Document:

exv10w1

Exhibit 10.1

DATED
20th
of February 2007

Travelzoo Inc.

and

YAP, Thian Seng

 

SERVICE AGREEMENT

 

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Subject	 	Page No.
	1

	 	Interpretation
	 	 	1	 
	2

	 	Appointment
	 	 	3	 
	3

	 	Duties
	 	 	3	 
	4

	 	Remuneration and Expenses
	 	 	3	 
	5

	 	Other Benefits
	 	 	4	 
	6

	 	Sick Leave Entitlement and Medical Benefits
	 	 	5	 
	7

	 	Holiday Entitlement
	 	 	5	 
	8

	 	Retirement Fund and Pension Scheme Participation
	 	 	6	 
	9

	 	Confidentiality
	 	 	6	 
	10

	 	Restrictions during Employment
	 	 	6	 
	11

	 	Termination
	 	 	7	 
	12

	 	Restrictions after Employment
	 	 	9	 
	13

	 	Employment with New Group Company
	 	 	10	 
	14

	 	Indemnity
	 	 	10	 
	15

	 	Notices
	 	 	10	 
	16

	 	Entire Agreement
	 	 	11	 
	17

	 	Prior Agreements
	 	 	11	 
	18

	 	Proper Law and Forum
	 	 	11	 
	19

	 	Process Agent
	 	 	11	 

 

 

THIS AGREEMENT is dated the 20th day of February 2007

BETWEEN:

	(1)	 	Travelzoo Inc., a company incorporated in the State of Delaware in the United States of
America whose principal business office is situated at 590 Madison Avenue, 21st
Floor, New York, New York 10022 (the “Company”); and

	(2)	 	YAP, Thian Seng, holder of Hong Kong Identity Card
No. XXXXXXXXXX of XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX (the “Executive”).

RECITAL:

     The Company has agreed to employ the Executive and the Executive has agreed to serve the
Company as an employee of the Company on the terms and conditions set out below.

NOW IT IS AGREED as follows:

	1.	 	INTERPRETATION

	1.1	 	In this Agreement, unless the context otherwise requires, the following expressions shall
bear the following meanings:

	 	 	 
	     “this Agreement”

	 	this Agreement as may from time to time be amended, modified or
supplemented pursuant to Clause 16;
	 
	 	 
	     “Appointment”

	 	the employment of the Executive pursuant to this Agreement;
	 
	 	 
	     “Board”

	 	the Board of Directors of the Company from time to time;
	 
	 	 
	     “Business”

	 	the business presently carried on by the Company, including but not limited to the
publishing of travel offers from more than 500 advertisers;
	 
	 	 
	     “Commencement Date”

	 	on or before 6th May 2007;
	 
	 	 
	     “Companies Ordinance”

	 	the Companies Ordinance, Chapter 32, Laws of Hong Kong;
	 
	 	 
	     “Confidential Information”

	 	any information of, developed, used or applied or which may be
developed, used or applied by the Company or any Group Company in relation to the
Business, or which the Company or any Group Company has obtained from any third party on
terms that restrict its disclosure or use, other confidential technical information, any
of the trade secrets, clients’ lists, accounts, financial or trading information or
other confidential or personal information which the Executive may receive or obtain in
relation to the business, finances, dealings or affairs of the Company or any Group
Company, including any information regarding the products, services, research programme,
projects or other technical data, know-how or specifications, whether in human or
machine readable form, and whether stored electronically or otherwise, or the finances,
proposals, contractual arrangements, principals, joint venture partners, contracting
parties, employees or agents of the Company or any Group Company;
	 
	 	 
	     “Documents”

	 	documents, disks, memory, notebooks, tapes or any other medium on which
information (whether confidential or otherwise) may from time to time be referred to,
written or recorded;
	 
	 	 
	     “Employment Ordinance”

	 	the Employment Ordinance, Chapter 57, Laws of Hong Kong;

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	     “Group”

	 	the Company and any company which is for the time being a subsidiary or holding
company of the Company and the terms ‘subsidiary” and “holding company’ shall have the
meanings ascribed thereto by section 2 of the Companies Ordinance;
	 
	 	 
	     “Group Company”

	 	any company within the Group;
	 
	 	 
	     “HK$”

	 	Hong Kong dollars, the lawful currency of Hong Kong;
	 
	 	 
	     “Hong Kong”

	 	the Hong Kong Special Administrative Region of the PRC;
	 
	 	 
	     “month”

	 	calendar month;
	 
	 	 
	     “Performance Bonus”

	 	the quarterly performance based bonus to which the Executive may be
entitled pursuant to Clause 5.1.2;
	 
	 	 
	     “PRC”

	 	the People’s Republic of China and for the purpose of this Agreement, excluding
Hong Kong, Macau Special Administrative Region and Taiwan;
	 
	 	 
	     “Prohibited Area”

	 	Australia, Hong Kong, India, Japan, the PRC, South Korea and Taiwan;
	 
	 	 
	     “Relevant Territory”

	 	Australia, India and Japan;
	 
	 	 
	     “Restricted Period”

	 	the period of 12 months from the Termination Date;
	 
	 	 
	     “Salary”

	 	the salary payable to the Executive pursuant to Clause 4.1;
	 
	 	 
	     “Term”

	 	the period from the Commencement Date until the Termination Date;
	 
	 	 
	     “Termination Date”

	 	the date of termination of the Executive’s employment pursuant to Clause 11;
	 
	 	 
	     “Tuition Fee Reimbursement”

	 	the reimbursement payable to the Executive pursuant to Clause
5.1.3 in respect of the tuition fees and the expenses on the purchase of necessary books
and materials of a top-tier part-time Master degree programme in Business Administration
(Executive MBA) to be undertaken by the Executive;
	 
	 	 
	     “U.S.”

	 	United States of America; and
	 
	 	 
	     “Working Days”

	 	Monday to Friday except where such day falls on a statutory holiday.

	1.2	 	In this Agreement:

	 	1.2.1	 	References to Clauses and Sub-Clauses are respectively to clauses and sub-clauses in this Agreement;
	 
	 	1.2.2	 	reference to any Ordinance, regulation or other statutory provision include
reference to such Ordinance, regulation or provision as may be modified, consolidated or
re-enacted from time to time;
	 
	 	1.2.3	 	unless the context otherwise requires, words denoting the singular include the
plural and vice versa, words denoting gender include both genders and the neuter and
words denoting a person include a corporation, sole proprietorship, firm, joint venture
or syndicate and, in each case, vice versa; and
	 
	 	1.2.4	 	the rule known as ejusdem generis shall not apply, so that words and phrases in
general terms following or followed by specific examples shall be construed in the
widest possible sense and shall not be construed as limited or related to the examples
given.

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	1.3	 	The headings in this Agreement are for ease of reference only and do not form part of the
Agreement.

	2.	 	APPOINTMENT

	2.1	 	Subject to the terms set out in this Agreement, the Company appoints the Executive and the
Executive accepts his employment as an employee of the Company with the duties described in
Clause 3.

	2.2	 	The Executive’s employment shall commence on the Commencement Date and shall continue unless
terminated by the Company pursuant to Clause 11.2 or terminated by the parties hereto pursuant
to Clause 11.1.

	3.	 	DUTIES

	3.1	 	The Executive shall during the Term:

	 	3.1.1	 	serve the Company in his capacity as Managing Director, Japan, India and
Australia, of the Company with such executive and management responsibilities and duties
with regard to the operations of the Group in the Relevant Territory and the development
and expansion of the Business as the Board may direct, including but not limited to the
following:

	 	(a)	 	Launch and develop the Travelzoo business in the Relevant Territory
in accordance with the Company’s strategy and operating budgets;
	 
	 	(b)	 	Assume profit and loss responsibility for the Business in the
Relevant Territory. For the avoidance of doubt, nothing herein shall be
construed as rendering the Executive to become personally liable for the profits
and losses of the Business in the Relevant Territory; and
	 
	 	(c)	 	Represent the Company in the Relevant Territory.

	 	3.1.2	 	devote the whole of his working time, attention and abilities during normal
business hours and such additional hours as may reasonably be required to administer the
duties associated with his position; and
	 
	 	3.1.3	 	use his best endeavors to promote and protect the interests of the Company and
shall at all times keep the Board promptly and fully informed of all matters relating to
or in connection with the performance and exercise of his duties under the Agreement.

	3.2	 	The Executive shall work in Hong Kong or any other part of the world (including but not
limited to the Relevant Territory) which the Board may require for the proper performance and
exercise of his duties under this Agreement.

	3.3	 	The normal business hours of the Company are 9:00 a.m. to 5:30 p.m., with one hour’s break
for lunch, Monday to Friday. However, the Executive shall be required to work such hours as
are reasonably necessary to fulfil his duties under this Agreement.

	3.4	 	The Executive shall attend a one-month training programme organised by the Company in the
U.S. upon commencement of the Executive’s employment with the Company.

	4.	 	REMUNERATION AND EXPENSES

	4.1	 	As remuneration for his services, the Executive shall be entitled to a salary at the rate of
HK$1,561,800 per calendar year (or such other rate as may from time to time be agreed in
writing). The Salary shall accrue from day to day and be payable by equal monthly installments
in arrears on or before the last day of each month, provided that if the employment terminates
on a date before the end of a month, the Salary for that month shall be in proportion to the
number of days for which the Executive was employed that month.

	4.2	 	If applicable at any time and notwithstanding anything to the contrary contained in the
constitutional documents of the Company or of any other Group Company, the Salary shall be
inclusive of any other fees or remuneration of any description which the Executive might be
entitled to receive from the Company or any Group Company or any other company or

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	 	 	association in which he holds office as a nominee or representative of the Company or any Group Company (and the Executive
shall, at the discretion of the Board, either waive his right to any such remuneration or account to the Company for the same
forthwith upon receipt).
	 
	4.3	 	The Salary shall be reviewed by the Board not less than annually, the first review being in June 2007.

	4.4	 	The Executive hereby authorises the Company to deduct from any remuneration accrued and due
to him under the terms of this Agreement (whether or not actually paid during the Appointment)
or from any pay in lieu of notice:

	 	4.4.1	 	any overpayment of salary or expenses or payment made to the Executive by
mistake or through any misrepresentation;
	 
	 	4.4.2	 	any undisputed debt presently payable by the Executive to the Company or any
Group Company; and
	 
	 	4.4.3	 	any employee’s contribution to pension fund or provident fund as adopted by the
Company from time to time, including without limitation any provident fund scheme
adopted by the Company pursuant to the Mandatory Provident Fund Scheme Ordinance,
Chapter 485, Laws of Hong Kong.

	4.5	 	The Company shall repay to the Executive all reasonable travelling, hotel and other expenses
properly incurred by the Executive in connection with the performance of the duties of the
Executive under this Agreement, subject to the Executive having delivered to the Company
vouchers or evidence of payment of such expenses as the Board may from time to time require.

	4.6	 	The Executive shall be entitled to fly Business Class when the duration of the flight exceeds
eight hours and otherwise Economy Class whilst travelling by air on Company duty or otherwise
in accordance with the travel policy determined by the Board from time to time. Where the
Company makes any credit card available to the Executive the Executive shall:

	 	4.6.1	 	take good care of such card and forthwith report any loss of such card to the
Board;
	 
	 	4.6.2	 	use the card only for the purposes of the relevant Group Company’s business and
in accordance with any Company policy applicable thereto; and
	 
	 	4.6.3	 	return the card forthwith to the relevant Group Company on request and in any
event upon the determination of his employment hereunder.

	5.	 	OTHER BENEFITS

	5.1	 	In addition to the Salary, the Executive shall be entitled to:-

	 	5.1.1	 	a sign-on bonus at a rate of HK$312,363 which shall be payable to the Executive
on the Commencement Date; and
	 
	 	5.1.2	 	a quarterly Performance Bonus that ranges between HK$0 and HK$195,240 (or such
other sum as the Board may determine upon review from time to time) per quarter and that
is based on the Executive’s performance as described below. The calculation of the
Performance Bonus for the quarter will be based on the official budget for the Company
(to be approved by the Board and disclosed to the Executive in writing) for the Relevant
Territory, which will include quarterly targets for revenues, operating income and
subscribers, and a quarterly assessment of the Executive’s performance by the Group CEO
of Travelzoo Inc., which will consider the Executive’s motivation and the quality of the
Company’s publications and products and advertiser base in his Relevant Territory.
	 
	 	 	 	The following criteria will apply in relation to the quarterly performance bonus plan:

	 	 	 
	Criteria

	 	Bonus for a particular calendar
quarter
	Revenue goal as defined in official
budget for Relevant Territory met?

	 	HK$48,810                 
	Operating income goal as defined in
official budget for Relevant
Territory met?

	HK$48,810                 
	Subscriber goal as defined in
official budget for Relevant
Territory met?

	 	HK$48,810                 
	Performance evaluation by the Group
CEO of Travelzoo Inc.

	 	Up to HK$48,810                 
	Total

	 	Up to
HK$195,240                 

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	 	 	 	The calculation of the Performance Bonus will be made by the Chief Financial Officer
of Travelzoo Inc.
	 
	 	 	 	The Performance Bonus will be paid less statutory deductions, if any, within 45 days
after the end of the calendar quarter, provided that the Executive shall not be
entitled to the Performance Bonus for a particular calendar quarter or any part
thereof if the Executive’s employment is terminated by the Executive pursuant to
Clause 11.1 or by the Company pursuant to Clause 11.2 on or before the payment date of
the Performance Bonus for such calendar quarter. If the Executive’s employment is
terminated by the Company pursuant to Clause 11.1, the Executive shall be entitled to
a pro-rata amount of the Performance Bonus for the relevant calendar quarter which
shall be payable within 45 days after the end of the relevant calendar quarter.
	 
	 	 	 	For the first twelve months from the Commencement Date, the Company guarantees the
Executive the full Performance Bonus of HK$195,240 per quarter.
	 
	 	 	 	Any bonus payments for periods beginning after the first day of a calendar quarter or
ending before the last day of a calendar quarter will be pro rata.
	 
	 	5.1.3	 	reimbursement of the tuition fees and the expenses on the purchase of necessary
books and materials up to a maximum amount of HK$1,100,000 in respect of a top-tier
part-time Master degree programme in Business Administration (Executive MBA) to be
undertaken by the Executive, subject to the presentation of receipts or other
appropriate evidence as the Company may require.

	6.	 	SICK LEAVE ENTITLEMENT AND MEDICAL BENEFITS

	6.1	 	The Executive shall be entitled to his full Salary during periods of absence due to
ill-health or sickness properly vouched for in accordance with the requirements of the Board,
provided that the aggregate period of absence of in any 12 month period shall not exceed the
maximum number of Working Days as prescribed by the Employment Ordinance (Chapter 57, Laws of
Hong Kong) from time to time.

	6.2	 	If at any time required by the Board, the Executive shall at the expense of the Company
undergo a medical examination by such doctor or doctors, as the Board shall nominate.

	6.3	 	The Executive, his spouse and children under the age of 18 shall be covered by the Company’s
medical benefits scheme or medical insurance scheme in accordance with the Company’s
prevailing medical benefits arrangements. The Executive shall comply with the reasonable
procedural requirements of the Company or the underwriter of the relevant insurance policy
when submitting claims for the medical benefits or under the medical insurance.

	7.	 	HOLIDAY ENTITLEMENT

	7.1	 	The Executive shall during the Term be entitled to paid leave of absence of 25 Working Days
(in addition to the usual public holidays) in each complete holiday year worked (and pro-rata
for part of each holiday year worked), which shall be taken by the Executive at such time or
times as shall be mutually convenient to the Executive and the Company. Accrued paid leave may
be carried forward up to a maximum of 25 Working Days.

	7.2	 	For the purposes of the Employment Ordinance, the holiday year of the Executive shall run
from 1st January each year to 31st December of that year.

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	8.	 	RETIREMENT FUND AND PENSION SCHEME PARTICIPATION

	8.1	 	The Executive shall be entitled during the Term to participate in and the Company shall
procure that the Executive be offered participation in the Company’s retirement or provident
fund scheme (if any, and/or such scheme as may from time to time be supplemental thereto or
for the replacement thereof).

	8.2	 	For the purposes of section 32 of the Employment Ordinance and Clause 4.4.3, it is agreed
that the Company may deduct from the Salary the amount of any contribution payable by the
Executive under any retirement of provident fund scheme in which the Executive may elect to
participate.

	9.	 	CONFIDENTIALITY

	9.1	 	The Executive shall not at any time during or after the Term use, divulge or communicate to
or cause or enable any third party (other than any officer of employee of the Company whose
province it is to know the same) to become aware of or use, take away, conceal, destroy or
retain for his own or some other person’s advantage or to the detriment of the Company or the
Group any of the Confidential Information.

	9.2	 	The Executive acknowledges that all Documents containing or referring to Confidential
Information at any time in his control or possession are and shall at all times remain the
absolute property of the Company and/or Group Company and the Executive undertakes, both
during the Appointment and after the Termination Date:

	 	9.2.1	 	to exercise due care and diligence to avoid any unauthorised publication,
disclosure or use of Confidential Information and any Documents containing or referring
to it;
	 
	 	9.2.2	 	at the direction of the Board, to deliver up any Confidential Information
(including all copies of all Documents whether or not lawfully made or obtained) or to
delete Confidential Information from any re-usable medium; and
	 
	 	9.2.3	 	to do such things and sign such documents at the expense of the Company as shall
be reasonably necessary to give effect to this Clause and/or to provide evidence that it
has been complied with.

	9.3	 	The restrictions in Clauses 9.1 and 9.2:

	 	9.3.1	 	will not restrict the Executive from disclosing (but only to the proper
recipient) any Confidential Information which the Executive is required to disclose by
law or any order of the court or any relevant regulatory body, provided that where
practicable the Executive shall have given prior written notice to the Board of the
requirement and of the information to be disclosed and allow the Board an opportunity to
comment on the requirement before making the disclosure; and
	 
	 	9.3.2	 	will not apply to Confidential Information which is or which comes into the
public domain otherwise than as a result of an unauthorised disclosure by the Executive.

	9.4	 	The Executive agrees that the restrictions set out in this Clause 9 are without prejudice to
any other duties of confidentiality owed to the Company and the Group, whether express or
implied and are to survive the termination of the Appointment.

	10.	 	RESTRICTIONS DURING EMPLOYMENT

	10.1	 	The Executive shall not at any time during the Appointment, save with the prior written
notification and sanction of the Board, be directly or indirectly engaged, concerned or
interested in any other company (including any consultancy or advisory work) which carries on
a business of a similar nature to the Business.

	10.2	 	The Executive shall not during the Appointment (save in a purely social capacity or with the
prior written consent of the Board) make any contact, whether formal or informal, written or
oral, with any of the Company’s past, current or prospective suppliers, customers or clients
with whom the Executive has had business dealings (directly or indirectly) for any purpose
(including but not limited to an intention to set up a competing business or to seek
employment) other than for the legitimate business interests of the Company.

	10.3	 	The Executive shall not during the Appointment either on his own behalf or on behalf of any
person, firm or company:

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	 	10.3.1	 	solicit or endeavour to entice away from the Company an actual employee, or discourage
from being employed by the Company any person who, to the knowledge of the Executive, is
an employee or a prospective employee of the Company; or
	 
	 	10.3.2	 	employ or procure another person to employ any such person.

	10.4	 	The restrictions set out in this Clause 10 are without prejudice to any other duties or
obligations owed to the Company or any Group Company whether express or implied.

	11.	 	TERMINATION

	11.1	 	Without prejudice to any other rights or causes of action available, this Agreement can be
terminated by either the Company or the Executive without having to give any good cause on or
after twelve months from the Commencement Date by either:

	 	11.1.1	 	giving to the other party hereto three months’ notice in writing expiring at any time
on or after twelve months from the Commencement Date; or
	 
	 	11.1.2	 	giving to the other party hereto notice in writing expiring at any time on or after
twelve months from the Commencement Date less than that required by Clause 11.1.1
provided that the party serving the notice shall pay to the other party a sum equal to
the Salary in respect of that part of the period of notice required by Clause 11.1.1
which has not been given to the other party; or

	 	11.1.3	 	making payment to the other party hereto of a sum representing three months’ Salary in
lieu of the notice required by Clause 11.1.1.

	11.2	 	Without prejudice to any other rights or causes of action available to the Company, this
Agreement shall be subject to immediate termination by the Company by summary notice in
writing without compensation if:

	 	11.2.1	 	the Executive at the time the notice is given is prevented by reason of ill-health or
accident or other incapacity from properly performing his duties and has been so
prevented (whether by the same or another reason) for at least a continuous period of
180 days or for an aggregate period of at least 180 days (whether or not, in either
case, Working Days) in the preceding 52 consecutive weeks;
	 
	 	11.2.2	 	(a) the Executive shall be guilty of any gross misconduct or wilful neglect of his
duties hereunder;

	 	(b)	 	the Executive shall commit any material breach or non-observance
or, after having been given warning in writing, any repeated or continued breach
(after receipt of prior notification of the previous breach(es) from the Company)
or non-observance of any of his duties or any of his express or implied
obligations arising from the Appointment or otherwise;
	 
	 	(c)	 	the Executive shall be guilty of conduct or shall permit or suffer
events, which, in the opinion of the Board, is likely to bring the Company or any
Group Company into disrepute;
	 
	 	(d)	 	the Executive shall commit any act of fraud or dishonesty (whether
or not connected with the Appointment) or any act which, in the opinion of the
Board, adversely affects his ability properly to carry out his duties;
	 
	 	(e)	 	the Executive shall become unable to pay his debts for the purposes
of Sections 6 and 6A of the Bankruptcy Ordinance, Chapter 6, Laws of Hong Kong,
shall claim the benefit of any Ordinance for the time being in force for the
relief of insolvent debtors or proposed or shall make any arrangement or
composition with his creditors;
	 
	 	(f)	 	the Executive is convicted of a criminal offence (other than an
offence which in the opinion of the Board does not affect his position in the
Company);
	 
	 	(g)	 	the Executive persistently refuses to carry out any lawful order
given to him in the course of his employment or persistently fails to diligently
attend to his duties under this Agreement; or

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	 	(h)	 	the Executive shall become of mental disorder or a patient as
defined in Section 7 of the Mental Health Ordinance, Chapter 136, Laws of Hong
Kong or been admitted to a hospital in pursuance of an application made under
Part III of that Ordinance.

	11.3	 	Upon termination of the Appointment however arising:

	 	11.3.1	 	if applicable the Executive shall, without prejudice to any claim he may have arising
out of the termination of this employment hereunder, forthwith at the request of the
Board and without further claim for compensation resign from all offices held by him in
any Group Company and from all other appointments or offices which he holds as nominee
or representative of the Company or any Group Company and, if he fails so to do, the
Company is irrevocably authorised by the Executive to appoint some person in his name
and on his behalf to execute such documents and to do such other things as are
reasonably necessary to give effect to such resignations; and
	 
	 	11.3.2	 	the Executive (or, if he shall be dead, of unsound mind or bankrupt, his personal
representatives or such other persons as shall be appointed to administer his estate and
affairs) shall deliver up to the Company in accordance with the directions of the Board,
all keys, security passes, credit cards, the Documents and other property (including the
company car provided pursuant to Clause 5) belonging to or relating to the businesses or
affairs of the Company or any Group Company, including all copies of all Documents
containing or referring to Confidential Information which may be in his possession or
under his control (or that of his personal representatives or such other persons), and
shall not retain copies, extracts or notes of any of the same.

	11.4	 	The Executive shall have no claim against the Company in respect of the termination of the
Appointment by reason of the liquidation of the Company for the purpose of amalgamation or
reconstruction or as part of any arrangements for the amalgamation or demerger of the
undertaking of the Company or any Group Company not involving liquidation, provided that the
Executive shall have been offered employment with the amalgamated or reconstructed or
de-merged company or companies on terms no less favourable to him than under this Agreement.

	11.5	 	The Board, if it has reason to suspect that any one or more of the events set out in Clause
11.2 has or may have occurred, may suspend the Executive pending the making and completion of
such investigation(s) as the Board thinks fit. While the suspension continues, the Company
shall pay the Salary to the Executive and provide to him the other benefits set out in this
Agreement. During the period of suspension the Company and relevant Group Companies shall not
be obliged to provide work to the Executive and may require the Executive to comply with such
conditions as the Company may reasonably specify in relation to attending at or remaining away
from the places of business of the Company and/or the Group Companies. The Company may later
terminate the Appointment, pursuant to the terms of this Agreement, on the grounds of the same
or any other event.

	11.6	 	Once notice to terminate the Executive’s employment has been given by the Company or the
Executive in accordance with Clause 11.1, or in the event that the Executive purports to
terminate in breach of those obligations, the Company:

	 	11.6.1	 	shall be under no obligation to vest in or assign to the Executive any powers or to
provide any work for the Executive and the Executive shall have no right to perform any
services for the Company or any Group Company;
	 
	 	11.6.2	 	may prohibit contact and/or dealings between the Executive and clients and/or
suppliers and/or personnel of or investors in the Company or any Group Company; and
	 
	 	11.6.3	 	may exclude the Executive from any premises of the Company or any Group Company
provided always that Salary and all other contractual benefits under this Agreement
shall not cease to be payable or provided by reason only of the Company exercising its
rights pursuant to Clause 11.6.

	This Clause 11.6 shall not affect the general right of the Company to suspend in accordance
with Clause 11.5 nor affect the rights and obligations of the parties hereto prior to the
service of notice.

	 
	11.7	 	Where this Agreement is terminated pursuant to Clause 11.2, the Executive shall not be
entitled to receive the Performance Bonus provided for in Clause 5.1.2 for the quarter of the
calendar year where the termination occurs. When this Agreement is terminated by the Company
pursuant to Clause 11.1, the Performance Bonus for the relevant calendar quarter shall be paid
on a pro-rata basis and payable within 45 days after the end of the relevant calendar quarter.

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	11.8	 	Where this Agreement is terminated by the Company pursuant to Clause 11.2 or is terminated by
the Executive pursuant to Clause 11.1, the Executive shall pay to the Company within 7
calendar days from the date of termination of this Agreement and the Company shall be entitled
to deduct from any remuneration or terminal payments accrued and due to the Executive under
the terms of this Agreement (whether or not actually paid during the Appointment) such amount
of Tuition Fee Reimbursement in respect of a top-tier part-time Master degree programme in
Business Administration (Executive MBA) to be undertaken by the Executive and paid by the
Company to the Executive in accordance with the following sliding scale:-

	 	11.8.1	 	if this Agreement is terminated within one year from the date of completion of the
Master degree programme, a sum equivalent to the full amount of the Tuition Fee
Reimbursement;
	 
	 	11.8.2	 	if this Agreement is terminated within two years from the date of completion of the
Master degree programme, a sum equivalent to 50% of the Tuition Fee Reimbursement; and
	 
	 	11.8.3	 	if this Agreement is terminated within three years from the date of completion of the
Master degree programme, a sum equivalent to 25% of the Tuition Fee Reimbursement.

	12	 	RESTRICTIONS AFTER EMPLOYMENT

	12.1	 	The Executive shall not, save with the prior written consent of the Board, during the
Restricted Period, carry on or be concerned or engaged or interested directly or indirectly
(whether as principal, shareholder, partner, employee, officer, agent or otherwise) within the
Prohibited Area in any part of any trade or business which competes with any part of any trade
or business carried on by the Company at any time during the period of 12 months prior to the
Termination Date, in which the Executive shall have been actively engaged or involved, in any
country in which the Company has traded during the period of 12 months prior to the
Termination Date.

	12.2	 	The Executive shall not during the Restricted Period and within the Prohibited Area either on
his own behalf or on behalf of any person, firm or company in relation to the business
activities of the Company in which the Executive has been engaged or involved, directly or
indirectly:

	 	12.2.1	 	solicit, approach or offer goods or services to or entice away from the Company any
person, firm or company who at the Termination Date (or at any time during 12 months
prior to the Termination Date) was a client or customer of the Company and in each case
with whom the Executive (or any other employee on his behalf or under his direct
instruction) has been actively engaged or involved by virtue of his duties hereunder; or
	 
	 	12.2.2	 	deal with or accept custom from any person, firm or company who at the Termination
Date (or at any time during 12 months prior to the Termination Date) was a client or
customer of the Company and in each case with whom the Executive (or any other employee
on his behalf or under his direct instruction) has been actively engaged or involved by
virtue of his duties hereunder; or
	 
	 	12.2.3	 	solicit or approach or offer goods or services to or entice away from the Company any
person, firm or company who at the Termination Date (or at any time during 12 months
prior to the Termination Date) was a supplier, agent or distributor of the Company and
in each case with whom the Executive (or any other employee on his behalf or under his
direct instruction) has been actively engaged or involved by virtue of his duties
hereunder; or
	 
	 	12.2.4	 	deal with or interfere with any person, firm or company who at the Termination Date
(or at any time during 12 months prior to the Termination Date) was a supplier, agent or
distributor of the Company and in each case with whom the Executive (or any other
employee on his behalf or under his direct instruction) has been actively engaged or
involved by virtue of his duties hereunder;

	PROVIDED THAT nothing contained in these Sub-Clauses 12.2.1 to 12.2.4 shall prohibit the
Executive from carrying out any activities which are not in competition with any part of the
business of the Company with which the Executive was involved in 12 months prior to the
Termination Date.

	 
	12.3	 	The Executive shall not during the Restricted Period and within the Prohibited Area either on
his own behalf or on behalf of any person, firm or company in relation to the business
activities of the Company in which the Executive has been engaged

9

 

		 	or involved, directly or indirectly, approach, solicit, endeavour to entice away, employ,
offer employment to or procure the employment of any person who is or was a key employee
belonging to the management grade or in a senior capacity with whom the Executive has had
dealings within a period of 12 months prior to the Termination Date) whether or not such
person would commit any breach of his contract of employment by reason of so leaving the
service of the Company or otherwise.
	 
	12.4	 	The Executive shall not, at any time after the Termination Date, either on his own behalf or
on behalf of any other person, firm or company directly or indirectly, within the Prohibited
Area:

	 	12.4.1	 	interfere or seek to interfere with the continuance, or any of the terms, of the
supply of goods or services to the Company; or
	 
	 	12.4.2	 	represent himself as being in any way connected with or interested in the business of
the Company (other than as a consultant or a member if such be the case) or use any name
which is identical or similar to or likely to be confused with the name of the Company
or any product or service produced or provided by the Company or which might suggest a
connection with the Company.

	12.5	 	The Executive (who acknowledges that, in the course of the Appointment, he is likely to have
dealings with the clients, customers, suppliers and other contacts of the Company) agrees that
each of the restrictions in Sub-Clauses 12.1, 12.2.1, 12.2.2, 12.2.3, 12.2.4, 12.3, 12.4.1 and
12.4.2 is separate and distinct, is to be construed separately from the other restrictions,
and is reasonable as regards its duration, extent and application for the protection of the
legitimate business interests of the Company. However, in the event that any such restriction
shall be found to be void or unenforceable but would be valid or enforceable if some part or
parts of it were deleted, the Executive agrees that such restriction shall apply with such
deletions as may be necessary to make it valid and effective.

	13.	 	EMPLOYMENT WITH NEW GROUP COMPANY

For the conduct of the Business in Asia, the Company may incorporate a new Group Company (the “New
Group Company”) in Hong Kong or elsewhere in the world. If considered proper and if allowed by the
law of the place where the New Group Company is incorporated, the Board may direct that such New
Group Company takes up the employment of the Executive hereunder on the same terms and conditions
set out in this Agreement, and the Executive undertakes that he will enter into a new employment
agreement with the New Group Company on the same terms and conditions set out in this Agreement.
Upon signing of the new employment agreement with the New Group Company, the continuity of
employment of the Executive hereunder will not be affected by virtue of his employment being
transferred to the New Group Company, so far as this is permitted by the law of the place where the
New Group Company is incorporated.

	14.	 	INDEMNITY

Each of the Company and the Executive agrees to indemnify and hold harmless the other on demand
from and against any and all losses, claims, damages, liabilities and expenses, including but
without limitation any proceedings brought against it/him arising from the performance of its/his
duties pursuant to this Agreement, so far as permitted by law, except in any case where the matter
in respect of which indemnification is sought under this Clause was caused by the wilful neglect of
the party to be indemnified.

	15.	 	NOTICES

Notices by either party hereto:

	15.1	 	must be in writing addressed:

	 	15.1.1	 	to the Company at its principal business office for the time being; and
	 
	 	15.1.2	 	to the Executive at his place of work or at the address set out in this Agreement or
such other address as the Executive may from time to time have notified to the Company
for the purpose of this Clause; and

	15.2	 	will be effectively served:

10

 

	 	15.2.1	 	on the day of receipt, where any hand-delivered letter or a facsimile transmission is
received on a Working Day before or during normal working hours;
	 
	 	15.2.2	 	on the following Working Day, where any hand-delivered letter or facsimile
transmission is received either on a Working Day after normal working hours or on any
other day;
	 
	 	15.2.3	 	on the second Working Day following the day of posting from within Hong Kong of any
letter sent by first class prepaid mail; or
	 
	 	15.2.4	 	on the fifth Working Day following the day of posting to an overseas address of any
prepaid airmail letter.

	16.	 	 ENTIRE AGREEMENT

	16.1	 	This Agreement embodies all the terms and provisions of and relating to the employment of the
Executive by the Company.

	16.2	 	The terms of this Agreement may only be varied in writing by the parties hereto or their duly
authorised agents.

	17.	 	PRIOR AGREEMENTS

This Agreement is in substitution for and shall supersede all former and existing agreements or
arrangements made orally or in writing for the employment of the Executive by the Company or any
Group Company, which shall be deemed to have been cancelled with effect from the date of this
Agreement, and no party hereto shall have any claim in respect of any such superseded agreements or
arrangements.

	18.	 	PROPER LAW AND FORUM

This Agreement shall in all respects be interpreted and construed in accordance with and governed
by Hong Kong law and each party hereto irrevocably submits to the non-exclusive jurisdiction of the
Hong Kong courts and waives all defences to any action arising hereunder brought in the courts of
Hong Kong on the ground that such an action is brought in an inconvenient forum.

	19.	 	PROCESS AGENT

The Company irrevocably appoints Messrs. Stephenson Harwood & Lo of 35th Floor, Bank of
China Tower, 1 Garden Road, Central, Hong Kong to act as its agent to receive and acknowledge on
its behalf any writ, summon, order, judgment or other notice of legal process in Hong Kong. If
such agent (or its successor) no longer serves as agent of the Company for this purpose, the
Company shall promptly appoint a successor agent and notify the Executive. The Company agrees that
any legal process shall be sufficiently served on it if delivered to its agent at the address
mentioned herein or such other address as may have been notified by the agent to the Executive.

IN WITNESS whereof the parties hereto entered into this Agreement the day and year first written
above.

	 	 	 	 	 	 	 	 	 	 	 
	SIGNED for and on behalf of

	 	 	 	 	 	 	)	 	 	 
	Travelzoo Inc.

	 	 	 	 	 	 	)	 	 	 
	by Ralph Bartel (Director)

	 	 	)	 	 	 	 	 	 	 
	in the presence of:-

	 	 	 	 	 	 	)	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SIGNED, SEALED AND DELIVERED

	 	 	)	 	 	 	 	 	 	 
	by YAP, Thian Seng

	 	 	 	 	 	 	)	 	 	 
	in the presence of:-

	 	 	 	 	 	 	)	 	 	 

11exv10w1

EXHIBIT 10.1

CLEARWIRE CORPORATION

CHANGE IN CONTROL

SEVERANCE PLAN

 

 

CLEARWIRE CORPORATION

CHANGE IN CONTROL SEVERANCE PLAN

(Effective as of March
25, 2008)

Section 1. Establishment and Purpose

     Clearwire Corporation has established this Clearwire Corporation Change in Control Severance
Plan (this “Plan”) effective as of March 25, 2008 to pay benefits under certain
circumstances to Participants (as defined below) as compensation for certain types of terminations
of employment in connection with or following a Change in Control (as defined below). This Plan is
effective as of March 25, 2008 (the “Effective Date”).

     All benefits under this Plan are subject to the terms and conditions specified herein. This
document is intended to serve as the official document for this Plan for purposes of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).

Section 2. Definitions

     Capitalized terms not otherwise defined herein shall have the applicable meanings set forth
below:

     “Anticipatory Termination” means a termination of a Group 1 Participant or Group 2
Participant within the period between (i) (a) the date that the Company’s board of directors
approves the transaction resulting in the Change of Control or (b) the date that any third party
publicly announces its intention to acquire control of the Company (for example, by launching a
public tender offer), as applicable, and (ii) the Closing Time in a manner that would entitle such
Participant to benefits hereunder if such termination occurred after the Closing Time, but only if
the Plan Administrator determines that, as applicable, (x) the Employer terminated the
Participant’s employment at the request or instruction of a third party who had taken steps
reasonably calculated to effect a Change in Control or (y) the Participant terminated his or her
employment due to an event that would have constituted Good Reason if the date on which the Change
in Control occurs was deemed to be the date immediately prior to the date of such event and such
Good Reason event occurred by virtue of the request or instruction of a third party who had taken
steps reasonably calculated to effect a Change in Control.

     “Board” means the Board of Directors of the Company.

     “Cause” shall have the correlative meaning set forth in a Participant’s employment
agreement with an Employer or, in the absence of any such agreement or in the absence of any
similar definition in such agreement, “Cause” shall mean a Participant’s termination due to a
preponderance of objective evidence of any of the following: (i) the Participant’s indictment for,
or conviction of, a felony or a crime involving fraud or a crime that would negatively affect the
Company’s reputation if the Participant remained in his/her position; (ii) proof of a material
violation of a key Company policy by the Participant (such policy violation must be of a
substantial nature similar in magnitude to acts of harassment or discrimination); (iii) continued
insubordination or a gross dereliction of duty by the Participant after written warning; (iv)
willful or grossly negligent conduct by the Participant that is demonstrably and significantly

 

 

injurious to the Company and its subsidiaries; or (v) a willful and material breach by the
Participant of the Company’s Employee Confidentiality and Intellectual Property Agreement (or
similar or Successor Agreement) by the Participant. An act or omission shall not be “willful” if
conducted with a reasonable belief that such act or omission is in the best interests of the
Company. Subject to the following sentence, the existence of Cause shall be determined by the Plan
Administrator in good faith and based on a reasonable investigation of the underlying facts.
Notwithstanding the foregoing, “Cause” for termination of a Group I Participant shall not exist
unless and until there shall have been delivered to the Group I Participant a copy of a resolution
duly adopted by the affirmative vote of not less than two-thirds (2/3) of the entire membership of
the Board at a meeting of the Board called and held for the purpose (after reasonable notice to the
Group I Participant and an opportunity for the Group I Participant, together with the Group I
Participant’s counsel, to be heard before the Board), finding that in the good faith opinion of the
Board the Group I Participant was guilty of the conduct set forth above in (i), (ii), (iii), (iv)
or (v) of this paragraph and specifying the particulars thereof in detail.

     “Change in Control” means the occurrence of any of the following after the Effective
Date:

     (a) An acquisition of securities of the Company by any “Person” (as the term “person”
is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange Act of 1934 (the
“Exchange Act”)) (other than Eagle River, Intel or any of their Controlled Affiliates)
immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of more than thirty-five percent (35%) of the combined
voting power of the Company’s then-outstanding securities entitled to vote in the election of
members of the Board (“Voting Securities”); provided, however, that the following
acquisitions of Shares or Voting Securities shall not constitute a Change in Control under this
clause (a): acquisitions by (i) an employee benefit plan (or a trust forming a part thereof)
maintained by (A) the Company or (B) any corporation or other Person the majority of the voting
power, voting equity securities or equity interest of which is owned, directly or indirectly, by
the Company (for purposes of this definition, a “Related Entity”), (ii) the Company or any
Related Entity, or (iii) any Person in connection with a “Non-Control Transaction” (as
hereinafter defined).

     (b) The individuals who, as of the Effective Date, are members of the Board (the
“Incumbent Board”), cease for any reason to constitute at least a majority of the members
of the Board; provided, however, that, if the election, or nomination for election by the Company’s
common stockholders, of any new director was approved by a vote of at least two-thirds of the
Incumbent Board, such new director shall, for purposes of the Plan, be considered a member of the
Incumbent Board; and provided, further, however, that no individual shall be considered a member of
the Incumbent Board if such individual initially assumed office as a result of an actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a
“Proxy Contest”), including by reason of any agreement intended to avoid or settle any
Proxy Contest; or

     (c) The consummation of:

2

 

          (i) A merger, consolidation or reorganization (1) with or into the Company or a direct or
indirect subsidiary of the Company or (2) in which securities of the Company are issued (each, a
“Merger”), unless such Merger is a “Non-Control Transaction”;

          (ii) A complete liquidation or dissolution of the Company; or

          (iii) The sale or other disposition of all or substantially all of the U.S. assets of the
Company and its direct and indirect subsidiaries taken as a whole to any Person (other than (x) a
transfer to a Related Entity or (y) a transfer under conditions that would constitute a Non-Control
Transaction, with the disposition of assets being regarded as a Merger for this purpose).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted
amount of the then outstanding Shares or Voting Securities as a result of the acquisition of Shares
or Voting Securities by the Company which, by reducing the number of Shares or Voting Securities
then outstanding, increases the proportional number of shares Beneficially Owned by the Subject
Persons provided that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of Shares or Voting Securities by the Company and, after such share
acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional
Shares or Voting Securities and such Beneficial Ownership increases the percentage of the then
outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

     “Closing Time” means the time as of which a Change in Control is consummated.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Company” means Clearwire Corporation and any successor, by merger or otherwise, to
Clearwire Corporation.

     “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through the ownership of
voting securities, by contract or otherwise.

     “Controlled Affiliate” means, with respect to any Person, any other Person directly or
indirectly under the Control of that Person.

     “Disability” means the Participant’s inability, due to physical or mental incapacity,
to substantially perform his/her duties and responsibilities to the Company for a period of six (6)
consecutive months or for an aggregate of one hundred eighty (180) days during any period of twelve
(12) consecutive months.

     “Eagle River” means Eagle River Holdings, LLC and Eagle River, Inc.

     “Employee” means each person (i) who was employed by any Employer before (a) the date
that the Company’s board of directors approves the transaction resulting in the Change of Control
or (b) the date that any third party publicly announces its intention to acquire control of the
Company (for example, by launching a public tender offer), and (ii) who either (a) is an

3

 

employee of any Employer immediately prior to the Closing Time or (b) who has been terminated
in an Anticipatory Termination prior to the Closing Time. Any other person who is not employed by
an Employer immediately prior to the Closing Time shall not be considered an Employee hereunder for
any purpose.

     “Employer” means each of the Company and any direct or indirect parent or subsidiary
entities of the Company with respect to which the Company holds, directly or indirectly, at least a
majority of the voting power.

     “Excise Tax” means the excise tax imposed by Code Section 4999.

     “Good Reason” shall have the correlative meaning set forth in a Participant’s
employment agreement with the Company or, in the absence of any such agreement or in the absence of
any similar definition in such agreement, “Good Reason” shall mean: (i) the occurrence of a
significant, adverse change in the Participant’s duties, responsibilities or authority as compared
to those immediately prior to a Change in Control; (ii) a relocation of the Participant’s principal
office to a location more than thirty (30) miles from the Participant’s then current office; (iii)
a reduction of the Participant’s base salary or bonus potential, or any other significant adverse
financial consequence associated with on-going employment following a Change in Control; or (iv) a
breach by any Employee of its obligations to the Participant, that is not corrected within twenty
(20) business days following the receipt by the Plan Administrator of written notice specifying, in
reasonably detail, such breach. A Participant’s mental or physical incapacity following the
occurrence of any event described in clauses (i) through (iv) hereof shall not affect the
Participant’s ability to termination his/her employment for Good Reason. With respect to an event
described in clause (iv) above, Good Reason shall not exist until the expiration of the applicable
cure period without such breach being cured.

     “Group 1 Participant” means an Employee who, as of immediately prior to the Closing
Time, is set forth on Exhibit A attached hereto or is designated as a Group 1 Participant by the
chief executive officer of the Company. Without the written consent of the affected Employee, an
Employee who otherwise qualifies as a Group 1 Participant at the Closing Time cannot thereafter be
removed as a Group 1 Participant.

     “Group 2 Participant” means an Employee who, as of immediately prior to the Closing
Time, is classified as a Tier B, Tier B-2, Tier C or Tier D Employee by the Employer, which
classification shall be made in the Employer’s sole discretion; provided, that, a Tier D Employee
shall be a Group 2 Participant only if such Employee has a direct reporting relationship to a Group
1 Participant and has Target Annual Compensation of $100,000 or more. Without the written consent
of the affected Employee, an Employee who otherwise qualifies as a Group 2 Participant at the
Closing Time cannot thereafter be removed as a Group 2 Participant for as long as such person
remains an Employee.

     “Group 3 Participant” means all Employees who do not qualify as a Group 1 Participant
or Group 2 Participant. Without the written consent of the affected Employee, an Employee who
otherwise qualifies as a Group 3 Participant at the Closing Time cannot thereafter be removed as a
Group 3 Participant for as long as such person remains an Employee.

4

 

     “Group 3 Severance Period” means the period of time with respect to which a Group 3
Participant’s Cash severance benefit under Section 5.3 is determined, it being understood that each
1/12 of a Group 3 Participant’s Target Annual Earnings corresponds to a Group 3 Severance Period of
one month. In determining the duration of the post-termination health insurance coverage, the
Group 3 Severance Period shall be at least equal to the minimum periods described in the
immediately preceding sentence.

     “Intel” means Intel Corporation.

     “Months of Service” means the number of a Participant’s whole months of service with
the Company and its affiliates, as determined upon the date of the Participant’s Qualifying
Termination.

     Non-Control Transaction” means a Merger in which:

     (a) either (i) Eagle River, Intel or any of their Controlled Affiliates or (ii) the
stockholders of the Company immediately before such Merger, in either case, own directly or
indirectly immediately following such Merger at least fifty percent (50%) of the combined voting
power of the outstanding voting securities of (x) the surviving corporation, if there is no parent
corporation of the surviving corporation or (y) if there is one or more than one parent
corporation, the ultimate parent corporation, unless in either case the Merger results in any
Person (other than Eagle River, Intel or any of their Controlled Affiliates) acquiring Beneficial
Ownership of more than thirty-five percent (35%) of the combined voting power of the Voting
Securities of the surviving corporation or ultimate parent corporation, as applicable; and

     (b) the individuals who were members of the Incumbent Board immediately prior to the execution
of the agreement providing for such Merger constitute at least a majority of the members of the
board of directors of (x) the surviving corporation, if there is no parent corporation of the
surviving corporation, or (y) if there is one or more than one parent corporation, the ultimate
parent corporation.

     “Participant” means each Employee who, as of the Closing Time, is a Group 1
Participant, a Group 2 Participant or a Group 3 Participant.

     “Plan Administrator” means (i) for Group 1 Participants and Group 2 Participants, the
Compensation Committee of the Board and (ii) for Group 3 Participants, Mark Fanning, Vice
President, People Development, or his successor.

     “Protection Period” means (i) in the case of Group 1 Participants and Group 2
Participants only, the twenty-four (24) month period commencing on the Closing Time and (ii) in the
case of Group 3 Participants only, the twelve (12) month period commencing on the Closing Time.

     “Qualifying Healthcare Coverage” means the health care coverage made available to
employees of the Employer with substantially similar duties and responsibilities to those of the
Participant, as determined immediately prior to such Participant’s Qualifying Termination.

5

 

     “Qualifying Termination” means a termination during the applicable Protection Period
of the employment with all Employers of a Participant in a manner that entitles such Participant to
severance benefits in accordance with Section 4 of the Plan. For the purposes of determining
whether a termination occurs during the applicable Protection Period, the date of such termination
shall be deemed to be the last day on which the Employee actively provides services to all
Employers, as determined in good faith by the Plan Administrator.

     “Target Annual Commission” means the amount obtained by multiplying (i) the net
commissions received by Participant over the three month period ending on the date of the
Qualifying Termination by (ii) four (4).

     “Target Annual Compensation” means the sum (i) the greater of a Participant’s annual
base salary as in effect immediately prior to the Closing Time or on the date of the Participant’s
Qualifying Termination, (ii) the Participant’s Target Annual Commission, if any, and (iii) the
greater of a Participant’s target annual bonus as in effect immediately prior to the Closing Time
or on the date of the Participant’s Qualifying Termination, in each case determined without giving
effect to any reductions effected without the Participant’s consent in any item of such
compensation after the later of (x) the signing of a definitive agreement that, if consummated,
would constitute a Change in Control and (y) the Closing Time.

     “Target Annual Earnings” means the sum of (i) the greater of a Participant’s annual
base salary as in effect immediately prior to the Closing Time or on the date of the Participant’s
Qualifying Termination and (ii) the Participant’s Target Annual Commissions, in either case
determined without giving effect to any reductions effected without the Participant’s consent in
any item of such compensation after the later of (x) the signing of a definitive agreement that, if
consummated, would constitute a Change in Control and (y) the Closing Time.

Section 3. Participants

     3.1 Eligibility to Participate. Each Employee who is a Group 1 Participant, Group 2
Participant or Group 3 Participant shall participate in this Plan. No person who is not a
Participant at the Closing Time shall be permitted to participate in the Plan.

     3.2 Eligibility for Benefits. A Participant shall be entitled to receive benefits
under this Plan only if such Participant’s employment with the Employer is terminated in accordance
with Section 4.

Section 4. Qualifying Terminations of Employment

     4.1 Group 1 Participants and Group 2 Participants. Subject to Section 4.4, a Group 1
Participant and Group 2 Participant shall be entitled to benefits under this Plan if, and only if,
the employment of such Group 1 Participant or Group 2 Participant with each Employer is (i) (1)
terminated by such Employer(s) for any reason other than for Cause or due to such Group 1
Participant’s or Group 2 Participant’s Disability or is voluntarily terminated by such Group 1
Participant or Group 2 Participant within sixty (60) days of the occurrence of an event of Good
Reason and (2) such termination occurs during the applicable Protection Period, or (ii) terminated
in an Anticipatory Termination.

6

 

     4.2 Group 3 Participants. Subject to Section 4.4, a Group 3 Participant shall be
entitled to benefits under this Plan if, and only if, the employment of such Group 3 Participant
with each Employer is (i) terminated by the such Employer(s) for any reason other than for Cause or
documented unsatisfactory job performance due to such Group 3 Participant’s Disability or is
terminated by such Group 3 Participant within 30 days of the relocation of the Group 3
Participant’s principal office to a location more than thirty (30) miles away from Group 3
Participant’s principal office location as of the date of the Change in Control and (ii) such
termination occurs during the applicable Protection Period.

     4.3 Effect of Other Terminations. A Participant shall not be entitled to any benefits
under this Plan (i) if the Participant’s employment is terminated for Cause, due to the
Participant’s Disability, due to the Participant’s death or due to the Participant’s voluntary
termination of employment other than as described in Section 4.1 or Section 4.2, as applicable or
(ii) if the Participant’s employment is terminated by virtue of a sale of assets (including the
sale of the stock of a subsidiary corporation) occurring after the Closing Time if the Participant
is offered employment by the acquirer of such assets on terms and conditions substantially similar
to those that existed with the applicable Employer immediately prior to such transfer.. For the
sake of clarity, the transfer of employment from one Employer to another Employer or the
termination of employment with one or more Employers but not all Employers shall not constitute a
termination of employment for purposes of Section 4.1 or 4.2 For purposes of the Plan, the
employment of a Participant will be treated as terminated only if such Participant has experienced
a “separation from service,” as such term is defined in Section 409A of the Code and the Treasury
Regulations thereunder.

     4.4 Release. Notwithstanding anything to the contrary contained herein, as a
condition to the receipt of any benefits under this Plan, a Participant shall be required to
properly execute, return to the Company and not revoke a release of claims in substantially the
form attached hereto as Exhibit C. Such release must be returned to the Company within sixty (60)
days of the Participant’s Qualifying Termination. By properly executing the release, the
Participant acknowledges (among other things) that the calculation of his or her severance benefits
under this Plan is correct and that he or she is not entitled to any other severance benefits as a
result of the termination of his or her employment with an Employer, and releases any and all
claims arising out of his or her employment with any Employer or the termination of that
employment.

Section 5. Severance Pay and Benefits

     5.1 Group 1 Participants. The Company shall provide the following benefits to each
Group 1 Participant who becomes entitled to benefits under Section 4.1 above: (i) cash severance
payments equal to 200% of the Group 1 Participant’s Target Annual Compensation and (ii)
continuation of Qualifying Healthcare Coverage, at no increased cost to the Group 1 Participant,
for twenty-four (24) months following such Group 1 Participant’s Qualifying Termination (unless and
until such time as the Group 1 Participant is otherwise eligible for healthcare coverage that is
substantially similar in cost and in level of benefits provided, from a successor employer or
otherwise). Notwithstanding the foregoing, the cash severance benefit payable to the Company’s
chief executive officer under clause (i), above, shall be equal to 300% (instead of 200%) of such
Participant’s Target Annual Compensation.

7

 

     5.2 Group 2 Participants. The Company shall provide the following benefits to each
Group 2 Participant who becomes entitled to benefits under Section 4.1 above: (i) cash severance
payments equal to 100% of the Group 2 Employee’s Target Annual Compensation and (ii) continuation
of Qualifying Healthcare Coverage, at no increased cost to the Group 2 Participant, for twelve (12)
months following such Group 2 Participant’s Qualifying Termination (unless and until such time as
the Group 2 Participant is otherwise eligible for healthcare coverage that is substantially similar
in cost and in level of benefits provided, from a successor employer or otherwise).

     5.3 Group 3 Participants. The Company shall provide the following benefits to each
Group 3 Participant who becomes entitled to benefits under Section 4.2 above: (i) cash severance
payments equal to the sum of (A) one-twelfth (1/12) of the Group 3 Participant’s Target Annual
Earnings for each full twelve (12) Months of Service credited to such Group 3 Participant up to a
maximum of 36 Months of Service and (B) one twenty-sixth (1/26) of the Group 3 Participants’ Target
Annual Earnings for each six (6) Months of Service in excess of thirty-six (36) Months of Service
credited to such Group 3 Participant and (ii) continuation of Qualifying Healthcare Coverage, at no
increased cost to the Group 3 Participant, during the Group 3 Severance Period (unless and until
such time as the Group 3 Participant is otherwise eligible for healthcare coverage that is
substantially similar in cost and in level of benefits provided, from a successor employer or
otherwise). Notwithstanding the foregoing, each Group 3 Participant with zero (0) to twelve (12)
Months of Service will receive a minimum severance payment equal to one-sixth (1/6) of such Group’s
Participant’s Target Annual Earnings and each Group 3 Participant with 13-36 Months of Service will
receive a minimum severance payment equal to one-quarter (1/4) of Such Group’s Participant’s Target
Annual Earnings.

     5.4 Equity Acceleration. In the event of a Qualifying Termination of a Participant
and in addition to any other rights such Participant may have to accelerated vesting of outstanding
equity awards, any unvested equity awards held by such Participant issued by an Employer shall
become fully vested and exercisable on such Qualifying Termination, and in the case of Group 1
Participants, shall remain exercisable until the shorter of (i) the end of their original term and
(ii) one (1) year following such Qualifying Termination.

     5.5 280G Gross-Up. In the event any Participant who, at the time of such Change in
Control, would be a “disqualified individual” pursuant to Treas. Reg. section 1.280G-1 Q/A-15
becomes subject to an Excise Tax as a result of any payments or benefits provided by any Employer
(whether pursuant to this Plan or otherwise), the Company shall pay to the Participant, prior to
the time any such Excise Tax is due (through withholding or otherwise), an additional amount which,
after the imposition of all income, employment, excise and other taxes thereon, is equal to the sum
of (i) the Excise Tax on such payments and/or benefits plus (ii) any penalty and interest
assessments associated with such Excise Tax. The Annex attached hereto provides additional
information with respect to determination and administration of payments described in this Section
5.5.

     5.6 Time and Form of Payment. The Company shall pay any cash severance payments
payable under this Plan pursuant to Sections 5.1(i), 5.2(i) or 5.3(i) as a single lump sum to a
Participant on the next regularly scheduled payroll date following the later of (i) the

8

 

date the Plan Administrator has received a signed release from the Participant and any
applicable revocation period has expired or (ii) the Participant’s date of Qualifying Termination.

     5.7 No Duplication of Payments or Benefits. As a condition of receiving benefits
under this Plan, each Participant shall and does agree that such Participant will not be entitled
to any other cash severance payments and/or welfare benefits.

Section 6. Funding and Indemnification

     6.1 General. All benefits provided pursuant to this Plan shall be general obligations
of the Company. The claim of a Participant to a benefit shall at all times be merely the claim of
an unsecured creditor of the Company. Subject to Section 6.2, no trust, security, escrow, or
similar account need be established for the purpose of paying benefits hereunder. The Company
shall not be required to purchase, hold or dispose of any investments pursuant to this Plan;
however, if in order to cover its obligations hereunder the Company elects to purchase any
investments the same shall continue for all purposes to be a part of the general assets and
property of the Company, subject to the claims of its general creditors and no person other than
the Company shall by virtue of the provisions of this Plan have any interest in such assets other
than an interest as a general creditor.

     6.2 Certain Obligation. Notwithstanding the foregoing, immediately prior to the
Closing Time, the Company shall secure the performance of its obligations hereunder by depositing
or causing to be deposited, in a “rabbi” trust (as contemplated by Rev. Proc. 92-64), the maximum
total cash severance that could become payable under Section 4.1 and the maximum excise tax
gross-up payments that could become payable under Section 5.5, in each case, to all Participants
who, at the time of such Change in Control, would be a “disqualified individual” pursuant to Treas.
Reg. section 1.280G-1 Q/A-15. Any failure by the Company to satisfy any of its obligations
pursuant to this Section 6 shall not limit the rights of the Participants hereunder. To the extent
permitted by its certificate of incorporation and by-laws and by the laws of the state in which it
is incorporated, the Company will indemnify any employee, officer or director of an Employer
against any and all liabilities incurred by reason of any act or omission made in good faith
pursuant to this Plan.

Section 7. Not a Contract of Employment

     This Plan does not alter or affect in any way whatsoever the at-will status of employment of
any Participant with the Employers. This Plan does not (a) impose any obligation on the Company or
another Employer to employ an employee (whether or not a Participant) for any specified period of
time, (b) restrict the Company’s or another Employer’s right to change any employee’s (including a
Participant’s) employment status, (c) restrict the Company’s or another Employer’s right to change
its policies or practices regarding termination of employment, or (d) give an employee or
Participant any additional rights to remain an employee or to remain subject to any such policies
or practices.

Section 8. Assignment and Offset

9

 

     No Participant shall have the right or power to alienate, commute, anticipate or otherwise
assign all or any portion of the benefit payable to him or her under this Plan. In the event of
any attempt to alienate, commute, anticipate or otherwise assign the benefits under this Plan, such
action shall be void, and the Plan Administrator shall have the right to suspend temporarily or to
forfeit permanently the benefit which otherwise would be payable to or on behalf of the affected
Participant.

Section 9. Claims Procedure

     9.1 Initial Claim. The Plan Administrator shall determine whether a Participant’s
employment with the Employers terminated in a Qualifying Termination within [ten (10)] days of such
termination. Alternatively, a Participant may submit a written claim for benefits under this Plan
with the Plan Administrator. The Plan Administrator will make an initial decision on such claim
and communicate it to the Participant within ninety (90) days; provided however that if special
circumstances require an extension of time, the Plan Administrator may extend such period by an
additional ninety (90) days by sending the Participant a written notice of extension prior to the
end of the initial ninety (90) day period. Such extension notice shall indicate the special
circumstances requiring an extension and the date on which the Plan Administrator expects to reach
a decision. If the Plan Administrator denies a Participant’s claim, the Plan Administrator will
notify the Participant in writing of the reasons for the denial and the Plan provisions that are
the basis of the denial, an explanation of what other material or information is needed, if any,
and explanation of the claims review process.

     9.2 Claims Review Process. If the Plan Administrator denies any Participant’s claim
for benefits under the Plan, the Plan Administrator shall notify such Participant of such denial by
written notice which shall set forth (i) the specific reason(s) for such denial, (ii) the Plan
provisions that are the basis for the denial, (iii) an explanation of what other material or
information is needed, if any, and why it is needed and (iv) an explanation of the claims review
process. The Participant shall be afforded a reasonable opportunity for a full and fair review by
the Plan Administrator of the decision to deny his/her claim for Plan benefits.

Section 10. Administration

     10.1 General. The Plan Administrator shall be the named fiduciary responsible for the
administration of the Plan.

     10.2 Authority of Plan Administrator. The Plan Administrator shall have the power and
sole and absolute discretion to (i) determine all questions arising in the administration of the
Plan or arising in law or fact in the interpretation and application of the Plan; (ii) promulgate
and enforce such rules, regulations and procedures as shall be proper for the efficient
administration of the Plan; (iii) determine the person or persons to whom benefits under the Plan
shall be paid and compute the amount of benefits and other payments which shall be payable to any
Participant in accordance with the provisions of the Plan; (iv) decide any dispute arising
hereunder; (v) correct defects, supply omissions and reconcile inconsistencies to the extent
necessary to effectuate the Plan; and (vi) have all such other powers as may be necessary to
discharge its duties hereunder.

10

 

Section 11. Amendment and Termination

     The Board of Directors of the Company may amend, modify or terminate this Plan at any time and
in any respect, provided that (i) this Plan may not be amended or terminated during the Protection
Period in a manner adverse to any Participant and (ii) this Plan shall not be amended (during or
after a Protection Period) so as to reduce the payments or benefits payable hereunder to any
Participant who incurred a Qualifying Termination during the applicable Protection Period.

Section 12. Governing Law

     Except to the extent preempted by Federal law, all rights under the Plan shall be governed by
and construed in accordance with the laws of the State of Delaware without regard to principles of
conflicts of law. No action shall be brought by or on behalf of any Participant for or with
respect to benefits due under this Plan unless the person bringing such action has exhausted the
claims review process described in Section 9.

Section 13. Code Section 409A

     The Plan shall be interpreted, construed and administered in a manner that satisfies the
requirements of Section 409A of the Code and the Treasury Regulations thereunder, and any payment
scheduled to be made hereunder that would otherwise violate Section 409A of the Code shall be
delayed to the extent necessary for this Agreement and such payment to comply with Section 409A and
the Treasury Regulations thereunder.

     Notwithstanding the timing of the payments pursuant to Section 5.6 of this Agreement, to the
extent the Participant would otherwise be entitled to a payment during the six (6) months beginning
on the date of a Qualified Termination that would be subject to the additional tax imposed under
Section 409A of the Code, (i) the payment will not be made to the Participant and instead will be
made, at the election of the Company, either to a trust in compliance with Rev. Proc. 92-64 or an
escrow account established to fund such payments (provided that such funds shall be at all times
subject to the creditors of the Company and its affiliates) and (ii) the payment, together with
interest thereon at the rate of “prime” plus 1%, will be paid to the Participant on the earlier of
the six (6)-month anniversary of the date of the Qualified Termination or the Participant’s death
or disability (within the meaning of Section 409A of the Code). Similarly, to the extent the
Participant would otherwise be entitled to any benefit (other than a cash payment) during the six
(6) months beginning on the date of a Qualified Termination that would be subject to the additional
tax under Section 409A of the Code, the benefit will be delayed and will begin being provided
(together, if applicable, with an adjustment to compensate the Employee for the delay, with such
adjustment to be determined in the Company’s reasonable good faith discretion) on the earlier of
the six (6)-month anniversary of the date of the Qualified Termination or the Participant’s death
or disability (within the meaning of Section 409A of the Code).

Section 14. Successors

11

 

     This Plan shall inure to the benefit of and be binding upon the Company and its successors and
assigns. The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Plan in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Plan, “Company” shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform this Plan by operation
of law, or otherwise.

12

 

     IN WITNESS WHEREOF, the Company has caused this Plan to be signed by its duly authorized
officer on the 25 day of March, 2008.

	 	 	 	 	 
	 	 	CLEARWIRE CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	Benjamin G. Wolff
	 	 	 	 	 
	 

	 	Title:	 	Chief Executive Officer
	 	 	 	 	 

13

 

ANNEX

     The determination of whether any payments and/or benefits to a Participant constitute a
Parachute Payment within the meaning of Section 280G(b)(2) of the Code and, if so, the amount to be
paid to the Participant and the time of payment pursuant to Section 5.5 of the Plan shall be made
by an independent auditor (the “Auditor”) selected by the Participant and the Company. The
Auditor shall be a nationally recognized United States public accounting firm which has not, during
the two (2) years preceding the date of its selection, acted in any way on behalf of the Company of
any affiliate thereof. If the Participant and the Company cannot agree on the firm to serve as the
Auditor, then the Participant and the Company shall each designate one (1) accounting firm and
those two firms shall jointly select the accounting firm to serve as the Auditor. All fees and
expenses of the Auditor shall be borne solely by the Company. Any payment required to be paid by
Section 5.5 of the Plan (a “Gross-Up Payment”) shall be paid by the Company to the
Participant within five (5) calendar days of the receipt of the Auditor’s determination. Any
determination by the Auditor shall be binding upon the Company and the Employee, except as
described in the next paragraph.

     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 Auditor hereunder, it is possible that the Gross-Up
Payment made will have been an amount more than the Company should have paid pursuant to this
Section ___(the “Overpayment”) or that the Gross-Up Payment made will have been an amount less than
the Company should have paid pursuant to this Section ___(the “Underpayment”). In the event that
there is a final determination by the Internal Revenue Service, or a final determination by a court
of competent jurisdiction, that an Overpayment has been made, any such Overpayment shall be treated
for all purposes as a loan to the Participant which the Participant shall repay to the Company
together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the
Code. In the event that there is a final determination by the Internal Revenue Service, a final
determination by a court of competent jurisdiction or a change in the provisions of the Code or
regulations pursuant to which an Underpayment arises under this Agreement, any such Underpayment
shall be promptly paid by the Company to or for the benefit of the Participant together with
interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code.

     The Participant shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would result in an Underpayment and would require the payment by the
Company of an additional Gross-Up Payment. Such notification shall be given as soon as practicable
but no later than ten business days after the Participant is informed 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. The Participant shall not pay such claim prior to the expiration of the 30 calendar
day period following the date on which the Participant 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 Participant in writing prior to the expiration of such period that it
desires to contest such claim, the Participant shall:

     (A) give the Company any information reasonably requested by the Company
relating to such claim,

14

 

     (B) take such action in connection with contesting such claim as the Company
shall reasonably request in writing from time to time, including, without
limitation, accepting legal representation with respect to such claim by an attorney
reasonably selected by the Company,

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

     (D) permit the Company to participate in any proceeding 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 Participant harmless, on an after-tax
basis, for any Excise Tax or income or employment tax (including interest and
penalties with respect thereto) imposed as a result of such proceeding and payment
of costs and expenses. Without limitation on the foregoing provisions of this
Section 12(f)(ii), the Company shall control all proceedings taken in connection
with such contest, provided that the Company’s control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and Participant 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.

15

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