Document:

exhibit104.htm

    
      
        

      

      Exhibit
10.4

      

      PROPRIETARY
MATTERS AGREEMENT

      

      THIS
PROPRIETARY MATTERS AGREEMENT (“Agreement”) is made by and between Cabela's
Incorporated, a Delaware corporation (“Company”), and Thomas L. Millner
(“Employee”), effective as of March 13, 2009.

      

      W I T N E
S S E T H :

      

      WHEREAS,
Company has invested, and will continue to invest, substantial time, effort, and
money in the development of its trade secrets, business methods and procedures,
technology, and other specific confidential and proprietary information which
enables Company to compete successfully in its business of the marketing and
sale of hunting, fishing, and camping equipment and other outdoor sporting and
recreational goods, apparel, and services through retail stores and through
direct marketing, including paper or other tangible catalogs, electronic
catalogs, or other electronic media;

      

      WHEREAS,
during the course of Employee’s employment, Company has disclosed and will continue to
disclose to Employee, and allow Employee access to and the use of, knowledge
concerning its trade secrets, business methods and procedures, technology, and
other specific confidential and proprietary information, all of which constitute
the property of Company;

      

      WHEREAS,
the unauthorized use or disclosure of such information would be greatly damaging
to Company and the success of its business; and

      

      WHEREAS,
Company desires to grant Employee certain stock options and restricted stock
units (collectively, the “2009 Awards”), the grant of which is conditioned upon
Employee entering into this Agreement.

      

      NOW,
THEREFORE, in consideration of the mutual promises contained herein, and as a
condition to Company granting Employee the 2009 Awards, and to allow Employee
access to and use of its confidential and proprietary information, Company and
Employee agree as follows:

      

      1.           Nondisclosure
of Confidential Information.

       

      a.           Access.  Employee
acknowledges that employment with Company or any of its affiliates necessarily
has involved, and will involve, exposure to, familiarity with, and the
opportunity to learn highly sensitive, confidential, and proprietary information
of Company, which may include, without limitation, information about Company’s
products and services, markets, customers and prospective customers, the buying
patterns and needs of customers and prospective customers, vendors and
suppliers, miscellaneous business relationships, investment products, pricing,
quoting, costing systems, billing and collection procedures, proprietary
software and the source code thereof, financial and accounting data, data
processing and communications, technical data, marketing concepts and
strategies, business plans, mergers and acquisitions, research and development
of new or improved products and services, and general know-how regarding the
business of Company and its products and services (collectively referred to
herein as “Confidential Information”).  Employee expressly
acknowledges and agrees that Confidential Information may include, without
limitation, confidential and proprietary information belonging to various third
parties, such as Company’s subsidiaries, affiliates, vendors, agents, or
customers, but which has been and will be entrusted to Company for use by
Company to conduct its business.  The failure to mark or designate
information as “confidential” or “proprietary” shall not prevent information
that has been or will be accessed by or disclosed to Employee from being deemed
Confidential Information under this Agreement.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      b.           Valuable
Asset.  Employee further acknowledges that the Confidential
Information is a valuable, special, and unique asset of Company, such that the
unauthorized disclosure or use by Employee or persons or entities outside
Company would cause irreparable damage to the business of
Company.  Accordingly, Employee agrees that, during and after
Employee’s employment with Company or any of its affiliates, Employee shall not
directly or indirectly disclose to any person or entity or use for any purpose
or permit the exploitation, copying, or summarizing of any Confidential
Information of Company, except as specifically required in the proper
performance of Employee’s duties for Company.  Employee represents and
warrants that no such disclosure or use has occurred prior to the date
hereof.

      

      c.           Confidential
Relationship.  Company considers much of its Confidential
Information to constitute trade secrets of Company which have independent value,
provide Company with a competitive advantage over its competitors who do not
know the trade secrets, and are protected from unauthorized disclosure under
applicable law (“Trade Secrets”).  However, whether or not the
Confidential Information constitutes Trade Secrets, Employee acknowledges and
agrees that the Confidential Information is protected from unauthorized
disclosure or use due to Employee’s covenants under this Agreement and
Employee’s fiduciary duties as an employee of Company or any of its
affiliates.

      

      d.           Duties.  Employee
acknowledges that Company has instituted, and will continue to institute,
update, and amend policies and procedures designed to protect the
confidentiality and security of Company’s Confidential Information, including,
but not limited to, policies and procedures designed by Company to protect the
status of Company’s Trade Secrets.  Employee agrees to take all
appropriate action, whether by instruction, agreement, or otherwise, to ensure
the protection, confidentiality, and security of Company’s Confidential
Information, to protect the status of Company’s Trade Secrets, and to satisfy
Employee’s obligations under this Agreement.

      

      e.           Return of
Documents.  Employee acknowledges and agrees that the
Confidential Information is and at all times shall remain the sole and exclusive
property of Company.  Upon the termination of Employee’s employment
with Company or any of its affiliates or upon request by Company at any time,
Employee will promptly return to Company in good condition all Company property,
including, without limitation, all documents, data, and records of any kind,
whether in hard copy or electronic form, which contain any Confidential
Information or which were prepared based on Confidential Information, including
any and all copies thereof, as well as all such materials furnished to or
acquired by Employee during the course of Employee’s employment with Company or
any of its affiliates.

      

      2.           Development
of Intellectual Property.

      

      a.           Definition of Intellectual
Property.  As used herein, the term “Intellectual Property”
shall include, without limitation, any inventions, technological innovations,
discoveries, designs, formulas, know-how, processes, business methods, patents,
trademarks, service marks, copyrights, computer software, ideas, creations,
writings, lectures, illustrations, photographs, motion pictures, scientific and
mathematical models, improvements to all such property, and all recorded
material defining, describing, or illustrating all such property, whether in
hard copy or electronic form.

      
        
           

        

        
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      b.           Company’s Rights in Intellectual
Property.  Employee agrees that all right, title, and interest
of every kind and nature, whether now known or unknown, in and to any
Intellectual Property invented, created, written, developed, conceived, or
produced by Employee during Employee’s employment with Company or any of its
affiliates (i) whether using Company’s equipment, supplies, facilities, and/or
Confidential Information, (ii) whether alone or jointly with others, (iii)
whether or not contemplated by the terms of Employee’s employment, and (iv)
whether or not during normal working hours, that are within the scope of
Company’s actual or anticipated business operations or that relate to any of
Company’s actual or anticipated products or services are, and shall be, the
exclusive property of Company and shall hereinafter be referred to as “Company
Intellectual Property.”  Employee hereby assigns, transfers, and
conveys to Company all of Employee’s right, title, and interest in and to all
Company Intellectual Property existing as of the date of this
Agreement.

      

      c.           Employee’s
Obligations.  Employee agrees to take all reasonably necessary
actions to enable Company to obtain, register, perfect, and/or otherwise protect
its rights in Company Intellectual Property in the United States and all foreign
countries.  Employee irrevocably waives any “moral rights,” or other
rights with respect to attribution of authorship or integrity of Company
Intellectual Property, that Employee may have under any applicable law or under
any legal theory.

      

      i.           Without
limiting the generality of the foregoing, Employee hereby consents and agrees
to: a) promptly and fully disclose to Company any and all Company Intellectual
Property; b) assign to Company all rights to Company Intellectual Property
without limitation or royalty; and c) execute all documents necessary for
Company to obtain, register, perfect, or otherwise protect its rights in Company
Intellectual Property.  Consideration for Employee’s assignment to
Company is hereby acknowledged.  In the event Company is unable, after
reasonable effort, to secure Employee’s signature on any documents necessary to
effectuate this provision, Employee hereby irrevocably designates and appoints
Company as Employee’s agent and attorney-in-fact, to act for and on Employee’s
behalf, and to execute any such documents and to do all other lawfully permitted
acts to further the protection of Company Intellectual Property with the same
legal force and effect as if executed by Employee.

      

      ii.           To
the extent, if any, that any Company Intellectual Property is unassignable or
that Employee retains any right, title, or interest in and to any Company
Intellectual Property, Employee: a) unconditionally and irrevocably waives
the enforcement of such rights, and all claims and causes of action of any kind
against Company with respect to such rights; b) agrees, at Company’s request, to
consent to and join in any action to enforce such rights; and c) hereby grants
to Company a perpetual, exclusive, irrevocable, fully paid-up, royalty-free,
transferable, sub-licensable (through multiple levels of sublicenses), worldwide
right and license to use, reproduce, distribute, display, and perform (whether
publicly or otherwise), prepare derivative works of and otherwise modify, make,
have made, sell, offer to sell, import and otherwise use, disclose, and exploit
(and have others exercise such rights on behalf of Company) all or any portion
of Company Intellectual Property, in any form or media (now known or later
developed).  The foregoing license includes, without limitation, the
right to make any modifications to Company Intellectual Property regardless of
the effect of such modifications on the integrity of Company Intellectual
Property, and to identify Employee, or not to identify Employee, as one or more
authors of or contributors to Company Intellectual Property or any portion
thereof, whether or not Company Intellectual Property or any portion thereof has
been modified.

      
        
           

        

        
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      iii.           Employee
agrees to assist Company in connection with any demands, reissues, oppositions,
litigation, controversy, or other actions involving any item of Company
Intellectual Property.

      

      iv.           Employee
agrees to undertake the foregoing obligations both during and after Employee’s
employment with Company or any of its affiliates, without charge, but at
Company’s expense with respect to Employee’s reasonable out-of-pocket
costs.  Employee further agrees that Company may, in its sole
discretion, deem Company Intellectual Property as a Trade Secret, in which case
Employee will comply with the Confidential Information provisions in this
Agreement.

      

      3.           Acknowledgment
of Company’s Goodwill.  Employee
acknowledges that Company has expended and will continue to expend considerable
time, effort, and resources to develop and market its products and services,
that the relationships between Company and its employees, independent
contractors, customers, prospective customers, vendors, and suppliers are
valuable assets of Company and key to its success, and that employees of Company
establish close professional relationships with other employees, independent
contractors, customers, vendors, and suppliers of Company in the course of their
relationship with Company, all of which constitute goodwill of Company
(“Goodwill”).

      

      4.           Nonsolicitation
of Customers.  In order to
prevent the improper use of Confidential Information and the resulting unfair
competition and misappropriation of Goodwill and other proprietary interests,
Employee agrees that while Employee is employed by Company or any of its
affiliates and for a period of eighteen (18) months following the termination of
Employee’s employment for any reason whatsoever, whether such termination is
voluntary or involuntary, and regardless of cause, Employee will not, directly
or indirectly, on Employee’s own behalf or by aiding any other individual or
entity, call on, solicit the business of, sell to, service, or accept business
from any of Company’s customers (with whom Employee had personal contact and did
business with during the twelve (12) month period immediately prior to the
termination of Employee’s employment) for the purpose of providing said
customers with products and/or services of the type or character typically
provided to such customers by Company.

      

      5.           Nonsolicitation
of Vendors/Employees.  In order to
prevent the improper use of Confidential Information and the resulting unfair
competition and misappropriation of Goodwill and other proprietary interests,
Employee agrees that while Employee is employed by Company or any of its
affiliates and for a period of eighteen (18) months following the termination of
Employee’s employment for any reason whatsoever, whether such termination is
voluntary or involuntary, and regardless of cause, Employee will not, directly
or indirectly, on Employee’s own behalf or by aiding any other individual or
entity:

      

      a.           Encourage,
discourage, interfere with, or otherwise cause, in any manner, any business
partner, independent contractor, vendor, or supplier of Company to curtail,
sever, or alter its relationship or business with Company; or

      

      b.           Employ
or solicit for employment any employee of Company with whom Employee had
personal contact while employed by Company or any of its
affiliates.

      
        
           

        

        
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      6.           Inevitable
Disclosure.  Employee acknowledges that because Trade Secrets
and other Confidential Information cannot practicably be disregarded, the
provision of similar employment services to a Competitor of Company (as defined
in this Section 6) immediately following the termination of Employee's
employment with Company or any of its affiliates would inherently and inevitably
result in the use of Trade Secrets and/or Confidential Information by Employee,
even if Employee were to use Employee's best efforts to avoid using such Trade
Secrets and/or Confidential Information.  For purposes of this
Agreement, a “Competitor” of Company shall mean Bass Pro Shops, Gander Mountain,
Sportsman’s Warehouse, The Sportsman’s Guide, Orvis, Dick’s Sporting Goods, The
Sport’s Authority, Big 5 Sporting Goods, Scheels, L.L. Bean, Lands’ End, REI, or
any other multi-state and/or multi-channel retailer engaged in the sale of
products and/or services associated with hunting, fishing, camping, and/or
casual outdoor apparel and footwear.  In recognition of the foregoing
and in order to prevent the improper use of Trade Secrets and Confidential
Information and the resulting unfair competition and misappropriation of
Goodwill and other proprietary interests, Employee agrees that while Employee is
employed by Company or any of its affiliates and for a period of eighteen (18)
months following the termination of Employee’s employment for any reason
whatsoever, whether such termination is voluntary or involuntary, and regardless
of cause, Employee will not, directly or indirectly, perform services for a
Competitor within the United States of America or Canada similar to the services
Employee currently performs for Company in a capacity that poses the threatened
or inevitable disclosure or use by Employee of Trade Secrets and/or Confidential
Information known to Employee.  Notwithstanding the foregoing,
Employee shall thereafter be restricted from utilizing the Confidential
Information of Company pursuant to Section 1 of this Agreement.

      

      7.           Reasonable
Restrictions.

      

      a.           Applicable to any
Status.  Employee acknowledges and agrees that the
post-employment obligations of this Agreement shall be applicable to Employee
regardless of whether Employee engages in any such competing business activity
as an individual or as a sole proprietor, stockholder, partner, member, officer,
director, employee, agent, consultant, or independent contractor of any other
entity.

      

      b.           Tolling.  In the
event Employee is in breach of the post-employment obligations of this
Agreement, the eighteen (18) month post-employment enforcement period of this
Agreement shall be tolled until such breach is ended unless an injunction is in
place to protect Company’s interests.

      

      c.           Reasonable
Restriction.  In signing this Agreement, Employee is fully
aware of the restrictions that this Agreement places upon Employee’s future
employment or contractual opportunities with someone other than
Company.  However, Employee understands and agrees that Employee’s
employment by Company or any of its affiliates, Employee’s privileged position
within Company, and Employee’s access to Company Confidential Information and
Intellectual Property of Company makes such restrictions both necessary and
reasonable.  Employee further acknowledges and agrees that the
eighteen months provided in Section 6 of this Agreement may not be an adequate
period of time for Company to implement changes or additional procedures to
protect Company's Trade Secrets and/or Confidential Information, but that such
period is a reasonable approximation of the amount of time
necessary.  Employee finally acknowledges and agrees that the
restrictions hereby imposed constitute reasonable protections of the legitimate
business interests of Company and that they will not unduly restrict Employee’s
opportunity to earn a reasonable living following the termination of Employee’s
employment.

      
        
           

        

        
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      8.           Intended
Third Party Beneficiaries.  Employee
acknowledges and understands that some of the Confidential Information,
Intellectual Property, and/or Trade Secret information accessible to Employee in
the performance of Employee’s duties during Employee’s employment may belong to
and be provided by Company’s affiliates (“Third Party
Beneficiaries”).  For purposes of this Agreement, the term
“affiliates” means any entity under common control or ownership with Company,
including, without limitation, Company’s subsidiaries.  Employee
expressly acknowledges and agrees that the Third Party Beneficiaries are
intended third party beneficiaries of this Agreement as it pertains to
Employee’s obligations under this Agreement and shall have the right to enforce
this Agreement directly against Employee in their own names or jointly with
Company or each other.  This Agreement, without more, is not intended
to and shall not be construed as granting any Third Party Beneficiary with any
ownership interest of any kind in any of Company’s Confidential
Information.

      

      9.           Notification.  Employee
acknowledges and agrees that Company may notify anyone employing or contracting
with Employee or evidencing an intention to employ or contract with Employee as
to the existence and provisions of this Agreement.

      

      10.           Future
Awards.  Nothing contained in this Agreement is intended to or
shall be construed to impose any obligation on Company to grant stock options or
restricted stock units to Employee other than the 2009 Awards granted by the
Compensation Committee of the Company’s Board of Directors.

      

      11.           Enforcement
and/or Reimbursement.  Employee
acknowledges and agrees that, by reason of the sensitive nature of the
Confidential Information, Intellectual Property, Trade Secrets, and Goodwill
referred to in this Agreement, a breach of any of the promises or agreements
contained herein will result in irreparable and continuing damage to Company for
which there may not be an adequate remedy at law.  If Employee
violates any of the terms of this Agreement, all Company obligations under this
Agreement shall cease without relieving Employee of Employee’s continuing
obligations hereunder and Employee shall forfeit all outstanding 2009 Awards and
all Company obligations to Employee regarding such 2009 Awards shall
cease.  In addition to the foregoing, to the extent Employee breaches
any provision of this Agreement, Employee shall be required to reimburse Company
for any amounts received as profit or gain from any 2009
Awards.  Employee acknowledges and agrees that said forfeitures and/or
reimbursements represent only a small portion of the actual irreparable and
continuing damages Company would experience if Employee violates the terms of
this Agreement.  As such, Employee further acknowledges and agrees
that, in addition to the foregoing, and the recovery of any additional damages
to which Company may be entitled in the event of Employee’s violation of this
Agreement, Company shall also be entitled to equitable relief, including such
injunctive relief as may be necessary to protect the interests of Company in
such Confidential Information, Company Intellectual Property, Trade Secrets, and
Goodwill and as may be necessary to specifically enforce this
Agreement.  Employee further acknowledges and agrees that the remedies
of forfeiture, reimbursement, and injunctive relief are cumulative and the
forfeiture/reimbursement is not intended as a “buyout” option for Employee or as
a substitute for Employee’s performance under this Agreement.

      

      
        
          
          

        

        
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      12.           Reformation
and Severability.  Employee and
Company intend and agree that if a court of competent jurisdiction determines
that the scope of any provision of this Agreement is too broad to be enforced as
written, the court should reform such provision(s) to such narrower scope as it
determines to be enforceable.  Employee and Company further agree that
if any provision of this Agreement is determined to be unenforceable for any
reason, and such provision cannot be reformed by the court as anticipated above,
such provision shall be deemed separate and severable and the unenforceability
of any such provision shall not invalidate or render unenforceable any of the
remaining provisions hereof.  Employee and Company further agree that
in the event a court of competent jurisdiction determines this Agreement to be
unenforceable and void in its entirety, Company shall be entitled to rescission
of all outstanding 2009 Awards given Employee as partial consideration for
Employee's obligations under this Agreement, and all Company obligations to
Employee regarding such 2009 Awards shall cease.

      

      13.           Integration
and Amendments.  This Agreement,
including the initial paragraph and the recitals to this Agreement, each of
which is incorporated herein and made part of this Agreement by this reference,
is a complete agreement between the parties.  The previous sentence
notwithstanding, Employee expressly acknowledges that as an employee of Company
or any of its affiliates, Employee was and is subject to additional policies and
agreements instituted for the purpose of protecting the confidential and
proprietary information, trade secrets, and goodwill of Company and its
subsidiaries and affiliates; and as such, Employee expressly acknowledges that
all such policies and agreements shall not be replaced and superseded by this
Agreement, but shall be used together with this Agreement to protect the
interests of Company and its subsidiaries and affiliates to the fullest extent
allowed by law.  This Agreement shall be binding upon and for the
benefit of the parties and their respective heirs, executors, administrators,
successors, devisees, permissible assigns, personal representatives, and legal
representatives.  No supplement, modification, or amendment to this
Agreement shall be binding unless executed in writing by Employee and
Company.

      

      14.           Waiver.  Any waiver by
either party of a breach of any provision of this Agreement shall not operate or
be construed as a waiver of any subsequent breach or provision
hereof.

      

      15.           Miscellaneous.

      

      a.           At-will
Employment.  Nothing contained in this Agreement shall, to the
extent that Employee is an at-will employee, be deemed to alter or modify
Employee’s status as an at-will employee of Company or any of its
affiliates.

      

      b.           Jurisdiction, Venue, and Governing
Law.  Employee hereby expressly consents to personal
jurisdiction and venue of the state and federal courts located in Nebraska for
any lawsuit that arises from or relates to this Agreement. This Agreement shall
be governed by, construed, and enforced in accordance with the laws of the State
of Nebraska.

      

      c.           Survival.  Employee’s
obligations hereunder shall survive the termination of Employee’s employment
with Company or any of its affiliates or any other agreement or relationship
between Employee and Company.

      

      d.           Assignability.  This
Agreement is assignable by Company.  This Agreement is not assignable
by Employee.

      

      16.           Employee’s
Copy.  EMPLOYEE
ACKNOWLEDGES THAT EMPLOYEE HAS RECEIVED A COPY OF THIS AGREEMENT AND HAS READ,
UNDERSTOOD, AND AGREES TO BE BOUND BY THE TERMS AND CONDITIONS CONTAINED IN THIS
AGREEMENT.

      

      [Remainder
of this page intentionally left blank; Signature page follows.]

      
        
           

        

        
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      The
parties have executed this Proprietary Matters Agreement effective as of the
date and year first written above.

      

      
        
          
            	
                    CABELA’S
      INCORPORATED,

                    a
      Delaware corporation

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                    By:

                  	
                    /s/
      Charles Baldwin

                  	 
      	
                    /s/
      Thomas L. Millner

                  
	 
      	
                    Charles
      Baldwin, Vice President and

                    Chief
      Human Resources Officer

                  	 
      	
                    Thomas
      L. Millner

                  

          

        

      

       

       
Back to Form
8-Kexhibit106.htm

    
      
        

      

      Exhibit
10.6

      

      MANAGEMENT
CHANGE OF CONTROL SEVERANCE AGREEMENT

      

      This
Management Change of Control Severance Agreement (this "Agreement") is dated
this [         ] day of
[         ]
[         ] (the "Effective Date"), by
and among Cabela's Incorporated, a Delaware corporation (the "Company"), and
[                 ]
(the "Executive").

      

      W I T N E
S S E T H :

      

      WHEREAS,
the Executive is presently an officer or key employee of the
Company;

      

      WHEREAS,
the Company desires to ensure the Executive's continued active participation in
the business of the Company; and

      

      WHEREAS,
in order to induce the Executive to remain in the employ of the Company and in
consideration of the Executive's agreeing to remain in the employ of the
Company, the parties desire to specify the severance benefits which shall be due
the Executive in the event that his employment with the Company is terminated
under specified circumstances.

      

      NOW
THEREFORE, in consideration of the mutual agreements contained in this
Agreement, and upon the other terms and conditions provided in this Agreement,
the parties to this Agreement agree as follows:

      

      1.           Definitions.  The
following words and terms shall have the meanings set forth below for the
purposes of this Agreement:

      

      (a)           Annual
Compensation.  The Executive's "Annual Compensation" for
purposes of this Agreement shall be deemed to mean the sum of (i) the base
salary paid to the Executive by the Company or any subsidiary thereof during the
calendar year in which the Date of Termination occurs (determined on an
annualized basis) and (ii) the average of the incentive compensation award
granted to the Executive by the Company under the Cabela’s Incorporated
Performance Bonus Plan (or any predecessor or successor bonus plan) in each of
the two calendar years preceding the calendar year in which the Date of
Termination occurs (determined on an annualized basis).

      

      (b)           Board.  “Board”
shall mean the Board of Directors of the Company.

      

      (c)           Cause.  Termination
of the Executive's employment for "Cause" shall mean termination because (i) the
Executive is charged with a felony, (ii) in the reasonable determination of the
Company, the Executive has committed an act of fraud, embezzlement or theft
relating to the Company, (iii) in the reasonable determination of the Company,
the Executive has committed gross negligence in the course of his employment
with the Company that is materially detrimental to the business of the Company,
(iv) the Executive fails to fulfill his duties as an employee of the Company,
including inattention to or neglect of his duties and shall not have remedied
such failure within thirty (30) days after receiving written notice from the
Company specifying the details thereof, or (v) of a third occurrence of the same
action or inaction which caused the Company to previously give the Executive
notice under Section 1(c)(iv).  For purposes of this Agreement, an act
or omission on the part of the Executive shall be deemed “gross negligence” only
if it was done by the Executive in bad faith, not merely an error in judgment
and without reasonable belief that the act or omission was in the best interests
of the Company.  In the event the Executive disputes the existence of
Cause in connection with a termination of employment, no termination for Cause
shall be effective in the absence of an affirmative vote of seventy-five percent
(75%) of the members of the entire Board (disregarding any director who must
abstain).

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (d)           Change in
Control.  "Change in Control" shall mean the occurrence of any
of the following events:

      

      (i)           any
transaction that would result and does result in the reorganization, merger or
consolidation of the Company, with one or more other Persons, other than a
transaction following which:

      

      (A)           at
least fifty-one percent (51%) of the equity ownership interests of the entity
resulting from such transaction are Beneficially Owned by Persons who,
immediately prior to such transaction, Beneficially Owned at least fifty-one
percent (51%) of the outstanding equity ownership interests in the
Company.  For purposes of this Section 1(d), the term “Beneficially
Owned” or "Beneficial Ownership" shall have the meaning ascribed to it under
Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) and the terms “Person” or “Persons” shall have the meaning
ascribed to them under Sections 13(d) and 14(d) of the Exchange Act;
and

      

      (B)           at
least fifty-one percent (51%) of the securities entitled to vote generally in
the election of directors of the entity resulting from such transaction are
Beneficially Owned by Persons who, immediately prior to such transaction,
Beneficially Owned at least fifty-one percent (51%) of the securities entitled
to vote generally in the election of directors of the Company;

      

      (ii)           the
consummation of the sale or other disposition of all or substantially all of the
assets of the Company, except for any such transaction which does not result in
a Change in Control under Section 1(d)(v);

      

      (iii)           an
acquisition (other than directly from the Company) of any voting securities of
the Company (the "Voting Securities") by any Person, immediately after which
such Person has Beneficial Ownership of more than fifty percent (50%) of the
combined voting power of the Company's then outstanding Voting
Securities;

      

      (iv)           a
complete liquidation or dissolution of the Company;

      

      (v)           the
occurrence of any event if, immediately following such event, members of the
Board who belong to any of the following groups do not aggregate at least a
majority of the Board:

      

      (A)           individuals
who were members of the Board on the Effective Date of this Agreement;
or

      

      (B)           individuals
who first became members of the Board after the Effective Date of this Agreement
but prior to such event either:

      

      (1)           upon
election to serve as a member of the Board by the affirmative vote of
three-quarters of the members of the Board, or of a nominating committee
thereof, in office at the time of such first election; or

      
        
           

        

        
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      (2)           upon
election by the stockholders of the Company to serve as a member of the Board,
but only if nominated for election by the affirmative vote of three-quarters of
the members of the Board, or of a nominating committee thereof, in office at the
time of such first nomination; provided that such individual's election or
nomination did not result from an actual or threatened election contest or other
actual or threatened solicitation of proxies or consents other than by or on
behalf of the Board;

      

      provided,
however, in no event shall a "Change in Control" be deemed to have occurred as a
result of any acquisition of securities or assets of the Company or a subsidiary
of the Company, by the Company, any subsidiary of the Company or by any employee
benefit plan maintained by the Company.

      

      (e)           COBRA.  "COBRA"
shall mean the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended.

      

      (f)           Code.  "Code"
shall mean the Internal Revenue Code of 1986, as amended.

      

      (g)           Date of
Termination.  "Date of Termination" shall mean:

      

      (i)           if
the Executive’s employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
such later date specified in the Notice of Termination, as the case may
be;

      

      (ii)           if
the Executive’s employment is terminated by the Company other than for Cause or
Disability, the date on which the Company notifies the Executive of such
termination;

      

      (iii)           if
the Executive resigns without Good Reason, the date on which the Executive
notifies the Company of such termination; and

      

      (iv)           if
the Executive’s employment is terminated by reason of death or Disability, the
date of death or Disability of the Executive, as the case may be.

      

      (h)           Disability.  Termination
by the Company of the Executive's employment based on "Disability" shall mean
termination because the Executive  either (i) is unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than twelve (12) months, or
(ii) is, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a
continuous period of not less than twelve (12) months, receiving income
replacement benefits for a period of not less than three (3) months under an
accident or health plan covering employees of the Company.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      (i)           Equity
Plans.  “Equity Plans” shall mean all stock option, restricted
stock, restricted stock unit and other equity plans of the Company, including
the 2004 Stock Plan, the 2004 Employee Stock Purchase Plan and the 1997 Stock
Option Plan.

      

      (j)           Good
Reason.  “Good Reason” shall mean actions taken by the Company
resulting in a material negative change in the employment relationship. For
these purposes, a “material negative change in the employment relationship”
shall include:

      

      (i)           a
material diminution in the Executive's base compensation;

      

      (ii)           a
material diminution in the Executive’s authority, duties or
responsibilities;

      

      (iii)           a
material diminution in the authority, duties or responsibilities of the
supervisor to whom the Executive is required to report, including, if the
Executive reports directly to the Board, a requirement that the Executive report
to a corporate officer or employee instead of reporting directly to the
Board;

      

      (iv)           a
material diminution in the budget over which the Executive  retains
authority;

      

      (v)           a
change in the Executive's principal place of employment by a distance in excess
of one hundred (100) miles from its location immediately prior to the Change in
Control;

      

      (vi)           any
other action or inaction that constitutes a material breach by the Company of an
agreement under which the Executive provides services to the Company;
or

      

      (vii)           The
failure by the Company to obtain the assumption of and agreement to perform this
Agreement by any successor as contemplated in Section 10.

      

      In order
to invoke a termination for Good Reason, the Executive shall provide written
notice to the Company of the existence of one or more of the conditions
described in clauses (i) through (vii) within 90 days following the
Executive’s knowledge of the initial existence of such condition or conditions,
specifying in reasonable detail the conditions constituting Good Reason, and the
Company shall have 30 days following receipt of such written notice (the “Cure
Period”) during which it may remedy the condition. In the event that the Company
fails to remedy the condition constituting Good Reason during the applicable
Cure Period, the Executive’s “separation from service” (within the meaning of
Section 409A of the Code) must occur, if at all, within two years following
such Cure Period in order for such termination as a result of such condition to
constitute a termination for Good Reason.  The Executive’s mental or
physical incapacity following the occurrence of an event described above in
clauses (i) through (vii) shall not affect the Executive’s
ability to terminate employment for Good Reason and the Executive’s death
following delivery of a Notice of Termination for Good Reason shall not affect
the Executive’s estate’s entitlement to severance payments benefits provided
hereunder upon a termination of employment for Good Reason.

      

      (k)           IRS.  IRS
shall mean the Internal Revenue Service.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      (l)           Notice of
Termination.  Any purported termination of the Executive's
employment by the Company for any reason, including for Cause, Disability or
Retirement, or by the Executive for any reason, including for Good Reason, shall
be communicated by written "Notice of Termination" to the other party to this
Agreement.  For purposes of this Agreement, a "Notice of Termination"
shall mean a dated notice which (i) indicates the specific termination provision
in this Agreement relied upon, (ii) sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated, (iii) if the Date of Termination
(as defined herein) is other than the date of receipt of such notice, specifies
the Date of Termination (which Date of Termination shall be not more than 30
days after the giving of such notice), and (iv) is given in the manner specified
in Section 11.

      

      (m)           Retirement.  "Retirement"
shall mean any termination of the Executive’s employment with the Company,
either voluntarily or involuntarily, by the Executive or the Company after the
Executive reaches age sixty-five (65).

      

      2.           Benefits Upon
Termination.  If the Executive's employment by the Company is
terminated within twenty-four (24) months after a Change in Control by (i) the
Company for any reason other than Cause, Disability, Retirement or the
Executive's death or (ii) the Executive for Good Reason, then:

      

      (a)           The
Company shall pay to the Executive in a lump sum as of the Date of Termination
(and in all events within 30 days of the Date of Termination) a cash severance
amount equal to two (2) times the Executive's Annual Compensation;

      

      (b)           The
Company shall continue, for an eighteen (18) month period from the Date of
Termination, the Executive’s participation in the Company's group medical,
dental, life and disability insurance programs and, if applicable, Medicare
supplemental coverages (“Continued Benefits”).  The Continued Benefits
shall be provided by the  Company at the same premium to the
Executive, and at the same coverage levels in effect immediately prior to the
Date of Termination.  The Continued Benefits shall be provided to the
Executive in compliance with the terms of COBRA; provided that in the event that
the Executive's participation in any plan as provided in this Section 2(b) is
barred by the underlying service provider or insurance carrier used by the
Company to provide such benefits, or during such period any such plan is
discontinued, the Company shall arrange to either provide the Executive with
benefits substantially similar to those which the Executive was entitled to
receive under such plans immediately prior to the Date of Termination or a cash
amount equal to the cost the Company would have incurred to provide for such
benefits for the remainder of the continuation period.  The Continued
Benefits will be discontinued prior to the end of the eighteen (18) month
period in the event the Executive receives substantially similar benefits from a
subsequent employer, as determined in good faith by the Board.  For
purposes of enforcing this Section 2(b), to the extent necessary for the Company
to make an off-set deduction, the Executive shall have a duty to keep the
Company informed as to the terms and conditions of any subsequent employment and
the corresponding benefits from employment and shall provide or cause to provide
to the Company, in writing, correct, complete and timely information concerning
the same.    Any payments made directly to the Executive for
Continued Benefits pursuant to this Section 2(b) may be imputed as income
to the Executive, and, in such event, the Company will pay to the Executive
such additional amount, in accordance with the conditions of Treasury
Regulation Section 1.409A-3(i)(1)(v), as necessary to have no federal,
state or local tax effect on the Executive;

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      (c)           All
unvested stock options, restricted stock, restricted stock units or other equity
interests of the Company issued to the Executive under the Equity Plans or
otherwise shall fully vest on the Date of Termination (and in all events within
30 days of the Date of Termination) to the extent such options, restricted
stock, restricted stock units or other equity interests do not otherwise vest
upon the change of control as defined in the applicable Equity Plan or
agreement; and

      

      (d)           Section
7(b) (Development of Intellectual Property) of this Agreement and similar
provisions (including non-competition and non-solicitation provisions but
excluding confidentiality provisions) in other agreements between the Executive
and the Company shall be terminated and of no further force and effect as of the
Date of Termination, but Section 7(a) (Nondisclosure of Confidential
Information) of this Agreement and similar confidentiality provisions in other
agreements between the Executive and the Company shall remain in full force and
effect after the Date of Termination.

      

      3.           Gross-Up
Payment.  Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment or
distribution by or on behalf of the Company to or for the benefit of the
Executive as a result of a change in control (within the meaning of Section 280G
of the Code) (whether paid or payable or distributed or distributable pursuant
to the terms of this Agreement or otherwise, but determined without regard to
any additional payments required under this Section 3 (a "Payment")) would be
subject to the excise tax imposed by Section 4999 of the Code, or any interest
or penalties are incurred by the Executive with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then the Executive shall be
entitled to receive an additional payment (a "Gross-Up Payment") in an amount
such that after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any income taxes (and
any interest and penalties imposed with respect thereto) and the Excise Tax
imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

      

      (a)           Tax
Opinion.  Subject to the provisions of Section 3(b), all
determinations required to be made under this Section 3, including whether and
when a Gross-Up Payment is required and the amount of such Gross-Up Payment and
the assumptions to be utilized in arriving at such determination, shall be made
by a big 4 accounting firm selected by the Company (the "Tax Firm"); provided,
however, that the Tax Firm shall not determine that no Excise Tax is payable by
the Executive unless it delivers to the Executive a written opinion (the "Tax
Opinion") that failure to pay the Excise Tax and to report the Excise Tax and
the payments potentially subject thereto on or with the Executive's applicable
federal income tax return will not result in the imposition of an
accuracy-related or other penalty on the Executive.  All fees and
expenses of the Tax Firm shall be paid by the Company.  Within fifteen
(15) business days of the receipt of notice from the Executive that there has
been a Payment, or such earlier time as is requested by the Executive or the
Company, the Tax Firm shall make all determinations required under this Section
3, shall provide to the Company and the Executive a written report setting forth
such determinations, together with detailed supporting calculations, and, if the
Tax Firm determines that no Excise Tax is payable, shall deliver the Tax Opinion
to the Executive.  Any Gross-Up Payment, as determined pursuant to
this Section 4, shall be paid by the Company to the Executive within fifteen
(15) days of the receipt of the Tax Firm's determination.  Subject to
the remainder of this Section 3, any determination by the Tax Firm shall be
binding upon the Company and the Executive.

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      As a
result of uncertainty in the application of Sections 280G and 4999 of the Code
at the time of the initial determination by the Tax Firm under this Section 3,
it is possible that Gross-Up Payments which will not have been made by the
Company should have been made ("Underpayment"), consistent with the calculations
required to be made under this Section 3.  In the event that it is
ultimately determined in accordance with the procedures set forth in Section
3(b) that the Executive is required to make a payment of any Excise Tax, the Tax
Firm shall reasonably determine the amount of the Underpayment that has occurred
and any such Underpayment shall be promptly paid by the Company to or for the
benefit of the Executive.  In determining the reasonableness of Tax
Firm's determinations under this Section 3, and the effect thereof, the
Executive shall be provided a reasonable opportunity to review such
determinations with the Tax Firm and the Executive's tax counsel.

       

      (b)           Notice of IRS
Claim.  The Executive shall notify the Company in writing of
any claims by the IRS that, if successful, would require the payment by the
Company of the Gross-Up Payment.  Such notification shall be given as
soon as practicable but no later than thirty (30) calendar days after the
Executive actually receives notice in writing of such claim and shall apprise
the Company of the nature of such claim and the date on which such claim is
requested to be paid; provided, however, that the failure of the Executive to
notify the Company of such claim (or to provide any required information with
respect thereto) shall not affect any rights granted to the Executive under this
Section 3 except to the extent that the Company is materially prejudiced in the
defense of such claim as a direct result of such failure.  The
Executive shall not pay such claim prior to the expiration of the thirty (30)
day period following the date on which he gives such notice to the Company (or
such shorter period ending on the date that any payment of taxes with respect to
such claim is due).  If the Company notifies the Executive in writing
prior to the expiration of such period that it desires to contest such claim,
the Executive shall do all of the following:

      

      (i)           provide
the Company with any information reasonably requested by the Company relating to
such claim;

      

      (ii)           take
such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including accepting legal
representation with respect to such claim by an attorney selected by the Company
and reasonably acceptable to the Executive;

      

      (iii)           cooperate
with the Company in good faith in order effectively to contest such claim;
and

      

      (iv)           if
the Company elects not to assume and control the defense of such claim, permit
the Company to participate in any proceedings relating to such
claim;

      

      provided,
however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such
contest and shall indemnify and hold the Executive harmless, on an after-tax
basis, for any Excise Tax or income tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of costs
and expenses.  Without limiting the foregoing provisions of this
Section 3, the Company shall have the right, at its sole option, to assume the
defense of and control all proceedings in connection with such contest, in which
case it may pursue or forego any and all administrative
appeals,

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      proceedings,
hearings and conferences with the taxing authority in respect of such claim and
may either direct the Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in
a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided, however, that if the Company directs the
Executive to pay such claim and sue for a refund, the Company shall advance the
amount of such payment to the Executive, on an interest-free basis and shall
indemnify and hold the Executive harmless, on an after-tax basis, from any
Excise Tax or income tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed income with
respect to such advance; and further provided that any extension of the statute
of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount.  Furthermore, the Company's
right to assume the defense of and control the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable under this
Section 3 and the Executive shall be entitled to settle or contest, as the case
may be, any other issue raised by the Internal Revenue Service or any other
taxing authority.

      

      (c)           Right to Tax
Refund.  If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 3, the Executive becomes entitled to
receive any refund with respect to such claim, the Executive shall (subject to
the Company's complying with the requirements of Section 3(b)) promptly pay to
the Company the amount of such refund (together with any interest paid or
credited thereon net of any taxes paid by the Executive).  If, after
the receipt by the Executive of an amount advanced by the Company pursuant to
Section 3(b), a determination is made that the Executive is not entitled to a
refund with respect to such claim and the Company does not notify the Executive
in writing of its intent to contest such denial of refund prior to the
expiration of thirty (30) calendar days after such determination, then such
advance shall, to the extent of such denial, be forgiven and shall not be
required to be repaid and the amount of the forgiven advance shall offset, to
the extent thereof, the amount of Gross-Up Payment required to be
paid.

      

      (d)           Timing of Gross-Up
Payments.  Notwithstanding anything in this Section 3 to
the contrary, in accordance with Treasury
Regulation Section 1.409A-3(i)(1)(v), in no event shall the Company
pay the Executive (or pay on the Executive’s behalf) any amount to which the
Executive is entitled under this Section 3 later than the end of the
Executive’s taxable year next following the Executive’s taxable year in which
Executive remits the Excise Tax to the IRS (or in the case of costs and expenses
payable under this Section, no later than the end of the Executive’s taxable
year next following the Executive’s taxable year in which the taxes that are the
subject of the audit or litigation are remitted to the IRS, or where as a result
of such audit or litigation no taxes are remitted, the end of the Executive’s
taxable year next following the Executive’s taxable year in which the audit is
completed or there is a final and nonappealable settlement or other resolution
of the litigation).

      

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      4.           Mitigation; Exclusivity of
Benefits.

      

      (a)           The
Executive shall not be required to mitigate the amount of any benefits under
this Agreement by seeking other employment or otherwise.  The amount
of severance to be provided pursuant to Section 2 shall not be reduced by any
compensation earned by the Executive as a result of employment by another
employer after the Date of Termination or otherwise.

      

      (b)           The
specific arrangements referred to in this Agreement are not intended to exclude
any other benefits which may be available to the Executive upon a termination of
employment with the Company pursuant to employee benefit plans of the Company or
otherwise.

      

      5.           Withholding.  All
payments required to be made by the Company under this Agreement to the
Executive shall be subject to the withholding of such amounts, if any, relating
to tax and other payroll deductions as the Company may reasonably determine
should be withheld pursuant to any applicable law or regulation.

      

      6.           Nature of Employment and
Obligations.

      

      (a)           Nothing
contained in this Agreement shall be deemed to create other than a terminable at
will employment relationship between the Company and the Executive, and the
Company may terminate the Executive's employment at any time, subject to
providing any payments specified in this Agreement in accordance with the terms
of this Agreement.

      

      (b)           Nothing
contained in this Agreement shall create or require the Company to create a
trust of any kind to fund any benefits which may be payable under this
Agreement, and to the extent that the Executive acquires a right to receive
benefits from the Company under this Agreement, such right shall be no greater
than the right of any unsecured general creditor of the Company.

      

      7.           Proprietary
Information.  The parties agree to the protection of the
Company’s proprietary information as follows:

      

      (a)           Nondisclosure of
Confidential Information.

      

      (i)           Access.  The
Executive acknowledges that employment with Company necessarily involves
exposure to, familiarity with and opportunity to learn highly sensitive,
confidential and proprietary information of the Company and its subsidiaries,
which may include information about products and services, markets, customers
and prospective customers, vendors and suppliers, miscellaneous business
relationships, investment products, pricing, billing and collection procedures,
proprietary software and other intellectual property, financial and accounting
data, personnel and compensation, data processing and communications, technical
data, marketing strategies, research and development of new or improved products
and services and know-how regarding the business of the Company and its products
and services (collectively referred to herein as “Confidential
Information”).

      

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      (ii)           Valuable
Asset.  The Executive further acknowledges that the
Confidential Information is a valuable, special and unique asset of the Company,
such that the unauthorized disclosure or use by persons or entities outside the
Company would cause irreparable damage to the business of the
Company.  Accordingly, the Executive agrees that during and after the
Executive’s employment with the Company, until the Confidential Information
becomes publicly known, the Executive shall not directly or indirectly disclose
to any person or entity, use for any purpose or permit the exploitation, copying
or summarizing of, any Confidential Information of the Company, except as
specifically required in the proper performance of his duties for the
Company.

      

      (iii)           Duties.  The
Executive agrees to take all appropriate action, whether by instruction,
agreement or otherwise, to ensure the protection, confidentiality and security
of the Confidential Information and to satisfy his obligations under this
Agreement.  Prior to lecturing or publishing articles which reference
the Company and its business, the Executive will provide to an officer of the
Company a copy of the material to be presented for the Company to review and
approve in order to ensure that no Confidential Information is
disclosed.

      

      (iv)           Confidential
Relationship.  The Company considers its Confidential
Information to constitute “trade secrets” which are protected from unauthorized
disclosure under applicable law.  However, whether or not the
Confidential Information constitutes trade secrets, the Executive acknowledges
and agrees that the Confidential Information is protected from unauthorized
disclosure or use due to his covenants under this Section 7 and his fiduciary
duties as an executive of the Company.

      

      (v)           Return of
Documents.  The Executive acknowledges and agrees that the
Confidential Information is and at all times shall remain the sole and exclusive
property of the Company.  Upon the termination of his employment with
the Company or upon request by the Company, the Executive will promptly return
to the Company in good condition all documents, data and records of any kind,
whether in hardcopy or electronic form, which contain any Confidential
Information or which were prepared based on Confidential Information, including
any and all copies thereof, as well as all materials furnished to or acquired by
the Executive during the course of the Executive’s employment with the
Company.

      

      (b)           Development of Intellectual
Property.

      

      (i)           Definition of Intellectual
Property.  As used in this Agreement, the term “Intellectual
Property” shall include any inventions, technological innovations, discoveries,
designs, formulas, know-how, processes, patents, trademarks, service marks,
copyrights, computer software, ideas, creations, writings and other works of
authorship, books, lectures, illustrations, photographs, scientific and
mathematical models, improvements to all such property and all recorded material
defining, describing or illustrating all such property, whether in hardcopy or
electronic form.

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      (ii)           The Company’s Rights in
Intellectual Property.  The Executive agrees that all right,
title and interest of every kind and nature, whether now known or unknown, in
and to any Intellectual Property invented, created, written, developed,
conceived or produced by the Executive during the term of the Executive’s
employment with the Company (i) whether using the Company’s equipment, supplies,
facilities or Confidential Information, (ii) whether alone or jointly with
others, and (iii) whether or not during normal working hours, that are within
the scope of the Company’s actual or anticipated business operations or that
relate to any of the Company’s actual or anticipated products or services shall
be the exclusive property of the Company and the Executive hereby assigns to the
Company all rights to such Intellectual Property without limitation or
royalty.  To the extent that any such Intellectual Property is
copyrightable, it shall be deemed to be a “work for hire” within the meaning of
the copyright laws.  Consideration for such assignment is hereby
acknowledged.  The Executive will promptly and fully disclose to the
Company any and all such Intellectual Property.  The Executive agrees
that any patent application filed by him within one year after termination of
his employment is presumed to relate to an invention developed during the term
of the Executive’s employment with the Company and thus is the exclusive
property of the Company.  As such, the Executive agrees to disclose to
the Company all such patent applications.  The Executive hereby
consents and agrees that the Executive shall have no right, title or interest of
any kind or nature in or to any item of Intellectual Property, or in or to any
results or proceeds from any Intellectual Property.

      

      (iii)           Additional
Actions.  The Executive agrees to take all reasonably necessary
actions to enable the Company to obtain and perfect its rights in the
Intellectual Property, including assisting the Company in obtaining patents,
copyrights, trademarks, service marks and similar protections in the United
States and all foreign countries.  The Executive further agrees to
assist the Company in connection with any demands, reissues, oppositions,
litigation, controversy or other actions involving any item of Intellectual
Property.  The Executive agrees to undertake the foregoing obligations
both during and after the Executive’s employment with the Company, without
charge, but at the Company’s expense with respect to the Executive’s reasonable
out-of-pocket costs.  The Executive further agrees that the Company
may, in its sole discretion, keep such Intellectual Property as trade secrets,
in which case the Executive will comply with the Confidential Information
provisions in Section 7(a) above.

      

      (c)           Enforcement.  For
purposes of this Section 7, the term "Company" shall include the Company and all
of its subsidiaries.  Each of the Company’s subsidiaries shall be an
intended third party beneficiary of this Agreement and shall have the right to
enforce the provisions of this Agreement against the Executive individually or
collectively with any one or more of the other subsidiaries.

      

      (d)           Equitable
Relief.  The Executive acknowledges and agrees that, by reason
of the sensitive nature of the Confidential Information and Intellectual
Property of the Company referred to in this Agreement, in addition to recovery
of damages and any other legal relief to which the Company may be entitled in
the event of the Executive’s violation of this Agreement, the Company shall also
be entitled to equitable relief, including such injunctive relief as may be
necessary to protect the interests of the Company in such Confidential
Information and Intellectual Property and as may be necessary to specifically
enforce the Executive’s obligations under this Agreement.

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      8.           Severability.  The
Executive and the Company intend and agree that if a court of competent
jurisdiction determines that the scope of any provision of this Agreement is too
broad to be enforced as written, the court should reform such provisions to such
narrower scope as it determines to be enforceable.  The Executive and
the Company further agree that, if any provision of this Agreement is determined
to be unenforceable for any reason, such provision shall be deemed separate and
severable and the unenforceability of any such provision shall not invalidate or
render unenforceable any of the remaining provisions of this
Agreement.

      

      9.           No
Attachment.

      

      (a)           Except
as required by law, no right to receive payments under this Agreement shall be
subject to anticipation, commutation, alienation, sale, assignment, encumbrance,
charge, pledge or hypothecation, or to execution, attachment, levy or similar
process or assignment by operation of law, and any attempt, voluntary or
involuntary, to affect any such action shall be null, void and of no
effect.

      

      (b)           This
Agreement shall be binding upon, and inure to the benefit of, the Executive, the
Company and their respective successors and permitted assigns.

      

      10.           Assignability. The
Company may assign this Agreement and its rights and obligations under this
Agreement in whole, but not in part, to any corporation or other entity with or
into which the Company may hereafter merge or consolidate or to which the
Company may transfer all or substantially all of its assets, if in any such case
said corporation or other entity shall by operation of law or expressly in
writing assume all obligations of the Company under this Agreement as fully as
if it had been originally made a party to this Agreement, but may not otherwise
assign this Agreement or its rights and obligations under this
Agreement.  The Executive may not assign or transfer this Agreement or
any rights or obligations under this Agreement.

      

      11.           Notice.  For
the purposes of this Agreement, notices and all other communications provided
for in this Agreement shall be in writing and shall be deemed to have been duly
given when delivered or mailed by certified or registered mail, return receipt
requested, postage prepaid, addressed to the respective addresses set forth
below:

      

      To the Company:

      

      Cabela's Incorporated

      One Cabela Drive

      Sidney,
NE  69160

      Attention: Legal
Department

      

      To the Executive:

      

      At the most recent address on file at
the Company

      

      12.           409A of the
Code.  This Agreement is intended to comply with the
requirements of Section 409A of the Code or an exception or exclusion
therefrom and shall in all respects be administered in accordance with
Section 409A of the Code.  Severance payments shall be made under
the “separation pay” exception under Section 409A of the Code, to the
maximum extent possible, and then under the “short-term deferral” exclusion
under Section 409A of the Code or another applicable
exception.  Within the time period permitted by the applicable
Treasury Regulations, the Company may, in consultation with the Executive,
modify this Agreement, in the least restrictive manner necessary and without any
diminution in the value of the payments to the Executive, in order to cause the
provisions of this Agreement to comply with the requirements of
Section 409A of the Code so as to avoid the imposition of taxes and
penalties on the Executive pursuant to Section 409A of the
Code.

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      13.           Amendment;
Waiver.  No provisions of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and such officer or officers as may be
specifically designated by the Board of Directors of the Company to sign on
their behalf.  No waiver by any party to this Agreement at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or at any
prior or subsequent time.

      

      14.           Governing
Law.  The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the United States
where applicable and otherwise by the substantive laws of the State of
Delaware.

      

      15.           Remedies
Cumulative.  No remedy conferred upon a party by this Agreement
is intended to be exclusive of any other remedy, and each and every remedy shall
be cumulative and in addition to any other remedy given under this Agreement or
hereinafter existing at law or in equity.

      

      16.           Construction.  Any
reference to any federal, state, local or foreign law, constitution, code,
statute or ordinance shall be deemed to include all rules and regulations
promulgated thereunder (by any governmental authority or otherwise), and any
successor law, unless the context otherwise requires.  “Including”
means “including without limitation” and does not limit the preceding words or
terms.  The words “or” or “nor” are inclusive and include
“and”.  The singular shall include the plural and vice
versa.  Each word of gender shall include each other word of gender as
the context may require.  The parties have each participated in the
negotiation and drafting of this Agreement.  In the event an ambiguity
or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties and no presumption or burden of
proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement.

      

      17.           Headings.  The
section headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this
Agreement.

      

      18.           Validity.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provisions of this Agreement,
which shall remain in full force and effect.

      

      19.           Counterparts.  This
Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original but all of which together will constitute one and the
same instrument.

      

      20.           Payment of Costs and Legal
Fees.  All reasonable costs and legal fees paid or incurred by
the Executive pursuant to any dispute or question of interpretation relating to
this Agreement shall be paid or reimbursed by the Company if the Executive is
successful on the merits pursuant to a legal judgment, arbitration or
settlement.

      

      21.           Entire
Agreement.  This Agreement, including the recitals to this
Agreement, embodies the entire agreement between the Company and the Executive
with respect to the matters agreed to in this Agreement.  All prior
agreements between the Company and the Executive with respect to the matters
agreed to in this Agreement are hereby superseded and shall have no force or
effect, except that this Agreement shall not affect or operate to reduce any
benefit or compensation inuring to the Executive of a kind elsewhere
provided.

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, this Agreement has been executed as of the date first above
written.

      

      
        
          
            	
                    CABELA’S
      INCORPORATED,

                    a
      Delaware corporation

                  	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                    By:

                  	
                     

                  	 
      	 
      
	Its:	
                     

                  	 
      	
                    [Executive]

                  

          

        

      

       

       

       
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8-K

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