investor Option
Period, the number of Shares to be purchased by each Investor shall be
determined as follows:  (i) first, there shall be allocated to each
Investor electing to purchase, a number of Shares equal to the lesser of (A)
the number of Shares as to which such Investor accepted as set forth in its
respective Investor Acceptance Notice or (B) such Investor’s Pro Rata
Fraction (as defined below), and (ii) second, the balance, if any, not
allocated under clause (i) above, shall be allocated to those Investors who
within the Investor Option Period delivered an Investor Acceptance Notice that
set forth a number of Shares that exceeded their respective Pro Rata Fractions,
in each case on a pro rata basis in proportion to the number of shares of Fully
Diluted Common Stock held by each such Investor up to the amount of such
excess.  An Investor’s “Pro Rata Fraction” shall be equal to the product
obtained by multiplying the total number of Offered Shares by a fraction, the numerator of which is the total number of
shares of Fully Diluted Common Stock owned by such Investor, and the denominator of which is the total number
of shares of Fully Diluted Common Stock held by all Investors, in each case as
of the date of the Offer Notice.

 

(e)                                 
Valuation
of Property. In the event that the price set forth in the Offer Notice
is stated in consideration other than cash or cash equivalents, the Transferor,
the Company and an Investor Majority Interest shall mutually determine the fair
market value of such consideration, reasonably and in good faith, and the
Company and/or the Investors, as the case may be, may effect their purchase
under this Section 3.3 by payment of such fair market value in cash or
cash equivalents.

 

(f)                                   
Sale
to Third Party.  In the event that the Company and the Investors do
not elect to exercise the rights to purchase under this Section 3.3 with
respect to all of the Shares proposed to be sold, the Transferor may sell all
such Shares to the Buyer on the terms and conditions set forth in the Offer
Notice, subject to the provisions of Section 3.4.

 

Section 3.4                                     
Co-Sale Option of
Stockholders. 
In the event that the Company and the Investors do not exercise their rights
under Section 3.3 with respect to all of the Shares proposed to be so
Transferred in connection with any Transaction Offer, the Transferor may
Transfer such Shares only pursuant to and in accordance with the following
provisions of this Section 3.4:

 

(a)                                 
Co-Sale
Notice.  As soon as practicable following the expiration of the Investor
Option Period, and in no event later than five (5) days thereafter, the
Transferor shall provide notice to each of the Stockholders (the “Co-Sale
Notice”) of its right to participate in the Transaction Offer on a pro rata
basis with the Transferor (the “Co-Sale Option”).   To the extent one
or more Stockholders exercise their Co-Sale Option in accordance with this
Section 3.4, the

 

7

 

number of Shares that the Transferor may Transfer in
the Transaction Offer shall be correspondingly reduced.

 

(b)                                
Stockholder
Acceptance. Each of the Stockholders shall have the right to exercise
its Co-Sale Option by giving written notice of such intent to participate (the
“Co-Sale Acceptance Notice”) to the Transferor within ten (10) days after
receipt by such Stockholder of the Co-Sale Notice (the “Co-Sale Election
Period”).  Each Co-Sale Acceptance Notice shall indicate the maximum
number of Shares subject thereto which the Stockholder wishes to sell,
including the number of Shares it would sell if one or more other Stockholders
do not elect to participate in the sale on the terms and conditions stated in
the Offer Notice.

 

(c)                                 
Allocation
of Shares.  Each Stockholder shall have the right to sell a
portion of its Shares pursuant to the Transaction Offer which is equal to or
less than the product obtained by multiplying the total number of each class or
series of Shares available for sale to the Buyer subject to the Transaction
Offer by a fraction, the numerator
of which is the total number of Shares of such class or series owned by such
Stockholder and the denominator
of which is the total number of such class or series of Shares held by all
Stockholders and the Transferor, in each case as of the date of the Offer
Notice, subject to increase as hereinafter provided.  In the event any
Stockholder does not elect to sell the full amount of such Shares of such class
or series which such Stockholder is entitled to sell pursuant to this
Section 3.4, then any Stockholders who have elected to sell Shares shall
have the right to sell, on a pro-rata basis (based on the number of Shares of
such class or series held by each such Stockholder) with any other Stockholders
and up to the maximum number of Shares of such class or series stated in each
such Stockholder’s Co-Sale Acceptance Notice, any Shares not elected to be sold
by such Stockholder.

 

(d)                                
Co-Sale
Closing.  Within ten (10) calendar days after the end of the Co-Sale
Election Period, the Transferor shall promptly notify each participating
Stockholder of the number of Shares held by such Stockholder that will be
included in the sale and the date on which the Transaction Offer will be
consummated, which shall be no later than the later of (i) sixty (60) calendar
days after the end of the Co-Sale Election Period and (ii) the satisfaction of
any governmental approval or filing requirements, if any. Each participating
Stockholder may effect its participation in any Transaction Offer hereunder by
delivery to the Buyer, or to the Transferor for delivery to the Buyer, of one
or more instruments or certificates, properly endorsed for transfer,
representing the Shares it elects to sell pursuant thereto. At the time of
consummation of the Transaction Offer, the Buyer shall remit directly to each
participating Stockholder that portion of the sale proceeds to which the
participating Stockholder is entitled by reason of its participation with
respect thereto.  No Shares may be purchased by the Buyer from the
Transferor unless the Buyer simultaneously purchases from the participating
Stockholders all of the Shares that they have elected to sell pursuant to this
Section 3.4.

 

(e)                                 
Liability
of Stockholders.  Each participating Stockholder shall be liable to
the Buyer only to the same extent as the Transferor with respect to
representations and warranties regarding the Company or its business, on a
several basis for each such Stockholder’s pro rata portion, provided that each
such Stockholder’s liability with respect to such representations and
warranties shall not exceed the value of the proceeds received by such
Stockholder upon the consummation of the Transaction Offer and, provided
further, that no

 

8

 

Stockholder shall be required to make any other
representations or warranties or to provide any indemnities in connection
therewith other than with respect to title to the shares being conveyed.

 

(f)                                   
Sale
to Third Party.  Any Shares held by a Transferor that are the
subject of the Transaction Offer and that the Transferor desires to Transfer
following compliance with this Section 3.4, may be sold to the Buyer only
during the period specified in Section 3.4(d) and only on terms no more
favorable to the Transferor than those contained in the Offer Notice. 
Promptly after such Transfer, the Transferor shall notify the Company, which in
turn shall promptly notify all the Stockholders, of the consummation thereof
and shall furnish such evidence of the completion and time of completion of the
Transfer and of the terms thereof as may reasonably be requested by an Investor
Majority Interest.  In the event that the Transaction Offer is not
consummated within the period required by this Section 3.4 or the Buyer
fails timely to remit to each participating Stockholder its respective portion
of the sale proceeds, the Transaction Offer shall be deemed to lapse, and any
Transfer of Shares pursuant to such Transaction Offer shall be in violation of
the provisions of this Agreement unless the Transferor sends a new Offer Notice
and once again complies with the provisions of Sections 3.3 and 3.4 with
respect to such Transaction Offer.

 

Section 3.5                                     
Contemporaneous
Transfers. 
If two or more Stockholders propose concurrent Transfers that are subject to
this Section III, then the relevant provisions of Sections 3.3 and 3.4, as
applicable, shall apply separately to each such proposed Transfer.

 

Section 3.6                                     
Effect of
Prohibited Transfers. 
If any Transfer is made or attempted contrary to the provisions of this Agreement,
such purported Transfer shall be void ab initio; the Company and the other
parties hereto shall have, in addition to any other legal or equitable remedies
which they may have, the right to enforce the provisions of this Agreement by
actions for specific performance (to the extent permitted by law); and the
Company shall have the right to refuse to recognize any Transferee as one of
its Stockholders for any purpose.

 

SECTION IV - RIGHTS AND OBLIGATIONS TO SELL

 

Section 4.1                                     
Liberty and BACI
Tag-Along Right. 
In the event Great Hill has determined to sell any Shares, other than transfers
to Great Hill Investors, LLC of not more than an aggregate of 5,000 shares of
Common Stock and 210,000 shares of Series A Preferred Stock, in a transaction
that does not constitute a Sale Event (the “Great Hill Sale”), each of Liberty
Mutual and BACI, individually, may require Great Hill to include a pro rata
portion (determined in accordance with the ratio of the number of shares of
Common Stock on a Fully-Diluted basis held by Great Hill to the number of
shares of Common Stock on a Fully-Diluted basis held by either Liberty Mutual
or BACI, as applicable) of each of Liberty Mutual’s and BACI’s Shares,
individually, in the Great Hill Sale on the same terms and conditions as Great
Hill’s Shares (the “Liberty and BACI Tag-Along Right”); provided  that
each of Liberty Mutual and BACI, individually undertake all obligations
undertaken by Great Hill in connection with the Great Hill Sale, including
without limitation, all indemnification and escrow obligations.  Not less
than thirty (30) days prior to the date proposed for the closing of any Great
Hill Sale, Great Hill shall give notice to each of Liberty Mutual and BACI,
individually, setting forth in reasonable detail the name or names of the
purchaser, the terms and conditions of the Great Hill Sale, including the
purchase price, and the proposed closing date.  The Liberty and BACI
Tag-Along Right set

 

9

 

forth above, shall be exercisable by each of Liberty
Mutual and BACI, individually, by providing written notice to Great Hill (the
“Exercise Notice”) at least fifteen (15) days prior to the date proposed for
the closing of the Great Hill Sale and such Great Hill Sale shall be
consummated no later than the later of (i) sixty (60) calendar days after
receipt of the Exercise Notice and (ii) the satisfaction of any
governmental approval or filing requirements, if any.  No Shares may be
purchased by the purchaser from Great Hill unless (A) the purchaser
simultaneously purchases from each of Liberty Mutual and BACI, individually,
electing to participate, all of the Shares that they have elected to sell
pursuant to this Section 4.1 or (B) in any such sale where either of
Liberty Mutual and BACI, individually, holding Series B Preferred Stock
(“Series B Eligible Holders”) is co-selling alongside Great Hill and Great
Hill is selling Series A Preferred Stock or Common Stock and any such Series B
Eligible Holder does not hold sufficient shares of Series A Preferred
Stock or sufficient shares of Common Stock (or Warrants therefore) in order to
fulfill such Series B Eligible Holder’s pro rata portion pursuant to the
first sentence of this Section 4.1, then in lieu of the Series B
Eligible Holder selling shares of Series B Preferred Stock to the
purchaser, each such Series B Eligible Holder selling shares of
Series B Preferred Stock to the purchaser, each such Series B
Eligible Holder, Great Hill, the Company and the purchaser shall make
appropriate equitable arrangements as shall be necessary to achieve
substantially the same economic results as if the Series B Eligible Holder
held sufficient shares of Series A Preferred Stock and Common Stock to simultaneously
sell to such purchaser as contemplated in the preceding clause (A).

 

Section 4.2                                     
Drag-Along Rights.  In the event of a Sale Event (as
defined below), each Stockholder shall be obligated to and shall upon the
written request of a majority of the Board of Directors, which majority shall
include at least one Director nominated by Great Hill Equity Partners II
Limited Partnership: (i) sell, transfer and deliver, or cause to be sold,
transferred and delivered, to the purchaser a pro rata portion of, his, her or
its Shares on substantially the same terms applicable to the Investors; and
(ii) execute and deliver such instruments of conveyance and transfer and take
such other action, including voting such Shares in favor of any Sale Event
proposed by such majority of the Board of Directors and executing any purchase
agreements, merger agreements, indemnity agreements, escrow agreements or
related documents, as such Investors or purchaser may reasonably require in
order to carry out the terms and provisions of this Section 4.2 (the
“Drag-Along Right”); provided, that the provisions of this Section 4.2
shall not limit the rights of BACI set forth in the Series B Purchase
Agreement.

 

Section 4.3                                     
Conditions to
Obligation to Participate.  The obligations of the Stockholders pursuant to
Section 4.2 are subject to the satisfaction of the following conditions:

 

(a)                                 
upon
consummation of the Sale Event, such Stockholder shall receive at least the
same proportion of the aggregate consideration from such Sale Event that such
Stockholder would have received if such aggregate consideration had been
distributed in the manner provided in the Charter as in effect immediately prior
to such Sale Event;

 

(b)                                
all
holders of any class or series of Shares shall receive the same form of
consideration per share, or if any holders of any class or series are given an
option as to the form of consideration to be received, all holders of shares of
such class or series shall be given the same option unless each affected holder
otherwise agrees; provided that the Series B Preferred

 

10

 

Stock shall be deemed to be the
same series of stock as the Series A Preferred Stock with respect to the form
of consideration offered to holders of the Series A Preferred Stock;

 

(c)                                 
no
Stockholder shall be obligated to make any out-of-pocket expenditure prior to
the consummation of the Sale Event (excluding modest expenditures for postage,
copies, etc.) and no Stockholder shall be obligated to pay more than his
proportionate share, based on the
ratio of shares of Common Stock owned by such Stockholder on a Fully-Diluted
basis to the aggregate number of issued and outstanding shares of Common Stock
owned by all Stockholders on a Fully-Diluted basis, of reasonable
expenses incurred in connection with a consummated Sale Event to the extent
such expenses are incurred for the benefit of all Stockholders and are not
otherwise paid by the Company or the acquiring party (costs incurred by or on
behalf of a Stockholder for its sole benefit will not be considered costs of
the transaction hereunder);

 

(d)                                
no
Stockholder shall be required to make any representations or warranties in
connection with the Sale Event other than representations and warranties
concerning such Stockholder’s valid ownership of such Stockholder’s Shares,
free of all liens and encumbrances (other than those arising under applicable
securities laws and this Agreement), such Stockholder’s authority, power and
right to enter into and consummate such Sale Event (without violating any other
agreement), the enforceability of relevant transaction documents to which such
Stockholder will be a party and other representations as to such Stockholder
and its Shares as may be requested by the purchaser; provided, that each
Stockholder shall provide indemnification, contribution and similar
post-closing payment obligations (collectively, “Indemnification Obligations”)
relating to breaches of its own representations, warranties and covenants and
breaches of representations, warranties and covenants by or relating to the Company
and its subsidiaries if (i) the Indemnification Obligations of such Stockholder
are several and not joint with the other Stockholders, (ii) no Stockholder is
required to bear more than its pro rata portion of any such Indemnification
Obligations and (iii) no Stockholder is required to accept liability for such
Indemnification Obligations in an amount in excess of the total proceeds
received by such Stockholder for its Shares in such Sale Event (subject to
exceptions for fraud and other customary exceptions); and

 

(e)                                 
the
provisions of Section 4.2 shall not apply to BACI with respect to any Sale
Event in which BACI does not receive payment in cash in full of (A) the
principal amount of any debt securities of the Company held by BACI, plus all
accrued interest and premium, if any, thereon and (B) with respect to the
Series B Preferred Stock, the Series B Senior Liquidation Amount (as defined in
the Charter).

 

Section 4.4                                     
Stockholder Tag-Along
Right.  In
the event of a Sale Event, each Stockholder not otherwise participating shall,
in the event that a majority of the Board of Directors, which majority shall
include at least one Director nominated by Great Hill Equity Partners II Limited
Partnership, does not exercise the Drag-Along Right set forth in
Section 4.2 above, have the right to require such majority of the Board of
Directors to include such Stockholder’s Shares in any Sale Event on the same
terms and conditions as the Shares participating in such Sale Event (the
“Stockholder Tag-Along Right”); provided that such Stockholder undertakes all
obligations required by such majority of the Board of Directors in connection
with such Sale Event, including without limitation, all indemnification and
escrow obligations.

 

11

 

Section 4.5                                     
Procedure.  Not less than thirty (30) days
prior to the date proposed for the closing of any Sale Event, the Company shall
give notice to the Stockholders, setting forth in reasonable detail the name or
names of the purchaser, the terms and conditions of the Sale Event, including
the purchase price, and the proposed closing date.  The Stockholder
Tag-Along Right set forth in Section 4.4 above, shall be exercisable by
the Stockholders by providing notice to the Stockholders at least fifteen (15)
days prior to the date proposed for the closing of the Sale Event.

 

SECTION V - RIGHTS TO PURCHASE

 

Section 5.1                                     
Right to
Participate in Certain Sales of Additional Securities.  The Company agrees that it will
not sell or issue:  (a) any shares of capital stock of the Company, (b)
securities convertible into or exercisable or exchangeable for capital stock of
the Company or (c) options, warrants or rights carrying any rights to purchase
capital stock of the Company (other than sales or issuances set forth in
Section 5.5) (each an “Issuance”), unless the Company first submits a
written notice to each Stockholder identifying the terms of the proposed sale
(including price, number or aggregate principal amount of securities and all
other material terms), and offers to each Stockholder the opportunity to
purchase its Pro Rata Allotment (as hereinafter defined) of the securities
(subject to increase for over-allotment if some Stockholders do not fully
exercise their rights) on terms and conditions, including price, not less
favorable than those on which the Company proposes to sell such securities to a
third party or parties (the “Right to Participate”).  The Company’s offer
(the “Participation Offer”) pursuant to this Section 5.1 shall remain open
and irrevocable for a period of thirty (30) days following receipt by the
Stockholders of such written notice.

 

Section 5.2                                     
Stockholder
Acceptance. 
Each Stockholder may elect to purchase the securities so offered by giving
written notice thereof to the Company within such thirty (30) day period,
including in such written notice the maximum number of shares of capital stock
or other securities of the Company that the Stockholder wishes to purchase,
including the number of such shares it would purchase if one or more other
Stockholders do not elect to purchase their respective Pro Rata Allotments.

 

Section 5.3                                     
Calculation of Pro
Rata Allotment. 
Each Stockholder’s “Pro Rata Allotment” of such securities shall be based on
the ratio which the number of shares of Common Stock owned by such Stockholder
on a Fully-Diluted basis bears to the aggregate number of issued and
outstanding shares of Common Stock on a Fully-Diluted basis as of the date of
such written offer.  If one or more Stockholders do not elect to purchase
their respective Pro Rata Allotment, each of the electing Stockholders may
purchase such shares on a pro rata basis, based upon the respective Pro Rata
Allotments of each of the Stockholders that has indicated an interest in
purchasing more than its Pro Rata Allotment pursuant to Section 5.2.

 

Section 5.4                                     
Sale to Third
Party.  Any
securities so offered that are not purchased by the Stockholders pursuant to
the Participation Offer, may be sold by the Company, at any time within sixty
(60) calendar days following the termination of the thirty (30) day period
referenced in Section 5.1, to Persons on terms and conditions, including
price, that are not more favorable to the purchaser than those set forth in
such Participation Offer notice to Stockholders.  No such

 

12

 

securities may be sold on or after such sixty (60)
day period without renewed compliance with this Section V.

 

Section 5.5                                     
Exceptions to
Pre-emptive Rights. 
Notwithstanding the foregoing, the right to purchase granted under this
Section V shall be inapplicable with respect to: (i) the issuance shares
of Common Stock (as appropriately adjusted for any stock split, combination,
reorganization, recapitalization, reclassification, stock distribution, stock
dividend or similar event) issued or issuable in connection with, or upon the
exercise of, options or other awards granted or to be granted to employees,
consultants, officers or directors of the Company pursuant to the Company’s
Equity Incentive Plans, including shares of Common Stock issued in replacement
of shares of such Common Stock repurchased or issuable upon the exercise of any
options to purchase shares of such Common Stock, to the extent permitted under
the Equity Incentive Plans; (ii) securities issued as a result of any stock
split, stock dividend, reclassification or reorganization or similar event with
respect to the Shares; or (iii) securities issued in connection with any
acquisition or merger that is approved by an Investor Majority Interest.

 

SECTION VI - ELECTION OF DIRECTORS

 

Section 6.1                                     
Board Composition.  Each Stockholder agrees to vote
all of his, her or its Shares having voting power (and any other Shares over
which he, she or it exercises voting control), to elect and continue in office
as Directors the following:

 

(a)                                 
Mark
Jung (“Mr. Jung”);

 

(b)                                
Christopher
Anderson (“Mr. Anderson”);

 

(c)                                 
A
number of persons constituting up to and including a majority of the Board of
Directors, and in any event no less than three persons, to be nominated by the
Investors and the Investors agree that such nominees shall be determined as
follows:

 

(i)                                    
No
less than two persons to be nominated by Great Hill Equity Partners II Limited
Partnership, who shall initially be (A) Christopher Gaffney and (B) Michael
Kumin;

 

(ii)                                 
No
less than one person to be nominated by Liberty Mutual Insurance Company, who
shall initially be Jeffery F. Moy; and

 

(iii)                              
In
the event the number of Directors is increased to a number greater than five
(5), one person to be nominated by Liberty Mutual Insurance Company for every
two persons nominated by Great Hill Equity Partners II Limited
Partnership.  In the event of an increase in the number of Directors such
that this Section 6.1(c)(iii) is not practicable, Great Hill Equity
Partners II Limited Partnership hereby covenants and agrees that, prior to the
nomination of any such Director by Great Hill Equity Partners II Limited
Partnership, it will consult with Liberty Mutual Insurance Company regarding,
and use commercially reasonable best efforts to agree on, the identity of such
Director.

 

Section 6.2                                     
Board Observer
Rights.  The
Company shall give BACI notice of (in the same manner as notice is given to
directors) and permit two Persons designated by BACI to

 

13

 

attend as observers (the “Board Observers”), all
meetings of the Board of Directors and all executive and other committee
meetings of the Board of Directors and shall provide to BACI the same
information concerning the Company and its subsidiaries, at the same time and
in the same manner as provided to members of the Board of Directors and such
committees.

 

SECTION VII - COVENANTS OF THE COMPANY

 

The Company covenants and
agrees with each of the Stockholders that:

 

Section 7.1                                     
Financial
Statements, Reports, Etc.  The Company shall furnish to each Investor the following
reports:

 

(a)                                 
Annual
Financial Statements.  Within ninety (90) days after the end of each
fiscal year of the Company, a consolidated balance sheet of the Company and its
subsidiaries, if any, as of the end of such fiscal year and the related
consolidated statements of income, stockholders’ equity and cash flows for the
fiscal year then ended, prepared in accordance with generally accepted
accounting principles and certified by a firm of independent public accountants
of recognized national standing selected by the Board of Directors of the
Company;

 

(b)                                
Quarterly
Financial Statements.  Within forty (45) days after the end of each
quarter in each fiscal year (other than the last month in each fiscal year), a
consolidated balance sheet of the Company and its subsidiaries, if any, and the
related consolidated statements of income, stockholders’ equity and cash flows,
unaudited but prepared in accordance with generally accepted accounting
principles and certified by the Chief Financial Officer of the Company, such
consolidated balance sheet to be as of the end of such quarter and such
consolidated statements of income, stockholders’ equity and cash flows to be
for such quarter and for the period from the beginning of the fiscal year to
the end of such quarter, in each case with comparative statements for the prior
fiscal year;

 

(c)                                 
Budget.  No later than
sixty (60) days following the start of each fiscal year, consolidated capital
and operating expense budgets, cash flow projections and income and loss
projections for the Company and its subsidiaries in respect of such fiscal
year, all itemized in reasonable detail and prepared on a monthly basis, and,
promptly after preparation, any revisions to any of the foregoing;

 

(d)                                
Accountant’s
Letters.  Promptly following receipt by the Company, each audit response
letter, accountant’s management letter and other written report submitted to
the Company by its independent public accountants in connection with an annual
or interim audit of the books of the Company or any of its subsidiaries;

 

(e)                                 
Notices.  Promptly after
the commencement thereof, notice of all actions, suits, claims, proceedings,
investigations and inquiries that could materially and adversely affect the
Company or any of its subsidiaries, if any; and

 

(f)                                   
Other
Information.  Promptly, from time to time, such other information
regarding the business, prospects, financial condition, operations, property or
affairs of the Company and its subsidiaries as such Investor reasonably may
request.

 

14

 

Section 7.2                                     
BACI Information.  The Company shall furnish to
BACI, concurrently with delivery to the Board of Directors, copies of
informational packages, if any, distributed on a monthly basis to the Board of
Directors.

 

Section 7.3                                     
Corporate Existence.  The Company shall maintain and
cause each of its subsidiaries, if any, to maintain, their respective corporate
existence.

 

Section 7.4                                     
Properties,
Business Insurance. 
The Company shall obtain and maintain and cause each of its subsidiaries, if
any, to maintain as to their respective properties and business, with
financially sound and reputable insurers, insurance against such casualties and
contingencies and of such types and in such amounts as is customary for companies
similarly situated.

 

Section 7.5                                     
Key Person
Insurance. 
The Company will use its best efforts to maintain in effect “key person” term
life insurance policies on the life of Mr. Jung in such amounts as may be approved
by the Board of Directors, which shall name the Company as beneficiary.

 

Section 7.6                                     
Inspection,
Consultation and Advice.  The Company shall permit and cause each of its subsidiaries, if
any, to permit each Investor and such persons as each Investor may designate,
at such Investor’s expense, to visit and inspect any of the properties of the
Company and its subsidiaries, examine their books and take copies and extracts
therefrom, discuss the affairs, finances and accounts of the Company and its
subsidiaries with their officers, employees and public accountants (and the
Company hereby authorizes said accountants to discuss with such Investor and
such designees such affairs, finances and accounts), and consult with and
advise the management of the Company and its subsidiaries as to their affairs,
finances and accounts, all at reasonable times and upon reasonable notice
during normal business hours and provided that such Investor or designee has
executed a confidentiality agreement in substance and form reasonably
acceptable to the Company.

 

Section 7.7                                     
Compensation of
Directors. 
The Company shall promptly reimburse in full each Director and Board Observer
of the Company who is not an employee of the Company for all of his or her
reasonable out-of-pocket expenses incurred in attending each meeting of the
Board of Directors or any Committee thereof. After the initial public offering
of the Company’s capital stock, the Company shall pay or provide to any
Director of the Company who is nominated by the Investors, fees, options and
other compensation in amounts at least equal to the fees, options or other
compensation paid to all other non-management Directors of the Company.

 

Section 7.8                                     
Board of Directors
Meetings. 
The Company shall use its reasonable best efforts to ensure that meetings of
its Board of Directors are held at least four times each year and at least once
each quarter.

 

Section 7.9                                     
By-laws.  The Company shall at all times
cause its By-laws to provide that unless otherwise required by the laws of the
State of Delaware, any one director shall have the right to call a meeting of
the Board of Directors.  The Company shall at all times maintain
provisions in its By-laws and/or Charter indemnifying all directors against
liability and absolving all directors from liability to the Company and its
stockholders to the maximum extent permitted under the laws of the State of
Delaware.

 

15

 

Section 7.10                               
Restrictive
Agreements Prohibited.  Neither the Company nor any of its subsidiaries shall become a
party to any agreement which by its terms expressly restricts the Company’s
performance of this Agreement.

 

Section 7.11                               
Compliance with
Laws.  The
Company shall comply, and cause each subsidiary to comply, with all applicable
laws, rules, regulations and orders, noncompliance with which could materially
adversely affect its business or condition, financial or otherwise.

 

Section 7.12                               
Keeping of Records
and Books of Account. 
The Company shall keep, and cause each subsidiary, if any, to keep, adequate
records and books of account, in which complete entries will be made in
accordance with generally accepted accounting principles consistently applied,
reflecting all financial transactions of the Company and such subsidiary, and
in which, for each fiscal year, all proper reserves for depreciation,
depletion, obsolescence, amortization, taxes, bad debts and other purposes in
connection with its business shall be made.

 

Section 7.13                               
Qualified Small Business
Stock.  The
Company shall use commercially reasonable efforts to cooperate with any request
for information from any Investor regarding whether such Investor’s interest in
the Company constitutes “qualified small business stock” as defined in Section 1202(c)
of the Code, and the Company shall use commercially reasonable efforts to
assist such Investor with completing any documents necessary for such
determination.  The Company’s obligation to furnish any requested
information pursuant to this Section shall continue notwithstanding the
fact that a class of the Company’s stock may be traded on an established
securities market.

 

Section 7.14                               
Lock-Up Agreements.  The Company will obtain
agreements in writing from each holder of stock or options of the Company, as a
condition to any issuance of stock or grant of options, agreeing not to
directly or indirectly offer, sell, contract to sell, sell any option or
contract to purchase, purchase any option or contract to sell, grant any
option, right or warrant for the sale of or otherwise dispose of or transfer
any shares of stock without the consent of the Company’s underwriters, in
connection with any public offering of the Company’s capital stock, consistent
with the provisions of Section 12 of that certain Amended and Restated
Registration Rights Agreement, dated as of the date hereof, by and among the
Company and the Stockholders.

 

Section 7.15                               
Affiliated
Transactions. 
All transactions by and between the Company and any officer, employee, director
or stockholder of the Company or persons controlling, controlled by, under
common control with or otherwise affiliated with such officer, employee,
director or stockholder shall be conducted on an arm’s-length basis, shall be
on terms and conditions no less favorable to the Company than could be obtained
from nonrelated persons and shall be approved in advance by an Investor
Majority Interest.

 

Section 7.16                               
Management Compensation.  Compensation paid by the Company
to its management and other employees will be both reasonably comparable to
compensation paid to similarly situated employees in companies in the same or
similar businesses of similar size and maturity and with comparable financial
performance and reasonable in relation to the Company’s overall compensation
structure.  Any grants of capital stock or options to employees, officers,
directors or consultants of the Company shall be made pursuant to the Equity Incentive
Plans, and conditioned upon the grantee agreeing to be bound by the terms of an
option and/or stock

 

16

 

agreement containing first refusal rights of the
Company with respect to the transfer of such stock or options and such other
provisions as are approved or requested by an Investor Majority Interest.

 

Section 7.17                               
Financings.  The Company will promptly provide
to the Investors the details and terms of, and any brochures or investment
memoranda prepared by the Company related to, any possible financing of any
nature for the Company, whether initiated by the Company or any other person or
entity.

 

Section 7.18                               
Expenses.  The Company agrees to pay and
hold the Investors harmless against liability for payment of all reasonable
out-of-pocket costs and expenses incurred by them in connection with their
ongoing investment in the Company, including, without limitation, the fees and
disbursements of counsel and other professionals in connection with any
modification, waiver, consent or amendment requested in connection with any
Transaction Document (as defined in the Additional Series A Purchase Agreement)
and the Investment Documents (as defined in the Series B Stock Purchase
Agreement).  In addition, the Company agrees to pay any and all stamp,
transfer, and other similar taxes, if any, payable or determined to be payable
in connection with the execution and delivery of the Transaction Documents and the
Investment Documents.

 

Section 7.19                               
Indemnification.

 

(a)                                 
Without
limitation of any other provision of this Agreement or any agreement executed
in connection herewith, the Company agrees to defend, indemnify and hold each
Investor, its respective Affiliates and direct and indirect partners (including
partners of partners and stockholders and members of partners), members,
stockholders, directors, officers, employees and agents and each person who
controls any of them within the meaning of Section 15 of the Securities
Act, or Section 20 of the Exchange Act (collectively, the  “Investor
Indemnified Parties” and, individually, an “Investor Indemnified Party”)
harmless from and against any and all damages, liabilities, losses, taxes,
fines, penalties, reasonable costs and expenses (including, without limitation,
reasonable fees of a single counsel representing the Investor Indemnified
Parties), as the same are incurred, of any kind or nature whatsoever (whether
or not arising out of third-party claims and including all amounts paid in
investigation, defense or settlement of the foregoing) which may be sustained
or suffered by any such Investor Indemnified Party (“Losses”), based upon,
arising out of, or by reason of (i) any breach of any representation or
warranty made by the Company in this Agreement or any Transaction Document or
any Investment Document, (ii) any breach of any covenant or agreement made by
the Company in this Agreement, in any Transaction Document, in any Investment
Document or in any other agreement executed in connection herewith or
therewith, or (iii) any third party or governmental claims relating in any way
to such Investor Indemnified Party’s status as a security holder, creditor,
director, agent, representative or controlling person of the Company or
otherwise relating to such Investor Indemnified Party’s involvement with the
Company (including, without limitation, any and all Losses under the Securities
Act, the Exchange Act or other federal or state statutory law or regulation, at
common law or otherwise, which relate directly or indirectly to the
registration, purchase, sale or ownership of any securities of the Company or
to any fiduciary obligation owed with respect thereto), including, without
limitation, in connection with any third party or governmental action or claim
relating to any action taken or

 

17

 

omitted to be taken or alleged to have been taken or
omitted to have been taken by any Investor Indemnified Party as security
holder, director, agent, representative or controlling person of the Company or
otherwise, alleging so-called control person liability or securities law
liability; provided, however, that the Company will not be liable to the extent
that such Losses arise from and are based on (A) an untrue statement or
omission or alleged untrue statement or omission in a registration statement or
prospectus which is made in reliance on and in conformity with written
information furnished to the Company by or on behalf of such Investor
Indemnified Party, or (B)conduct by an Investor Indemnified Party which
constitutes fraud or willful misconduct.

 

(b)                                
If
the indemnification provided for in Section 7.19(a) above for any reason
is held by a court of competent jurisdiction to be unavailable to an Investor
Indemnified Party in respect of any Losses referred to therein, then the
Company, in lieu of indemnifying such Investor Indemnified Party thereunder,
shall contribute to the amount paid or payable by such Investor Indemnified
Party as a result of such Losses in such proportion as is appropriate to
reflect the relative fault of the Company and the Investors in connection with
the action or inaction which resulted in such Losses, as well as any other
relevant equitable considerations. The relative fault of the Company and the
Investors shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company and the Investors and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or
omission.

 

(c)                                 
Each
of the Company and the Investors agrees that it would not be just and equitable
if contribution pursuant to Section 7.19(b) were determined by any method
of allocation which does not take account of the equitable considerations
referred to in the immediately preceding paragraph.

 

SECTION VIII - MISCELLANEOUS
PROVISIONS

 

Section 8.1                                     
Survival of
Covenants. 
Each of the parties hereto agrees that each covenant and agreement made by it
in this Agreement or in any certificate, instrument or other document delivered
pursuant to this Agreement is material, shall be deemed to have been relied
upon by the other parties and shall remain operative and in full force and
effect after the date hereof regardless of any investigation.  This
Agreement shall not be construed so as to confer any right or benefit upon any
Person other than the parties hereto and their respective successors and
permitted assigns to the extent contemplated herein.

 

Section 8.2                                     
Legend on
Securities. 
The Company and the Stockholders acknowledge and agree that in addition to any
other legend on the certificates representing Shares held by them,
substantially the following legend shall be typed on each certificate
evidencing any of the Shares held at any time by any of the Stockholders:

 

THE SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE
PROVISIONS OF A CERTAIN AMENDED AND RESTATED STOCKHOLDERS AGREEMENT, DATED AS
OF MARCH 3, 2004, INCLUDING CERTAIN RESTRICTIONS ON TRANSFER SET FORTH
THEREIN.  A COMPLETE AND CORRECT COPY OF SUCH AGREEMENT IS

 

18

 

AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF
THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE.

 

Section 8.3                                     
Term; Termination.

 

(a)                                 
This
Agreement shall terminate upon the consummation of an initial public offering by
the Company of its Common Stock.

 

(b)                                
The
rights of any Management Stockholder, other than Mr. Jung granted under
Section 4.4 and Section V of this Agreement shall terminate as to
such Management Stockholder upon:  (i) any material breach by such
Management Stockholder of any agreement to which each of such Management
Stockholder and the Company is a party; (ii) such Management Stockholder
holding less than five percent (5%) of the Common Stock on a Fully-Diluted
basis; and (iii) the termination, withdrawal, resignation or removal of such
Management Stockholder’s employment with the Company.

 

(c)                                 
The
rights granted to Mr. Jung under Section V and the obligations of the
Stockholders under Section 6.1 to elect Mr. Jung a Director shall
terminate upon: (i) any breach by Mr. Jung of the Employment Agreement, dated
as of August 28, 2003, by and between the Company and Mr. Jung (the
“Employment Agreement”); (ii) the termination by either party of the Employment
Agreement; (iii) the termination, withdrawal, resignation or removal of Mr.
Jung from the position of chief executive officer of the Company; (iv) any
material breach by Mr. Jung of any agreement to which each of the Company (or
any of its subsidiaries) and Mr. Jung is a party; and (v) Mr. Jung holding less
than five percent (5%) of the Common Stock on a Fully Diluted basis.

 

(d)                                
The
rights granted to Mr. Anderson under Section V and the obligations of the
Stockholders under Section 6.1 to elect Mr. Anderson a Director shall
terminate upon: (i) any breach by Mr. Anderson of any agreement to which each
of the Company and Mr. Anderson is a party; and (ii) Mr. Anderson holding less
than give percent (5%) of the Common Stock on a Fully Diluted basis.

 

(e)                                 
The
rights granted to Liberty Mutual under Section 4.1 and Section V and
the obligations of the Stockholders under Section 6.1 to elect a
representative from Liberty Mutual a Director shall terminate upon Liberty
Mutual holding less than five percent (5%) of the Common Stock on a Fully
Diluted basis.

 

(f)                                   
The
rights granted to BACI under Section 6.2 shall terminate upon BACI
holding: (i) less than five percent (5%) of the Common Stock on a Fully Diluted
basis; (ii) none of the Company’s 12% Senior Subordinated Notes due 2010; and
(iii) no shares of Series B Preferred Stock.  The rights granted to BACI
under Section 7.2 shall terminate upon BACI holding no shares of Common
Stock.

 

Section 8.4                                     
Amendment and
Waiver; Actions of the Board.  Any party may waive any provision hereof
intended for its benefit in writing.  No failure or delay on the part of
any party hereto in exercising any right, power or remedy hereunder shall
operate as a waiver thereof.  The remedies provided for herein are
cumulative and are not exclusive of any remedies that may be available to any
party hereto at law or in equity or otherwise.  This Agreement may be
amended

 

19

 

with the prior written consent of the Company and an
Investor Majority Interest; provided, that any amendment that would
materially and adversely affect the Management Stockholders shall not be
effective without the consent of a majority in interest of the Management
Stockholders (based upon the number of shares of Common Stock held by each
Management Stockholder), provided, further that any amendment
that would materially and adversely affect any Management Stockholder or
Investor disproportionately (that is in a way that is not proportional to his
or its pro rata interest in the Company) more than any other Management
Stockholders or Investor shall not be effective against such Management
Stockholders or Investor, as the case may be, without such Management
Stockholder’s or Investor’s written consent with respect thereto, and provided,
further that any amendment that would materially and adversely affect
BACI shall not be effective against BACI without BACI’s written consent with
respect thereto (it being hereby understood that any amendment to
Section 4.1, Section 6.2 and Section 7.2 would materially and
adversely affect BACI).  Any consent given as provided in the preceding sentence
shall be binding on all Stockholders.

 

Section 8.5                                     
Notices.  All notices, requests, demands
and other communications provided for hereunder shall be in writing and mailed
(by first class registered or certified mail, postage prepaid), telegraphed,
sent by express overnight courier service or electronic facsimile transmission
(with a copy by mail), or delivered to the applicable party at the addresses
indicated below:

 

If to
the Management Stockholders:

 

At the addresses listed in the signature pages hereto

 

with a
copy to:

 

Cooley Godward LLP

3175 Hanover Street

Palo Alto, CA  94304-1130

Fax No.:  (650) 849-7400

Attention: Craig E. Dauchy

 

If to
the Company:

 

8000 Marina Boulevard

2nd Floor

Brisbane, CA  94005

Attention:  Chief Executive Officer

Telephone No.:  415-508-2077

Telecopier No.:  415-508-2777

 

20

 

with
copies to:

 

Great Hill Partners, LLC.

One Liberty Square

Boston, MA  02109

Attention: Michael A. Kumin

Telephone No.:  617-790-9435

Telecopier No.:  617-790-9416

 

and

 

Goodwin Procter LLP

Exchange Place

Boston, MA  02109

Attention: David F. Dietz

Telephone No.:  617-570-1511

Telecopier No.:  617-523-1231

 

If to
any other holder of Shares:

 

At such Person’s address for notice as set forth in
the books and records of the Company or, as to each of the foregoing, at such
other address as shall be designated by such Person in a written notice to
other parties complying as to delivery with the terms of this
subsection (a).  All such notices, requests, demands and other
communications shall, when mailed, telegraphed or sent, respectively, be
effective (i) two days after being deposited in the mails or (ii) one day after
being delivered to the telegraph company, deposited with the express overnight
courier service or sent by electronic facsimile transmission, respectively,
addressed as aforesaid.

 

Section 8.6                                     
Headings.  The Section headings used or
contained in this Agreement are for convenience of reference only and shall not
affect the construction of this Agreement.  The parties have participated
jointly in the negotiation and drafting of this Agreement and the other
agreements, documents and instruments executed and delivered in connection
herewith with counsel sophisticated in investment transactions.  In the
event an ambiguity or question of intent or interpretation arises, this
Agreement and the agreements, documents and instruments executed and delivered
in connection herewith shall be construed as if drafted jointly by the parties
and no presumption or burden of proof shall arise favoring or disfavoring any
party by virtue of the authorship of any provisions of this Agreement and the
agreements, documents and instruments executed and delivered in connection
herewith.

 

Section 8.7                                     
Counterparts.  This Agreement may be executed in
one or more counterparts and by the parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which together shall be deemed to constitute one and the same agreement.

 

Section 8.8                                     
Remedies;
Severability. 
It is specifically understood and agreed that any breach of the provisions of
this Agreement by any Person subject hereto will result in irreparable injury
to the other parties hereto, that the remedy at law alone will be an inadequate
remedy for such breach, and that, in addition to any other legal or equitable
remedies which they may have,

 

21

 

such other parties may enforce their respective rights
by actions for specific performance (to the extent permitted by law) and the
Company may refuse to recognize any unauthorized Transferee as one of its
Stockholders for any purpose, including, without limitation, for purposes of
dividend and voting rights, until the relevant party or parties have complied
with all applicable provisions of this Agreement.

 

In the event that any one
or more of the provisions contained herein, or the application thereof in any
circumstances, is held invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions contained herein shall not
be in any way impaired thereby, it being intended that all of the rights and
privileges of the parties hereto shall be enforceable to the fullest extent
permitted by law.

 

Section 8.9                                     
Entire Agreement.  This Agreement is intended by the
parties as a final expression of their agreement and intended to be complete
and exclusive statement of the agreement and understanding of the parties
hereto in respect of the subject matter contained herein and supersedes all
prior agreements among all or any of the parties relating to such subject
matter, including the Prior Agreement, which is hereby terminated.

 

Section 8.10                               
Adjustments.  All references to share prices
and amounts herein shall be equitably adjusted to reflect stock splits, stock
dividends, recapitalizations and similar changes affecting the capital stock of
the Company.

 

Section 8.11                               
Law Governing.  This Agreement shall be construed
and enforced in accordance with and governed by the laws of the State of New
York (without giving effect to principles of conflicts of law).

 

Section 8.12                               
Successors and
Assigns; Assignment.

 

(a)                                 
This
Agreement shall be binding upon and inure to the benefit of the respective
successors and permitted assigns of the parties hereto as contemplated herein,
and any successor to the Company by way of merger or otherwise shall
specifically agree to be bound by the terms hereof as a condition of such
successor.

 

(b)                                
The
rights granted to the Investors under Section VI shall not be assignable
without the consent of the Company and an Investor Majority Interest, provided
that BACI may assign its rights under Section 6.2 to any Affiliate
transferee.

 

(c)                                 
The
rights granted to the BACI under Section 7.2 shall not be assignable
without the consent of the Company and an Investor Majority Interest, provided
that BACI may assign its rights under Section 7.2 to any Affiliate
transferee.

 

(d)                                
This
Agreement, including but not limited to the rights granted to the Management
Stockholders under Section IV, Section V, Section VI and
Section 8.12(a), may not be assigned by any Management Stockholder except
as provided herein without the prior written consent of the Company and an
Investor Majority Interest, and without such prior written consent any
attempted assignment shall be null and void; provided, that upon any permitted
Transfer of Shares hereunder, the Transferee thereof shall succeed to the
rights of the

 

22

 

Stockholder Transferring such
Shares and, in the case of any Transfer of less than all of the Shares held by
any Stockholder, such Stockholder and its Transferee(s) shall each hold such
rights in proportion to the Shares owned thereby after giving effect to such
Transfer.

 

Section 8.13                               
Dispute Resolution.  All disputes, claims, or
controversies arising out of or relating to this Agreement, or any other
agreement executed and delivered pursuant to this Agreement, or the
negotiation, validity or performance hereof and thereof or the transactions
contemplated hereby and thereby, that are not resolved by mutual agreement
shall be resolved solely and exclusively by binding arbitration to be conducted
before J.A.M.S./Endispute, Inc. or its successor.  The parties understand
and agree that this arbitration provision shall apply equally to claims of
fraud or fraud in the inducement.  The arbitration shall be held in
Delaware before a single arbitrator and shall be conducted in accordance with
the rules and regulations promulgated by J.A.M.S./Endispute, Inc. unless
specifically modified herein.

 

The parties covenant and
agree that the arbitration shall commence within one hundred twenty (120) days
of the date on which a written demand for arbitration is filed by any party
hereto.  In connection with the arbitration proceeding, the arbitrator
shall have the power to order the production of documents by each party and any
third-party witnesses.  In addition, each party may take up to three depositions
as of right, and the arbitrator may in his or her discretion allow additional
depositions upon good cause shown by the moving party.  However, the
arbitrator shall not have the power to order the answering of interrogatories
or the response to requests for admission.  In connection with any
arbitration, each party shall provide to the other, no later than fourteen (14)
business days before the date of the arbitration, the identity of all persons
that may testify at the arbitration, a copy of all documents that may be
introduced at the arbitration or considered or used by a party’s witness or
expert, and a summary of the expert’s opinions and the basis for said
opinions.  The arbitrator’s decision and award shall be made and delivered
within sixty (60) days of the conclusion of the arbitration.  The
arbitrator’s decision shall set forth a reasoned basis for any award of damages
or finding of liability.  The arbitrator shall not have power to award
damages in excess of actual compensatory damages and shall not multiply actual
damages or award punitive damages or any other damages that are specifically
excluded under this Agreement, and each party hereby irrevocably waives any
claim to such damages.

 

The parties covenant and
agree that they will participate in the arbitration in good faith and that they
will share equally its costs, except as otherwise provided herein.  The
arbitrator may in his or her discretion assess costs and expenses (including
the reasonable legal fees and expenses of the prevailing party) against any
party to a proceeding.  Any party unsuccessfully refusing to comply with
an order of the arbitrators shall be liable for costs and expenses, including
attorneys’ fees, incurred by the other party in enforcing the award.  This
Section applies equally to requests for temporary, preliminary or
permanent injunctive relief, except that in the case of temporary or
preliminary injunctive relief any party may proceed in court without prior
arbitration for the limited purpose of avoiding immediate and irreparable
harm.  The provisions of this Section shall be enforceable in any
court of competent jurisdiction.

 

Subject to the second
sentence of the immediately preceding paragraph, the parties shall bear their
own attorneys’ fees, costs and expenses in connection with the
arbitration.  The parties will share equally in the fees and expenses
charged by J.A.M.S./Endispute, Inc.

 

23

 

Each of the parties
hereto irrevocably and unconditionally consents to the exclusive jurisdiction
of J.A.M.S./Endispute, Inc. to resolve all disputes, claims or controversies
arising out of or relating to this Agreement or any other agreement executed
and delivered pursuant to this Agreement or the negotiation, validity or performance
hereof and thereof or the transactions contemplated hereby and thereby and
further consents to the jurisdiction of the courts of Delaware for the purposes
of enforcing the arbitration provisions of Section 7.8(a) of this
Agreement.  Each party further irrevocably waives any objection to
proceeding before J.A.M.S./Endispute, Inc. based upon lack of personal
jurisdiction or to the laying of venue and further irrevocably and
unconditionally waives and agrees not to make a claim in any court that arbitration
before J.A.M.S./Endispute, Inc. has been brought in an inconvenient
forum.  Each of the parties hereto hereby consents to service of process
by registered mail at the address to which notices are to be given.  Each
of the parties hereto agrees that its or his submission to jurisdiction and its
or his consent to service of process by mail is made for the express benefit of
the other parties hereto.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

24

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed as of the date
first set forth above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  IGN ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ MARK JUNG

  
	
   

  	
   

  	
  Name:  Mark Jung

  
	
   

  	
   

  	
  Title:  President

  

 

 

[Company Signature
Page to Stockholders Agreement]

 

 

	
   

  	
  INVESTORS:

  
	
   

  	
   

  
	
   

  	
  GREAT HILL EQUITY
  PARTNERS II

  LIMITED PARTNERSHIP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Great Hill Partners GP II, LLC,

  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ CHRISTOPHER
  S. GAFFNEY

  
	
   

  	
   

  	
  Name:  Christopher
  S. Gaffney

  
	
   

  	
   

  	
  Title:  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GREAT HILL AFFILIATE
  PARTNERS II

  LIMITED PARTNERSHIP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Great Hill Partners GP II, LLC,

  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ CHRISTOPHER
  S. GAFFNEY

  
	
   

  	
   

  	
  Name:  Christopher
  S. Gaffney

  
	
   

  	
   

  	
  Title:  Manager

  

 

 

[Investor
Signature Page to Stockholders Agreement]

 

 

	
   

  	
  LIBERTY MUTUAL
  INSURANCE

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ RONALD D.
  ULICH

  
	
   

  	
   

  	
  Name:  Ronald D.
  Ulich

  
	
   

  	
   

  	
  Title:  Vice
  President

  

 

 

[Investor
Signature Page to Stockholders Agreement]

 

 

	
   

  	
  BANC OF AMERICA CAPITAL

  INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BANC OF AMERICA CAPITAL

  MANAGEMENT, L.P., Its general partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  BACM I GP, LLC, Its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ CRAIG A.
  ELSON

  
	
   

  	
   

  	
  Name:  Craig A.
  Elson

  
	
   

  	
   

  	
  Title:  Authorized
  Signatory

  

 

 

[Investor
Signature Page to Stockholders Agreement]

 

 

	
   

  	
  /s/ CHRISTOPHER
  ANDERSON

  
	
   

  	
  Christopher Anderson

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  P.O. Box 620952

  
	
   

  	
  Woodside, CA  94062

  
	
   

  	
   

  

 

 

[Investor
Signature Page to Stockholders Agreement]

 

 

	
   

  	
  MANAGEMENT
  STOCKHOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ MARK JUNG

  
	
   

  	
  Mark Jung

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  3240 Bayshore Blvd.

  
	
   

  	
  Brisbane, CA 
  94005

  
	
   

  	
   

  

 

 

[Management
Stockholder Signature Page to Stockholders Agreement]

 

 

	
   

  	
  /s/ KENNETH KELLER

  
	
   

  	
  Kenneth Keller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  3386 Royal Meadow Ln.

  
	
   

  	
  San Jose, CA 
  95135

  
	
   

  	
   

  

 

 

[Management
Stockholder Signature Page to Stockholders Agreement]

 

 

EXHIBIT A

 

Form
of Joinder Agreement

 

 

The undersigned hereby agrees, effective as of the
date hereof, to become a party to that certain Amended and Restated
Stockholders Agreement (the “Agreement”) dated as of March 3, 2004, by and
among IGN Entertainment, Inc. (the “Company”) and the parties named therein and
for all purposes of the Agreement, the undersigned shall be included within the
term [“Management Stockholder”/”Investor”] (as defined in the Agreement). 
The undersigned further confirms that the representations and warranties
contained in Section II of the Agreement are true and correct as to the
undersigned as of the date hereof.  The address and facsimile number to
which notices may be sent to the undersigned is as follows:

 

 

Facsimile
No.                                      .

 

[NAME OF UNDERSIGNED]

 

 

SCHEDULE A

 

Investors
and Management Stockholders

 

 

Investors

 

Great Hill Equity Partners II Limited Partnership

Great Hill Affiliate Partners II Limited Partnership

Liberty Mutual Insurance Company

Christopher Anderson

Banc of America Capital Investors, L.P.

 

 

Management Stockholders

 

Mark Jung

Kenneth Keller

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