Document:

EX-10.125 AMENDMENT TO STOCK OPTIONS

 

Exhibit 10.125

Amendment of Stock Option Agreements.

     On May 24, 2005, the Board of Directors of Interland, Inc. (“Interland”, or the “Company”) approved an
amendment to all of the Company’s unvested, outstanding stock options held by current officers, employees or
directors for which the exercise price exceeds the closing price on the Nasdaq Stock Market as of that date. The
amendment provides that the vesting of such will be accelerated such that the options will become fully
exercisable as of May 31, 2005. All of the Company’s 286,139 unvested options have exercise prices which qualify
for the amendment. The other terms and conditions of the stock options will remain unchanged.

16EX-10.126 FORM OF EMPLOYMENT AGREEMENT

 

Exhibit 10.126

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made and entered into by and between
INTERLAND, INC., a Georgia corporation having its principal executive offices located at the
business address of 303 Peachtree Center Avenue, Suite 500, Atlanta, Georgia 30303 (the “Company”),
and Juan G. Troncoso, an individual residing at the address indicated in Exhibit 1
(“Executive”). Company and Executive enter into this Agreement as of the date they each have
signed it, but the Agreement shall be effective as of the date established pursuant to Section 2.1,
below.

     Whereas, Company desires to continue to employ Executive with the title indicated in
Exhibit 1 and the parties wish to establish certain terms and conditions of such employment
by entering into this Agreement; and

     Whereas, Executive desires to continue such employment with Company on the terms and
conditions set forth in this Agreement.

     Now Therefore, in consideration of the premises and the mutual covenants and
agreements contained herein, the parties hereby agree as follows:

     1. Employment; Regular Compensation. Company agrees to employ Executive with the
title indicated in Exhibit 1 and Executive agrees to serve in such capacity on the terms
and conditions set forth in this Agreement. Company shall pay Executive an initial base salary
(the “Base Salary”) as set forth in Exhibit 1. The Base Salary is expressed as an annual
amount solely for reference purposes, and shall be payable to Executive on a bi-weekly basis. In
its sole discretion, the Company may change Executive’s compensation.

     2. Effective Date; Indefinite Term.

          2.1 This Agreement shall be deemed in full force and effect as of the date it is executed by
the parties below, along with the execution of any exhibits hereto;

          2.2 This Agreement has an indefinite term, and Executive’s employment by Company hereunder may
be terminated at will by either party at any time, with or without Cause (as defined in Section
6.1, below) or any reason, voluntary or involuntary, and with or without prior notice. Certain
provisions of this Agreement, however, as more fully set forth in Section 5, below, provide for the
payment of benefits to Executive upon the specified circumstances of termination of Executive’s
employment with Company, and certain other provisions, as more fully set forth below in Section 11,
below, may continue in effect beyond the date of such termination. Executive expressly
acknowledges and agrees that employment with Company is on an “at will” basis, and that this
Agreement does not provide a guarantee of continued employment, notwithstanding any other provision
in this Agreement.

     3. Duties. Executive shall report to Allen L. Shulman, President and Chief Operating
Officer, or such other individual as may be designated from time to time by the

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Board of Directors (the “Board”). Executive shall faithfully and diligently perform all such
acts and duties, and furnish such services, as are assigned to Executive by such supervising
officer or such other individual as may be designated by the Board.

     4. Efforts; Conflicts of Interest. During Executive’s employment by Company,
Executive shall devote his full business time and efforts to Company and its business during normal
business hours, and shall safeguard and promote its lawful interests. During Executive’s
employment by Company, Executive shall not, either directly or indirectly, engage in or enter into
any business or perform any services for any other person, firm, association, or corporation that
conflicts with Executive’s efforts to Company or with Company’s business interests, except for: (a)
serving on the board of directors of any other entity that is not in competition with Company
(subject to Company’s approval, which shall not be unreasonably withheld or delayed); (b)
activities approved in writing in advance by the Executive’s supervising officer or the Board,
which approval shall not be unreasonably withheld or delayed; or (c) passive investments in
entities that do not involve Executive providing any advice or services to the businesses in which
the investments are made, or which do not violate Company policy, including without limitation any
policy relating to conflicts of interest or business ethics.

     5. Benefits Upon Termination of Employment.

          5.1 By Company for Cause or by Executive Without Good Reason. If Executive’s
employment is terminated by Company for Cause or by Executive Without Good Reason (as defined in
Section 6.5, below), then Company’s obligation to pay compensation and benefits under this
Agreement shall immediately terminate, except that: (a) Company shall pay to Executive and, if
applicable, Executive’s heirs, any earned but unpaid Base Salary through such termination date; and
(b) Company shall permit Executive to receive continuation of the benefits as set forth in Section
5.5, below, to the extent applicable. Under such circumstances, no further payments or benefits
(except as otherwise required by law) shall be provided to Executive. The terms “Cause” and
“Without Good Reason” shall have the meaning set forth in Section 6, below.

          5.2 By Company for Nonperformance Due to Disability. If Executive’s employment is
terminated by Company for Nonperformance Due to Disability, then Company’s obligation to pay
compensation and benefits under this Agreement shall immediately terminate, except that: (a)
Company shall pay to Executive and, if applicable, Executive’s heirs, any earned but unpaid Base
Salary through such termination date; (b) Company shall provide Executive with such other payments
and benefits as may be permitted under the Company’s short- or long-term disability plans, to the
extent applicable, and subject to the terms and conditions of such plans, including without
limitation any eligibility requirements; and (c) Company shall permit Executive to receive
continuation of the benefits as set forth in Section 5.5, below, to the extent applicable. The
term “Nonperformance Due to Disability” shall have the meaning set forth in Section 6, below.

          5.3 By Company Other Than for Cause or by Executive for Good Reason. If Executive’s
employment is terminated by Company other than for Cause or

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by Executive for Good Reason (as defined in Section 6.3, below), then Company’s obligation to
pay compensation and benefits under this Agreement shall immediately terminate, except that: (a)
Company shall pay to Executive and, if applicable, Executive’s heirs, any earned but unpaid Base
Salary through such termination date; (b) Company shall pay to Executive any earned but unpaid
incentive compensation or bonuses through the termination date, subject to the terms of the
applicable bonus plan, including without limitation any eligibility requirements or any limitations
on such payment under applicable law; (c) Company shall permit Executive to receive continuation of
the benefits as set forth in Section 5.5, below, to the extent applicable; and (d) Company shall
pay to Executive, as severance benefits, an amount equal to 6 months of Base Salary (the “Severance
Benefits”). The Severance Benefits shall be paid in a lump sum, as soon as practicable following
such termination date, subject to the following conditions: (x) Executive shall execute a written,
complete waiver and release of all claims relating to Company, or Executive’s employment by Company
or any termination thereof, within any applicable consideration or execution periods and in a form
that is acceptable to Company; and (y) subject to confirmation by Company that Executive does not
later revoke such waiver and release of claims within any revocation period required by applicable
law.

          5.4 Death of Executive. In the event of Executive’s death, Executive’s employment and
all other obligations hereunder shall automatically terminate and the Company’s obligation to pay
compensation and benefits under this Agreement shall immediately terminate, except that Company
shall pay to Executive’s estate: (a) Executive’s Base Salary through the end of the calendar month
in which Executive’s death occurs; (b) Executive’s earned but unpaid incentive compensation or
bonuses through the date of Executive’s death, subject to the terms and conditions of the
applicable Bonus Plan, including without limitation any eligibility requirements or any limitations
on such payment under applicable law; and (c) Company shall permit Executive’s heirs to receive
continuation of the benefits as set forth in Section 5.5, below, to the extent applicable and
allowed by law and subject to the terms of such plans.

          5.5 Benefits Continuation. Upon termination of Executive’s employment, Company shall
permit Executive and, if applicable, Executive’s family members, to continue to participate in
Company’s employee benefits plans, to the extent required or allowed by law and subject to the
terms of such plans and applicable law.

     6. Definitions.

          6.1
“Cause” shall mean termination of Executive’s employment by Company for one or more of the
following reasons: (a) Executive has breached or threatens to breach a fiduciary duty owed to
Company; (b) Executive has engaged or threatens to engage in dishonesty, fraud, gross negligence,
willful malfeasance or other acts of misconduct in the performance of Executive’s duties or during
the course of Executive’s employment; (c) upon the willful and continued failure by Executive
substantially to perform Executive’s duties with the Company (other than by reason of
Nonperformance Due to Disability as defined below); (d) Executive has willfully violated or
threatens to violate Company policies, or has willfully violated or threatens to violate

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any law, rule or regulation (other than traffic violations or similar offenses) which result
in material injury to Company; or (e) Executive has violated or threatens to violate the terms of
Sections 4, 7, or 8 of this Agreement or the material terms of the Confidentiality and
Non-Competition Agreement, or any other material breach of this Agreement.

          6.2 “Disability” shall have the meaning ascribed to such term or its variations, such as
“Disabled,” in Company’s long-term disability plan, or in the absence of such plan, a meaning
consistent with the definition of permanent and total disability under Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended.

          6.3 “Good Reason” shall mean that one or more of the following events has occurred and, after
giving Company written notice of the occurrence and of Executive’s intention to resign from
employment and Company not curing the event within 30 days of receipt of such written notice: (a) a
substantial adverse change in Executive’s duties or responsibilities, without Executive’s consent;
(b) a reduction in Executive’s Base Salary (at the annualized rate), without Executive’s consent,
by more than 25%; or (c) a relocation of Executive’s principal place of employment by more than a
50 mile radius surrounding Atlanta, Georgia, without Executive’s consent.

          6.4
“Nonperformance Due to Disability” shall mean that, if because of Disability, Executive is
unable to perform the essential functions of Executive’s job, with or without reasonable
accommodation, for a period of 30 consecutive days in any calendar year.

          
6.5 “Without Good Reason” shall mean termination or resignation of Executive’s employment by
Executive other than for Good Reason.

     7. Non-Disparagement. Executive shall not at anytime make false, misleading or
disparaging statements about the Company, its parent, subsidiaries or affiliates, including any of
their products, services, management, directors, officers, employees, and customers.

     8. Confidential Information and Covenants Not to Compete. The parties agree that
Executive’s services to Company are of a unique value and that confidential and proprietary
information about Company has been or will be obtained by, disclosed or otherwise made available to
Executive as a result of Executive’s employment with Company. Accordingly, as a condition to
Executive’s employment, Executive and Company also are entering into the Confidentiality, Invention
Assignment, and Non-Competition Agreement attached hereto as Exhibit 2 (the
“Confidentiality and Non-Competition Agreement”).

     9. Dispute Resolution Process. All disputes between Executive and Company that
otherwise could be resolved in court shall be resolved instead by the following alternative dispute
resolution process (the “Process”).

          9.1 Disputes Covered. This Process applies to all disputes between Executive and
Company, including those arising out of or related to this Agreement or Executive’s employment by
Company. Disputes subject to this Process include but are

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not limited to pay disputes, contract disputes, legal disputes, wrongful termination disputes,
and discrimination, harassment or civil rights disputes. This Process applies to disputes
Executive may have with Company and also applies to disputes Executive may have with any of
Company’s employees or agents so long as the person with whom Executive has the dispute is also
bound by or consents to this Process. This Process applies regardless of when the dispute arises
and will remain in effect after Executive’s employment with Company ends, regardless of the reason
it ends. This Process does not apply, however, to any workers’ compensation or unemployment
compensation claims, to the extent applicable under the circumstances.

          9.2 Negotiation and Mediation. Executive and Company agree to attempt to resolve all
disputes first by direct negotiations. If direct negotiations are not successful, the parties
shall then use mediation. They shall first attempt to agree upon a mediator. If unable to agree
upon a mediator, the parties shall request and conduct mediation under the American Arbitration
Association’s National Rules for the Resolution of Employment Disputes. Unless otherwise agreed by
the parties, any mediation sessions shall be held in Atlanta, Georgia. Temporary or interim
injunctive relief may be sought without mediating first. Any failure to mediate shall not affect
the validity of an arbitration award or the obligation to arbitrate.

          9.3 Arbitration. If the dispute is not resolved through negotiation and mediation,
the parties shall request, and either party may demand, arbitration pursuant to the American
Arbitration Association’s National Rules for the Resolution of Employment Disputes. Unless
otherwise agreed by the parties, any arbitration hearing shall be held in Atlanta, Georgia. The
decision of the arbitrator shall be final and binding on the parties and on all persons and
entities claiming through the parties. Submission of their dispute to arbitration shall be the
exclusive means for resolving the dispute, to the exclusion of any trial by a court or jury. All
disputes that are not resolved by agreement (in mediation or otherwise) shall be determined by
binding arbitration.

          9.4 Injunctive Relief. Either party may request a court to issue such temporary or
interim relief (including temporary restraining orders and preliminary injunctions) as may be
appropriate, either before or after mediation or arbitration is commenced. The temporary or
interim relief shall remain in effect pending the outcome of mediation or arbitration. No such
request shall be a waiver of the right to submit any dispute to mediation or arbitration.

          9.5 Employment Status. This Process does not affect the status of the employment
relationship between the parties, which as stated above in Section 2.2 shall be “at will;” nor does
this Process guarantee continued employment by the Company, require discharge only for cause, or
require any particular corrective action or discharge procedures.

     10. Notification. Executive hereby authorizes the Company, or any of its employees or
designated representatives or counsel, to notify Executive’s actual or future employers or any
governmental agency of any terms of this Agreement or the

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Confidentiality and Non-Competition Agreement and Executive’s responsibilities or obligations
hereunder.

     11. Severability; Survival of Provisions. If any part of this Agreement or any part
of the Confidentiality and Non-Competition Agreement is held by any legal authority to be
unenforceable or is severed by any legal authority, the remainder of such agreement shall be
enforced to the maximum extent allowed by applicable law. Certain provisions of this Agreement,
including confidential information and covenants not to compete (Section 8), dispute resolution
process (Section 9), notification (Sections 10 and 21), and governing law (Section 18) of this
Agreement, and all of the provisions of the Confidentiality and Non-Competition Agreement, shall
survive after any such legal determination, after Executive’s employment by Company ends regardless
of the reason it ends, and shall be enforceable regardless of any such determination or any claim
Executive may have against Company.

     12. Relief for Breach. Because any breach or threatened breach by Executive of
Sections 4, 7, and 8 of this Agreement or of the Confidentiality and Non-Competition Agreement
would result in continuing material and irreparable harm to Company, and because it would be
difficult or impossible to establish the full monetary value of such damage, Company shall be
entitled to injunctive relief in the event of any such breach or threatened breach by Executive.
Injunctive relief is in addition to any other available remedy, including termination of this
Agreement and damages. In the event of any threatened breach of this Agreement by Executive,
Company may suspend any payment of Base Salary, incentives, bonuses, Severance Benefits and other
compensation due to Executive under this Agreement and, if Executive has breached this Agreement,
any remaining amounts to be paid under this Agreement shall be forfeited. In the event of any
breach or threatened breach by either party which results in court-ordered relief, the breaching
party shall reimburse the non-breaching party for its reasonable attorneys’ fees and other expenses
incurred to obtain such relief.

     13. Waiver. No waiver of any provision of this Agreement shall be valid unless in
writing, signed by the party against whom the waiver is sought to be enforced. The waiver of any
breach of this Agreement or failure to enforce any provision of this Agreement shall not waive any
later breach.

     14. Binding Effect. This Agreement is binding upon the parties and their personal
representatives, heirs, successors and permitted assigns.

     15. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original and all of which, taken together, shall constitute a single
agreement.

     16. Complete Agreement. This Agreement, together with the attached Confidentiality
and Non-Competition Agreement, is the final and complete expression of the parties’ agreement
relating to Executive’s employment by the Company. Without limiting the foregoing, this Agreement
replaces and supersedes any prior employment agreements between Executive and Company, or its
parent, subsidiaries, predecessors or

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affiliates, and each party to this Agreement hereby releases and holds harmless the other
party from any obligations or liability with respect thereto. The parties acknowledge and agree
that they are not entering into this Agreement in reliance on anything not set out in this
Agreement. This Agreement shall control over any inconsistent policies or procedures of Company
affecting Executive’s employment, whether in effect now or adopted later, but Company’s policies
and procedures that are consistent with this Agreement, whether in effect now or adopted later,
shall apply to Executive’s employment according to the terms thereof.

     17. Payroll Withholding. All payments of Base Salary, incentives, bonuses, Severance
Benefits and other compensation payable to Executive pursuant to this Agreement or otherwise shall
be subject to the customary withholding for income taxes as determined appropriate by the Company,
and shall be subject to other withholdings or deductions as required with respect to such
compensation paid by a corporation to any employee.

     18. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Georgia, without giving effect to the provisions thereof relating to
choice of laws. Each party hereby irrevocably (a) consents to the jurisdiction and venue for any
legal action with the state courts in Fulton County, Georgia and federal courts in the Northern
District of Georgia, Atlanta Division, unless injunctive relief is sought by Company and, in
Company’s judgment, that relief might not be effective unless obtained in some other venue; and (b)
waives any jurisdictional defenses (including personal jurisdiction and venue) to any such action.
These provisions do not give any party a right to proceed in court in violation of the Dispute
Resolution Process under Section 9, above.

     19. Successors And Assigns. All rights and duties of Company under this Agreement
shall be binding on and inure to the benefit of its successors, assigns or any company which
purchases or otherwise acquires it or all or substantially all of its operating assets by any
method. This Agreement shall not be assignable by Executive other than the right to receive
benefits being passed by will or by the laws of descent and distribution.

     20. Amendment. This Agreement contains the entire agreement of the parties relating
to the subject matter and may not be amended except by an instrument in writing signed by both
parties; it shall not be amended orally or by course of dealing.

     21. Notices. All notices required or permitted under this Agreement shall be in
writing and may be personally served or mailed by registered or certified U.S. mail, postage
prepaid and addressed as follows:

	 	 	 	 	 
	 

	 	If to Company:
	 	Interland, Inc.
	 

	 	 	 	303 Peachtree Center Avenue
	 

	 	 	 	Suite 500
	 

	 	 	 	Atlanta, Georgia 30303

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	 	If to Executive:
	 	Address specified in Exhibit 1

Any of the above addresses may be changed at any time by notice given as provided above; provided,
however, that any such notice of change of address shall be effective only upon receipt. All
notices, requests or instructions given in accordance herewith shall be deemed received on the date
of delivery, if hand delivered or telecopied, and 3 business days after the date of mailing, if
mailed by registered or certified mail, return receipt requested.

	 	 	 	 	 	 	 	 	 	 	 
	INTERLAND, INC.	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	  /s/ Allen Shulman
	 	 	 	 
	 	/s/ Juan G. Troncoso	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	  Allen L. Shulman
	 	 	 	Name:
	 	Juan G. Troncoso	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   President and C.O.O.
	 	 	 	Date:
	 	    June 20, 2005	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	    June 20, 2005	 	 	 	 	 	 	 	 

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Exhibit 1

	 	 	 
	Executive:

	 	Juan G. Troncoso
	 
	 	 
	Title:

	 	Chief Financial Officer
	 
	 	 
	Base Salary:

	 	$180,000
	 
	 	 
	Address:

	 	3321 Sundew Ct.
	 

	 	Alpharetta, GA 30005

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Exhibit 2

Confidentiality, Invention Assignment, and Non-Competition Agreement

Interland, Inc. and its subsidiaries, with a place of business located at 303 Peachtree Center
Avenue, Suite 500, Atlanta, Georgia 30303 (“Interland”), and the undersigned managerial
employee (“Employee”), agree, in connection with Employee’s employment by Interland and in
consideration of the rights and benefits given to Employee in connection with such employment (the
receipt and consideration of which is hereby acknowledged) agree as follows.

1) Confidentiality.

	 	a)	 	During Interland’s employment of Employee (whether in Employee’s current capacity or
in any other future capacity), Interland may disclose to Employee, either orally, in
writing or by other means, trade secrets and proprietary information concerning
Interland’s business, finances, products, customers, vendors, computer technology and
other technical, commercial or financial affairs of Interland which are not in the public
domain and which have been reasonably restricted by Interland as confidential, hereinafter
referred to as the “CONFIDENTIAL INFORMATION.”
	 
	 	b)	 	Employee shall hold in trust and confidence the CONFIDENTIAL INFORMATION and shall
not disclose such CONFIDENTIAL INFORMATION to any third party, except as agreed by
Interland in writing.
	 
	 	c)	 	Employee agrees not to use the CONFIDENTIAL INFORMATION for any purpose other than in
the performance of Employee’s duties as an employee of Interland.
	 
	 	d)	 	Employee’s obligations in this Section 1 will not apply to any CONFIDENTIAL
INFORMATION which was: (i) at the time of disclosure to Employee, in the public domain;
(ii) after disclosure to Employee, published or otherwise, becomes part of the public
domain through no fault of Employee; (iii) without a breach of duty owed to Interland, in
Employee’s possession at the time of disclosure to Employee; (iv) received after
disclosure to Employee of such information from a third party who had a lawful right to
and, without a breach of duty owed to Interland, did disclose such information to
Employee; or (v) independently developed by Employee without reference to CONFIDENTIAL
INFORMATION.
	 
	 	e)	 	The covenants of confidentiality set forth herein (i) will apply after the date
hereof to any CONFIDENTIAL INFORMATION disclosed to Employee and (ii) will continue and
must be maintained from the date hereof until termination of Employee’s employment,
plus (A) with respect to trade secrets (as defined by applicable law), at any and
all times after termination of Employee’s employment during which such trade secrets
retain their status as such under applicable law;

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	 	 	 	and (B) with respect to CONFIDENTIAL INFORMATION, for a period equal to the shorter of two
(2) years after termination of Employee’s employment, or until such CONFIDENTIAL
INFORMATION no longer qualifies as CONFIDENTIAL INFORMATION under this Agreement or
applicable law.

2) Inventions

	 	a)	 	Employee hereby irrevocably assigns to Interland all of Employee’s rights to all
Subject Inventions (as defined below) in the United States and all other countries and the
right to claim priority therein. “Subject Invention” means any Invention (as
defined below) which is conceived by Employee solely or jointly with others and (i)
relates to the actual or anticipated business, research or development of Interland, (ii)
results from any work performed by Employee using any equipment, facilities, materials,
Confidential Information or personnel of Interland, or (iii) is suggested by or results
from any task assigned or performed by Employee for or on behalf of Interland.
“Invention” means any idea, invention, discovery, improvement, innovation, design,
process, method, formula, technique, machine, article of manufacture, composition of
matter, algorithm or computer program, as well as improvements thereto.
	 
	 	b)	 	If Employee has previously conceived of any Invention or acquired any ownership
interest in any Invention, which: (i) is Employee’s property, solely or jointly; (ii) is
not described in any issued patent as of the commencement of Employee’s employment with
Interland; and (iii) would be a Subject Invention if such Invention was made while an
Interland employee; then Employee must, at Employee’s election, either: (i) provide
Interland with a written description of the Invention on Exhibit 2.1, in which
case the written description (but no rights to the Invention) shall become the property of
Interland; or (ii) provide Interland with the license described in Section 2(c) of
this Agreement.
	 
	 	c)	 	If Employee has previously conceived or acquired any ownership interest in an
Invention described above in Section 2(b) and Employee elects not to disclose such
Invention to Interland as provided above, then Employee hereby grants to Interland a
nonexclusive, paid up, royalty-free license to use and practice the Invention, including a
license under all patents to issue in any country which pertain to the Invention.
	 
	 	d)	 	If Employee owns any issued United States Patent or foreign equivalent thereof, or
Employee is an inventor, either individually or jointly, of any issued United States
Patent or foreign equivalent thereof, Employee must provide the United States Patent
number and/or foreign number for any such patent or foreign equivalent thereof in
Exhibit 2.1. Otherwise, Employee represents that Employee owns no United States
Patent or foreign equivalent thereof, individually or jointly, except those described on
Exhibit 2.1.

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	 	e)	 	Employee agrees that should Interland elect to file an application for patent, either
in the United States or in any foreign country on a Subject Invention for which Employee
is an inventor, Employee will execute all necessary documentation relating to the patent
application, including formal assignments to Interland, and will cooperate with attorneys
or other persons designated by Company to provide all information necessary for the
prosecution of the patent application(s) in the United States and any foreign country.
Employee also agrees to assist Interland in every proper way to maintain its patents
during and following the period of employment including, but not limited to, the
performance of all lawful acts, such as the giving of testimony in any interference
proceedings, infringement suits, or other litigation, as may be deemed necessary or
advisable by Interland.

3) Copyrights.

	 	a)	 	Employee agrees that any Works (as defined below) created by Employee in the course
of Employee’s duties as an employee of Interland are subject to the “Work for Hire”
provisions contained in Sections 101 and 201 of the United States Copyright Law, Title 17
of the United States Code. “Work” means any copyrightable work of authorship,
including without limitation, any technical descriptions for products and services, user’s
guides, graphical works, audiovisual works, sound recordings, advertising materials,
computer programs, web sites and content and any contribution to such materials. All
right, title and interest to copyrights in all Works that have been or will be prepared by
Employee within the scope of Employee’s employment with the Company will be the property
of the Company. Employee further agrees that, to the extent the provisions of Title 17 of
the United States Code do not vest the copyrights to any Works in the Company, Employee
hereby assigns to the Company all right, title and interest to copyrights that Employee
may have in the Works.
	 
	 	b)	 	If Employee owns any ownership interest in any Work, Employee will list any such Work
on Exhibit 2.1. Otherwise, Employee will not claim any ownership rights in any
Works, except those described on Exhibit 2.1.
	 
	 	c)	 	Employee also agrees to assist the Company in every proper way to maintain its
Copyrights during and following the period of employment including, but not limited to,
the performance of all lawful acts, such as the giving of testimony in any infringement
suits or other litigation as may be deemed necessary or advisable by the Company.

	4)	 	Non-Solicitation of Customers. During the term of Employee’s employment by Interland and for
a period of six (6) months following the termination of such employment, Employee shall not,
either directly or indirectly, on Employee’s behalf or on behalf of others (a) solicit, divert
or appropriate to any Competing Business (as defined below) or (b) attempt to solicit, divert
or appropriate to any Competing Business, any business from any customer or actively sought
prospective customer of Interland with whom Employee had contact on behalf of Interland.
“Competing

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	 	 	Business” means any business organization of whatever form engaged, either directly or
indirectly, which is the same as, or substantially the same as, the Business of Interland.
“Business of Interland” means the business of developing and providing Web hosting and related
services and products including without limitation email services, website development and
hosting and e-commerce services.
	 
	5)	 	Non-Solicitation of Employees. During the term of Employee’s employment by Interland and for
a period of one (1) year following the termination of Employee’s employment, Employee shall
not, either directly or indirectly, on Employee’s own behalf or on behalf of others, solicit,
divert or hire away, or attempt to solicit, divert, or hire away, any person employed by
Interland at any facility where Employee performed services or any person employed by
Interland with whom Employee had regular contact in the course of Employee’s employment by
Interland.
	 
	6)	 	Contracts With Others

	 	a)	 	Employee agrees to provide to the Company, upon the execution and delivery of this
Agreement, a copy of the pertinent portions of any employment, consulting or
subcontracting agreement and other similar documents, (described on Exhibit 2.1),
executed by Employee with a former employer or any business or person with which Employee
has been associated, which prohibits Employee during a period of time from: (i) competing
with or participating in a business which competes with Employee’s former employer or
business; (ii) soliciting personnel of the former employer or business to leave the former
employer’s employment or to leave the business; or (iii) soliciting customers of the
former employer or business on behalf of another business.
	 
	 	b)	 	Employee represents to the Company that Employee has not entered into any agreement
with any other party which purports to require Employee to assign any Work or any
Invention created, conceived or first practiced by Employee during a period of time which
includes the date of Employee’s commencement of employment with the Company nor is
Employee subject to any law, court order or regulation which purports to require such
assignment, except as described on Exhibit 2.1. Employee will obtain and provide
to the Company a copy of the above described agreement(s) and a reference to any such law,
court order or regulation.

	7)	 	Non-Competition Employee acknowledges that he or she is being hired by Interland because of
his or her unique skills and abilities and that, by virtue of being hired by Interland,
Employee will learn special, unique and confidential matters pertaining to Interland and the
Business of Interland. Employee agrees that, during Employee’s employment and for six (6)
months after the termination of Employee’s employment for any reason (such period being the
“Non-Competition Period”), Employee will not, directly or indirectly, (i) be employed (whether
as an employee or as a consultant) for the purpose of providing Protected Services to a
Competing Business in the Protected Territory, (ii) purchase or accept a beneficial interest
in a Competing Business in the

13

 

	 	 	Protected Territory (except that Employee may purchase publicly-traded securities in Competing
Businesses so long as Employee’s holdings in such Competing Business do not exceed one percent
(1%) of the aggregate outstanding shares in such Competing Business, or (iii) serve as on the
board of directors or similar governing body of any Competing Business. For purposes of this
Section, “Protected Territory” means (y) the area within fifty (50) miles of Interland’s
headquarters location on the date Employee’s employment is terminated and (z) the area within
fifty (50) miles of Employee’s primary place of work on behalf of Interland on the date
Employee’s employment is terminated. For purposes of this Section, “Protected Services” means
those services and other services reasonably related thereto that Employee is being hired to
provide to Interland.
	 
	8)	 	Miscellaneous. This Agreement may not be amended, nor any
obligation waived, except in a writing signed by Interland and
Employee. This Agreement is not assignable or delegable in whole
or in part by Employee without the written consent of Interland.
This Agreement shall be governed and construed by the laws of the
State of Georgia, without reference to conflict of law
principles. An executed original of this Agreement may be
delivered by facsimile, which shall be binding as an original.
If any part of this Agreement is held by any legal authority to
be unenforceable or is severed by any legal authority, the
remainder of such agreement shall be enforced to the maximum
extent allowed by applicable law.

	 	 	 	 	 	 	 	 	 	 	 
	INTERLAND, INC.	 	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Allen Shulman	 	 	 	 	 	/s/ Juan G. Troncoso	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	  Allen L. Shulman
	 	 	 	Name:
	 	Juan G. Troncoso	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	   President & C.O.O.
	 	 	 	Date:	 	June 20, 2005	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	June 20, 2005	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

14

 

Works of Employee

	 	 	 	 	 	 	 
	Inventions:

	 	(None, unless listed here)
	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Patents:

	 	(None, unless listed here)	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Copyrights:

	 	(None, unless listed here)	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

15

 

EMPLOYMENT AGREEMENT

     This Employment Agreement (this “Agreement”) is made and entered into by and between
INTERLAND, INC., a Georgia corporation having its principal executive offices located at the
business address of 303 Peachtree Center Avenue, Suite 500, Atlanta, Georgia 30303 (the “Company”),
and Richard Pitrolo, an individual residing at the address indicated in Exhibit 1
(“Executive”). Company and Executive enter into this Agreement as of the date they each have
signed it, but the Agreement shall be effective as of the date established pursuant to Section 2.1,
below.

     Whereas, Company desires to continue to employ Executive with the title indicated in
Exhibit 1 and the parties wish to establish certain terms and conditions of such employment
by entering into this Agreement; and

     Whereas, Executive desires to continue such employment with Company on the terms and
conditions set forth in this Agreement.

     Now Therefore, in consideration of the premises and the mutual covenants and
agreements contained herein, the parties hereby agree as follows:

     1. Employment; Regular Compensation. Company agrees to employ Executive with the
title indicated in Exhibit 1 and Executive agrees to serve in such capacity on the terms
and conditions set forth in this Agreement. Company shall pay Executive an initial base salary
(the “Base Salary”) as set forth in Exhibit 1. The Base Salary is expressed as an annual
amount solely for reference purposes, and shall be payable to Executive on a bi-weekly basis. In
its sole discretion, the Company may change Executive’s compensation.

     2. Effective Date; Indefinite Term.

          2.1 This Agreement shall be deemed in full force and effect as of the date it is executed by
the parties below, along with the execution of any exhibits hereto;

          2.2 This Agreement has an indefinite term, and Executive’s employment by Company hereunder may
be terminated at will by either party at any time, with or without Cause (as defined in Section
6.1, below) or any reason, voluntary or involuntary, and with or without prior notice. Certain
provisions of this Agreement, however, as more fully set forth in Section 5, below, provide for the
payment of benefits to Executive upon the specified circumstances of termination of Executive’s
employment with Company, and certain other provisions, as more fully set forth below in Section 11,
below, may continue in effect beyond the date of such termination. Executive expressly
acknowledges and agrees that employment with Company is on an “at will” basis, and that this
Agreement does not provide a guarantee of continued employment, notwithstanding any other provision
in this Agreement.

     3. Duties. Executive shall report to Allen L. Shulman, President and Chief Operating
Officer, or such other individual as may be designated from time to time by the

1

 

Board of Directors (the “Board”). Executive shall faithfully and diligently perform all such
acts and duties, and furnish such services, as are assigned to Executive by such supervising
officer or such other individual as may be designated by the Board.

     4. Efforts; Conflicts of Interest. During Executive’s employment by Company,
Executive shall devote his full business time and efforts to Company and its business during normal
business hours, and shall safeguard and promote its lawful interests. During Executive’s
employment by Company, Executive shall not, either directly or indirectly, engage in or enter into
any business or perform any services for any other person, firm, association, or corporation that
conflicts with Executive’s efforts to Company or with Company’s business interests, except for: (a)
serving on the board of directors of any other entity that is not in competition with Company
(subject to Company’s approval, which shall not be unreasonably withheld or delayed); (b)
activities approved in writing in advance by the Executive’s supervising officer or the Board,
which approval shall not be unreasonably withheld or delayed; or (c) passive investments in
entities that do not involve Executive providing any advice or services to the businesses in which
the investments are made, or which do not violate Company policy, including without limitation any
policy relating to conflicts of interest or business ethics.

     5. Benefits Upon Termination of Employment.

          5.1 By Company for Cause or by Executive Without Good Reason. If Executive’s
employment is terminated by Company for Cause or by Executive Without Good Reason (as defined in
Section 6.5, below), then Company’s obligation to pay compensation and benefits under this
Agreement shall immediately terminate, except that: (a) Company shall pay to Executive and, if
applicable, Executive’s heirs, any earned but unpaid Base Salary through such termination date; and
(b) Company shall permit Executive to receive continuation of the benefits as set forth in Section
5.5, below, to the extent applicable. Under such circumstances, no further payments or benefits
(except as otherwise required by law) shall be provided to Executive. The terms “Cause” and
“Without Good Reason” shall have the meaning set forth in Section 6, below.

          5.2 By Company for Nonperformance Due to Disability. If Executive’s employment is
terminated by Company for Nonperformance Due to Disability, then Company’s obligation to pay
compensation and benefits under this Agreement shall immediately terminate, except that: (a)
Company shall pay to Executive and, if applicable, Executive’s heirs, any earned but unpaid Base
Salary through such termination date; (b) Company shall provide Executive with such other payments
and benefits as may be permitted under the Company’s short- or long-term disability plans, to the
extent applicable, and subject to the terms and conditions of such plans, including without
limitation any eligibility requirements; and (c) Company shall permit Executive to receive
continuation of the benefits as set forth in Section 5.5, below, to the extent applicable. The
term “Nonperformance Due to Disability” shall have the meaning set forth in Section 6, below.

          5.3 By Company Other Than for Cause or by Executive for Good Reason. If Executive’s
employment is terminated by Company other than for Cause or

2

 

by Executive for Good Reason (as defined in Section 6.3, below), then Company’s obligation to
pay compensation and benefits under this Agreement shall immediately terminate, except that: (a)
Company shall pay to Executive and, if applicable, Executive’s heirs, any earned but unpaid Base
Salary through such termination date; (b) Company shall pay to Executive any earned but unpaid
incentive compensation or bonuses through the termination date, subject to the terms of the
applicable bonus plan, including without limitation any eligibility requirements or any limitations
on such payment under applicable law; (c) Company shall permit Executive to receive continuation of
the benefits as set forth in Section 5.5, below, to the extent applicable; and (d) Company shall
pay to Executive, as severance benefits, an amount equal to 6 months of Base Salary (the “Severance
Benefits”). The Severance Benefits shall be paid in a lump sum, as soon as practicable following
such termination date, subject to the following conditions: (x) Executive shall execute a written,
complete waiver and release of all claims relating to Company, or Executive’s employment by Company
or any termination thereof, within any applicable consideration or execution periods and in a form
that is acceptable to Company; and (y) subject to confirmation by Company that Executive does not
later revoke such waiver and release of claims within any revocation period required by applicable
law.

          5.4 Death of Executive. In the event of Executive’s death, Executive’s employment and
all other obligations hereunder shall automatically terminate and the Company’s obligation to pay
compensation and benefits under this Agreement shall immediately terminate, except that Company
shall pay to Executive’s estate: (a) Executive’s Base Salary through the end of the calendar month
in which Executive’s death occurs; (b) Executive’s earned but unpaid incentive compensation or
bonuses through the date of Executive’s death, subject to the terms and conditions of the
applicable Bonus Plan, including without limitation any eligibility requirements or any limitations
on such payment under applicable law; and (c) Company shall permit Executive’s heirs to receive
continuation of the benefits as set forth in Section 5.5, below, to the extent applicable and
allowed by law and subject to the terms of such plans.

          5.5 Benefits Continuation. Upon termination of Executive’s employment, Company shall
permit Executive and, if applicable, Executive’s family members, to continue to participate in
Company’s employee benefits plans, to the extent required or allowed by law and subject to the
terms of such plans and applicable law.

     6. Definitions.

          6.1
“Cause” shall mean termination of Executive’s employment by Company for one or more of the
following reasons: (a) Executive has breached or threatens to breach a fiduciary duty owed to
Company; (b) Executive has engaged or threatens to engage in dishonesty, fraud, gross negligence,
willful malfeasance or other acts of misconduct in the performance of Executive’s duties or during
the course of Executive’s employment; (c) upon the willful and continued failure by Executive
substantially to perform Executive’s duties with the Company (other than by reason of
Nonperformance Due to Disability as defined below); (d) Executive has willfully violated or
threatens to violate Company policies, or has willfully violated or threatens to violate

3

 

any law, rule or regulation (other than traffic violations or similar offenses) which result
in material injury to Company; or (e) Executive has violated or threatens to violate the terms of
Sections 4, 7, or 8 of this Agreement or the material terms of the Confidentiality and
Non-Competition Agreement, or any other material breach of this Agreement.

          6.2
“Disability” shall have the meaning ascribed to such term or its variations, such as
“Disabled,” in Company’s long-term disability plan, or in the absence of such plan, a meaning
consistent with the definition of permanent and total disability under Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended.

          6.3 “Good Reason”  shall mean that one or more of the following events has occurred and, after
giving Company written notice of the occurrence and of Executive’s intention to resign from
employment and Company not curing the event within 30 days of receipt of such written notice: (a) a
substantial adverse change in Executive’s duties or responsibilities, without Executive’s consent;
(b) a reduction in Executive’s Base Salary (at the annualized rate), without Executive’s consent,
by more than 25%; or (c) a relocation of Executive’s principal place of employment by more than a
50 mile radius surrounding Atlanta, Georgia, without Executive’s consent.

          6.4 “Nonperformance Due to Disability”  shall mean that, if because of Disability, Executive is
unable to perform the essential functions of Executive’s job, with or without reasonable
accommodation, for a period of 30 consecutive days in any calendar year.

          6.5 “Without Good Reason”  shall mean termination or resignation of Executive’s employment by
Executive other than for Good Reason.

     7. Non-Disparagement. Executive shall not at anytime make false, misleading or
disparaging statements about the Company, its parent, subsidiaries or affiliates, including any of
their products, services, management, directors, officers, employees, and customers.

     8. Confidential Information and Covenants Not to Compete. The parties agree that
Executive’s services to Company are of a unique value and that confidential and proprietary
information about Company has been or will be obtained by, disclosed or otherwise made available to
Executive as a result of Executive’s employment with Company. Accordingly, as a condition to
Executive’s employment, Executive and Company also are entering into the Confidentiality, Invention
Assignment, and Non-Competition Agreement attached hereto as Exhibit 2 (the
“Confidentiality and Non-Competition Agreement”).

     9. Dispute Resolution Process. All disputes between Executive and Company that
otherwise could be resolved in court shall be resolved instead by the following alternative dispute
resolution process (the “Process”).

          9.1 Disputes Covered. This Process applies to all disputes between Executive and
Company, including those arising out of or related to this Agreement or Executive’s employment by
Company. Disputes subject to this Process include but are

4

 

not limited to pay disputes, contract disputes, legal disputes, wrongful termination disputes,
and discrimination, harassment or civil rights disputes. This Process applies to disputes
Executive may have with Company and also applies to disputes Executive may have with any of
Company’s employees or agents so long as the person with whom Executive has the dispute is also
bound by or consents to this Process. This Process applies regardless of when the dispute arises
and will remain in effect after Executive’s employment with Company ends, regardless of the reason
it ends. This Process does not apply, however, to any workers’ compensation or unemployment
compensation claims, to the extent applicable under the circumstances.

          9.2 Negotiation and Mediation. Executive and Company agree to attempt to resolve all
disputes first by direct negotiations. If direct negotiations are not successful, the parties
shall then use mediation. They shall first attempt to agree upon a mediator. If unable to agree
upon a mediator, the parties shall request and conduct mediation under the American Arbitration
Association’s National Rules for the Resolution of Employment Disputes. Unless otherwise agreed by
the parties, any mediation sessions shall be held in Atlanta, Georgia. Temporary or interim
injunctive relief may be sought without mediating first. Any failure to mediate shall not affect
the validity of an arbitration award or the obligation to arbitrate.

          9.3 Arbitration. If the dispute is not resolved through negotiation and mediation,
the parties shall request, and either party may demand, arbitration pursuant to the American
Arbitration Association’s National Rules for the Resolution of Employment Disputes. Unless
otherwise agreed by the parties, any arbitration hearing shall be held in Atlanta, Georgia. The
decision of the arbitrator shall be final and binding on the parties and on all persons and
entities claiming through the parties. Submission of their dispute to arbitration shall be the
exclusive means for resolving the dispute, to the exclusion of any trial by a court or jury. All
disputes that are not resolved by agreement (in mediation or otherwise) shall be determined by
binding arbitration.

          9.4 Injunctive Relief. Either party may request a court to issue such temporary or
interim relief (including temporary restraining orders and preliminary injunctions) as may be
appropriate, either before or after mediation or arbitration is commenced. The temporary or
interim relief shall remain in effect pending the outcome of mediation or arbitration. No such
request shall be a waiver of the right to submit any dispute to mediation or arbitration.

          9.5 Employment Status. This Process does not affect the status of the employment
relationship between the parties, which as stated above in Section 2.2 shall be “at will;” nor does
this Process guarantee continued employment by the Company, require discharge only for cause, or
require any particular corrective action or discharge procedures.

     10. Notification. Executive hereby authorizes the Company, or any of its employees or
designated representatives or counsel, to notify Executive’s actual or future employers or any
governmental agency of any terms of this Agreement or the

5

 

Confidentiality and Non-Competition Agreement and Executive’s responsibilities or obligations
hereunder.

     11. Severability; Survival of Provisions. If any part of this Agreement or any part
of the Confidentiality and Non-Competition Agreement is held by any legal authority to be
unenforceable or is severed by any legal authority, the remainder of such agreement shall be
enforced to the maximum extent allowed by applicable law. Certain provisions of this Agreement,
including confidential information and covenants not to compete (Section 8), dispute resolution
process (Section 9), notification (Sections 10 and 21), and governing law (Section 18) of this
Agreement, and all of the provisions of the Confidentiality and Non-Competition Agreement, shall
survive after any such legal determination, after Executive’s employment by Company ends regardless
of the reason it ends, and shall be enforceable regardless of any such determination or any claim
Executive may have against Company.

     12. Relief for Breach. Because any breach or threatened breach by Executive of
Sections 4, 7, and 8 of this Agreement or of the Confidentiality and Non-Competition Agreement
would result in continuing material and irreparable harm to Company, and because it would be
difficult or impossible to establish the full monetary value of such damage, Company shall be
entitled to injunctive relief in the event of any such breach or threatened breach by Executive.
Injunctive relief is in addition to any other available remedy, including termination of this
Agreement and damages. In the event of any threatened breach of this Agreement by Executive,
Company may suspend any payment of Base Salary, incentives, bonuses, Severance Benefits and other
compensation due to Executive under this Agreement and, if Executive has breached this Agreement,
any remaining amounts to be paid under this Agreement shall be forfeited. In the event of any
breach or threatened breach by either party which results in court-ordered relief, the breaching
party shall reimburse the non-breaching party for its reasonable attorneys’ fees and other expenses
incurred to obtain such relief.

     13. Waiver. No waiver of any provision of this Agreement shall be valid unless in
writing, signed by the party against whom the waiver is sought to be enforced. The waiver of any
breach of this Agreement or failure to enforce any provision of this Agreement shall not waive any
later breach.

     14. Binding Effect. This Agreement is binding upon the parties and their personal
representatives, heirs, successors and permitted assigns.

     15. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original and all of which, taken together, shall constitute a single
agreement.

     16. Complete Agreement. This Agreement, together with the attached Confidentiality
and Non-Competition Agreement, is the final and complete expression of the parties’ agreement
relating to Executive’s employment by the Company. Without limiting the foregoing, this Agreement
replaces and supersedes any prior employment agreements between Executive and Company, or its
parent, subsidiaries, predecessors or

6

 

affiliates, and each party to this Agreement hereby releases and holds harmless the other
party from any obligations or liability with respect thereto. The parties acknowledge and agree
that they are not entering into this Agreement in reliance on anything not set out in this
Agreement. This Agreement shall control over any inconsistent policies or procedures of Company
affecting Executive’s employment, whether in effect now or adopted later, but Company’s policies
and procedures that are consistent with this Agreement, whether in effect now or adopted later,
shall apply to Executive’s employment according to the terms thereof.

     17. Payroll Withholding. All payments of Base Salary, incentives, bonuses, Severance
Benefits and other compensation payable to Executive pursuant to this Agreement or otherwise shall
be subject to the customary withholding for income taxes as determined appropriate by the Company,
and shall be subject to other withholdings or deductions as required with respect to such
compensation paid by a corporation to any employee.

     18. Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Georgia, without giving effect to the provisions thereof relating to
choice of laws. Each party hereby irrevocably (a) consents to the jurisdiction and venue for any
legal action with the state courts in Fulton County, Georgia and federal courts in the Northern
District of Georgia, Atlanta Division, unless injunctive relief is sought by Company and, in
Company’s judgment, that relief might not be effective unless obtained in some other venue; and (b)
waives any jurisdictional defenses (including personal jurisdiction and venue) to any such action.
These provisions do not give any party a right to proceed in court in violation of the Dispute
Resolution Process under Section 9, above.

     19. Successors And Assigns. All rights and duties of Company under this Agreement
shall be binding on and inure to the benefit of its successors, assigns or any company which
purchases or otherwise acquires it or all or substantially all of its operating assets by any
method. This Agreement shall not be assignable by Executive other than the right to receive
benefits being passed by will or by the laws of descent and distribution.

     20. Amendment. This Agreement contains the entire agreement of the parties relating
to the subject matter and may not be amended except by an instrument in writing signed by both
parties; it shall not be amended orally or by course of dealing.

     21. Notices. All notices required or permitted under this Agreement shall be in
writing and may be personally served or mailed by registered or certified U.S. mail, postage
prepaid and addressed as follows:

	 	 	 	 	 
	 

	 	If to Company:
	 	Interland, Inc.
	 

	 	 	 	303 Peachtree Center Avenue
	 

	 	 	 	Suite 500
	 

	 	 	 	Atlanta, Georgia 30303

7

 

	 	 	 	 	 
	 

	 	If to Executive:
	 	Address specified in Exhibit 1

Any of the above addresses may be changed at any time by notice given as provided above; provided,
however, that any such notice of change of address shall be effective only upon receipt. All
notices, requests or instructions given in accordance herewith shall be deemed received on the date
of delivery, if hand delivered or telecopied, and 3 business days after the date of mailing, if
mailed by registered or certified mail, return receipt requested.

	 	 	 	 	 	 	 	 	 	 	 
	INTERLAND, INC.	 	EXECUTIVE
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Allen Shulman
	 	 	 	/s/ Richard Pitrolo	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Allen L. Shulman
	 	Name:
	 	Richard Pitrolo	 	 	 	 
	Title:

	 	President and C.O.O.
	 	Date:
	 	June 20, 2005	 	 	 	 
	Date:

	 	June 20, 2005	 	 	 	 	 	 	 	 

8

 

Exhibit 1

	 	 	 
	Executive:

	 	Richard Pitrolo
	 
	 	 
	Title:

	 	Vice President of Service Delivery
	 
	 	 
	Base Salary:

	 	$175,000 
	 
	 	 
	Address:

	 	12760 Oak Falls Drive
	 

	 	Alpharetta, GA 30004

9

 

Exhibit 2

Confidentiality, Invention Assignment, and Non-Competition Agreement

Interland, Inc. and its subsidiaries, with a place of business located at 303 Peachtree Center
Avenue, Suite 500, Atlanta, Georgia 30303 (“Interland”), and the undersigned managerial
employee (“Employee”), agree, in connection with Employee’s employment by Interland and in
consideration of the rights and benefits given to Employee in connection with such employment (the
receipt and consideration of which is hereby acknowledged) agree as follows.

	1)	 	Confidentiality.

	 	a)	 	During Interland’s employment of Employee (whether in Employee’s current capacity or
in any other future capacity), Interland may disclose to Employee, either orally, in
writing or by other means, trade secrets and proprietary information concerning
Interland’s business, finances, products, customers, vendors, computer technology and
other technical, commercial or financial affairs of Interland which are not in the public
domain and which have been reasonably restricted by Interland as confidential, hereinafter
referred to as the “CONFIDENTIAL INFORMATION.”
	 
	 	b)	 	Employee shall hold in trust and confidence the CONFIDENTIAL INFORMATION and shall
not disclose such CONFIDENTIAL INFORMATION to any third party, except as agreed by
Interland in writing.
	 
	 	c)	 	Employee agrees not to use the CONFIDENTIAL INFORMATION for any purpose other than in
the performance of Employee’s duties as an employee of Interland.
	 
	 	d)	 	Employee’s obligations in this Section 1 will not apply to any CONFIDENTIAL
INFORMATION which was: (i) at the time of disclosure to Employee, in the public domain;
(ii) after disclosure to Employee, published or otherwise, becomes part of the public
domain through no fault of Employee; (iii) without a breach of duty owed to Interland, in
Employee’s possession at the time of disclosure to Employee; (iv) received after
disclosure to Employee of such information from a third party who had a lawful right to
and, without a breach of duty owed to Interland, did disclose such information to
Employee; or (v) independently developed by Employee without reference to CONFIDENTIAL
INFORMATION.
	 
	 	e)	 	The covenants of confidentiality set forth herein (i) will apply after the date
hereof to any CONFIDENTIAL INFORMATION disclosed to Employee and (ii) will continue and
must be maintained from the date hereof until termination of Employee’s employment,
plus (A) with respect to trade secrets (as defined by applicable law), at any and
all times after termination of Employee’s employment during which such trade secrets
retain their status as such under applicable law;

10

 

	 	 	 	and (B) with respect to CONFIDENTIAL INFORMATION, for a period equal to the shorter of two
(2) years after termination of Employee’s employment, or until such CONFIDENTIAL
INFORMATION no longer qualifies as CONFIDENTIAL INFORMATION under this Agreement or
applicable law.

	2)	 	Inventions

	 	a)	 	Employee hereby irrevocably assigns to Interland all of Employee’s rights to all
Subject Inventions (as defined below) in the United States and all other countries and the
right to claim priority therein. “Subject Invention” means any Invention (as
defined below) which is conceived by Employee solely or jointly with others and (i)
relates to the actual or anticipated business, research or development of Interland, (ii)
results from any work performed by Employee using any equipment, facilities, materials,
Confidential Information or personnel of Interland, or (iii) is suggested by or results
from any task assigned or performed by Employee for or on behalf of Interland.
“Invention” means any idea, invention, discovery, improvement, innovation, design,
process, method, formula, technique, machine, article of manufacture, composition of
matter, algorithm or computer program, as well as improvements thereto.
	 
	 	b)	 	If Employee has previously conceived of any Invention or acquired any ownership
interest in any Invention, which: (i) is Employee’s property, solely or jointly; (ii) is
not described in any issued patent as of the commencement of Employee’s employment with
Interland; and (iii) would be a Subject Invention if such Invention was made while an
Interland employee; then Employee must, at Employee’s election, either: (i) provide
Interland with a written description of the Invention on Exhibit 2.1, in which
case the written description (but no rights to the Invention) shall become the property of
Interland; or (ii) provide Interland with the license described in Section 2(c) of
this Agreement.
	 
	 	c)	 	If Employee has previously conceived or acquired any ownership interest in an
Invention described above in Section 2(b) and Employee elects not to disclose such
Invention to Interland as provided above, then Employee hereby grants to Interland a
nonexclusive, paid up, royalty-free license to use and practice the Invention, including a
license under all patents to issue in any country which pertain to the Invention.
	 
	 	d)	 	If Employee owns any issued United States Patent or foreign equivalent thereof, or
Employee is an inventor, either individually or jointly, of any issued United States
Patent or foreign equivalent thereof, Employee must provide the United States Patent
number and/or foreign number for any such patent or foreign equivalent thereof in
Exhibit 2.1. Otherwise, Employee represents that Employee owns no United States
Patent or foreign equivalent thereof, individually or jointly, except those described on
Exhibit 2.1.

11

 

	 	e)	 	Employee agrees that should Interland elect to file an application for patent, either
in the United States or in any foreign country on a Subject Invention for which Employee
is an inventor, Employee will execute all necessary documentation relating to the patent
application, including formal assignments to Interland, and will cooperate with attorneys
or other persons designated by Company to provide all information necessary for the
prosecution of the patent application(s) in the United States and any foreign country.
Employee also agrees to assist Interland in every proper way to maintain its patents
during and following the period of employment including, but not limited to, the
performance of all lawful acts, such as the giving of testimony in any interference
proceedings, infringement suits, or other litigation, as may be deemed necessary or
advisable by Interland.

	3)	 	Copyrights.

	 	a)	 	Employee agrees that any Works (as defined below) created by Employee in the course
of Employee’s duties as an employee of Interland are subject to the “Work for Hire”
provisions contained in Sections 101 and 201 of the United States Copyright Law, Title 17
of the United States Code. “Work” means any copyrightable work of authorship,
including without limitation, any technical descriptions for products and services, user’s
guides, graphical works, audiovisual works, sound recordings, advertising materials,
computer programs, web sites and content and any contribution to such materials. All
right, title and interest to copyrights in all Works that have been or will be prepared by
Employee within the scope of Employee’s employment with the Company will be the property
of the Company. Employee further agrees that, to the extent the provisions of Title 17 of
the United States Code do not vest the copyrights to any Works in the Company, Employee
hereby assigns to the Company all right, title and interest to copyrights that Employee
may have in the Works.
	 
	 	b)	 	If Employee owns any ownership interest in any Work, Employee will list any such Work
on Exhibit 2.1. Otherwise, Employee will not claim any ownership rights in any
Works, except those described on Exhibit 2.1.
	 
	 	c)	 	Employee also agrees to assist the Company in every proper way to maintain its
Copyrights during and following the period of employment including, but not limited to,
the performance of all lawful acts, such as the giving of testimony in any infringement
suits or other litigation as may be deemed necessary or advisable by the Company.

	4)	 	Non-Solicitation of Customers. During the term of Employee’s employment by Interland and for
a period of six (6) months following the termination of such employment, Employee shall not,
either directly or indirectly, on Employee’s behalf or on behalf of others (a) solicit, divert
or appropriate to any Competing Business (as defined below) or (b) attempt to solicit, divert
or appropriate to any Competing Business, any business from any customer or actively sought
prospective customer of Interland with whom Employee had contact on behalf of Interland.
“Competing

12

 

	 	 	Business” means any business organization of whatever form engaged, either directly or
indirectly, which is the same as, or substantially the same as, the Business of Interland.
“Business of Interland” means the business of developing and providing Web hosting and related
services and products including without limitation email services, website development and
hosting and e-commerce services.
	 
	5)	 	Non-Solicitation of Employees. During the term of Employee’s employment by Interland and for
a period of one (1) year following the termination of Employee’s employment, Employee shall
not, either directly or indirectly, on Employee’s own behalf or on behalf of others, solicit,
divert or hire away, or attempt to solicit, divert, or hire away, any person employed by
Interland at any facility where Employee performed services or any person employed by
Interland with whom Employee had regular contact in the course of Employee’s employment by
Interland.

	6)	 	Contracts With Others

	 	a)	 	Employee agrees to provide to the Company, upon the execution and delivery of this
Agreement, a copy of the pertinent portions of any employment, consulting or
subcontracting agreement and other similar documents, (described on Exhibit 2.1),
executed by Employee with a former employer or any business or person with which Employee
has been associated, which prohibits Employee during a period of time from: (i) competing
with or participating in a business which competes with Employee’s former employer or
business; (ii) soliciting personnel of the former employer or business to leave the former
employer’s employment or to leave the business; or (iii) soliciting customers of the
former employer or business on behalf of another business.
	 
	 	b)	 	Employee represents to the Company that Employee has not entered into any agreement
with any other party which purports to require Employee to assign any Work or any
Invention created, conceived or first practiced by Employee during a period of time which
includes the date of Employee’s commencement of employment with the Company nor is
Employee subject to any law, court order or regulation which purports to require such
assignment, except as described on Exhibit 2.1. Employee will obtain and provide
to the Company a copy of the above described agreement(s) and a reference to any such law,
court order or regulation.

	7)	 	Non-Competition Employee acknowledges that he or she is being hired by Interland because of
his or her unique skills and abilities and that, by virtue of being hired by Interland,
Employee will learn special, unique and confidential matters pertaining to Interland and the
Business of Interland. Employee agrees that, during Employee’s employment and for six (6)
months after the termination of Employee’s employment for any reason (such period being the
“Non-Competition Period”), Employee will not, directly or indirectly, (i) be employed (whether
as an employee or as a consultant) for the purpose of providing Protected Services to a
Competing Business in the Protected Territory, (ii) purchase or accept a beneficial interest
in a Competing Business in the

13

 

	 	 	Protected Territory (except that Employee may purchase publicly-traded securities in Competing
Businesses so long as Employee’s holdings in such Competing Business do not exceed one percent
(1%) of the aggregate outstanding shares in such Competing Business, or (iii) serve as on the
board of directors or similar governing body of any Competing Business. For purposes of this
Section, “Protected Territory” means (y) the area within fifty (50) miles of Interland’s
headquarters location on the date Employee’s employment is terminated and (z) the area within
fifty (50) miles of Employee’s primary place of work on behalf of Interland on the date
Employee’s employment is terminated. For purposes of this Section, “Protected Services” means
those services and other services reasonably related thereto that Employee is being hired to
provide to Interland.
	 
	8)	 	Miscellaneous. This Agreement may not be amended, nor any
obligation waived, except in a writing signed by Interland and
Employee. This Agreement is not assignable or delegable in whole
or in part by Employee without the written consent of Interland.
This Agreement shall be governed and construed by the laws of the
State of Georgia, without reference to conflict of law
principles. An executed original of this Agreement may be
delivered by facsimile, which shall be binding as an original.
If any part of this Agreement is held by any legal authority to
be unenforceable or is severed by any legal authority, the
remainder of such agreement shall be enforced to the maximum
extent allowed by applicable law.

	 	 	 	 	 	 	 	 	 	 	 
	INTERLAND, INC.	 	EXECUTIVE
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Allen Shulman	 	 	 	/s/ Richard Pitrolo	 	 	 	 
	 	 	 	 	 
	Name:	 	Allen L. Shulman	 	Name: Richard Pitrolo
	 

	 	 	 	 	 	 	 	 	 	 
	Title:

	 	President & C.O.O.
	 	Date:	 	June 20, 2005	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Date:
	 	June 20, 2005	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

14

 

Works of Employee

	 	 	 	 	 
	Inventions:

	 	(None, unless listed here)	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Patents:

	 	(None, unless listed here)	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 				
	Copyrights:

	 	(None, unless listed here)	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

15

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