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Exhibit 10.2  

 
 

EMPLOYMENT AGREEMENT    
  

        This Employment Agreement (the "Agreement") is entered into as of March 28, 2002 (the "Effective Date"), by and between Internap Network Services
Corporation (the "Company") and Gregory A. Peters ("Executive") (collectively the "Parties"). 

        1.    Position and Duties. Executive shall serve as the President and Chief Executive Officer for the Company, with such duties,
authorities and responsibilities as are commensurate with such position. Executive shall report to the Company's Board of Directors, and shall work from the Company's office in Seattle, Washington. 

        2.    Base Salary. Executive shall receive an annual base salary of $350,000 ("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 from time to time by the Company's Board of Directors (the "Board") in its sole discretion. Executive's Base Salary may not be decreased without Executive's written
consent, except in the event of a reduction in Executive's compensation that is pursuant to a compensation reduction program affecting substantially all of the employees of the Company. 

        3.    Discretionary Bonus. Executive shall be eligible to receive a discretionary bonus ranging from fifty percent (50%) to up
to one hundred fifty percent (150%) of Executive's Base Salary based on the Company's performance and contributions made by Executive, as evaluated by the Board in its sole and reasonable discretion
(the "Discretionary Bonus"). The Board, in its sole and reasonable discretion, shall determine the amount of any such Discretionary Bonus. Payment of the Discretionary Bonus shall be made on the
Company's first regular payroll date following the Board's determination that the Discretionary Bonus is payable, and the Discretionary Bonus shall be subject to standard payroll tax withholdings and
deductions. To be eligible for the Discretionary Bonus, Executive must be employed by the Company on the last day of the period for which the Discretionary Bonus is paid. The performance goals to
which the Discretionary Bonus is subject and the period during which performance will be evaluated, shall be determined within ninety (90) days of the Effective Date. If the period during which
performance will be evaluated is less than a full calendar year, the amount of Base Salary upon which the Discretionary Bonus is based shall be prorated based on the number of days Executive was an
employee of the Company during the evaluation period divided by 365. If the performance goals to which the Discretionary Bonus is subject and the period during which performance will be evaluated
cannot be mutually agreed to within ninety (90) days of the Effective
Date, (i) the Company and Executive may mutually agree to extend such ninety (90) day period or (ii) Executive may terminate his employment with the Company for Good Reason (as
defined below) and Executive shall be entitled to a cash severance payment equal to three (3) months of Executive's Base Salary; provided,
however, that the Company shall not be liable for severance payments to Executive as described in Section 13 or 14 below and that no severance payment shall be made
pursuant to this Section 3 until a valid release has been Executed and becomes effective in accordance with Section 16 hereof. Executive and the Company hereby agree to act in good faith
to determine the performance goals to which the Discretionary Bonus is subject and the period during which performance will be evaluated. The Board, from time to time in its sole discretion, may award
additional discretionary bonuses to Executive in amounts and subject to performance goals and evaluation periods as determined by the Board in its sole discretion. 

        4.    Relocation. Executive shall relocate his primary residence to the greater Seattle, Washington area no later than
October 1, 2002. 

        5.    Relocation Allowance. A Relocation Allowance of up to a maximum of $100,000 (plus a one-time tax gross up
payment on that portion of the Relocation Allowance that is not attributable to qualified moving expenses as defined in Section 217(b) of the Internal Revenue Code of 1986, as 

amended) shall be paid to Executive in accordance with the Company's relocation policy, attached hereto as Exhibit A. In the event Executive terminates his employment with the Company without
Good Reason and prior to the first anniversary of the Effective Date, then, in accordance with the Company's relocation policy, Executive must repay a pro rata portion of the Relocation Allowance
calculated as follows: 

	 	 	365 - number of days of employment	  x  	Relocation Allowance	 	 
	 	 	365	 	 	 	 

        6.    Relocation Expenses. In addition to the Relocation Allowance payable under Section 5 hereof, the Company shall pay
for up to four (4) round coach class trip housing searches for Executive or Executive's spouse between San Francisco, California and Seattle and for reasonable lodging in Seattle, each trip not
to last more than five (5) days. Executive must arrange all trips through the Company's travel department and in accordance with the Company's travel policy. 

        7.    Equity Compensation.

        (a)  Stock Option Grant. The Company shall grant a stock option to Executive to purchase up to 2,400,000 shares of the common
stock of the Company (the "Option"), subject to the approval of the Board or the Compensation Committee, and subject to the terms and conditions of the Company's Amended 1999 Equity Incentive Plan and
the Stock Option Grant Notice and Stock Option Agreement issued to Executive. Twenty-five percent (25%) of the shares subject to the Option shall vest on the first anniversary of the
Effective Date and 1/48th of the shares shall vest monthly thereafter. The exercise price of the Option shall be equal to the closing price of the underlying common stock on the date of
grant. The Option will terminate ten (10) years from the date of grant unless sooner terminated due to Executive's termination of employment. In the event of Executive's termination of
employment other than for Cause (as defined in Section 14 below), Executive shall have one (1) year from his date of termination to exercise the vested portion of his Option. 

        (b)  Performance-Based Stock Option Grant. The Company shall grant a stock option to Executive to purchase up to 1,000,000
shares of the common stock of the Company (the "Performance-based Option"), subject to the approval of the Board or the Compensation Committee, and subject to the terms and conditions of the Company's
Amended 1999 Equity Incentive Plan and/or the Company's 1998 Stock Option/Stock Issuance Plan, as amended and restated and the Stock Option Grant Notice and Stock Option Agreement issued to Executive.
One hundred percent (100%) of the shares subject to the Performance-based Option shall vest on the sixth (6th) anniversary of the date of grant; provided,
however, that the vesting of the Performance-based Option shall accelerate upon the achievement of certain performance goals, which goals shall be similar in nature to the
performance goals relating to the Discretionary Bonus described in Section 3 hereof. The exercise price of the Performance-based Option shall be equal to the closing price of the underlying
common stock on the date of grant, which shall not be more than ninety (90) days from the Effective Date, unless mutually agreed by the Company and Executive. The option will terminate ten
(10) years from the date of grant unless sooner terminated due to Executive's termination of employment. The performance goals, achievement of which will result in accelerated vesting, shall be
determined within ninety (90) days of the Effective Date. Executive and the Company hereby agree to act in good faith to determine such performance goals. The Board, from time to time in its
sole discretion, may award additional performance-based options to Executive in amounts and subject to performance goals as determined by the Board in its sole discretion. In the event of Executive's
termination of employment other than for Cause (as defined below), Executive shall have one (1) year from his date of termination to exercise the vested portion of his Performance-based Option. 

        8.    Employee Benefits. Executive shall be entitled to participate in all employee benefit, welfare, vacation (as provided in
Section 9 below), and other plans, practices, policies 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. 

        9.    Vacation. Executive shall accrue eighteen (18) days of combined vacation/sick leave annually. Executive also shall
receive three (3) personal days each year. 

        10.  Attorneys' Fees. The Company shall reimburse Executive up to $7,500 (plus a one-time tax bonus of up to a
maximum of $5,500) for reasonable attorneys' fees (based on a time-based bill) related to the negotiation of his terms of employment with the Company. 

        11.  Business Travel. Executive shall arrange all business travel through the Company's travel department in accordance with
the Company's travel policy. Domestic air travel (including Canada) shall be coach class and international air travel (except to Canada) shall be business class. Business travel to Seattle and other
locations as required from Executive's current residence in San Francisco shall be paid by the Company through October 1, 2002, in accordance with the Company's travel policy. After
October 1, 2002, all of Executive's business travel shall initiate from Seattle. 

        12.  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. 

        13.  Severance Payments.

        (a)  Upon Executive's involuntary termination of employment without Cause (as defined below) or voluntary termination of
employment for Good Reason (as defined in Section 14 below) (i) prior to the first anniversary of the Effective Date, Executive shall receive a cash severance payment equal to
Executive's then current Base Salary multiplied by the number of days Executive has been employed by the Company divided by 365, or (ii) on or after the first anniversary of the Effective Date,
Executive shall receive a cash severance payment equal to twelve (12) months of Executive's then current Base Salary. Payment of such severance payments shall be subject to standard payroll tax
withholdings and deductions. 

        (b)  In addition to the severance benefits provided in Section 13(a) above, as applicable, upon Executive's involuntary
termination of employment without Cause prior to the first anniversary of the Effective Date but more than three (3) months after the Effective Date, 25% of the shares subject to Executive's
Option (as defined in Section 7(a) hereof but not including the Performance-based Option defined in Section 7(b) hereof) shall vest and become immediately exercisable. 

        (c)  No payment or stock option acceleration shall be awarded pursuant to this Section 13 until a valid release has
been executed by Executive and becomes effective in accordance with Section 16 hereof. 

        (d)  No payment or stock option acceleration shall be awarded pursuant to this Section 13 if Executive also is eligible
for payments and/or benefits under Section 14 hereof. 

        14.  Change in Control Severance Payments. 

        (a)  Upon Executive's involuntary termination of employment without Cause (as defined below) or voluntary termination of
employment for Good Reason, within thirteen (13) months of a Change in Control, Executive shall receive the following benefits: 

	(i)
	One hundred percent (100%) of Executive's unvested stock option shall become immediately vested and
exercisable, and

	(ii)
	(A) prior to the first anniversary of the Effective Date, a cash severance payment equal to Executive's
then current Base Salary and earned Discretionary Bonus, if any and as determined by the Board in its sole and reasonable discretion, each multiplied by the number of days Executive has been employed
by the Company divided by 365, or (B) on or after the first anniversary of the Effective Date, a cash severance payment equal to twelve (12) months of Executive's then current Base
Salary and earned Discretionary Bonus, if any and as determined by the Board in its sole and reasonable discretion. Payment of such severance payments shall be subject to standard payroll tax
withholdings and deductions. 

        (b)  Executive shall receive no benefits pursuant to this Section 14 until a valid release has been executed by
Executive and becomes effective in accordance with Section 16 hereof. 

        (c)  For purposes of this Agreement, Change in Control shall mean any of the following: (i) a sale, lease or other
disposition of all or substantially all of the assets of the Company, (ii) a merger or consolidation in which the Company is not the surviving corporation; (iii) a reverse merger in
which the Company is the surviving corporation but the shares of common stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the
form of securities, cash or otherwise; or (iv) an acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of the Exchange Act of 1934, as amended (the
"Exchange Act"), or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or an affiliate of the Company) of the beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%)
of the combined voting power entitled to vote in the election of Directors. 

        (d)  For the purposes of this Agreement, Cause shall mean: (i) Executive's misconduct or dishonesty that materially
adversely affects the Company, including without limitation (A) an act materially in conflict with the financial interests of the Company, (B) an act that materially damages the
reputation or customer relations of the Company as reasonably determined by the Company, (C) conduct constituting sexual harassment or other violation of the civil rights of coworkers as
reasonably determined by a qualified, independent investigator, (D) failure to obey any lawful instruction of the Board, with thirty (30) days to cure such failure after written notice
from the Board, and (E) failure to comply with, or perform any duty required under, the terms of any confidentiality, inventions or non-competition agreement Executive may have with
the Company (including the Employee Confidentiality, Inventions Assignment, Non-raiding and Non-competition Agreement attached hereto as Exhibit B), or
(ii) Executive's acts constituting the unauthorized disclosure of any of the trade secrets or confidential information of the Company, unfair competition with the Company or the inducement of
any customer of the Company to breach any contract with the Company. 

        (e)  For the purposes of this Agreement, Good Reason shall mean any one of the following events which occurs without
Executive's consent: (i) any significant diminution in Executive's title, authority or responsibility; (ii) any reduction in Executive's the annual cash compensation currently payable to
Executive; (iii) a change of more than fifty (50) miles from Executive's permanent workplace without Executive's consent. In addition to the foregoing and for purposes of
Section 3 of this Agreement only, Good Reason shall mean failure of the Company and Executive to mutually agree on the performance goals to be determined pursuant to Section 3. 

        15.  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 (provided, however, that
such election shall be subject to Company approval if made on or after the effective date of the Change of Control): 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 determination of the accounting firm made
hereunder shall be final, binding and conclusive upon the Company and Executive. 

        16.  Release. Upon termination of Executive's employment, Executive shall execute and provide the Company with an effective
release in the form attached hereto as Exhibit B (the "Release"), as a condition of Executive's receipt of any severance benefits provided under this Agreement. 

        17.  Employee Confidentiality, Non-Raiding, Inventions Assignment and Non-Competition Agreement.
Executive shall execute the Employee Confidentiality, Non-Raiding, Inventions Assignment and Non-Competition Agreement, attached hereto as Exhibit C (the
"Confidentiality Agreement"). Executive's duties under the Confidentiality Agreement shall survive termination of Executive's employment with the Company. Notwithstanding the provisions of the
Confidentiality Agreement, following Executive's termination of employment with the Company, if Executive wishes to compete (as described in Section 6 of the Confidentiality Agreement) with the
Company during the one year period after his termination of employment (the "Non-Compete Period"), Executive will submit a bona fide written offer of employment he has received from a
prospective employer to the Chairman of the Board, who will analyze such proposed employment in light of the then current facts and circumstances, and who, in his or her sole and reasonable
discretion, may provide a written waiver of all or a portion of the non-compete limitations imposed on Executive in Section 6 of the Confidentiality Agreement, and if such written
waiver is unreasonably withheld, Executive shall remain subject to the non-compete limitations under Section 6 of the Confidentiality Agreement but shall, in exchange for a Release,
receive a severance payment of 12 months of Base Salary less any severance payments owed to Executive under Section 3, Section 13(a) or Section 14(a)(ii) of this
Agreement, if any, with such amount to be paid pro rata over the then remaining portion of the Non-Compete Period. It is understood that the second paragraph of Section 6 of the
Confidentiality Agreement, pertaining to Executive's non-solicitation obligations, is not subject to the potential waiver described in the preceding sentence and will remain in full force
and effect pursuant to its terms, and that 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 limitations under the Confidentiality Agreement during the Non-Compete Period. 

        18.  Company Policies and Procedures. As an employee of the Company, Executive will be expected to abide by all of the
Company's policies and procedures. The general employment policies and procedures of the Company also shall govern Executive's employment relationship with the Company,
except that when the terms of this Agreement differ from or are in conflict with the Company's general employment policies or procedures, this Agreement shall control. 

        19.  Indemnity. The Company shall indemnify Executive for claims, causes of action, demands or suits relating to Executive's
employment with the Company or to any acts taken by him as an employee, officer, director, if applicable, or agent of the Company. 

        20.  General Provisions

        (a)  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 or her duties hereunder and Executive may not assign any of his or her rights
hereunder without the written consent of the Company, which shall not be withheld unreasonably. 

        (b)  This Agreement, together with its exhibits (the Relocation Policy, Release Agreement and Employee Confidentiality,
Non-Raiding, Inventions Assignment and Non-Competition Agreement and its exhibits Prior Inventions, Limited Exclusion Notification and Arbitration Agreement), 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 Washington, without reference to principles of conflict of laws. The captions 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. 

        (c)  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. 

        (d)  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. 

        (e)  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. 

        (f)    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 effected as of the day and year first above written. 

	
 /s/  GREGORY A. PETERS      
GREGORY A. PETERS
 	
 	

 
	 	 	 	 	 
	
INTERNAP NETWORK SERVICES CORPORATION	
 	

 
	 	 	 	 	 
	

By:	
 	

/s/  EUGENE EIDENBERG      
EUGENE EIDENBERG

CHAIRMAN & CEO	
 	

 

Exhibit A—Relocation
Policy

Exhibit B—Release Agreement

Exhibit C—Employee Confidentiality, Non-Raiding, Inventions Assignment and Non-Competition Agreement 

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EMPLOYMENT AGREEMENTExhibit 10.3  

March 13,
2002 

Robert
Gionesi

2181 Helene Avenue

Merrick, NY 11566 

Dear
Bob: 

        This
letter sets forth the substance of the separation agreement (the "Agreement") Internap Network Services Corporation (the "Company") proposes regarding your employment transition. 

        1.    Separation. Your last day of employment with the Company shall be October 31, 2002 (the "Separation Date"). 

        2.    Transition Period. From the date of this Agreement until March 31, 2002, you will continue in your current position
as the Company's Vice President of Sales under the existing terms of your employment. 

        Effective
on the earlier of (i) April 1, 2002 or (ii) a mutually agreed upon date between you and the Company, you will resign your position as the Company's Vice
President Sales, and from April 1, 2002 through the Separation Date (the "Transition Period"), you will report to the Company's Chief Executive Officer (the "CEO") and will be expected to
assist in the transition of your duties and closing Meridian Telesis Ventures LLC as a direct sales customer of Internap connectivity, provided that Internap gives you reasonable advance notice
regarding the time, place and nature of your duties. You will not be required to perform duties that would interfere with your employment with Meridian Telesis Ventures LLC, including its
subsidiaries, affiliates and successors (collectively, "Meridian Telesis Ventures LLC") or that would unreasonably interfere with your personal commitments. You will perform your transition duties
from your New York residence, except as reasonably required by the CEO, on a part-time basis which shall not exceed ten (10) hours per month. During the Transition Period you will
be paid based on an annual base salary of $102,500, less applicable withholdings and
deductions, in accordance with the Company's normal payroll practices, and will be entitled to continue your employee benefits, except that you will not accrue any paid time off or personal days. In
addition to your salary, you will be paid an aggregate bonus payment of $21,490.65 in three equal monthly installments of $7,163.55 on April 1, May 1, and June 1, 2002. During the
Transition Period, you agree to use your new employer's medical, dental and vision insurance as primary insurance for you and your dependents as soon as you are eligible for such coverage, at which
time (x) you may request to be removed from the Company's insurance coverage and you will be paid the cash equivalent of COBRA payments for the remainder of the Transition Period or
(y) you may continue to use the the Company's insurance as your secondary medical, dental and vision insurance coverage for the remainder of the Transition Period. 

        From
the date of this Agreement through the end of the Transition Period, your employment with the Company continues to be at-will, and both you 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; provided, however, that if the Company terminates you without "Cause" (as
defined below) you will receive the salary and bonus payment continuation in the manner described in the immediately preceding paragraph. "Cause" shall mean: (i) violation of any material
provision of your confidentiality agreement attached hereto as Exhibit B, (ii) acts of misconduct, theft or dishonesty that are materially injurious to the Company, (iii) any
conviction for a felony, or (iv) your disparagement of the Company or its directors, officers or employees in any manner likely to be materially harmful to the business or reputation of the
Company, or the personal or business reputations of its directors, officers or employees. 

        3.    Stock Options. Your stock options will cease vesting on the Separation Date, under the terms of your written stock option
agreement(s) and the applicable plan(s) governing those agreement(s). You 

may exercise your vested option shares pursuant to your written stock option agreement(s) and the applicable plan(s) governing those agreement(s). 

        4.    Expense Reimbursements. The Company will, pursuant to its regular business practice, reimburse you for expenses approved
in advance by the CEO through the Separation Date, if any, that you submit within ten (10) days of the Separation Date. 

        5.    Return of Company Property. On or before the Separation Date, you must return to the Company all Company documents (and
all copies thereof) and other Company property that you have had in your possession at any time, including, but not limited to, Company files, notes, drawings, records, business plans and forecasts,
financial information, specifications, computer-recorded information, tangible property (including, but not limited to, computers), credit cards, entry cards, computer access codes, computer programs,
identification badges and keys; and any materials of any kind that contain or embody any proprietary or confidential information of the Company (and all reproductions thereof). 

        6.    Continuing Obligations. After the Separation Date, you will have continuing obligations to the Company, including
obligations not to use or disclose any confidential or proprietary information of the Company; provided, however, that Internap agrees that your employment as EVP by Meridian Telesis Ventures LLC
shall not constitute violation of your obligations under Section 1 of Exhibit B hereto or your noncompetition obligation in Section 5 of Exhibit B hereto. A copy of the
agreement you signed with respect to these obligations is attached to this letter as Exhibit B. 

        7.    Release. In exchange for the Transition Period and other consideration under this Agreement, to which you acknowledge you
would otherwise not be entitled absent this Agreement, you hereby release, acquit and forever discharge the Company, its parent and subsidiaries, and its and their officers, directors, agents,
servants, employees, shareholders, attorneys, successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys' fees, damages,
indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification
you may have as a result of any third party action against you based on your employment with the Company), arising out of or in any way related to agreements, events, acts or conduct at any time prior
to and including the date you sign this Agreement, including but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with your employment with the
Company or the termination of that employment, including but not limited to, claims of intentional and negligent infliction of emotional distress, any and all tort claims for personal injury, claims
or demands related to salary, bonuses, commissions, stock, stock options, or any other equity or ownership interests in the Company, paid time off, fringe benefits, expense reimbursements, severance
pay, or any other form of compensation; claims under that certain Employment Agreement between you and the Company dated June 21, 2001 (the "Employment Agreement"); claims pursuant to any
federal, state or local law or cause of action including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended
("ADEA"); the federal Americans with Disabilities Act of 1990; the New York State Human Rights Law, as amended; the New York Equal Opportunity for Disabled Persons Act, as amended; the New York City
Civil Rights Law, as amended; the California Fair Employment and Housing Act; the California Labor Code; the Washington Law Against Discrimination in Employment, as amended; the Washington Family
Leave Act, as amended; tort law; contract law; wrongful discharge; discrimination; fraud; defamation; and breach of the implied covenant of good faith and fair dealing. 

        8.    ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under
the ADEA. You also acknowledge that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which you were already entitled. You
further acknowledge that you have been advised by this writing, as required by the ADEA, that: (a) your waiver and release do not apply to any rights or claims that may arise after you sign
this Agreement; (b) you have the right to consult with an attorney prior to executing this Agreement; (c) you have twenty-one (21) days to consider this Agreement
(although you may choose to 

voluntarily execute this Agreement earlier); (d) you have seven (7) days following the date you sign this Agreement to revoke the Agreement; and (e) this Agreement shall not be
effective until the date upon which the revocation period has expired, which shall be the eighth (8th) day after you sign this Agreement. 

        9.    Other Compensation or Benefits. Except as expressly provided in this Agreement, you will not receive any additional
compensation, severance, or benefits from the Company after the Separation Date. 

        10.  Separation Date Release. As further consideration for the promises set forth in this Agreement, on the Separation Date
you agree to execute, make effective and deliver to the Company the General Release and Waiver attached as Exhibit A ("the Separation Date Release"). You understand and acknowledge that failure
to provide a Separation Date Release will constitute a material breach of this Agreement. 

        11.  Entire Agreement. This Agreement, including its exhibits, constitutes the complete, final and exclusive embodiment of the
entire agreement between you and the Company with regard to the subject matter hereof. It supersedes any and all agreements entered into by and between you and the Company, including the Employment
Agreement; provided, however, that Section 10 of the Employment Agreement regarding Proprietary Rights and Inventions is expressly made a part of
and incorporated into this Agreement, and is not superseded. This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly contained
herein. It may not be modified except in a writing signed by a duly authorized officer of the Company. 

        12.  Successors and Assigns. This Agreement will bind the heirs, personal representatives, successors, assigns, executors and
administrators of each party, and will inure to the benefit of each party, its heirs, successors and assigns. 

        13.  Applicable Law. This Agreement will be deemed to have been entered into and will be construed and enforced in accordance
with the laws of the State of Washington as applied to contracts made and to be performed entirely within Washington. 

        14.  Severability. If a court of competent jurisdiction determines that any term or provision of this Agreement is invalid or
unenforceable, in whole or in part, then the remaining terms and provisions hereof will be unimpaired. The court will then have the authority to modify or replace the invalid or unenforceable term or
provision with a valid and enforceable term or provision that most accurately represents the parties' intention with respect to the invalid or unenforceable term or provision. 

        If
this Agreement is acceptable to you, please sign below, and return the original to me. 

        Thank
you for your efforts in support of the Company. We look forward to working with you during the Transition Period. 

	Sincerely yours,	 	 
	
INTERNAP NETWORK SERVICES CORPORATION	
 	

 
	 	 	 
	

/s/  EUGENE EIDENBERG      
Gene Eidenberg

Chief Executive Officer	
 	

 
	 	 	 
	
SO AGREED.	
 	

 
	 	 	 
	

/s/  ROBERT A. GIONESI      
Robert A. Gionesi	
 	

 
	

Date: 3/12/2002	
 	

 
	
	 	 

Attachments:

Exhibit A—Separation Date Release

Exhibit B—Employee Confidentiality, Nonraiding and Noncompetition Agreement 

EXHIBIT A  

 SEPARATION DATE RELEASE  

 TO BE EXECUTED ON OCTOBER 31, 2002  

In exchange for the consideration under the March 13, 2002 Separation Agreement (the "Separation Agreement"), to which I acknowledge I would not otherwise be entitled absent the Separation
Agreement, I hereby release, acquit and forever discharge the Company, its parent and subsidiaries, and its and their officers, directors, agents, servants, employees, shareholders, attorneys,
successors, assigns and affiliates, of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys' fees, damages, indemnities and obligations of every kind and
nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed (other than any claim for indemnification I may have as a result of any third party action
against me based on my employment with the Company), arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the date I sign this Release,
including but not limited to: all such claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of that employment,
including but not limited to, claims of intentional and negligent infliction of emotional distress, any and all tort claims for personal injury, claims or demands related to salary, bonuses,
commissions, stock, stock options, or any other equity or ownership interests in the Company, paid time off, fringe benefits, expense reimbursements, severance pay, or any other form of compensation;
claims under that certain Employment Agreement between me and the Company dated June 21, 2001 (the "Employment Agreement"); claims pursuant to any federal, state or local law or cause of action
including, but not limited to, the federal Civil Rights Act of 1964, as amended; the federal Age Discrimination in Employment Act of 1967, as amended ("ADEA"); the federal Americans with Disabilities
Act of 1990; the New York State Human Rights Law, as amended; the New York Equal Opportunity for Disabled Persons Act, as amended; the New York City Civil Rights Law, as amended; the California Fair
Employment and Housing Act; the California Labor Code; the Washington Law Against Discrimination in Employment, as amended; the Washington Family Leave Act, as amended; tort law; contract law;
wrongful discharge; discrimination; fraud; defamation; and breach of the implied covenant of good faith and fair dealing. 

        ADEA Waiver. I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under
the ADEA. I also acknowledge that the consideration given for the waiver and release in the preceding paragraph hereof is in addition to anything of value to which I was already entitled. I further
acknowledge that you have been advised by this writing, as required by the ADEA, that: (a) my waiver and release do not apply to any rights or claims that may arise after I sign this Release;
(b) I have the right to consult with an attorney prior to executing this Release; (c) I have had twenty-one (21) days to consider this Release; (d) I have seven
(7) days following the date I sign this Release to revoke the Release; and (e) this Release shall not be effective until the date upon which the revocation period has expired, which
shall be the eighth (8th) day after I sign this Release. 

        Section 1542 Waiver. I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as
follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by
him must have materially affected his settlement with the debtor." I hereby expressly waive and relinquish 

all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any claims I may have against the Company. 

	So Agreed.	 	 
	 	 	 
	

Dated:
	
 	

 
	 	 	 
	

ROBERT A. GIONESI	
 	

 

EXHIBIT B  

 EMPLOYEE CONFIDENTIALITY, NONRAIDING AND NONCOMPETITION AGREEMENT

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