Document:

EXHIBIT 10.20

 

INDEMNITY
AGREEMENT

 

THIS AGREEMENT is made this       day
of                       ,
2005, between INVESTools Inc., a Delaware corporation (“Company”), and                                                  (“Indemnitee”).

 

WHEREAS,
the Company and Indemnitee desire that Indemnitee continue to serve as a
director and/or officer of the Company; and

 

WHEREAS, the Company desires and intends hereby to
provide indemnification (including advancement of expenses) against any and all
liabilities asserted against Indemnitee to the fullest extent permitted by the
General Corporation Law of the State of Delaware.

 

NOW, THEREFORE, for and in consideration of the
premises, the mutual promises hereinafter set forth, the reliance of the
Indemnitee hereon in continuing to serve the Company in [his/her] present
capacity and in undertaking to serve the Company in any additional capacity or
capacities, the Company and the Indemnitee agree as follows:

 

1.                                       Continued
Service.  Indemnitee will
continue to serve, at the will of the Company and under separate contract, if
such exists, as a director and/or an officer so long as [he/she] is duly
elected and qualified in accordance with the Bylaws of the Company or until
[he/she] tenders [his/her] resignation.

 

2.                                       Indemnification.  The Company shall indemnify Indemnitee as
follows:

 

(a)                                  The Company shall indemnify and
advance Expenses (as defined in Section 7(d)) to Indemnitee to the fullest
extent, and only to the extent, permitted by applicable law in effect on the
date of this Agreement or by any amendment thereof or other statutory
provisions expressly permitting such indemnification which is adopted after the
date hereof (but, in the case of any such amendment, only to the extent that
such amendment permits the Company to provide broader indemnification rights
than said law required or permitted the Company to provide prior to such
amendment).  The rights of Indemnitee
provided under the preceding sentence shall include, but shall not be limited
to, the rights set forth in the other paragraphs of this Section 2 or any
other Sections of this Agreement.

 

(b)                                 The Company shall indemnify
Indemnitee when [he/she] is a party or is threatened to be made a party to any
threatened, pending or completed Proceeding (other than a Proceeding by or in
the right of the Company) by reason of [his/her] Corporate Status (as defined
in Section 7(b)) against expenses, judgments, awards, penalties, fines and
amounts paid in settlements actually and reasonably incurred by [him/her] or on
[his/her] behalf in connection with such Proceeding or any claim, issue or
matter therein if [he/she] acted in good faith and in a manner [he/she]
reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal Proceeding had no reasonable cause
to believe [his/her] conduct was unlawful. 
The termination of any Proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent, shall not, of
itself, create a presumption that Indemnitee (i) did not act in good faith and
in a manner which [he/she] reasonably believed to be in or not opposed to the
best interests of the Company, or (ii), with respect to any criminal
Proceeding, had reasonable cause to believe that [his/her] conduct was
unlawful.

 

 

(c)                                  The Company shall indemnify
Indemnitee when [he/she] is a party or is threatened to be made a party to any
threatened, pending or completed Proceeding by or in the right of the Company
to procure a judgment in its favor by reason of the fact of [his/her] Corporate
Status against expenses actually and reasonably incurred by [him/her] or on
[his/her] behalf in connection with such Proceeding if [he/she] acted in good
faith and in a manner [he/she] reasonably believed to be in or not opposed to
the best interests of the Company and except that no indemnification shall be
made in respect of any claim, issue or matter as to which Indemnitee shall have
been adjudged to be liable to the Company unless and only to the extent that
the Court of Chancery of the State of Delaware or the court in which such
Proceeding was brought shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of the case,
Indemnitee is fairly and reasonably entitled to indemnification for such
expenses which the Court of Chancery of the State of Delaware or such other
court shall deem proper.

 

(d)                                 Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of
[his/her] Corporate Status, a party to and is successful, on the merits or
otherwise, in any Proceeding, [he/she] shall be indemnified against all
Expenses actually and reasonably incurred by [him/her] or on [his/her] 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 against all Expenses
actually and reasonably incurred by [him/her] or on [his/her] behalf in
connection with each successfully resolved claim, issue or matter.  For the purposes of this paragraph (d) of
this Section 2 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.

 

(e)                                  In the event the indemnity
contained in paragraphs (b), (c) or (d) of this Section 2 is unavailable
or insufficient to hold Indemnitee harmless in a Proceeding described therein,
then in accordance with the non-exclusivity provisions of the Delaware General
Corporation law and the Certificate and Bylaws, and separate from and in
addition to, the indemnity provided elsewhere herein, the Company shall
contribute to Expenses, judgments, penalties, fines and amounts paid in
settlement actually and reasonably incurred by or on behalf of Indemnitee in
connection with such Proceeding or any claim, issue or matter therein, in such
proportion as appropriately reflects the relative benefits received by, and
fault of, the Company on the one hand and the Indemnitee on the other in the
acts, transactions or matters to which the Proceeding relates and other
equitable considerations.

 

(f)                                    The termination of any
Proceeding described in paragraphs (b), (c) or (d) of this Section 2, or
of any claim, issue or matter therein, by judgment, order, settlement or
conviction, or upon a plea of nolo contendere or its equivalent, shall not of
itself adversely affect the right of Indemnitee to indemnification or create a
presumption (i) that Indemnitee did not act in good faith and in a manner which
[he/she] reasonably believed to be in or not opposed to the best interests of
the Company or, (ii) with respect to any criminal Proceeding, that Indemnitee
had reasonable cause to believe that [his/her] conduct was unlawful.

 

(g)                                 Any indemnification under
paragraphs (b), (c), (d) or (e) of this Section 2 (unless ordered by a
court) shall be made by the Company only as authorized in the specific case
upon a determination (in accordance with Section 3 hereof) that
indemnification of Indemnitee is proper in the circumstances because [he/she]
has met the applicable standard of conduct set forth in paragraphs (b), (c),
(d) or (e) of this Section 2.  If
there has not been a Change in Control (as defined in Section 7(a)), such
determination shall be made (1) by a majority vote of Disinterested Directors
(as hereinafter defined), even though less than a quorum, or (2) if there are no
such directors, or if such directors so direct, in a

 

2

 

written opinion by Independent Legal
Counsel (as defined in Section 7(f)) selected by the Company and approved
by the Indemnitee (which approval shall not be unreasonably withheld), or (3)
by the stockholders.  If there has been a
Change in Control, such determination shall be made in a written opinion by
Independent Legal Counsel selected by Indemnitee and approved by the Company
(which approval shall not be unreasonably withheld).  Notwithstanding the foregoing, if with regard
to paragraph (e) of this Section 2, any such determination is not
permitted by law or if a quorum of Disinterested Directors so direct, such
determination shall be made by the Chancery Court of the State of Delaware or
the court in which the Proceeding giving rise to the claim for indemnification
is brought.

 

(h)                                 Expenses incurred by Indemnitee
in defending a Proceeding shall be paid by the Company in advance of the final
disposition of such Proceeding as authorized (in accordance with Section 4
hereof) by the board of directors in the specific case upon receipt of an
undertaking by or on behalf of Indemnitee to repay such amount if it is
ultimately determined that [he/she] is not entitled to be indemnified by the
Company under this Agreement or otherwise.

 

(i)                                     The indemnification and
advancement of Expenses provided by this Agreement shall not be deemed
exclusive of any other rights to which Indemnitee may be entitled under any
statute, bylaw, insurance policy, agreement, judicial determination, vote of
stockholders or disinterested directors or otherwise, both as to action in
[his/her] Corporate Status and as to action in another capacity while holding a
Corporate Status, and shall continue after Indemnitee has ceased to be a
director, officer, employee or agent, shall continue for so long as Indemnitee
shall be or could become subject to any possible Proceeding in respect of which
Indemnitee is granted rights of indemnification or advancement of Expenses
under this Agreement, and shall inure to the benefit of [his/her] heirs,
executors and administrators.

 

(j)                                     The Company will indemnify the
Indemnitee’s spouse to whom the Indemnitee is legally married at any time the
Indemnitee is covered under the indemnification provided in this Agreement
(even if the Indemnitee did not remain married to him or her during the entire
period of coverage) in any Proceeding, to the same extent and subject to the
same standards, limitations, obligations and conditions under which the
Indemnitee is provided indemnification herein, if the Indemnitee’s spouse (or
former spouse) becomes involved in a Proceeding solely by reason of his or her
status as the Indemnitee’s spouse, including, without limitation, in any
Proceeding that seeks damages recoverable from marital community property,
jointly-owned property or property purported to have been transferred from the
Indemnitee to his or her spouse (or former spouse). The Indemnitee’s spouse or
former spouse also may be entitled to receive advancement of expenses to the
same extent that the Indemnitee is entitled herein.  The Company may maintain insurance to cover
its obligation hereunder with respect to the Indemnitee’s spouse (or former
spouse) or set aside assets in a trust or escrow funds for that purpose.  Any spouse or former spouse of the Indemnitee
entitled to indemnification under this Section 2 is an intended third
party beneficiary of this Agreement.

 

3.                                       Determination
of Right to Indemnification.  For purposes of
making the determination in a specific case under paragraph (g) of Section 2
hereof whether to make indemnification, the board of directors, Independent
Legal Counsel, or stockholders, as the case may be (each, a “Reviewing Party”),
shall make such determination in accordance with the following procedure:

 

(a)                                  To obtain indemnification under
this Agreement, Indemnitee shall submit to the board of directors a sworn
statement of request for indemnification substantially in the form of Exhibit
1 attached hereto and made a part hereof (“Indemnification Statement”)
stating that [he/she] has met the applicable standard of conduct set forth in
paragraphs (b), (c), (d) or (e) of Section 2 hereof.  The board of directors and Indemnitee shall
then promptly establish and notify the appropriate Reviewing Party.

 

3

 

(b)                                 Submission of the
Indemnification Statement to the board of directors shall create a rebuttable
presumption that Indemnitee is entitled to indemnification under this
Agreement.  The Reviewing Party shall, as
promptly as practicable, but in no event later than 60 days after submission of
the Indemnification Statement, specifically determine that Indemnitee is so
entitled, unless it or they shall possess sufficient evidence to rebut the
presumption that Indemnitee has met the applicable standard of conduct set
forth in paragraph (b), (c), (d) or (e) of Section 2 hereof, which
evidence shall be disclosed to Indemnitee with particularity in a written
statement signed by all persons who participated in the determination and voted
to deny indemnification.

 

(c)                                  In the event that Independent
Legal Counsel shall act as the Reviewing Party, the Independent Legal Counsel
shall be selected as provided in this Section 3(c).  If there has not been a Change in Control,
the Independent Legal Counsel shall be selected by the board of directors and
approved by the Indemnitee (which approval shall not be unreasonably withheld).  If, however, there has been a Change in
Control, the Independent Legal Counsel shall be selected by Indemnitee and
approved by the Company (which approval shall not be unreasonably
withheld).  In either case, the selecting
party shall give prompt written notice advising the non-selecting party of the
identity of the Independent Legal Counsel so selected.  The non-selecting party may, within 7 days
after receipt of such written notice, deliver an objection to the selecting
party.  Such an objection may be asserted
only on the ground that the Independent Legal Counsel so selected does not meet
the requirements of “Independent Legal Counsel” as set forth in Section 7
of this Agreement, and shall set forth with particularity the basis of such
assertion.  If a written objection is
properly made, the parties shall cooperate to select a mutually acceptable
Independent Legal Counsel.  If, within 20
days after submission by Indemnitee of an Indemnification Statement, no
Independent Legal Counsel shall have been selected, or if selected shall have
been objected to and the parties have not agreed upon a mutually acceptable
Independent Legal Counsel, in accordance with this Section 3(c), either
the Company or Indemnitee may petition the Court of Chancery of the State of
Delaware for the appointment as Independent Legal Counsel of a person selected
by such court or by such other person as such court shall designate, and the
person so appointed shall act as the Reviewing Party for purposes of under Section 3(b)
of this Agreement, and the Company shall pay all reasonable fees and expenses
incident to the procedures of this Section 3(c), regardless of the manner
in which such Independent Legal Counsel was selected or appointed.

 

4.                                       Authorization
of Advancement of Expenses.  For purpose of
determining whether to authorize advancement of Expenses in a specific case
pursuant to paragraph (h) of Section 2 hereof, the board of directors
shall make such determination in accordance with the following procedure:

 

(a)                                  Indemnitee may submit to the
board of directors a request for advancement of expenses substantially in the
form of Exhibit 2 attached hereto and made a part hereof (“Undertaking”),
stating that (i) [he/she] has reasonably incurred or will reasonably incur
actual expenses in defending a Proceeding, and (ii) [he/she] undertakes to
repay such amount if it is ultimately determined that [he/she] is not entitled
to be indemnified by the Company under this Agreement or otherwise;

 

(b)                                 Upon receipt of the Undertaking
the board of directors shall within 14 days authorize immediate payment of the
Expenses stated in the Undertaking.

 

5.                                       Notice and
Defense of Claims.  The Indemnitee
agrees promptly to notify the Company in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information or other
document relating to any Proceeding or matter which may be subject to
indemnification or advancement of expenses covered hereunder.  Notwithstanding any other provision of this
Agreement, with respect to any such Proceeding or matter as to which the Indemnitee
notifies the Company of the commencement thereof:

 

4

 

(a)                                  The Company will be entitled to
participate therein at its own expense.

 

(b)                                 Except as otherwise provided in
this Section 5(b), to the extent it desires, the Company, jointly with any
other indemnifying party similarly notified, shall be
entitled to assume the defense thereof, with counsel reasonably satisfactory to
the Indemnitee.  After notice from the
Company to the Indemnitee of the Company’s election to so assume the defense
thereof, the Company shall not be liable to the Indemnitee under this Agreement
for any legal or other expenses subsequently incurred by the Indemnitee in
connection with the defense thereof other than reasonable costs of
investigation or as otherwise provided below. 
The Indemnitee shall have the right to employ his or her own counsel in
such Proceeding or matter, but the fees and expenses of such counsel incurred
after notice from the Company of its assumption of the defense thereof shall be
at the expense of Indemnitee unless (i) the employment of counsel by the
Indemnitee has been authorized by the Company, (ii) the Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the Company
and the Indemnitee in the conduct of the defense of such action, or (iii) the
Company shall not in fact have employed counsel to assume the defense of such
Proceeding or matter, in each of which cases the fees and expenses of counsel
shall be at the expense of the Company.  The
Company shall not be entitled to assume the defense of any Proceeding or matter
brought by or on behalf of the Company or as to which the Indemnitee shall have
made the conclusion provided for in clause (ii) above.

 

(c)                                  The Company shall not be liable
to indemnify the Indemnitee under this Agreement for any amounts paid in
settlement of any Proceeding or matter affected without its written consent.  The Company shall not settle any Proceeding or
matter in any manner that would impose any penalty or limitation on the
Indemnitee without the Indemnitee’s written consent.  Neither the Company nor the Indemnitee will
unreasonably withhold its consent to any proposed settlement.

 

(d)                                 The Indemnitee hereby agrees
that in any Proceeding in which the Indemnitee and other past or present
directors or officers of the Company (or its successor) who are entitled to
indemnification from the Company are named defendants or respondents, the
Indemnitee and such other past or present directors or officers shall
collectively select one firm of attorneys in any jurisdiction to defend all
such defendants and respondents in such Proceeding unless counsel for the
Indemnitee concludes in a reasoned opinion that there are issues which may
raise conflicts of interest between the Indemnitee and such other persons.

 

6.                                       Merger,
Consolidation or Change in Control. 
In the event that there is a Change in Control (as defined in Section 7(a)),
Indemnitee shall stand in the same position under this Agreement with respect
to the resulting, surviving or changed corporation as [he/she] would have with
respect to the Company if its separate existence had continued or if there had
been no Change in Control.

 

7.                                       Certain
Definitions.  For purposes of
this Agreement, the following definitions apply herein:

 

(a)                                  “Change in Control” shall
mean, and shall be deemed to have occurred if, on or after the date of this
Agreement, (i) any “person” (as the term is used in Sections 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of voting securities of the Company representing
more than 50% of the Company’s outstanding voting securities or rights to
acquire such securities except for any voting securities issued or purchased
under any employee benefit plan of the Company or its subsidiaries; (ii)
or a plan of reorganization, merger, consolidation, sale of all or
substantially all of the assets of the Company or similar transaction occurs or
is effectuated in which

 

5

 

the Company is not the resulting or surviving
entity; provided, however, that such an event listed above will be deemed to
have occurred or to have been effectuated only upon receipt of all
required regulatory approvals not including the lapse of any required waiting
periods; or (iii) the Board determines in its sole discretion that a Change in
Control has occurred.

 

(b)                                 “Corporate Status”
describes the status of a person who is or was a director, officer, agent or
fiduciary of the Company or of any other corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other
enterprise (including civic, non-profit or charitable organizations, whether or
not incorporated), 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 at any time a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.

 

(d)                                 “Expenses” shall include
all reasonable 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 or investigating a
Proceeding.

 

(e)                                  “Fines” shall include any
excise taxes assessed on Indemnitee with respect to any employee benefit plan.

 

(f)                                    “Independent Legal Counsel”
means a law firm, or a member of a law firm, that is experienced in matters of
corporate law and neither presently 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 the Proceeding giving rise to a
claim for indemnification hereunder. 
Notwithstanding the foregoing, the term “Independent Legal 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.

 

(g)                                 “Proceeding” includes any
action, suit, arbitration, alternate dispute resolution mechanism,
investigation, administrative hearing or any other proceeding whether civil,
criminal, administrative or investigative.

 

(h)                                 “serving at the request of
the Company” shall include any service at the request or with the express
or implied authorization of the Company, as a director, officer, employee or
agent of the Company which imposes duties on, or involves services by, Indemnitee
with respect to an enterprise, its participants or beneficiaries; and if
Indemnitee acted in good faith and in a manner [he/she] reasonably believed to
be in the interest of the participants and beneficiaries of such enterprise,
[he/she] shall be deemed to have acted in a manner “not opposed to the best
interests of the Company” as referred to in this Agreement.

 

8.                                       D&O
Insurance.  The Company
represents that it has purchased or currently maintains and will maintain
(except as hereinafter provided) insurance protecting its officers and
directors and certain other persons (including the Indemnitee) against certain
losses and certain expenses, arising out of actual or threatened Proceedings to
which such persons may be made or threatened to be made parties (“D&O
Insurance”).  Although there can be
no assurance as to the continuation or renewal of the D&O Insurance or that
any such D&O Insurance will provide coverage for losses to which the
Indemnitee may

 

6

 

be exposed, the Company will use
commercially reasonable efforts, taking into consideration availability of
D&O Insurance in the marketplace, to continue D&O Insurance in effect
at current levels for the duration of Indemnitee’s service and for six (6) years
thereafter.

 

9.                                       Reliance by
Indemnitee.  The Company
expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to induce Indemnitee to
serve or continue to serve as a director and/or an officer of the Company, and
acknowledges that Indemnitee is relying up-on this Agreement in serving or
continuing to serve in such capacity.

 

10.                                 Indemnification
for Negligence.  TO THE EXTENT
PERMITTED BY THEN APPLICABLE LAW AND SUBJECT TO THE PROVISIONS OF THIS
AGREEMENT, THE PARTIES HERETO RECOGNIZE AND ACKNOWLEDGE THAT THE INDEMNITEE MAY
BE INDEMNIFIED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT IN
PROCEEDINGS INVOLVING THE NEGLIGENCE OF THE INDEMNITEE.

 

11.                                 Enforcement.  The Company has entered into this Agreement
and assumed the obligations imposed on the Company hereby in order to induce
the Indemnitee to act as a director and/or an officer, as the case may be, of
the Company, and acknowledges that the Indemnitee is relying upon this Agreement
in continuing in such capacity.  In the
event the Indemnitee is required to bring any action to enforce rights or to
collect monies due under this Agreement and is successful in such action, the
Company shall reimburse the Indemnitee for all of the Indemnitee’s reasonable
attorneys’ fees and expenses in bringing and pursuing such action, and the
Indemnitee shall be entitled by or to the advancement of expenses to the full
extent contemplated by this Agreement in connection with such enforcement proceeding.  In the event that the Company shall breach
any of its obligations to the Indemnitee hereunder, including the Company’s
obligations with respect to the advancement of expenses under this Agreement,
the parties hereto agree that the Indemnitee’s remedies available at law would
not be adequate and that Indemnitee would be entitled to the remedies of
specific performance and injunctive relief to enforce such obligations of the
Company.

 

12.                                 Severability.  If any provision of this Agreement or the
application of any provision hereof to any person or circumstances is held
invalid or unenforceable, the remainder of this Agreement and the application
of such provision to other persons or circumstances shall not be affected.

 

13.                                 Governing
Law.  This Agreement shall be governed
by and construed in accordance with the laws of the State of Delaware without
regard to any conflict of law rules or principle that might refer to the laws
of another state or country.

 

14.                                 Modification;
Survival.  This Agreement
contains the entire agreement of the parties relating to the subject matter
hereof and supercedes any prior agreement regarding the subject matter
hereof.  This Agreement may be modified
only by an instrument in writing signed by both parties hereto.  The provisions of this Agreement shall
survive the termination of Indemnitee’s service as a director and/or an officer
of the Company.

 

7

 

IN WITNESS WHEREOF, the parties hereto have duly
executed this Agreement and the Company has set its seal as of the date first
above written.

 

 

	
   

  	
  Company:

  
	
   

  	
   

  
	
   

  	
  INVESTools Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Corporate Seal)

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ LEE K BARBA

  	
   

  
	
   

  	
   

  	
  Lee K. Barba

  
	
   

  	
   

  	
  Chairman &
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Indemnitee:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

8

 

EXHIBIT 1

 

STATEMENT OF REQUEST FOR INDEMNIFICATION

 

I,                                      ,
submit this Statement pursuant to the Indemnity Agreement (the “Agreement”)
dated                                          ,
2005, between INVESTools Inc., a Delaware corporation (“Company”), and the
undersigned.

 

1.                                       I
am requesting indemnification against Expenses (as defined in the Agreement)
and, with respect to any action not by or in the right of the Company,
judgments, fines, penalties and amounts paid in settlement, all of which have
been actually and reasonably incurred by me in connection with a certain
Proceeding (as defined in the Agreement) to which I am a party or am threatened
to be made a party by reason of the fact of my Corporate Status (as defined in
the Agreement).

 

2.                                       With
respect to all matters related to any such Proceeding, I acted in good faith
and in a manner I reasonably believed to be or not opposed to the best
interests of the Company, and, with respect to any criminal Proceeding, I had
no reason to believe that my conduct was unlawful.

 

3.                                       I
am requesting indemnification against the following liabilities:                                                                              
                                                                                                                                                        .

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)

  
				

 

 

EXHIBIT 2

 

STATEMENT OF UNDERTAKING

 

I,                                      ,
submit this Statement pursuant to the Indemnity Agreement (the “Agreement”)
dated                                          ,
2005, between INVESTools Inc., a Delaware corporation (“Company”), and the
undersigned.

 

1.                                       I
am requesting advancement of certain actual Expenses (as defined in the
Agreement) which I have reasonably incurred or will reasonably incur in
defending a Proceeding.

 

2.                                       I
hereby undertake to repay this advancement of Expenses if it is ultimately
determined that I am not entitled to be indemnified by the Company.

 

3.                                       The
expenses for which advancement is requested are as follows:                                                                              
                                                                                                                                                        .

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature)EXHIBIT - 10.7.2

 

 

MOSSIMO,
INC.

 

SECOND
AMENDMENT TO OFFICE LEASE DATED JANUARY 1, 2004

 

THIS SECOND AMENDMENT TO
LEASE (this “AMENDMENT”) is entered into between CF SANTA MONICA OFFICE II,
L.P., a Delaware limited partnership (“LANDLORD”), and MOSSIMO, INC., a
Delaware corporation (“TENANT”), with reference to the following:

 

A. Lexington-Broadway Place,
L.L.C. (predecessor-in-interest to Landlord) and Tenant entered into that
certain Lease dated June 29, 2000 and that certain First Amendment to Office Lease
dated as of June 26, 2002 (as amended, the “LEASE”) currently covering
approximately 5,994 rentable square feet consisting of 2016 Broadway Boulevard
and 2018 Broadway Boulevard (the “CURRENT PREMISES”) of Broadway Place, Santa
Monica, California (the “PROJECT”).

 

B. Tenant desires, inter
alia, to expand the Premises to include 2032A Broadway Boulevard, and to extend
the Lease Term.

 

C. Landlord and Tenant now
desire to further amend the Lease as set forth below. Unless otherwise
expressly provided in this Amendment, capitalized terms used in this Amendment
shall have the same meanings as in the Lease.

 

FOR GOOD AND VALUABLE
CONSIDERATION, the receipt and sufficiency of which are acknowledged, the
parties agree as follows:

 

1. FIRST EXTENSION PERIOD.
Although the Lease Term (until this Amendment) expires on July 31, 2005, the
parties have agreed that, as part of the business terms of the transaction
memorialized in this Amendment, the current Lease Term (i.e., as to the Current
Premises) will expire on March 31, 2004. Thereafter, Lease Term as to the
entire Premises (i.e., the Current Premises and the Second  Expansion Space, as defined below) is
extended for a period of four (4) years (the “FIRST EXTENSION PERIOD”)
commencing on April 1, 2004 and expiring on March 31, 2008.

 

2. SECOND EXPANSION SPACE.
Landlord leases to Tenant and Tenant leases from Landlord 2032A Broadway
Boulevard, consisting of approximately 3,406 additional rentable square feet
(the “SECOND EXPANSION SPACE”) in the Project as shown on the attached EXHIBIT
A, which is incorporated into this Amendment for all purposes. The outline of
the Premises attached to the Lease as EXHIBIT A-X is deleted and replaced with
EXHIBIT A attached to this Amendment, and the term “PREMISES” as used in the Lease
means and includes approximately 9,400 rentable square feet, being the sum of
the rentable square footage of the Current Premises (5,994 rentable square
feet) and the Second Expansion Space. The lease of the Second Expansion Space
is subject to all of the terms and conditions of the Lease currently in effect,
except as modified in this Amendment. Landlord shall tender the Second
Expansion Space to Tenant on April 1, 2004, at which time Tenant’s obligation
to pay Rent pursuant to the Lease (as amended) for the Second Expansion Space
shall commence. Possession of space to commence on Jan. 5, 04.

 

3. MINIMUM RENT. Commencing
on April 1, 2004 and continuing through the First Extension Period, Tenant
shall, at the time and place and in the manner provided in the Lease, pay to
Landlord as Minimum Rent for the entire Premises the amounts set forth in the
following rent schedule, plus any applicable tax thereon:

 

1

 

	
  PERIOD

  	
   

  	
  MINIMUM

  RENT

  	
   

  	
  RATE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1, 2004 thru March 31, 2005

  	
   

  	
  $

  	
  24,910.00

  	
   

  	
  $

  	
  2.65

  	
   

  
	
  April 1, 2005 thru March 31, 2006

  	
   

  	
  $

  	
  25,662.00

  	
   

  	
  $

  	
  2.73

  	
   

  
	
  April 1, 2006 thru March 31, 2007

  	
   

  	
  $

  	
  26,414.00

  	
   

  	
  $

  	
  2.81

  	
   

  
	
  April 1, 2007 thru March 31, 2008

  	
   

  	
  $

  	
  27,166.00

  	
   

  	
  $

  	
  2.89

  	
   

  
	
  April 1, 2008 thru July 31, 2009

  	
   

  	
  $

  	
  28,012.00

  	
   

  	
  $

  	
  2.98

  	
   

  

 

4. ADDITIONAL RENT.
Commencing on April 1, 2004, Tenant’s Share of Direct Expenses payable in
accordance with Section 4 of the Lease shall increase to 12.47% to take the
Second Expansion Space into consideration.

 

5. CONDITION OF PREMISES.

 

(a) Tenant accepts the
Current Premises and the Second Expansion Space in their “as-is” condition “with
all faults” without any agreements, representations, undertakings or
obligations on the part of Landlord to perform any alterations, repairs or
improvements.

 

(b) Tenant shall, at Tenant’s
expense, cause to be constructed and installed in the Second Expansion Space in
a good and workmanlike manner and in strict compliance with applicable laws,
codes, regulations and ordinances the permanent leasehold improvements desired
by Tenant and approved by Landlord (the “IMPROVEMENTS”). Tenant acknowledges
that Landlord is not an architect or  engineer. Accordingly, Landlord’s approval of the proposed Improvements
is not a representation by Landlord that the Improvements will comply with
applicable laws, codes, regulations and ordinances or be free from errors,
omissions, or defects, and Landlord will have no liability therefor, it being
expressly understood and agreed by Tenant that such matters are Tenant’s
responsibility.

 

(c) Landlord shall reimburse
Tenant for costs and expenses of the Improvements up to a maximum of
$150,000.00 (the “IMPROVEMENT ALLOWANCE”) upon delivery by Tenant to Landlord
of (i) Tenant’s written request for the Improvement Allowance made no earlier
than April 1, 2004 nor later than June 30, 2004, and (ii) evidence satisfactory
to Landlord, which evidence must include  (but is not limited to) original invoices marked “paid” by the issuer
and final lien releases from all contractors, subcontractors and materials
suppliers involved in the Improvements, that Tenant paid no less than
$150,000.00 for the Improvements. In the event Tenant fails to comply with the
immediately preceding sentence, Tenant shall, for itself and its successors and
assigns, forfeit and renounce
any right to the Improvement Allowance, and Landlord shall have no further
obligation to provide the Improvement Allowance to Tenant. If Tenant does so
comply, Landlord shall reimburse Tenant as set forth above within thirty (30)
days following Landlord’s receipt of the items enumerated in (i) and (ii).

 

(d) LIABILITIES ARISING FROM
CONSTRUCTION; INDEMNITY. LANDLORD SHALL NOT BE LIABLE IN ANY WAY FOR ANY
INJURY, LOSS OR DAMAGE WHICH MAY OCCUR TO ANY OF TENANT’S INSTALLATIONS DURING
CONSTRUCTION OF THE IMPROVEMENTS, THE SAME BEING SOLELY AT TENANT’S RISK, EVEN
IF CAUSED BY THE SOLE OR CONCURRENT NEGLIGENCE OF LANDLORD. TENANT HEREBY
INDEMNIFIES AND FOREVER HOLDS HARMLESS LANDLORD AND LANDLORD’S PROPERTY MANAGER
FOR THE PROJECT, TOGETHER WITH THEIR RESPECTIVE OFFICERS, SHAREHOLDERS,
SUCCESSORS AND ASSIGNS, AGAINST ANY AND ALL CLAIMS, DAMAGES, LOSSES, INJURIES,
PENALTIES, COSTS, EXPENSES (INCLUDING ATTORNEYS’ FEES AND EXPERT AND CONSULTING
FEES), DEMANDS, LITIGATION, SETTLEMENT PAYMENTS, CAUSES OF ACTION OR JUDGMENTS,
LOSSES, LIABILITIES, AND EXPENSES ARISING OUT OF THE PERFORMANCE OF ANY WORK BY
TENANT’S CONTRACTORS AND TENANT’S SUBCONTRACTORS, EVEN IF CAUSED BY THE
CONCURRENT NEGLIGENCE, BUT NOT THE GROSS NEGLIGENCE OR RECKLESSNESS, OF
LANDLORD. While in or upon the Premises and the Project for the purposes of
performing the Improvements, Tenant and Tenant’s

 

2

 

contractors and
subcontractors shall comply with all terms and provisions of the Lease and
Landlord’s Rules and Regulations, which shall govern the relationship of the
parties.

 

(e) Landlord and Tenant each
agrees that this PARAGRAPH 5 constitutes the entire agreement of the parties
regarding the Improvements and the Improvement Allowance, and that there were
no verbal representations, warranties or understandings pertaining to the
Improvements, the Improvement Allowance, or this Amendment. TENANT FURTHER
ACKNOWLEDGES AND AGREES THAT LANDLORD DOES HEREBY DISCLAIM ANY AND ALL WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THOSE OF FITNESS FOR A
PARTICULAR PURPOSE, WITH RESPECT TO THE LEASED PREMISES AND/OR THE IMPROVEMENTS
LOCATED OR TO BE CONSTRUCTED THEREIN.

 

6. ADA COMPLIANCE.

 

(a) Please be advised that
an owner or lessee of real property may be subject to the Americans With
Disabilities Act (the “ADA”), a Federal law codified at 42 USC Section 12101 et
seq. Among other requirements of the ADA that could apply to the Premises,
Title III of the ADA requires lessors and lessees of “public accommodations” to
remove barriers to access by disabled persons and provide auxiliary aids and
services for hearing, vision or speech impaired persons by January 26, 1992.
The regulations under Title III of the ADA are codified at 28 CFR Part 36.
Lessor is not and shall not be responsible for determining whether Lessee is a
public accommodation under ADA or whether any construction documents or plans
prepared by or for Lessee comply with ADA requirements, including submission of
such documents or plans for review by appropriate state agencies. Such
determinations, if desired by Lessee, shall be the sole responsibility of
Lessee.

 

(b) Tenant shall, at its
expense, be responsible for ADA compliance in the Premises, including restrooms
within space now or hereafter leased or occupied in its entirety by Tenant, its
affiliates or Transferees, as well as any modifications to the Premises or the
Project required by the ADA by reason of Tenant’s lease of the Premises, or the
use or occupancy of the Premises by Tenant and/or its Transferees and their
respective employees, agents, contractors, invitees, licensees, successors and
assigns.

 

7. PARKING. Commencing on
January 5, 2004, the provisions of the Lease pertaining to parking no longer
apply. However, commencing on April 1, 2004, Landlord shall provide parking
permits in connection with the Premises on the following terms and conditions:

 

(a) Within thirty (30) days
following April 1, 2004, Tenant may elect to take, by giving Landlord written
notice within such thirty (30) day period, and Landlord shall then provide, up
to eighteen (18) reserved and/or tandem/reserved parking spaces in the Project
at the monthly rate(s) applicable from time to time for monthly parking as set
by Landlord and/or its licensee, plus any applicable taxes thereon. Monthly
parking fees shall be payable one month in advance prior to the first day of
each calendar month. As of the Effective Date (as defined below), the monthly
parking rate per reserved and/or tandem/reserved parking space is $0.00,
subject to change upon five (5) days’ prior written notice to Tenant. Tenant’s
failure to elect to take any parking spaces within the time allotted and as
otherwise required by the immediately preceding sentence shall be deemed Tenant’s
election to take no parking spaces.

 

(b) Tenant’s right to use
any parking spaces duly and timely taken by Tenant in accordance with PARAGRAPH
7(a) (“TENANT’S PARKING SPACES”) shall be contingent on Tenant’s compliance
with all applicable rules, regulations (as may be modified by Landlord from
time to time), applicable laws, and this PARAGRAPH 7, and shall continue unless
and until a material default of the Lease by  Tenant. If Tenant commits, permits or allows
any of the prohibited activities described in the Lease or the rules then in
effect, then Landlord shall have the right, without notice, in addition to such
other rights and remedies that it may have, to remove or tow away the vehicle
involved and charge the cost to Tenant,

 

3

 

which cost shall be
immediately payable upon demand by Landlord. Tenant’s repeated noncompliance
shall empower landlord to discontinue Tenant’s access to one or more of Tenant’s
Parking Spaces, and Tenant shall thereafter be excused for paying from such
parking space(s).

 

(c) Tenant may permanently
return all or any of Tenant’s Parking Spaces by giving Landlord thirty (30)
days’ written notice of the effective date of the return. Upon such effective
date, Landlord’s obligation to provide, and Tenant’s obligation to pay for,
such returned parking spaces shall terminate. Prior to such effective date,
Tenant shall return any key-card, sticker, or other  identification or entrance enabling device
provided by Landlord. Landlord shall have no obligation to provide Tenant, and
Tenant shall have no right to, any parking spaces that are returned or that
Tenant does not timely elect to take.

 

(d) Landlord shall provide
Tenant’s Parking Spaces, which shall allow “in-and-out” privileges to the
designated parking facilities area or areas using parking access cards or
permits, as applicable. No deductions from the monthly charge shall be made for
days on which the parking facilities are not used by Tenant. Landlord shall
have the continuing right to change the designation of  such parking facilities or areas. Tenant, its
employees, contractors and invitees, shall at all times comply with the
applicable parking rules issued from time to time. Neither Tenant nor its
employees shall use any parking spaces designated for visitors or other
occupants of the Project. Tenant shall, within fifteen (15) days of Landlord’s
written request, furnish Landlord a complete list of license plate numbers for
all vehicles to be parked in the Project by an employee, licensee, invitee or
contractor of Tenant. If there is a change in employees, Tenant shall provide
Landlord with the revised information within five (5) days. Tenant’s sole
remedy for any period during which Tenant’s use of any of Tenant’s Parking Spaces
is precluded for any reason shall be abatement of parking charges for such
precluded spaces. Landlord shall not be obligated to control any unauthorized
parking in any of Tenant’s Parking Spaces. Landlord shall not be liable for any
damage of any nature whatsoever to, or any theft of, vehicles, or contents
therein, or injury (fatal or non-fatal) to persons, in or about such parking
garage, INCLUDING, WITHOUT LIMITATION, THAT CAUSED BY LANDLORD’S SOLE OR
CONCURRENT NEGLIGENCE, BUT NOT TO THE EXTENT CAUSED BY LANDLORD’S GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT.

 

(e) Notwithstanding anything
to the contrary contained in this PARAGRAPH 7, upon thirty (30) days’ prior
written notice from Tenant and subject to availability, Landlord shall provide
Tenant, and Tenant shall have the right to take, any parking permits that
Tenant did not take in accordance with Paragraph 7(a) or that Tenant previously
returned pursuant to Paragraph 7(e), subject to the limitation that the total
number of Tenant’s Parking Spaces, including the parking permits Tenant desires
to take pursuant to this PARAGRAPH 7(e), does not exceed eighteen (18).

 

8. JANITORIAL SERVICES.
Tenant acknowledges and agrees that Landlord does not provide janitorial
services to the Premises. Tenant shall contract for janitorial services
necessary to comply with the requirements of the Lease with a reputable third
party provider (“TENANT’S PROVIDER”) for Tenant’s own account, subject to
Landlord’s approval of Tenant’s Provider, which approval shall not be unreasonably
withheld, conditioned or delayed. Tenant shall not permit entry to the Project
to a third party provider unless and until Tenant has received Landlord’s
consent in accordance with the immediately preceding sentence, and shall
require Tenant’s Provider (once so approved) to comply with the Rules and
Regulations, applicable laws, codes and ordinances, and Landlord’s reasonable
policies and practices for the Project.

 

9. PERMITTED USE. The
Permitted Use of the Premises is production and design studios. Tenant
acknowledges that the Permitted Use must comply with Part 9.04.08.35 of the
Code of Ordinances of Santa Monica, CA as it may be amended or modified or
renumbered. Tenant hereby, represents and warrants that it has read and
understands Part 9.04.08.35 of the Code of Ordinances and Covenants that Tenant
will at all times during the Lease Term (as it may be hereafter modified,
extended or renewed) comply with it.

 

10. ASSIGNMENT AND
SUBLETTING. ARTICLE 14 of the Lease is amended as follows:

 

4

 

(a) The second sentence of
SECTION 14.3 is modified to read as follows:

 

“TRANSFER PREMIUM” shall
mean fifty percent (50%) of all rent, additional rent or other consideration
payable by such Transferee in excess of the Rent (as defined in Section 4.1)
payable by Tenant under this Lease on a per rentable square foot basis (after
deducting therefrom reasonable leasing commissions, marketing expenses and
legal fees, and reasonable costs of tenant improvements paid to unaffiliated
third parties in connection with the Transfer, with proof of same provided to
Landlord).

 

(b) A new SECTION 14.7 is
added as follows:

 

14.7 TENANT AFFILIATE.
Notwithstanding the provisions of SECTIONS 14.1 and 14.6, Tenant may sublet a
portion of the Premises without Landlord’s consent to any corporation which
controls, is controlled by or is under common control with Tenant (any such
corporation, a “TENANT AFFILIATE”) provided that before such sublease shall be
effective, a fully executed counterpart of such sublease shall be delivered to
Landlord prior to the commencement of the term of such Transfer. Any such
sublease shall not, in any way, affect or limit the liability of Tenant under
the terms of the Lease even if after such subletting the terms of this Lease
are materially changed or altered.

 

11. CONSENT. This Amendment
is subject to, and conditioned upon, any required consent or approval being
unconditionally granted by Landlord’s mortgagee(s). If any such consent shall
be denied, or granted subject to an unacceptable condition, this Amendment
shall be null and void and the Lease shall remain unchanged and in full force
and effect.

 

12. BROKER. Tenant
represents and warrants that it has not been represented by any broker or agent
in connection with the execution of this Amendment other than Lee &
Associates - Los Angeles West, Inc., which is acting as agent for both Landlord
and Tenant. Tenant shall indemnify and hold harmless Landlord and its
designated property management, construction and marketing firms, and their
respective partners, members, affiliates and subsidiaries, and all of their
respective officers, directors, shareholders, employees, servants, partners,
members, representatives, insurers and agents from and against all claims (including
costs of defense and investigation) of any other broker or agent or similar
party claiming by, through or under Tenant in connection with this Amendment.

 

13. TIME OF THE ESSENCE.
Time is of the essence with respect to Tenant’s execution and delivery to
Landlord of this Amendment. If Tenant fails to execute and deliver a signed
copy of this Amendment to Landlord by 5:00 p.m. (in the city in which the
Premises is located) on January 1, 2004, this Amendment shall be deemed null
and void and shall have no force or effect, unless otherwise agreed in writing
by Landlord. Landlord’s acceptance, execution and return of this Amendment
shall constitute Landlord’s agreement to waive Tenant’s failure to meet such
deadline.

 

14. MISCELLANEOUS. This
Amendment shall become effective only upon full execution and delivery of this
Amendment by Landlord and Tenant. This Amendment contains the parties’ entire
agreement regarding the subject matter covered by this Amendment, and
supersedes all prior correspondence, negotiations, and agreements, if any,
whether oral or written, between the parties concerning such subject matter.
There are no contemporaneous oral agreements, and there are no representations
or warranties between the parties not contained in this Amendment. Except as
modified by this Amendment, the terms and provisions of the Lease shall remain
in full force and effect, and the Lease, as modified by this Amendment, shall
be binding upon and shall inure to the benefit of the parties  hereto, their successors and permitted
assigns.

 

LANDLORD AND TENANT HAVE
CAREFULLY READ AND REVIEWED THIS AMENDMENT AND EACH TERM AND PROVISION
CONTAINED HEREIN AND, BY EXECUTION OF THIS AMENDMENT, SHOW THEIR INFORMED AND
VOLUNTARY  CONSENT
THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS AMENDMENT IS EXECUTED,
THE TERMS OF THIS AMENDMENT AND OF THE LEASE (AS MODIFIED BY THIS AMENDMENT)
ARE COMMERCIALLY REASONABLE

 

5

 

AND EFFECTUATE THE INTENT
AND PURPOSE OF LANDLORD AND TENANT WITH RESPECT TO THE PREMISES.

 

LANDLORD AND TENANT enter
into this Amendment as of JANUARY 1, 2004 (the “EFFECTIVE DATE”).

 

LANDLORD: CF SANTA MONICA
OFFICE II, L.P., a Delaware limited partnership

 

	
   

  	
  By:

  	
  CFO SM II, LLC, a Delaware
  limited

  liability company, its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kathleen Damilobick

  	
   

  
	
   

  	
   

  	
  Name: Kathleen Damilobick

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  

 

TENANT: MOSSIMO, INC., a
Delaware corporation

 

	
   

  	
  By:

  	
  /s/ Edwin Lewis

  	
   

  
	
   

  	
   

  	
  Name: Edwin
  Lewis

  	
   

  
	
   

  	
  Title:

  	
  V-Chair -
  President

  	
   

  

 

1 MONTH SECURITY DEPOSIT

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]