Document:

Exhibit 10.03

                              EMPLOYMENT AGREEMENT

THIS Employment Agreement ("Agreement") is hereby entered into and made
effective this 2nd day of December, 2004, by and between Diatect International
Corporation, a California corporation, with it's principal place of business
located in Heber City, Utah (the "Company") and David Andrus of Heber City,
Utah, ("Andrus").

                                    RECITALS

         1.       The Company is engaged in the business of developing,
                  manufacturing and marketing environmentally benign,
                  diatomaceous earth ("DE") based insecticide products, and
                  desires to acquire qualified, experienced leadership in this
                  endeavor.

         2.       In view of his considerable experience and effective service
                  to the Company as Executive Vice President of Operations and
                  as a director, the Company has determined that it desire to
                  employ Andrus as its President and Chief Executive Officer for
                  the period set forth below.

         3.       In consideration for the terms of this Agreement, Andrus
                  desires to be employed by the Company as its President and
                  Chief Executive Officer.

NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual
covenants, promises, terms and conditions hereinafter set forth, the parties
hereto agree as follows:

         I.       EMPLOYMENT. The Company hereby employs, engages and hires
                  Andrus as its President and Chief Executive Officer on the
                  terms and conditions hereinafter set forth, and Andrus hereby
                  accepts such employment and agrees to perform such services
                  and duties and to carry out such responsibilities as
                  hereinafter set forth.

         II.      TERMS OF EMPLOYMENT. The term of employment under this
                  Agreement shall be for a period of two (2) years and
                  twenty-eight (28) days commencing as of December 3, 2004 and
                  terminating on December 31, 2006, subject, however, to prior
                  termination as hereinafter provided. Unless otherwise agreed
                  in writing, subject to mutual agreement of the parties,
                  continued employment of Andrus by the Company after December
                  31, 2006 shall be for a term and on the conditions to be
                  agreed to by the parties prior to the expiration of the
                  Agreement.

         III.     SERVICES, DUTIES AND RESPONSIBILITIES

                  a.       Andrus will faithfully and to the best of his ability
                           serve the Company in his capacity as its President
                           and Chief Executive Officer, subject to the policy
                           direction of the Board of Directors of the Company.
                           Andrus shall perform such services and duties as are
                           customarily performed by holding the position of
                           President and Chief Executive Officer of a public
                           corporation.

                  b.       As President and Chief Executive Officer, Andrus
                           shall be responsible for the overall management of
                           the Company's business. Andrus will devote his full
                           time, energy and skill during regular business hours
                           to his employment with the Company. Such duties shall

<PAGE>

                           be rendered at Heber City, Utah, and sat such other
                           place or places as the Company shall in good faith
                           require or as interests, needs, business or
                           opportunity of the Company shall require. While
                           occupying the office of the President and Chief
                           Executive Officer, and as a member of the Board of
                           Directors, Andrus shall be willing to occupy the
                           officer of Chairman of the Board of Directors and
                           shall be willing to serve as Chairman of the
                           Executive Committee of the Board of Directors. Andrus
                           shall be responsible on a continuing basis for the
                           development, implementation and maintenance of a
                           business plan for the corporation and all activities
                           defined therein. He shall be responsible for
                           coordination of efforts of the corporate and
                           subsidiary officers and management teams and their
                           respective staffs and for the maximization of
                           corporate performance and overall profitability of
                           the corporation and its respective subsidiaries;
                           conditioned, however, upon the Company's providing
                           sufficient funds for Andrus to so manage and regulate
                           the Company.

                  c.       Andrus shall be responsible for reporting in writing
                           to the Board of Directors on a regular basis.

                  d.       As Chief Executive Officer, Andrus shall be
                           responsible for the development, coordination and
                           execution of all aspects of the operation as directed
                           by the Board of Directors. Subject to the Company's
                           continuing ability to pay Andrus' salary on a regular
                           basis as hereinafter provided, Andrus will devote
                           full time, energy and skill during regular business
                           hours to providing services and carrying out the
                           duties and responsibilities of his employment with
                           the Company. Such duties shall be rendered at the
                           principal place of business of the Company and at
                           such other places as the Company shall in good faith
                           require or as interests, needs business or
                           opportunity of the Company shall require.

                  e.       Andrus shall not directly or indirectly represent or
                           be engaged by or be an employee of any other person,
                           firm or corporation or be engaged for his services as
                           an officer, general manager or consultant in any
                           other business or enterprise while he is in the
                           employ of the Company, unless specifically authorized
                           to do so. It is understood, however, that the
                           foregoing in no way prevents Andrus from owning stock
                           or having economic interest in other businesses or
                           enterprises. Furthermore, Andrus may serve on the
                           board of directors of other companies so long as such
                           service does not conflict with his interest in and
                           duties of the Company. Also, he may hold the position
                           of corporate officer in any family or personal
                           investment business so long as it does not conflict
                           with his interest in and duties to the Company.

         IV.      COMPENSATION

                  a.       Base Salary. The Company shall pay Andrus a base
                           salary at the rate of One Hundred and Fifty Thousand
                           Dollars ($150,000) per year, payable twice a month on
                           the first and fifteenth days of each month while this
                           Agreement shall be in force. Said salary payments
                           will be subjected to withholding taxes, e.g., Federal
                           Income Tax, FICA, State and/or Local Withholding
                           Taxes. Whereas such salary shall not be decreased
                           during the term of this Agreement without the consent

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<PAGE>

                           of Andrus, it shall be subject to increase by the
                           Board of Directors which shall review the salary
                           periodically, and at least annually. It is understood
                           that Company may not be able to pay this base salary
                           on a regular basis. In the event that any portion of
                           said salary is not paid as scheduled on the basis of
                           fiscal inability of the Company to pay, such event
                           shall not constitute a default. In such event, Andrus
                           may elect to defer said payment shortfall, with
                           interest thereon, simple fixed, at the rate of 10%,
                           or, on a quarterly basis (at the end of each calendar
                           quarter) take payment of any portion of said
                           shortfall in form of restricted rule 144K common
                           stock of the Company at the average price quoted over
                           the ten (10) day period immediately prior to the end
                           of said quarter.

                  b.       Salary Subject to "Take or Pay". The foregoing salary
                           of Andrus shall be subject to "take or pay"
                           provisions, whereby the Company hereby commits to pay
                           said salary (including any increases from date) for
                           the entire term of this Agreement, regardless of
                           whether his employment is terminated hereunder at any
                           earlier date, unless such termination is for cause
                           based on malfeasance, as defined in Section X (b)
                           herein below.

                  c.       Incentive Bonus Stock. The Company here by grants and
                           issues to Andrus an incentive bonus of three million
                           (3,000,000) shares of restricted, non-diluteable
                           stock of the Company. Two million of these shares are
                           granted without restriction and the remaining one
                           million shall follow the vesting/performance items
                           noted below:

                           i.       250,000 shares are fully vested to Andrus
                                    upon the successful presentation of the Fire
                                    Ant product to 70 of the local vendor number
                                    stores of the awarded big box retailer.
                           ii.      250,000 shares are fully vested to Andrus
                                    upon the receipt of orders from at least 50
                                    of the local vendor number stores of the
                                    awarded big box retailer.
                           iii.     250,000 shares are fully vested to Andrus
                                    upon reaching sales of $250,000 to the local
                                    vendor number stores of the awarded big box
                                    retailer.
                           iv.      250,000 shares are fully vested to Andrus
                                    upon reaching sales of $500,000 to the local
                                    vendor number stores of the awarded big box
                                    retailer.

                  d.       Performance Bonus. Commencing at the date hereof,
                           Andrus shall be granted a bonus equal to one percent
                           (1%) of the gross sales receipts determined quarterly
                           based on the filing of the 10Q report with the SEC.
                           Said payment shall occur within thirty (30) days
                           following the filing of the 10Q report.

                  e.       Deferred Compensation Plan. As soon as it is
                           economically feasible and appropriate as determined
                           by the Board of Directors of the Company, the Company
                           will establish a Deferred Compensation Plan for its
                           senior executives, including Andrus.

                  f.       Benefits. As soon as it is financially able, as
                           determined by the Board of Directors, the Company
                           shall provide the following benefits to Andrus:

                           i.       Participation in a group medical plan;

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<PAGE>

                           ii.      Comprehensive dental care plan;
                           iii.     Life insurance at the rate of at least four
                                    times Andrus' annual salary, with the
                                    beneficiary of said insurance to be named by
                                    Andrus;
                           iv.      Disability insurance;
                           v.       A reasonable vehicle allowance

         V.       BUSINESS FACILITIES AND EQUIPMENT. The Company shall provide
                  Andrus, or shall pay for, suitable work facilities and
                  adequate business accommodation, office equipment and devices
                  as may be reasonably necessary for Andrus to perform his
                  services and carry out his responsibilities and duties to the
                  Company.

         VI.      DIRECTORS AND OFFICERS INSURANCE. As soon as it is financially
                  able, as determined by the Board of Directors, the Company
                  shall purchase and maintain Directors' and Officers' liability
                  insurance, including coverage for Andrus, in an amount of not
                  less than five million dollars ($5,000,000).

         VII.     INDEMNIFICATION. The Company shall indemnify Andrus, his
                  heirs, executors, administrators and assigns, against, and he
                  shall be entitled without further act on his part, to be
                  indemnified by the Company for, all expenses, including, but
                  not limited to, amounts of judgments, reasonable settlement of
                  suits, attorney fees and related costs of litigation,
                  reasonably incurred by him in connection with or arising out
                  of any action, suit or cause of action against the Company
                  and/or against Andrus as a result of his having been, an
                  officer and/or director of the Company, or, at its request, of
                  any other corporation which the Company owns or of which the
                  Company is a stockholder or creditor, whether or not he
                  continues to be such officer or director at the time of
                  incurring said expenses. Said indemnity shall apply, but not
                  be limited to, expenses incurred in respect to:

                  a.       Any matter in which he shall be finally adjudged in
                           any such action, suit or proceeding to be liable for
                           gross negligence or intentional misconduct in the
                           performance of his duty as such officer and/or
                           director, or;

                  b.       Any matter in which a settlement is effected to an
                           amount in excess of the amount of reasonable expenses
                           incurred by or on behalf of Andrus in such action,
                           suit or proceeding to the point of final settlement
                           and resolution.

                  Further, nothing in this section regarding indemnification
                  shall be construed to require or authorize the Company to
                  indemnify Andrus against any liability to which he would, but
                  for settlement or compromise of such action, suit or
                  proceeding, be otherwise subject by reason of his gross
                  negligence or intentional misconduct in the performance of his
                  duties as an officer and/or director of the Company. The
                  foregoing right of indemnification shall not be exclusive of
                  other rights to which Andrus may be entitled.

         VIII.    BUSINESS EXPENSE REIMBURSEMENT. The Company shall reimburse
                  Andrus for all reasonable business expenses incurred by him in
                  the performance of his services, duties and responsibilities,
                  including, but not limited to, transportation, travel
                  expenses, board and room, entertainment, and other business
                  expenses incurred within the scope of presentation to the
                  Company by Andrus of an itemized accounting of said expenses
                  substantiated by account books, receipts, bills and other
                  documentation where applicable. If reimbursement, advances or

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<PAGE>

                  allowances are based on permitted mileage or per diem rates,
                  then Andrus shall submit specification of relevant mileage,
                  destination, dates and other supporting information required
                  for tax purposes.

         IX.      VACATION. During the term of this Agreement, Andrus shall have
                  the right to six (6) weeks of paid vacation during each year.
                  Vacation time may be taken all at once or in segments as
                  desired by Andrus, subject to reasonable notice to the Company
                  for the purpose of coordinating work schedules. Such vacation
                  is not cumulative from year to year.

         X.       TERMINATION OF EMPLOYMENT.

                  a.       Termination for Cause, Generally. Under this
                           Agreement, the Company shall have the right to
                           terminate the employment of Andrus for cause, which
                           shall consist of two classes: cause involving
                           malfeasance on the part of Andrus, and causes not
                           involving malfeasance (no-fault). Upon termination,
                           all Company property and credit cards in the
                           possession and control of Andrus must be returned to
                           the Company.

                  b.       Malfeasance Termination for Cause. In the event the
                           employment of Andrus is terminated on the grounds of
                           malfeasance, then, in that event, all compensation,
                           including salary, stock options, bonuses, deferred
                           compensation and benefits cease immediately.
                           Termination for cause on grounds of malfeasance
                           included, but is not limited to, the following
                           conduct:

                           i.       Breach of restrictive covenant contained
                                    herein against competition or disclosure of
                                    trade secrets;
                           ii.      Continued failure and refusal to carry out
                                    the duties and responsibilities of the
                                    office under this Agreement within a
                                    reasonable time following written notice
                                    from the Board of Directors requiring the
                                    subject performance;
                           iii.     Failure to cure a material breach of this
                                    Agreement within ten (10) days after
                                    receiving written notice from the Board of
                                    Directors;
                           iv.      Failure to cease conduct unbecoming the
                                    President and CEO of the Company after
                                    receipt of written notice from the Board of
                                    Directors to cease such conduct;
                           v.       Commission of a felony.

                  c.       No-Fault Termination for Cause. At no fault of
                           Andrus, termination of employment hereunder for cause
                           can occur as the result of death, disability, sale of
                           the Company (asset or stock sale), merger or
                           consolidation, "takeover" of control and operation of
                           the business by an outside entity or group, or
                           termination of the business for any reason
                           whatsoever.

                  d.       Rights, Stock and Benefits Surviving No-Fault
                           Termination for Cause. Termination of Andrus'
                           employment for cause based upon any of the no-fault
                           reasons or events described in the foregoing
                           subsection c, shall not effect Andrus' right to the
                           following compensation under this Agreement:

                           i.       Base salary for the entire term of this
                                    Agreement.
                           ii.      Full vesting of the Incentive Bonus Stock.
                           iii.     Performance Bonus for two quarters following
                                    termination.

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<PAGE>

                           iv.      Deferred compensation vested at time of
                                    termination.
                           v.       Company benefits including, but not limited
                                    to, group medical insurance, comprehensive
                                    dental plan, life insurance, disability
                                    insurance, and car allowance shall be
                                    continued for a period of six (6) months
                                    following such termination of employment.

                  e.       Sale/Take-Over Termination Bonus. In the event the
                           employment of Andrus is terminated because of the
                           sale of the business (either asset or stock sale),
                           merger, consolidation, or by "takeover" by any
                           outside entity or group, then, Andrus shall be
                           entitled to a termination bonus equal to three times
                           the amount of bonus he received in the aggregate over
                           the four quarters immediately preceding such
                           termination of employment, but in no event shall said
                           bonus be less than five hundred thousand dollars
                           ($500,000).

                  f.       Resignation or Withdrawal. In the event Andrus'
                           employment is terminated by his voluntary resignation
                           or withdrawal, then, in that event, the following
                           will apply unless otherwise agreed between the
                           parties in writing:

                           i.       If such resignation or withdrawal occurs
                                    during the first year of the term of this
                                    Agreement, then Andrus will be entitled only
                                    to two weeks salary following notice of
                                    resignation or withdrawal. Company benefits
                                    set forth in Section IV (f) shall be
                                    terminated at the end of the calendar month
                                    next following the date of notice of
                                    resignation or withdrawal. All rights to
                                    stock options, bonuses or deferred
                                    compensation not granted or vested shall be
                                    forfeited.

                           ii.      If such resignation or withdrawal occurs
                                    during the second year of the term of this
                                    Agreement, then Andrus will be entitled only
                                    to two months salary following notice of
                                    resignation or withdrawal. Company benefits
                                    set forth in Section IV (f) shall be
                                    terminated at the end of the calendar month
                                    next following the date of notice of
                                    resignation or withdrawal. All rights to
                                    stock options, bonuses or deferred
                                    compensation not granted or vested shall be
                                    forfeited.

              g.  Death or Disability. In the event Andrus' employment is
                  terminated by death or upon medical certification of total
                  disability ("disability"), then the following will apply in
                  that respective event:

                           i.       In the event of Andrus' death, the Company
                                    shall:

                                    Pay to Andrus' estate an amount equal to
                           Andrus' base salary for a three-month period
                           following his death;
                                    Grant to Andrus' estate the fully vesting of
                           his Incentive Stock Bonus;
                                    Pay to Andrus' estate an amount equal to the
                           bonus Andrus would have received for the next two
                           quarters following termination;
                                    Continue providing the medical and dental
                           benefits to Andrus' survivors (to the extent
                           applicable) for a period of one year.

                           iii.     In the event of Andrus' disability, the
                                    Company shall:

                                    Pay to Andrus' estate an amount equal to
                           Andrus' base salary for a three-month period
                           following his disability;
                                    Grant to Andrus fully vesting of his
                           Incentive Stock Bonus;

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<PAGE>

                                    Pay to Andrus an amount equal to the bonus
                           Andrus would have received for the next two quarters
                           following termination;
                                    Continue providing the medical and dental
                           benefits to Andrus for a period of two years.

         XI.      RESTRICTIVE COVENANTS

                  a.       Confidential Information. Andrus covenants not to
                           disclose the following specified confidential
                           information to competitors or to others outside of
                           the scope of reasonably prudent business disclosure,
                           at any time during or after the termination of his
                           employment by the Company.

                           i.       Customer lists, contracts, and other sales
                                    and marketing information;
                           ii.      Financial information, cost data;
                           iii.     Formulas, trade secrets, processes and
                                    devices related to the product and its
                                    manufacture;
                           iv.      Supply sources, contracts;
                           v.       Business opportunities for the product or
                                    new developing business for the Company;
                           vi.      Proprietary plans, models and other
                                    proprietary information of the Company.

                  b.       Affirmative Duty to Disclose. Andrus shall promptly
                           communicate and disclose to the Company all
                           observations made, information received, and data
                           maintained relating to the business of the Company
                           obtained by him as a consequence of his employment by
                           the Company. All written material, possession during
                           his employment with the Company concerning business
                           affairs of the Company or any of its affiliates, are
                           the sole property of the Company and its affiliates,
                           and Andrus is obligated to make reasonably prompt
                           disclosures of such information and documents to the
                           Company, and, further, upon termination of this
                           Agreement, or upon request of the Company, Andrus
                           shall promptly deliver the same to the Company of its
                           affiliates, and shall not retain any copies of same.

                  c.       Covenant Not to Compete. For a period of three (3)
                           years following the termination of his employment
                           with the Company, Andrus shall not work, directly or
                           indirectly, for a competitor of the Company, nor
                           shall he himself establish a competitive business.
                           This restrictive covenant shall apply worldwide but
                           shall be limited to businesses that use diatomaceous
                           earth and/or pyrethrum in any of its products which
                           they manufacture, distribute, sell, market or
                           otherwise promote.

                  d.       Material Harm Upon Breach. The parties acknowledge
                           the unique and secret nature of the Company's
                           formulas for the composition of its DE-based products
                           and related proprietary information, and that
                           material irreparable harm occurs to the Company if
                           these restrictive covenants are breached. Further,
                           the parties hereto acknowledge and agree that
                           injunctive relief is not an exclusive remedy and that
                           an election on the part of the Company to obtain an
                           injunction does not preclude other remedies available
                           to the Company.

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<PAGE>

                  e.       Arbitration. Any controversy, claims, or matter in
                           dispute occurring between these parties and arising
                           out of or relating to this Agreement shall be
                           submitted by either or both of the parties to
                           arbitration administered by the American Arbitration
                           Association or its successor and said arbitration
                           shall be final and absolute. The Commercial
                           Arbitration Rules of the American Arbitration
                           Association shall apply subject to the following
                           modifications:

                           i.       The venue for said arbitration shall be Salt
                                    Lake City, Utah, and the laws of the State
                                    of Utah regarding arbitration shall apply to
                                    said arbitration.
                           ii.      The decision of the arbitration panel may be
                                    entered as a judgment in any court of the
                                    general jurisdiction in any state of the
                                    United States or elsewhere.

         XII.     NOTICE. Except as otherwise provided herein, all notices
                  required by this Agreement as well as any other notice to any
                  party hereto shall be given by certified mail (or equivalent),
                  to the respective parties as required under this Agreement or
                  otherwise, to the following addresses indicated below or to
                  any change of address given by a party to the others pursuant
                  to the written notice.

                  COMPANY:                    Diatect International, Inc.
                                              875 S. Industrial Parkway
                                              Heber City, UT 84032

                  ANDRUS:                     David Andrus
                                              1248 S. Pangea Cir
                                              Heber City, UT 84032

         XIII.    GENERAL PROVISIONS

                  a.       Entire Agreement. This Agreement constitutes and is
                           the entire Agreement of the parties and supersedes
                           all other prior understandings and/or Agreements
                           between the parties regarding the matters herein
                           contained, whether verbal or written.

                  b.       Amendments. This Agreement may be amended only in
                           writing signed by both parties.

                  c.       Assignment. No party of this Agreement shall be
                           entitled to assign his or its interest herein without
                           the prior written approval of the other party.

                  d.       Execution of Other Documents. Each of the parties
                           agree to execute any other documents reasonably
                           required to fully perform the intention of this
                           Agreement.

                  e.       Binding Effect. This Agreement shall inure to and be
                           binding upon the parties hereto, their agents,
                           employees, heirs, personal representatives,
                           successors and assigns.

                  f.       No Waiver of Future Breach. The failure of one party
                           to insist upon strict performance or observation of
                           this Agreement shall not be a waiver of any future
                           breach or of any terms or conditions to this
                           Agreement.

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<PAGE>

                  g.       Execution of Multiple Originals. Two (2) original
                           counterparts of this Agreement shall be executed by
                           these parties.

                  h.       Governing Law. This Agreement shall be governed and
                           interpreted by the laws of the State of Utah.

                  i.       Severability. In the event any provision or section
                           of this Agreement conflicts with the applicable law,
                           such conflict shall not affect the provisions of the
                           Agreement with can be given effect without the
                           conflicting provisions.

WHEREFORE, this Agreement is hereby executed and made effective day and year
first above written.

         COMPANY                                     DIATECT INTERNATIONAL, INC.

                                                     BY /s/ John L. Runft
                                                       -------------------------
                                                       John Runft, On behalf of
                                                       the Board of Directors

         ANDRUS                                        /s/ David Andrus
                                                       -------------------------
                                                       David Andrus

         ATTEST:

         /s/ Margie Humphries
         --------------------------------------
         Margie Humphries, Corporate Secretary

                                       9Exhibit 10.1

Exhibit
10.1

 

INDEMNIFICATION
AGREEMENT

 

THIS
INDEMNIFICATION AGREEMENT is made and entered into this ____ day of __________,
200__ ("Agreement"), by and between Equity One, Inc., a Maryland corporation
(the "Company"), and     
("Indemnitee").

 

WHEREAS,
at the request of the Company, Indemnitee currently serves as a [director] [officer] of the
Company and may, therefore, be subjected to claims, suits or proceedings arising
as a result of his service; and

 

WHEREAS,
as an inducement to Indemnitee to continue to serve as such [director] [officer], the
Company has agreed to indemnify and to advance expenses and costs incurred by
Indemnitee in connection with any such claims, suits or proceedings, to the
maximum extent permitted by law; and

 

WHEREAS,
the parties by this Agreement desire to set forth their agreement regarding
indemnification and advance of expenses;

 

NOW,
THEREFORE, in consideration of the premises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as follows:

 

Section
1.  Definitions. For
purposes of this Agreement:

 

(a)  "Change
in Control" means a change in control of the Company occurring after the
Effective Date of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item
on any similar schedule or form) promulgated under the Securities Exchange Act
of 1934, as amended (the "Act"), whether or not the Company is then subject to
such reporting requirement; provided, however, that, without limitation, such a
Change in Control shall be deemed to have occurred if after the Effective Date
(i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Act)
is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Act),
directly or indirectly, of securities of the Company representing 15% or more of
the combined voting power of the Company's then outstanding securities without
the prior approval of at least two-thirds of the members of the Board of
Directors in office immediately prior to such person attaining such percentage
interest; (ii) there occurs a proxy contest, or the Company is a party to a
merger, consolidation, sale of assets, plan of liquidation or other
reorganization not approved by at least two-thirds of the members of the Board
of Directors then in office, as a consequence of which members of the Board of
Directors in office immediately prior to such transaction or event constitute
less than a majority of the Board of Directors thereafter; or (iii) during any
period of two consecutive years, other than as a result of an event described in
clause (a)(ii) of this Section 1, individuals who at the beginning of such
period constituted the Board of Directors (including for this purpose any new
director whose election or nomination for election by the Company's stockholders
was approved by a vote of at least two-thirds of the directors then still in
office who were directors at the beginning of such period) cease for any reason
to constitute at least a majority of the Board of Directors.

 

 

1

 

 

(b)  "Corporate
Status" means the status of a person who is or was a director, trustee, officer,
employee or agent of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise for which such person
is or was serving at the request of the Company.

 

(c)  "Disinterested
Director" means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by
Indemnitee.

 

(d)  "Effective
Date" means the date set forth in the first paragraph of this
Agreement.

 

(e)  "Expenses"
shall include all reasonable and out-of-pocket attorneys' fees, retainers, court
costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage,
delivery service fees, and all other disbursements or expenses of the types
customarily incurred in connection with prosecuting, defending, preparing to
prosecute or defend, investigating, or being or preparing to be a witness in a
Proceeding. 

 

(f)  
"Independent Counsel" means a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither is, nor in the past five
years has been, retained to represent: (i) the Company or Indemnitee in any
matter material to either such party, or (ii) any other party to or witness in
the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term "Independent Counsel" shall not include
any person who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing either the Company
or Indemnitee in an action to determine Indemnitee's rights under this
Agreement. If a Change of Control has not occurred, Independent Counsel shall be
selected by the Board of Directors, with the approval of Indemnitee, which
approval will not be unreasonably withheld. If a Change of Control has occurred,
Independent Counsel shall be selected by Indemnitee, with the approval of the
Board of Directors, which approval will not be unreasonably withheld.

 

(g)  "Proceeding"
includes any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, administrative hearing or
any other proceeding, whether civil, criminal, administrative or investigative
(including on appeal), except one pending or completed on or before the
Effective Date, unless otherwise specifically agreed in writing by the Company
and Indemnitee.

 

Section
2.  Services
by Indemnitee.
Indemnitee will serve as a [director] [officer] of the
Company. However, this Agreement shall not impose any obligation on Indemnitee
or the Company to continue Indemnitee’s service to the Company beyond any period
otherwise required by law or by other agreements or commitments of the parties,
if any.

 

Section
3.  Indemnification
- General. The
Company shall indemnify, and advance Expenses to, Indemnitee (a) as provided in
this Agreement and (b) otherwise to the maximum extent permitted by Maryland law
in effect on the date hereof and as amended from time to time; provided,
however, that no change in Maryland law shall have the effect of reducing the
benefits available to Indemnitee hereunder based on Maryland law as in effect on
the date hereof. The rights of Indemnitee provided in this Section 3 shall
include, without limitation, the rights set forth in the other sections of this
Agreement, including any additional indemnification permitted by Section
2-418(g) of the Maryland General Corporation Law (“MGCL”).

 

2

 

Section
4.  Proceedings
Other Than Proceedings by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this
Section 4 if, by reason of his Corporate Status, he is, or is threatened to be,
made a party to or a witness in any threatened, pending, or completed
Proceeding, other than a Proceeding by or in the right of the Company. Pursuant
to this Section 4, Indemnitee shall be indemnified against all judgments,
penalties, fines and amounts paid in settlement and all Expenses actually and
reasonably incurred by him or on his behalf in connection with a Proceeding by
reason of his Corporate Status unless it is established that (i) the act or
omission of Indemnitee was material to the matter giving rise to the Proceeding
and (a) was committed in bad faith or (b) was the result of active and
deliberate dishonesty, (ii) Indemnitee actually received an improper personal
benefit in money, property or services, or (iii) in the case of any criminal
Proceeding, Indemnitee had reasonable cause to believe that his conduct was
unlawful.

 

Section
5.  Proceedings
by or in the Right of the Company.
Indemnitee shall be entitled to the rights of indemnification provided in this
Section 5 if, by reason of his Corporate Status, he is, or is threatened to be,
made a party to or a witness in any threatened, pending or completed Proceeding
brought by or in the right of the Company to procure a judgment in its favor.
Pursuant to this Section 5, Indemnitee shall be indemnified against all amounts
paid in settlement and all Expenses actually and reasonably incurred by him or
on his behalf in connection with such Proceeding unless it is established that
(i) the act or omission of Indemnitee was material to the matter giving rise to
such a Proceeding and (a) was committed in bad faith or (b) was the result of
active and deliberate dishonesty or (ii) Indemnitee actually received an
improper personal benefit in money, property or services.

 

Section
6.  Court-Ordered
Indemnification.
Notwithstanding any other provision of this Agreement, a court of appropriate
jurisdiction, upon application of Indemnitee and such notice as the court shall
require, may order indemnification in the following circumstances:

 

(a)  if it
determines Indemnitee is entitled to reimbursement under Section 2-418(d)(1) of
the MGCL, the court shall order indemnification, in which case Indemnitee shall
be entitled to recover the expenses of securing such reimbursement;
or

 

(b)  if it
determines that Indemnitee is fairly and reasonably entitled to indemnification
in view of all the relevant circumstances, whether or not Indemnitee
(i) has met the standards of conduct set forth in Section 2-418(b) of the
MGCL or (ii) has been adjudged liable for receipt of an improper personal
benefit under Section 2-418(c) of the MGCL, the court may order such
indemnification as the court shall deem proper. However, indemnification with
respect to any Proceeding by or in the right of the Company or in which
liability shall have been adjudged in the circumstances described in
Section 2-418(c) of the MGCL shall be limited to Expenses actually and
reasonably incurred by him or on his behalf in connection with a
Proceeding.

 

3

 

Section
7.  Indemnification
for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, and without limiting any
such provision, to the extent that Indemnitee is, by reason of his Corporate
Status, made a party to and is successful, on the merits or otherwise, in the
defense of any Proceeding, he shall be indemnified for all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith. If
Indemnitee is not wholly successful in such Proceeding but is successful, on the
merits or otherwise, as to one or more but less than all claims, issues or
matters in such Proceeding, the Company shall indemnify Indemnitee under this
Section 7 for all Expenses actually and reasonably incurred by him or on his
behalf in connection with each successfully resolved claim, issue or matter,
allocated on a reasonable and proportionate basis. For purposes of this Section
and without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

Section8.  Advance
of Expenses. The
Company shall advance all reasonable Expenses actually and reasonably incurred
by or on behalf of Indemnitee in connection with any Proceeding (other than a
Proceeding brought to enforce indemnification under this Agreement, applicable
law, the Charter or Bylaws of the Company, any agreement or a resolution of the
stockholders entitled to vote generally in the election of directors or of the
Board of Directors) to which Indemnitee is, or is threatened to be, made a party
or a witness, within ten days after the receipt by the Company of a statement or
statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding. Such
statement or statements shall reasonably evidence the Expenses incurred by
Indemnitee and shall include or be preceded or accompanied by a written
affirmation by Indemnitee of Indemnitee's good faith belief that the standard of
conduct necessary for indemnification by the Company as authorized by law and by
this Agreement has been met and a written undertaking by or on behalf of
Indemnitee, in substantially the form attached hereto as Exhibit
A or in
such form as may be required under applicable law as in effect at the time of
the execution thereof, to reimburse the portion of any Expenses advanced to
Indemnitee relating to claims, issues or matters in the Proceeding as to which
it shall ultimately be established that the standard of conduct has not been met
and which have not been successfully resolved as described in Section 7. To the
extent that Expenses advanced to Indemnitee do not relate to a specific claim,
issue or matter in the Proceeding, such Expenses shall be allocated on a
reasonable and proportionate basis. The undertaking required by this Section 8
shall be an unlimited general obligation by or on behalf of Indemnitee and shall
be accepted without reference to Indemnitee’s financial ability to repay such
advanced Expenses and without any requirement to post security
therefor.

 

Section
9.  Procedure
for Determination of Entitlement to Indemnification.

 

(a)  To obtain
indemnification under this Agreement, Indemnitee shall submit to the Company a
written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary
to determine whether and to what extent Indemnitee is entitled to
indemnification. The Secretary of the Company shall, promptly upon receipt of
such a request for indemnification, advise the Board of Directors in writing
that Indemnitee has requested indemnification.

 

4

(a)  Upon
written request by Indemnitee for indemnification pursuant to the first sentence
of Section 9(a) hereof, a determination, if required by applicable law, with
respect to Indemnitee's entitlement thereto shall promptly be made in the
specific case: (i) if a Change in Control shall have occurred, by Independent
Counsel in a written opinion to the Board of Directors, a copy of which shall be
delivered to Indemnitee; or (ii) if a Change of Control shall not have occurred,
(A) by the Board of Directors (or a duly authorized committee thereof) by a
majority vote of a quorum consisting of Disinterested Directors (as herein
defined), or (B) if a quorum of the Board of Directors consisting of
Disinterested Directors is not obtainable or, even if obtainable, such quorum of
Disinterested Directors so directs, by Independent Counsel in a written opinion
to the Board of Directors, a copy of which shall be delivered to Indemnitee, or
(C) if so directed by a majority of the members of the Board of Directors, by
the stockholders of the Company. If it is so determined that Indemnitee is
entitled to indemnification, payment to Indemnitee shall be made within ten days
after such determination. Indemnitee shall cooperate with the person, persons or
entity making such determination with respect to Indemnitee's entitlement to
indemnification, including providing to such person, persons or entity upon
reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination in the
discretion of the Board of Directors or Independent Counsel if retained pursuant
to clause (ii)(B) of this Section 9. Any Expenses actually and reasonably
incurred by Indemnitee in so cooperating with the person, persons or entity
making such determination shall be borne by the Company (irrespective of the
determination as to Indemnitee's entitlement to indemnification) and the Company
shall indemnify and hold Indemnitee harmless therefrom.

 

Section
10.  Presumptions
and Effect of Certain Proceedings.

 

(a)  In making
a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that
Indemnitee is entitled to indemnification under this Agreement if Indemnitee has
submitted a request for indemnification in accordance with Section 9(a) of this
Agreement, and the Company shall have the burden of proof to overcome that
presumption in connection with the making of any determination contrary to that
presumption.

 

(b)  The
termination of any Proceeding by judgment, order, settlement, conviction, a plea
of nolo contendere or its
equivalent, or an entry of an order of probation prior to judgment, does not
create a presumption that Indemnitee did not meet the requisite standard of
conduct described herein for indemnification.

 

Section
11.  Remedies
of Indemnitee.

 

(a)  If (i) a
determination is made pursuant to Section 9 of this Agreement that Indemnitee is
not entitled to indemnification under this Agreement, (ii) advance of Expenses
is not timely made pursuant to Section 8 of this Agreement, (iii) no
determination of entitlement to indemnification shall have been made pursuant to
Section 9(b) of this Agreement within 90 days after receipt by the Company of
the request for indemnification, (iv) payment of indemnification is not made
pursuant to Section 7 of this Agreement within ten days after receipt by the
Company of a written request therefor, or (v) payment of indemnification is not
made within ten days after a determination has been made that Indemnitee is
entitled to indemnification, Indemnitee shall be entitled to an adjudication in
an appropriate court located in the State of Maryland, or in any other court of
competent jurisdiction, of his entitlement to such indemnification or advance of
Expenses. Alternatively, Indemnitee, at his option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the commercial
Arbitration Rules of the American Arbitration Association. Indemnitee shall
commence such proceeding seeking an adjudication or an award in arbitration
within 180 days following the date on which Indemnitee first has the right to
commence such proceeding pursuant to this Section 11(a); provided, however, that
the foregoing clause shall not apply to a proceeding brought by Indemnitee to
enforce his rights under Section 7 of this Agreement.

 

5

(b)  In any
judicial proceeding or arbitration commenced pursuant to this Section 11 the
Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advance of Expenses, as the case may be.

 

(c)  If a
determination shall have been made pursuant to Section 9(b) of this Agreement
that Indemnitee is entitled to indemnification, the Company shall be bound by
such determination in any judicial proceeding or arbitration commenced pursuant
to this Section 11, absent a misstatement by Indemnitee of a material fact, or
an omission of a material fact necessary to make Indemnitee's statement not
materially misleading, in connection with the request for
indemnification.

 

(d)  In the
event that Indemnitee, pursuant to this Section 11, seeks a judicial
adjudication of or an award in arbitration to enforce his rights under, or to
recover damages for breach of, this Agreement, Indemnitee shall be entitled to
recover from the Company, and shall be indemnified by the Company for, any and
all Expenses actually and reasonably incurred by him in such judicial
adjudication or arbitration. If it shall be determined in such judicial
adjudication or arbitration that Indemnitee is entitled to receive part but not
all of the indemnification or advance of Expenses sought, the Expenses incurred
by Indemnitee in connection with such judicial adjudication or arbitration shall
be appropriately prorated.

 

Section
12.  Defense
of the Underlying Proceeding.

 

(a)  Indemnitee
shall notify the Company promptly upon being served with or receiving any
summons, citation, subpoena, complaint, indictment, information, notice, request
or other document relating to any Proceeding which may result in the right to
indemnification or the advance of Expenses hereunder; provided, however, that
the failure to give any such notice shall not disqualify Indemnitee from the
right, or otherwise affect in any manner any right of Indemnitee, to
indemnification or the advance of Expenses under this Agreement unless the
Company’s ability to defend in such Proceeding or to obtain proceeds under any
insurance policy is materially and adversely prejudiced thereby, and then only
to the extent the Company is thereby actually so prejudiced.

 

(b)  Subject
to the provisions of the last sentence of this Section 12(b) and of Section
12(c) below, the Company shall have the right to defend Indemnitee in any
Proceeding which may give rise to indemnification hereunder; provided, however,
that the Company shall notify Indemnitee of any such decision to defend within
15 calendar days following receipt of notice of any such Proceeding under
Section 12(a) above. The Company shall not, without the prior written consent of
Indemnitee, which shall not be unreasonably withheld or delayed, consent to the
entry of any judgment against Indemnitee or enter into any settlement or
compromise which (i) includes an admission of fault of Indemnitee or (ii) does
not include, as an unconditional term thereof, the full release of Indemnitee
from all liability in respect of such Proceeding, which release shall be in form
and substance reasonably satisfactory to Indemnitee. This Section 12(b) shall
not apply to a Proceeding brought by Indemnitee under Section 11 above or
Section 18 below.

 

6

 

(b)  Notwithstanding
the provisions of Section 12(b) above, if in a Proceeding to which Indemnitee is
a party by reason of Indemnitee’s Corporate Status, (i) Indemnitee reasonably
concludes, based upon an opinion of counsel approved by the Company, which
approval shall not be unreasonably withheld, that he may have separate defenses
or counterclaims to assert with respect to any issue which may not be consistent
with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes,
based upon an opinion of counsel approved by the Company, which approval shall
not be unreasonably withheld, that an actual or apparent conflict of interest or
potential conflict of interest exists between Indemnitee and the Company, or
(iii) if the Company fails to assume the defense of such Proceeding in a timely
manner, Indemnitee shall be entitled to be represented by separate legal counsel
of Indemnitee’s choice, subject to the prior approval of the Company, which
shall not be unreasonably withheld, at the expense of the Company. In addition,
if the Company fails to comply with any of its obligations under this Agreement
or in the event that the Company or any other person takes any action to declare
this Agreement void or unenforceable, or institutes any Proceeding to deny or to
recover from Indemnitee the benefits intended to be provided to Indemnitee
hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s
choice, subject to the prior approval of the Company, which shall not be
unreasonably withheld, at the expense of the Company (subject to Section 11(d)),
to represent Indemnitee in connection with any such matter.

 

Section
13.  Non-Exclusivity;
Survival of Rights; Subrogation; Insurance.

 

(a)  The
rights of indemnification and advance of Expenses as provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may at any
time be entitled under applicable law, the Charter or Bylaws of the Company, any
agreement or a resolution of the stockholders entitled to vote generally in the
election of directors or of the Board of Directors, or otherwise. No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit or
restrict any right of Indemnitee under this Agreement in respect of any action
taken or omitted by such Indemnitee in his Corporate Status prior to such
amendment, alteration or repeal.

 

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

 

7

 

Section
14.   Insurance.
The
Company will use its reasonable best efforts to acquire directors and officers
liability insurance, on terms and conditions deemed appropriate by the Board of
Directors of the Company, with the advice of counsel, covering Indemnitee or any
claim made against Indemnitee for service as a director or officer of the
Company and covering the Company for any indemnification or advance of Expenses
made by the Company to Indemnitee for any claims made against Indemnitee for
service as a director or officer of the Company. Without in any way limiting any
other obligation under this Agreement, the Company shall indemnify Indemnitee
for any payment by Indemnitee arising out of the amount of any deductible or
retention and the amount of any excess of the aggregate of all judgments,
penalties, fines, settlements and reasonable Expenses actually and reasonably
incurred by Indemnitee in connection with a Proceeding over the coverage of any
insurance referred to in the previous sentence.

 

Section
15.  Indemnification
for Expenses of a Witness.
Notwithstanding any other provision of this Agreement, to the extent that
Indemnitee is or may be, by reason of his Corporate Status, a witness in any
Proceeding, whether instituted by the Company or any other party, and to which
Indemnitee is not a party but in which the Indemnitee receives a subpoena to
testify, he shall be advanced all reasonable Expenses and indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in
connection therewith.

 

Section
16.  Duration
of Agreement; Binding Effect.

 

(a)  This
Agreement shall continue until and terminate ten years after the date that
Indemnitee's Corporate Status shall have ceased; provided, that the rights of
Indemnitee hereunder shall continue until the final termination of any
Proceeding then pending in respect of which Indemnitee is granted rights of
indemnification or advance of Expenses hereunder and of any proceeding commenced
by Indemnitee pursuant to Section 11 of this Agreement relating
thereto.

 

(b)  The
indemnification and advance of Expenses provided by, or granted pursuant to,
this Agreement shall be binding upon and be enforceable by the parties hereto
and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Company), shall continue as
to an Indemnitee who has ceased to be a director, trustee, officer, employee or
agent of the Company or of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise which such person is or was
serving at the written request of the Company, and shall inure to the benefit of
Indemnitee and his spouse, assigns, heirs, devisees, executors and
administrators and other legal representatives.

 

(c)  The
Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a
substantial part, of the business and/or assets of the Company, by written
agreement in form and substance satisfactory to Indemnitee, expressly to assume
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken
place.

 

8

 

Section
17.  Severability. If any
provision or provisions of this Agreement shall be held to be invalid, illegal
or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without
limitation, each portion of any section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable that is not itself
invalid, illegal or unenforceable) shall not in any way be affected or impaired
thereby; and (b) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, each portion of any section of this
Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifested thereby.

 

Section
18.  Exception
to Right of Indemnification or Advance of Expenses.
Notwithstanding any other provision of this Agreement, Indemnitee shall not be
entitled to indemnification or advance of Expenses under this Agreement with
respect to any Proceeding brought by Indemnitee, unless (a) the Proceeding is
brought to enforce indemnification under this Agreement, and then only to the
extent in accordance with and as authorized by Sections 8 and 11 of this
Agreement, or (b) the Company’s Bylaws, as amended, the Charter, a resolution of
the stockholders entitled to vote generally in the election of directors or of
the Board of Directors or an agreement approved by the Board of Directors to
which the Company is a party expressly provide otherwise.

 

Section
19.  Identical
Counterparts. This
Agreement may be executed in one or more counterparts, each of which shall for
all purposes be deemed to be an original but all of which together shall
constitute one and the same Agreement. One such counterpart signed by the party
against whom enforceability is sought shall be sufficient to evidence the
existence of this Agreement.

 

Section
20.  Headings. The
headings of the paragraphs of this Agreement are inserted for convenience only
and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

 

Section
21.  Modification
and Waiver. No
supplement, modification or amendment of this Agreement shall be binding unless
executed in writing by both of the parties hereto. No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of any
other provisions hereof (whether or not similar) nor shall such waiver
constitute a continuing waiver.

 

Section
22.  Notices. All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if (i) delivered by hand and
receipted for by the party to whom said notice or other communication shall have
been directed, or (ii) mailed by certified or registered mail with postage
prepaid, on the third business day after the date on which it is so
mailed:

 

9

 

(a)  If to
Indemnitee, to: The address set forth on the signature page hereto.

 

(b)  If to the
Company to:

 

Equity
One, Inc. 

1696 N.E.
Miami Gardens Drive

North
Miami Beach, Florida 33179

Attn:
General Counsel

or to
such other address as may have been furnished to Indemnitee by the Company or to
the Company by Indemnitee, as the case may be.

Section
23.  Governing
Law. The
parties agree that this Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Maryland, without regard
to its conflicts of laws rules.

 

Section
24.  Miscellaneous. Use of
the masculine pronoun shall be deemed to include usage of the feminine pronoun
where appropriate.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

10

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

ATTEST:                                                        
EQUITY ONE, INC.

 

 

_________________________                     
By:  ___________________________ (SEAL)

Name:

Title:

 

 

WITNESS:                                                     
INDEMNITEE

 

 

_________________________                     
____________________________________

Name:

Address:

 

 

 

 

 

 

11

 

EXHIBIT
A

FORM OF
UNDERTAKING TO REPAY EXPENSES ADVANCED

The Board of Directors of Equity One, Inc.

 

Re:  Undertaking to Repay Expenses
Advanced

 

Ladies and Gentlemen:

 

This undertaking is being provided pursuant to
that certain Indemnification Agreement dated the ___ day of ______________,
200__, by and between Equity One, Inc. (the "Company") and the undersigned
Indemnitee (the "Indemnification Agreement"), pursuant to which I am entitled to
advance of expenses in connection with [Description of Proceeding] (the
"Proceeding").

Terms used herein and not otherwise defined
shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of my
Corporate Status or by reason of alleged actions or omissions by me in such
capacity.  I hereby affirm that at all times, insofar as I was involved as
[a director] [an officer] of the Company, in any of the facts or
events giving rise to the Proceeding, I (1) acted in good faith and honestly,
(2) did not receive any improper personal benefit in money, property or services
and (3) in the case of any criminal proceeding, had no reasonable cause to
believe that any act or omission by me was unlawful.

In consideration of the advance of Expenses by
the Company for reasonable attorneys' fees and related expenses incurred by me
in connection with the Proceeding (the "Advanced Expenses"), I hereby agree that
if, in connection with the Proceeding, it is established that (1) an act or
omission by me was material to the matter giving rise to the Proceeding and (a)
was committed in bad faith or (b) was the result of active and deliberate
dishonesty or (2) I actually received an improper personal benefit in money,
property or services or (3) in the case of any criminal proceeding, I had
reasonable cause to believe that the act or omission was unlawful, then I shall
promptly reimburse the portion of the Advanced Expenses relating to the claims,
issues or matters in the Proceeding as to which the foregoing findings have been
established and which have not been successfully resolved as described in
Section 7 of the Indemnification Agreement.  To the extent that Advanced
Expenses do not relate to a specific claim, issue or matter in the Proceeding, I
agree that such Expenses shall be allocated on a reasonable and proportionate
basis.  

           
IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this
___ day of ____________________, 200__.

 

 

WITNESS:

____________________________                           
_____________________________(SEAL)

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