Document:

Employment Agreement for Leigh Adams

 
Exhibit 10.22

 
EMPLOYMENT ARREEMENT

 
This Employment Agreement is made this fifth
day of December, 1997 to be retroactively effective as of January 1, 1997 by and between Reptron Electronics, Inc., a Florida corporation whose corporate office address is 14401 McCormick Drive, Tampa, FL 33626 (hereinafter “Company”) and
Leigh Adams whose address is 12719 Benty Way, Odessa, Florida 33556 (hereinafter “Employee”). 
 
WHEREAS: 
 

	 	A.	 	The Employee is currently in the employ of the Company on an at will basis, in a position of significant responsibility, and 

 

	 	B.	 	The Company and the Employee are desirous of entering into a formal employment relationship by way of this employment agreement, which alters the nature of the
current employment relationship and addresses the preservation of Intangible Business Assets of the Company (defined below). 

 
NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained, the Company and the Employee agree as follows:

 

	 	1.	 	This Agreement shall continue until terminated as herein provided. This Agreement supersedes all prior employment agreements or arrangements existing as between the
Company and the Employee. 

 

	 	2.	 	The Company engages the Employee and the Employee accepts the engagement to provide the services hereinafter described for the period and upon the terms and
conditions hereinafter described. 

 

	 	3.	 	At the execution hereof, the Employee shall be employed as Corporate Credit Manager. The Employee shall perform the duties associated with her position and shall
commit such of her time and effort required in completing and fulfilling those duties and responsibilities commensurate with and like in amount to the time committed by the Employee in fulfilling the same as of the execution hereof.

 

	 	4.	 	During the term of this Agreement, the Employee shall be compensated as follows: 

 

	 	(a)	 	The Company shall pay to the Employee an annual base salary of $95,000, payable in bi-weekly installments. In the event of the death of the Employee, the base salary
shall be paid to the end of the then bi-weekly installment period. In the event of the disability of the Employee, the base salary shall be payable through the date benefits under the disability policy of the Company become payable, but in no event
for a period longer than 90 days following the onset of the illness or injury causing such disability. 

 

	 	(b)	 	In addition to holidays or days off provided to all employees, the Employee shall be entitled to four weeks vacation (20 working days). Any vacation days in a
calendar year so provided and not taken by the Employee shall be waived. 

 

	 	(c)	 	The Employee shall participate in and receive comparable benefits as are provided by the Company to its other personnel from time to time except as modified or
amplified by this Agreement. 

 

	 	5.	 	For purposes hereof, Change of Control shall mean: 

 

	 	(a)	 	Any replacement of 50% or more of the directors of the Company which follows, and is directly or indirectly a result of, any one or more of the following:

 

	 	(i)	 	A cash tender offer or exchange offer for the Company’s common stock; 

 

	 	(ii)	 	A solicitation of proxies other than by the Company’s management or board of directors; 

 

1 

 

	 	(iii)	 	Acquisition of beneficial ownership of shares having 50% or more of the total number of votes that may be cast for the election of directors of the Company by a
third party or a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, for the purpose of changing control of the Company; or 

 

	 	(iv)	 	Any merger, business combination, sale of assets or other extraordinary corporate transaction undertaken for the purpose of changing control of the Company, or

 

	 	(b)	 	The Board of Directors determines that any other proposed action presented to the Board or the Shareholders, if taken, would constitute a Change of Control.

 

	 	6.	 	(a)    This Agreement shall terminate upon any of the following: 

 

	 	(i)	 	the voluntary termination of employment by the Employee, 

 

	 	(ii)	 	the death, or partial or permanent disability of the Employee (partial or permanent disability being determined at such time when disability insurance coverage
maintained by the Company for the Employee becomes payable), 

 

	 	(iii)	 	 discharge of the Employee by the Company for whatever reason, 

 

	 	(iv)	 	upon a Change of Control. 

 

	 	(b)	 	Upon any such termination, except as otherwise provided herein, all compensation and benefits shall thereafter likewise concurrently terminate.

 

	 	7.	 	As additional consideration of the services to be performed by the Employee and the undertakings hereby assumed by the Employee, the Company shall make a
“Severance Payment” as follows: 

 

	 	(a)	 	The amount of the Severance Payment shall equal 2.99 times the average annual base compensation as defined and determined under Section 280G of the Internal Revenue
Code of 1986, as amended. 

 

	 	(b)	 	The Severance Payment shall be payable in full thirty (30) days following a termination of this Agreement as provided in subparagraphs 6(iii) and (iv) above.

 

	 	(c)	 	If the Executive shall die after the termination of this Agreement,. but prior to remittance of the Severance Payment, the same shall be payable to the estate of the
Executive or to such designee as the Executive shall have directed in writing to the Company. 

 

	 	(d)	 	Receipt of the Severance Payment shall act as a full release by the Executive of all claims the Executive may have against the Company except for unpaid wages,
benefits or sums to be paid to the Executive post-termination of this Agreement as herein provided. 

 

	 	8.	 	Employee acknowledges that during the course of her past employment with the Company, and as her employment continues, he has and will have direct access to and
knowledge of the Company’s trade secrets and other confidential and proprietary information and documents, including but not limited to the Company’s customer list, customer requirements and information, price lists, all training
materials, product information, operating procedures, marketing information, selling strategies, and supplier information (collectively “Confidential Information”). The Employee agrees that all Confidential Information shall remain the
property of the Company, shall be kept in the strictest of confidence, used solely for the benefit of the Company and shall not be disclosed, either directly or indirectly, to any other person or entity except as is required in the furtherance of
the Company’s business and for its benefit. Employee further agrees that all such Confidential Information (and any copies thereof regardless of how maintained, including that which has been reduced to electronic memory) shall be returned to
the Company upon termination of this Agreement for whatever reason. The terms of this paragraph are in addition to. and not in lieu of, any common law, statutory or other contractual obligations that Employee may have relating to the Company’s
Confidential Information. Further, the terms of this paragraph shall survive indefinitely the termination of this Agreement. 

 

2 

 

	 	9.	 	The Employee acknowledges that: 

 

	 	(a)	 	The Company has made significant investment in the development, maintenance and preservation of its trade secrets, its marketing methodology, its relationship with
its various customers and vendors, both past, current and prospective; in its development and maintenance of its franchised distributorship rights, in the training and development of its executives and in the development, maintenance and
preservation of its goodwill, including that which is associated with its name, its trade dress and its various trade marks, including but not limited to the mark “K-Byte” (collectively “Intangible Business Assets”).

 

	 	(b)	 	The Company has a legitimate business interest in maintaining and protecting the value of these Intangible Business Assets and in preventing the unauthorized use or
misappropriation of any one of the same. 

 

	 	(c)	 	The use of any of these Intangible Business Assets other than in furtherance of the business interests of the Company would provide the unauthorized user with an
unfair competitive advantage as against the Company and would be detrimental to the Company. 

 
Consequently, the Employee agrees that during the course of her employment and for a period of two years thereafter she shall not become
employed by, or consult or be associated with in any capacity whatsoever (including, but not limited to, that as an owner, shareholder, agent or independent contractor) any business enterprise which manufactures, sells, markets or distributes any of
the products manufactured, sold, marketed, or distributed by the Company, or which provides services comparable to that provided by the Company, in markets designated by the National Electronics Distributors Association in which the Company had a
presence all as defined below; and during said two year period, and notwithstanding locale, the Employee shall not submit a quotation for, or offer to sell, any product or service competitive with the Company to any customer or prospective customer
of the Company. A market shall be that geographic area designated as such by the National Electronics Distributors Association. The Company’s presence in a market as so designated shall exist if the Company had sales of product or services to
customers in such market in the cumulative amount of not less than $1,500,000 within the twelve (12) month period preceding the date of such termination of employment. 
 

	 	10.	 	The Company has made a significant investment in developing and training a competent work force. The Employee acknowledges that the scope of the abilities of, and
compensation paid to, the Company’s various employees is valuable and confidential information. Further, the Employee acknowledges that the Company’s continued viability and success is in large part contingent upon maintaining a stable,
trained and competent work force. During the course of her employment, and for a period of two years thereafter, regardless of the reason for termination thereof, the Employee will not directly or indirectly solicit, entice, encourage, or cause, any
salaried employee of the Company to leave the employment of the Company. Further during said two year period, the Employee will not directly or indirectly hire, or cause another person or entity to hire any salaried employee of the Company.

 

	 	11.	 	Employee acknowledges and agrees that the covenants set forth in Paragraphs 8, 9 and 10 are necessary and reasonable to protect the Company’s Confidential
Information, its Intangible Business Assets, its legitimate business interests and goodwill, and that the breadth, time and geographic scope of the limitations set forth therein are reasonable and necessary to protect the same. The Employee
expressly acknowledges and agrees that the Company would not have an adequate remedy at law in the event of her breach, and or threatened breach of the covenants set forth in Paragraphs 8, 9 arid 10 of this Agreement. Consequently, in addition to
such other remedies as the Company may have, the Company, without posting any bond, shall be entitled to obtain, and Employee agrees not to oppose a request for, equitable relief in the form of specific performance, ex parte temporary or preliminary
injunctive relief, other temporary or permanent injunctive relief. or other equitable remedy fashioned by a court of competent jurisdiction enjoining the Employee from any such threatened or actual breach. 

 

3 

 

	 	12.	 	If during the term of this Agreement, the Company is a participant in a consolidation or merger, or the Company should sell substantially all of its assets, the
Company agrees that as a condition of closing any such transaction, the surviving entity to such consolidation or merger, or the purchaser of such assets, shall in writing assume this Agreement and become obligated to perform all of the terms and
provisions hereof applicable to the Company. Without limiting the generality of the foregoing, the covenants contained in Paragraphs 8, 9 and 10 may be enforced by the assignee or successor of the Company, 

 

	 	13.	 	Any notice to be given to the Company hereunder shall be deemed sufficient if addressed to the Company in writing and delivered or mailed by certified or registered
mail to its offices at 14401 McCormick Drive, Tampa, Florida 33626, or such other address as the Company may hereafter designate. Any notice to be given to Employee hereunder shall be delivered or mailed by certified or registered mail to her at
12719 Benty Way, Odessa, Florida 33556 or such other address as she may hereafter designate. 

 

	 	14.	 	This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company, including without limitation, the purchaser of
substantially all of the operating assets of the Company. Unless clearly inapplicable, reference herein to the Company shall be deemed to include any such successor. Without limiting the generality of the foregoing, the covenants contained in
Paragraphs 8, 9 and 10 may be enforced by the assignee or successor of the Company. In addition, this Agreement shall be binding upon and inure to the benefit of the Employee and her heirs, executors, legal representatives and assigns; provided,
however, that the obligations of Employee hereunder may not be delegated without the prior written approval of the Board of Directors of the Company. The provisions of Paragraphs 7, 8, 9, 10 and 11 shall survive the termination of this Agreement.

 

	 	15.	 	This Agreement may not be altered, modified or amended except by a written instrument signed by each of the parties hereto. 

 

	 	16.	 	This instrument including attachments and exhibits thereto and documents and agreements referred to therein embodies the whole agreement of the parties. All previous
negotiations or agreements between the parties, either verbal or written with respect to the subject matter hereof not herein -contained are hereby withdrawn and annulled. This contract shall supersede all previous communications, representations,
or agreements, either verbal or written between the parties hereto with respect to the subject matter hereof. 

 

	 	17.	 	The failure of either party at any time to require performance by the other party of any provision of this Agreement shall not be deemed a continuing waiver of that
provision or a waiver of any other provision of this Agreement and shall in no way affect the full right to require such performance from the other party at any time thereafter. 

 

	 	18.	 	The invalidity or unenforceability of any Paragraph or Paragraphs, or subparagraphs of this Agreement, shall not affect the validity or enforceability of the
remainder of this Agreement, or the remainder of any Paragraph or subparagraph. If as provided by law, a court of competent jurisdiction is unable to modify any such violative Paragraph or sub-paragraph to result in the same not being invalid or
unenforceable, this Agreement shall then be construed in all respects as if any invalid or unenforceable Paragraph or subparagraph(s) were omitted. 

 

	 	19.	 	The Employee represents to the Company as follows: 

 

	 	(a)	 	That the Employee has been advised by the Company to have this Agreement reviewed by an attorney representing the Employee, and the Employee has either had this
Agreement reviewed by such attorney or has chosen not to have this Agreement reviewed because the Employee, after reading the entire Agreement, fully and completely understands each provision and has determined not to obtain the services of an
attorney. 

 

	 	(b)	 	 The Employee, either on her own or with the assistance and advice of her attorney, has in particular reviewed Paragraphs 9, 10, 11 and 12, understands and
accepts the restrictions thereby 

 

4 

	 	 
imposed and agrees the same are reasonable in all respects and necessary for the protection of the property rights and the Intangible
Business Assets of the Company. 

 

	 	(c)	 	That no force, threats of discharge, or other threats or duress have been used by the Company, directly, indirectly or by innuendo, in connection with the
Employee’s execution of this Agreement. 

 

	 	20.	 	This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Florida without regard to conflicts of laws. Further, the
Employee agrees that any action relating to the terms of this Agreement shall be commenced and only commenced in a state or federal court sitting in Tampa, Florida. 

 
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date opposite their signatures.

 

	 	 	 	 	 REPTRON ELECTRONICS,
INC.

	
	 Date:    December 5, 1997
	 	 	 	 By:
	 	 /s/    PAUL J.
PLANTE        

	 	 	 	 	 	 	 Name:
 Title:  
	 	 Paul J. Plante
 Chief Operating Officer

	 	 	 	 	 
	
	 Date:    December 5, 1997
	 	 	 	 By:
	 	 /s/    LEIGH
ADAMS        

	 	 	 	 	 	 	 Name:
	 	 Leigh Adams

 

5Employment Agreement

  EXHIBIT 10.3
 EMPLOYMENT AGREEMENT

 Employment Agreement (this “Agreement”) dated as of December 31, 2002 (the “Effective Date”), by and between Internap Network
Services Corporation (the “Company”) and Ali Marashi (“Executive”) (collectively the “Parties”). 
 
 1. Position and Duties. Executive shall serve as the Vice President and Chief Technology Officer for the Company, with such duties, authorities and responsibilities as are commensurate with
such position. Executive shall report to the Company’s Chief Executive Officer (“CEO”) and shall work from the Company’s headquarters office in Atlanta, Georgia. 
 2. Base Salary. Executive shall receive an annual base salary of $ 190,000 (“Base Salary”). Payment of Base Salary shall be subject to standard payroll tax withholdings and
deductions. Executive’s Base Salary shall be paid semi-monthly in accordance with the Company’s standard payroll practices. Executive’s Base Salary may be increased or decreased from time to time by the CEO in consultation with the
Company’s Board of Directors or the Compensation Committee of such Board of Directors (in either case, the “Board”) in their sole discretion.
 3. Performance-Based Bonus. While the Company has not decided to implement a bonus plan (“Bonus”) for Executive and other senior executive officers at this time, should it do so in the future its present
intention is that Executive’s Bonus would be from 35% to up to 50% of Executive’s Base Salary, prorated if less than a full year. Performance metrics for the Bonus, if any, for 2003 shall be established by the CEO in consultation with the
Board and in their sole and reasonable discretion as soon as practicable after a determination has been made to implement a Bonus plan for Executive and other senior executive officers. Performance metrics for and target amount of the Bonus for 2004
and each subsequent calendar year shall be established on or before February 28 of the year to which the Bonus relates. The CEO, in consultation with the Board and in their sole and reasonable discretion, shall determine, on or before February 28 of
the year in which the Bonus would be payable, whether a Bonus is payable and, if so, the amount of such Bonus. Unless otherwise determined by the Board, all Bonus payments shall be made on the Company’s first regular payroll date following such
determination and shall be subject to standard payroll tax withholdings and deductions. To be eligible for a Bonus, Executive must be continuously employed by the Company through the date on which the Bonus is paid. Executive recognizes and agrees
that: (a) the Company may in its sole discretion and with reasonable notice to Executive determine that any Bonus, if payable, may be paid in whole or in part in the Company’s common stock or other equity securities, including restricted stock
and stock options; and (b) the Company may in its sole discretion suspend or discontinue any bonus program at any time without any liability on the part of the Company.
 4. Equity Compensation. The Company and Executive acknowledge that the Company has heretofore issued to Executive one or more options to purchase 2,000,000 shares of the Company’s common
stock, subject to the terms and conditions of the relevant option plan(s) and related stock option agreement(s) (the “Options”) The Board, upon the recommendation of the CEO and in their sole discretion, may award 
  
 
 

  additional options or equity or other equity-based compensation to Executive on terms, in amounts and subject to performance goals as determined by the CEO
and the Board (any such options also being referred to hereinafter as “Options” and any such equity or equity-based compensation being referred to herein as “Additional Equity Compensation”).
 5. Employee Benefits. Executive shall be entitled to participate in all employee benefit, welfare and other plans and programs generally applicable to
employees of the Company. Except as provided herein, the Company reserves the right to modify Executive’s compensation and benefits from time to time as it deems necessary. In addition, Executive shall be entitled to the benefits afforded under
the Company’s relocation policy, as reflected in the attachment hereto, and Executive agrees to observe the terms and conditions of that relocation policy.
 6. Vacation. Executive shall accrue twenty (20) days of combined vacation/sick leave annually. Executive also shall receive three (3) personal days each year. Executive shall have the right to carry over unused
vacation from any one-year period to any other subsequent one-year period. 
 7. Nature of Employment. Executive’s employment
with the Company shall be at-will. Both Executive and the Company shall have the right to terminate the employment relationship at any time, with or without cause, and with or without advance notice. 
 8. Severance Payments. Upon Executive’s involuntary termination by the Company of employment without Cause (as defined below), Executive shall receive a cash severance
payment equal to the product of (x) the number of days that Executive is am employee of the Company, divided by 365 (provided that the foregoing ratio shall never exceed one (1) and (y) Executive’s then-current Base Salary. Payment of such
severance amounts shall be subject to standard payroll tax withholdings and deductions. In addition to the severance benefits provided above, upon Executive’s involuntary termination of employment without Cause, all of Executive’s unvested
Options and Additional Equity Compensation shall lapse and expire, and all of Executive’s vested Options shall remain exercisable no later than three months after the date of termination. No payment or acceleration of Options or Additional
Equity Compensation shall be made pursuant to this Section 8 unless prior to or concurrent with such payment a valid release has been executed and delivered by Executive and becomes effective in accordance with Section 11 hereof.
Notwithstanding the immediately preceding sentence, Executive shall not be entitled to any benefits or rights under this Section 8 if Executive also is eligible for payments and/or benefits under Section 9 hereof. 
 9. Change in Control Payments and Acceleration. Upon Executive’s involuntary termination of employment without Cause (as defined below) or voluntary
termination of employment for Good Reason, in either case within 12 months after a Change in Control, (i) the Company shall pay Executive a cash severance payment equal to two time the sum of Executive’s then-current Base Salary and maximum
target Bonus and (ii) all of Executive’s unvested Options and Additional Equity Compensation shall become vested, free of restrictions and immediately exercisable for the remaining term of the relevant grant or award.
 Payment of such severance payments shall be subject to standard payroll tax withholdings and deductions.
  
 
2

  No payment or acceleration of Options or Additional Equity Compensation shall be made unless prior to or concurrent with such payment a
valid release has been executed and delivered by Executive and becomes effective in accordance with Section 11 hereof. 
 Executive will continue to
receive the healthcare and life insurance coverages in effect on his date of termination for twenty-four (24) months after the date of termination pursuant to this Section 9 just as if he had remained an active employee of the Company, subject to
Executive paying the customary employee portion of such coverages, provided that if the Company cannot continue to cover Executive under its plans, the Company will separately provide Executive with comparable coverages or pay Executive in a lump
sum the costs of such coverages.
 For purposes of this Agreement, “Change in Control” shall mean the happening of any of the following
events:
 (i) An acquisition by any individual, entity or group (within the meaning of Section 13 (d) (3) or 14 (d) (2) of the Exchange Act) (an
“Entity”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the then outstanding shares of common stock of the Company (the “Outstanding Company Common
Stock”) or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); excluding, however, the
following: (1) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (2) any acquisition by the
Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, or (4) any acquisition by any corporation pursuant to a transaction which complies with
clauses (A), (B) and (C) of subsection (iii) of this Section; (ii) A change in the composition of the Board such that the individuals who, as of the Effective Date, constitute the Board (such Board shall be hereinafter referred to as the
“Incumbent Board”), excluding the current members of the Board (“Series A Directors”) who have been elected pursuant to the terms of the Company’s Series A Convertible Preferred Stock (“Series A Stock”), cease for
any reason to constitute at least a majority of the Board; provided, however, that for purposes of this definition, any individual who becomes a member of the Board subsequent to the Effective Date, whose election, or nomination for election, by the
Company’s stockholders was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso), excluding the Series A
Directors, shall be considered as though such individual were a member of the Incumbent Board; and provided, further however, that any such individual whose initial assumption of office occurs as a result of or in connection with either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of an Entity other than the Board shall not be
so considered as a member of the Incumbent Board;
 (iii) The approval by the stockholders of the Company of a merger, reorganization or consolidation or sale
or other disposition of all or 
  
 
3

  substantially all of the assets of the Company (each, a “Corporate Transaction”) or, if consummation of such Corporate Transaction is subject, at
the time of such approval by stockholders, to the consent of any government or governmental agency, the obtaining of such consent (either explicitly or implicitly by consummation); excluding however, such a Corporate Transaction pursuant to which
(A) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will
beneficially own, directly or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the
case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation or other Person which as a result of such transaction owns the Company or all or substantially all of the Company’s assets
either directly or through one or more subsidiaries (a “Parent Company”)) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities, as the case may be, (B) no Entity (other than the Company, any employee benefit plan (or related trust) of the Company, such corporation resulting from such Corporate Transaction or, if reference was made to equity
ownership of any Parent Company for purposes of determining whether clause (A) above is satisfied in connection with the applicable Corporate Transaction, such Parent Company) will beneficially own, directly or indirectly, 50% or more of,
respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of
directors unless such ownership resulted solely from ownership of securities of the Company prior to the Corporate Transaction, and (C) individuals who were members of the Incumbent Board will immediately after the consummation of the Corporate
Transaction constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction (or, if reference was made to equity ownership of any Parent Company for purposes of determining whether
clause (A) above is satisfied in connection with the applicable Corporate Transaction, of the Parent Company); or 
 (iv) The approval by the stockholders of
the Company of a complete liquidation or dissolution of the Company. 
 For purposes of this Agreement, “Cause” shall mean: 
 (i) Executive’s conviction (including a plea of guilty or nolo contendere) of a crime involving theft, fraud, dishonesty or moral turpitude;
 (ii) violation by Executive of the Company’s Code of Conduct or other material policies;
 (iii) gross omission or gross dereliction of any statutory, common law or other duty of loyalty to the company or any of its affiliates; or
 (iv)
repeated failure to carry out the duties of Executive’s 
  
 
4

  position despite specific instructions to do so. 
 Executive shall not be deemed to
have been terminated for “Cause” until there shall have been delivered to him written notice, not less than ten (10) days prior to the proposed termination date, specifying the basis for such termination.
 For purposes of this Agreement, Good Reason shall mean any one of the following events which occurs without Executive’s written consent: (i) any significant diminution in
Executive’s title, authority or responsibility, including any change in the reporting relationship between Executive and the CEO; (ii) any significant reduction in Executive’s then current total compensation from that compensation
paid in the prior fiscal year or calendar year; or (iii) a change of more than fifty (50) miles from Executive’s permanent workplace without Executive’s consent. 
 10. Parachute Payments. If any cash compensation payment, employee benefits or acceleration of vesting of stock options or other stock awards Executive would receive in connection with a
Change in Control (“Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment
that would result in no portion of the Payment being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount, after taking into account all applicable federal, state and local
employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax. If a reduction in payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless
Executive elects in writing a different order: reduction of cash payments; reduction of employee benefits; and cancellation of accelerated vesting of stock awards. In the event that acceleration of vesting of stock award compensation is to be
reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of Executive’s stock awards unless Executive elects in writing a different order for cancellation. The accounting firm engaged by the Company for
general audit purposes as of the day prior to the effective date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or
group effecting the Change in Control, the Company shall appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm
required to be made hereunder. The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days
after the date on which Executive’s right to a Payment arises (if requested at that time by the Company or Executive) or at such other time as requested by the Company or Executive. If the accounting firm determines that no Excise Tax is
payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such
Payment. Any good faith 
  
 
5

  determination of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive. 
 11. Release. Upon termination of Executive’s employment, unless Executive shall have executed and provided the Company with an effective release in
a form reasonably satisfactory to the Company, Executive shall not receive any severance payments or benefits provided under this Agreement. 
 12.
Confidentiality. Executive agrees that information not generally known to the public to which he will be exposed as a result of his employment by the Company is confidential information that belongs to the Company. This
includes information developed by Executive, alone or with others, or entrusted to the Company by its customers or others. The Company’s confidential information includes, without limitation, information relating to the Company’s trade
secrets, research and development, inventions, know-how, software, procedures, accounting, marketing, sales, creative and marketing strategies, employee salaries and compensation, and the identities of customers and active prospects to the extent
not publicly disclosed (collectively, “Confidential Information”). Executive will hold the Company’s Confidential Information in strict confidence, and not disclose or use it except as authorized by the Company and for the
Company’s benefit.
 Executive further acknowledges and agrees that in order to enable the Company to perform services for its customers or clients, such
customers or clients may furnish to the Company certain Confidential Information, that the goodwill afforded to the Company depends upon the Company and its employees preserving the confidentiality of such information, and that such information
shall be treated as Confidential Information of the Company for all purposes under this Agreement.
 13. Non-Competition. Executive
recognizes and agrees that Internap has many substantial, legitimate business interests that can be protected only by his agreement not to compete with Internap under certain circumstances. These interests include, without limitation and on a
national basis, Internap’s contacts and relationships with its clients and active prospects, Internap’s reputation and goodwill in the industry, and Internap’s rights in its Confidential Information. Therefore, Executive agrees that
during the term of his employment with Internap and for a period of one (1) year after his employment ends for any reason whatsoever and except as provided in the paragraph immediately following, he shall not, voluntarily or involuntarily, directly
or indirectly, on his own behalf or on the behalf of another, whether as an employee, contractor, consultant, director or agent or in another capacity, engage in the businesses of (i) managed high performance Internet connectivity, (ii) hosting or
colocation services, (iii) virtual private network services (iv) content distribution network services or (v) any other line of business in which the company is then engaged for (x) any account that is a customer of Internap or its affiliates unless
he is providing substantially different services to any such customer from the services he provided to Internap or (y) any competitor of Internap or its affiliates. 
 If, within one year after commencement of Executive’s employment with the Company, Executive voluntarily terminates such employment or such employment is terminated for any reason by the Company, the non-compete period shall be equal to
the number of days that Executive was an employee of the Company prior to such termination. 
  
 
6

  Executive also agrees that during the term of his employment with Internap and for a period of one (1) years after such employment ends
for any reason whatsoever, he shall not directly or indirectly employ or seek to employ any person employed by Internap nor directly or indirectly solicit or induce any such person to leave Internap. 
 Executive acknowledges that the breach or threatened breach of the above noncompetition and/or nondisclosure provisions would cause irreparable injury to Internap that could not be adequately
compensated by money damages. Internap may obtain a restraining order and/or injunction prohibiting my breach or threatened breach of the noncompetition and/or nondisclosure provisions, in addition to any other legal or equitable remedies that may
be available. Executive agrees that the above noncompetition provision, including its duration, scope and geographic extent, is fair and reasonably necessary to protect Internap’s client relationships, goodwill, Confidential Information and
other protectable interests. 
 Provided that Executive has been employed with the Company for at least one year, if Executive wishes to compete with the
Company during the one-year period after his termination of employment, Executive will submit a bona fide written offer of employment he has received from a prospective employer to the Company’s Chief Executive Officer and General Counsel, who
will analyze such proposed employment in light of the then current facts and circumstances. The Chief Executive Officer may, in his sole and reasonable discretion, provide a written waiver of all or a portion of the non-compete limitations imposed
on Executive. If such written waiver is unreasonably withheld, Executive shall remain subject to the non-compete limitations. The non-solicitation obligations set forth above are not subject to the potential waiver described in the preceding
sentence and will remain in full force and effect pursuant to its terms. Executive will fully defend, indemnify and hold harmless the Company for any claims brought against it by Executive or third parties as a result of any decision the Company
makes not to waive Executive’s non-compete obligations. 
 14. No Restrictions. No Restrictions. Executive represents to the
Company that he has not executed or is not bound by any non-competition covenant or non-solicitation covenant or any other undertaking similar to either of the foregoing that would prevent him from performing the duties and responsibilities of the
position set forth in Section 1 of this Agreement.
 15. General Provisions. This Agreement is intended to bind and inure to the
benefit of and be enforceable by Executive, the Company and their respective successors, assigns, heirs, executors, administrators, except that Executive may not assign any of his duties hereunder and Executive may not assign any of his rights
hereunder without the written consent of the Company, which shall not be withheld unreasonably. 
 This Agreement, together with the Exhibits, constitutes the
complete, final and exclusive embodiment of the entire agreement between the Parties with regard to the subject matter hereof. It is entered into without reliance on any promise or representation, written or oral, other than those expressly
contained herein, and it supersedes any other such promises or representations. 
 This Agreement shall be governed by and construed in accordance with the laws
of the State of Delaware, without reference to principles of conflict of laws. The captions 
  
 
7

  of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a
written agreement executed by the Parties hereto or their respective successors and legal representatives. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision
of this Agreement. Any invalid or unenforceable provision shall be modified so as to be rendered valid and enforceable in a manner consistent with the intent of the Parties insofar as possible. 
 A failure of Executive or the Company to insist upon strict compliance with any provision of this Agreement or the failure to assert any right Executive or the Company may have hereunder shall not be
deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 
 From and after the Effective Date, this Agreement shall
supersede any employment, severance, change of control or other agreement, whether oral or written, between the Parties with respect to the subject matter hereof (other than arrangements effected under compensation plans generally applicable to
other senior executive officers of the Company). 
 This Agreement may be executed in several counterparts, each of which shall be deemed to be an original but
all of which together will constitute one and the same instrument. 
 
 IN WITNESS WHEREOF, the Parties have executed this Agreement effective
as of the day and year first above written. 
  

	 INTERNAP NETWORK SERVICES CORPORATION
 	  
 	  
 	 Ali Marashi
 
	 By 
 	 
 
 
 	  
 	  
 	 
 
 
 
	  
 	 
 	  
 	  
 	 
 
	 Name: 
 	  
 	  
 	  
 	  
 
	 Title: 
 	  
 	  
 	  
 	  
 

 
  
 
8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]