Document:

exv10w1

Exhibit 10.1

			
	
	 	1201 Winterson Road

Linthicum, Maryland 21090-2205

410 694 5700 phone

410 694 5750 fax

www.ciena.com

February 2, 2010

Arthur D. Smith, Ph.D.

 5 Paddington Court

Baltimore, Maryland 21212

Dear Arthur:

This agreement is to confirm the terms and conditions of your continued employment with Ciena
Corporation (the “Company”). You and the Company hereby agree to the following:

1. You will continue to be employed in your current role and at not less than your current
compensation and benefits as Senior Vice President and Chief Integration Officer until July 31,
2010 or such earlier date as may be mutually agreed between you and the Company (the
“Transition Date”). Prior to the Transition Date, you and the Company will discuss in good
faith various other acceptable leadership positions for you within the Company following
performance of your current duties and responsibilities (an
“Alternate Position”). In the
event that you and the Company are unable to mutually agree on an Alternate Position on or before
the Transition Date, then you may elect to resign your employment as an officer and active employee
of the Company by providing at least 30 days advance notice in writing, which specifies the
effective date of your resignation (the “Resignation Date”).

2. You will be paid your regular base salary for all time worked through the Resignation Date, and
for any accrued and unused Personal Leave days through the Resignation Date, on the next regularly
scheduled payroll date following the Resignation Date. You may be eligible to receive a bonus
under the Company’s Incentive Bonus Plan in accordance with the terms of that plan and only for
each full bonus period that you work through the Resignation Date; provided, however, that you
will not be eligible to receive any bonus for the first half of fiscal 2010.

3. In the event that you remain continuously employed in good standing with the Company up to and
including the Transition Date, and you elect to resign your employment in accordance with Section
1 effective on or after the Transition Date but prior to December 31, 2010, then (i) the effective
date of your separation from the Company will be the earlier of December 31, 2010 or the date on
which you obtain employment with a third party (the “Separation Date”) and (ii) in
consideration of your acceptance of this agreement and of your past service to the Company, and
contingent upon your satisfactory performance of the duties and responsibilities as described in
Section 8 below, the Company will provide you with the following severance pay and benefits:

	 	a.	 	During the period from the Resignation Date through the Separation Date, you will
continue to be paid your regular base salary on regularly scheduled pay dates, and you
will be eligible to receive an incentive bonus for the second half of fiscal 2010 at your
current target bonus percentage, if and to the extent that the applicable goals are
achieved, in accordance with the terms and conditions of the Company’s Incentive Bonus
Plan. During this period you will not be required to report for work but will remain on the Company’s payroll and will be entitled
to certain benefits as set forth herein.

 

 

Arthur D. Smith, Ph.D.

February 2, 2010

Page 2 of 6

	 	b.	 	Your health care coverage (medical, dental and vision) under the Company’s group
benefit plans
will continue until the earlier of the Separation Date or the date on which you become
eligible
for comparable coverage under the health plan of another employer. Thereafter, if you
elect to
continue these benefits through COBRA, you will be required to pay the same premium as
active
employees, with the Company subsidizing the balance of the COBRA premium, for the period
covered by your severance payment. When the period covered by your severance payment ends,
you will be responsible for the full cost of the COBRA premium.
	 
	 	c.	 	The Company will pay you a lump sum severance payment equal to the sum of 52 weeks of
your
regular base salary ($350,000) and incentive bonus at your current target bonus percentage
(based on the assumption that the goals for payment of your bonus are achieved at a level
entitling you to be paid 100% of your target bonus for one year) ($262,500), minus
the sum of
the salary and any bonus paid to you pursuant to Section 3(a) above. This payment will be
made
on the later of the next regularly scheduled pay date after the Separation Date or the
eighth day
following your signing of the general release, provided that you have not revoked your
release as
provided therein. In the event that it is determined that you are entitled to pay, or pay
in lieu of
notice, under any applicable federal or state law, then this severance pay shall be deemed
attributable to such pay or pay in lieu of notice.
	 
	 	d.	 	You will not be entitled to any additional equity grants after the Resignation Date.
Your
outstanding stock options and restricted stock units (including restricted stock units and
performance-adjusted restricted stock units) will continue vesting in accordance with
their terms
until the Separation Date, at which time any unvested options or restricted stock units
will be
forfeited. Thereafter, you must elect to exercise the vested portion of your options in
accordance
with the terms of the plan under which they were granted or they will terminate in their
entirety.
	 
	 	e.	 	Consistent with Company policy, and provided that you submit the requisite
documentation by
no later than 30 days after the Resignation Date, the Company will reimburse you for any
business-related expenses incurred by you through the Resignation Date.
	 
	 	f.	 	The Company will reimburse you for reasonable 2009 and 2010 tax return preparation
and
financial planning services provided by the Company through Deloitte & Touche or a vendor
of
your choice, up to a maximum of $10,000 per year, in accordance with the current Executive
Benefits Plan.
	 
	 	g.	 	You will be entitled to a one-day in-depth physical examination by no later than 30
days after the
Resignation Date (provided that you have not already had such an examination in 2010).
Please
contact the Executive Health Program at Johns Hopkins to set up an appointment.
	 
	 	h.	 	The Company will continue to indemnify you, and to maintain in full force and effect
insurance for any claims made against you, on account of anything alleged to have
occurred during your employment with the Company, to the same extent as the Company
currently indemnifies you and maintains such insurance.

     All payments to be made by the Company hereunder shall be reduced by any tax or other
amounts required to be withheld by the Company under applicable law and all other deductions
authorized by you. Each of the cash payments provided pursuant to this Section 3 shall be treated for
purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), as a
right to a series of separate payments. Because you are a “specified employee,” as such term is
defined pursuant to Section 409A of the Code and the regulations and guidance issued
thereunder, to the extent that the cash payments provided pursuant to this Section 3 that are
made after March 15, 2011 but within six months of the Separation Date exceed two times the
applicable limits set forth in Section 401(a)(17) of the Code (such excess amounts, the
“Excess Amount”), then the Excess Amount will not be paid until the first business day
of the seventh month following the Separation Date. All reimbursements to which you are
entitled will be paid to you as promptly as practicable and in any event not later than
December 31, 2010, and the amount of expenses eligible for reimbursement during any calendar
year will not affect the amount of expenses eligible for reimbursement in any other calendar
year.

 

 

Arthur D. Smith, Ph.D.

February 2, 2010

Page 3 of 6

4. Your participation in the Company’s 401(k) Plan will end as of the Resignation Date. You will
be entitled to receive a distribution of your account balance in accordance with the terms of the
Plan. If you wish to receive a distribution or roll over your account to another qualified plan or
IRA, please contact the Benefits Department.

5. The Amended and Restated Change in Control Severance Agreement between you and the Company will
be terminated and of no further force and effect as of the Resignation Date.

6. Except as expressly provided for above, all other benefits, including but not limited to
long-term disability and life insurance, will end as of the Resignation Date. Any conversion
and/or continuation rights that you may have regarding such insurance will be in accordance with
the terms of the insurance policies.

7. Except as expressly provided for above, you will be entitled to no other or further
compensation, remuneration or benefits from the Company, and the Company will have no further
obligation or liability therefor.

8. You hereby agree as follows:

	 	a.	 	On or immediately prior to the Resignation Date, you will execute and return a
general
waiver and release of all claims against the Company in the form attached as
Exhibit A
hereto.
	 
	 	b.	 	On or before the Resignation Date, you will return promptly to the Company any
and all
documents, materials and information (whether in hard copy, on electronic media or
otherwise) related to the business of the Company, and all keys, access cards, credit
cards,
computer hardware and software, cell phones and PDAs, and other property of the Company
in your possession or control. Further, you will not retain any copy of any documents,
materials and information (whether in hard copy, on electronic media or otherwise)
related to
the business of the Company. You will disclose to the Company all passwords necessary
or
desirable to enable the Company to access all information that you have
password-protected
on any of its equipment or on its computer network or system.
	 
	 	c.	 	On or before the Resignation Date, you will execute and deliver to the Company
letters of
resignation effective as of the Resignation Date, in the form(s) provided by the
Company, as
an officer of the Company and as a director and/or officer of certain of the Company’s
subsidiaries.

 

 

Arthur D. Smith, Ph.D.

February 2, 2010

Page 4 of 6

	 	d.	 	You acknowledge that, under Section 16 of the Securities Exchange Act of 1934,
as
amended, (i) you remain obligated to report all transactions in the Company’s stock that
occur on or before the Resignation Date and (ii) you are responsible for making all
required
filings with the SEC and NASDAQ with respect to all holdings of and transactions in the
Company’s stock after the Resignation Date that were not previously reported. You agree
to
make all such required filings in accordance with the applicable rules and to provide
the
Company with a copy thereof.
	 
	 	e.	 	You will cooperate with the Company with respect to all matters arising during
or related to
your employment with the Company, including all matters in connection with any
governmental investigation, litigation or regulatory or other proceeding that may have
arising
or which may arise following the signing of this agreement. The Company will reimburse
your out-of-pocket expenses incurred in complying with Company requests hereunder,
provided such expenses are authorized by the Company in advance.
	 
	 	f.	 	You acknowledge that as of and after the Resignation Date, you continue to be
bound by
certain obligations as set forth in the Proprietary Information, Inventions and Non-Solicitation Agreement dated May 19, 1997 between you and the Company (the
“Proprietary Information Agreement”), including your obligation not to disclose to any third
party any
Company Proprietary Information (as defined therein). Concurrent with the signing of
this
agreement, you will execute a Termination Certification (Annex B to the Proprietary
Information Agreement) and provide the same to the Company.
	 
	 	g.	 	You agree that, as a condition to your right to receive the severance pay and
benefits set forth
in Section 3, for a period of 12 months following the Resignation Date you will not,
whether
alone or as a partner, officer, director, consultant, contractor, agent, employee or
stockholder
of any company or other commercial enterprise, directly or indirectly, without the
prior
written consent of the Company:

	 	i.	 	be employed or engaged by or associated with, or engage or
invest in, own, manage, operate, finance, control or participate in the
ownership, management, operation, financing or control of, any of the
following companies (or their affiliates or subsidiaries): ADVA,
Alcatel-Lucent, Cisco, Ericsson, Fujitsu, Huawei, Infinera, Nokia Siemens
Networks or Tellabs; provided, however, that you may purchase or otherwise
acquire as a passive investment up to (but not more than) one percent of any
class of security of any enterprise (but without otherwise participating in
the activities of such enterprise) if such securities are listed on any
national or regional securities exchange or have been registered under Section
12(g) of the Securities Exchange Act of 1934; or
	 
	 	ii.	 	(A) solicit or induce any employee of the Company to leave the
employ of the Company, (B) solicit business of the same or similar type being
carried on by the Company from any person known by you to have purchased
products or services from the Company within the 12 months prior to the
Resignation Date, (C) unlawfully interfere with the Company’s relationship with
any person, including any person who was an employee, contractor, supplier or
customer of the Company, or (D) disparage the Company or any of its
shareholders, directors, officers, employees or agents.

 

 

Arthur D.Smith, Ph.D.

February 2, 2010

Page 5 of 6

	 	 	 	You acknowledge and agree that the covenants set forth in this Section 8(g), including
but not limited to the subject matter, scope and duration of such covenants, are fair
and reasonable and are necessary for the protection of the legitimate business interests
of the Company. You further agree that any breach of the covenants set forth in this
Section 8(g) would cause irreparable damage to the Company and that, in the event of
such breach, and in addition to any and all remedies at law, the Company shall have the
right to an injunction, specific performance or other equitable relief to prevent or
redress the violation of such covenants.
	 
	 	 	 	You and the Company acknowledge and agree that the covenants set forth in this Section
8(g) supersede in their entirety the covenants set forth in Section 9 of the
Proprietary Information Agreement, which shall be deemed of no further force and
effect.

9. You acknowledge that this agreement is a full and accurate embodiment of the understanding
between you and the Company and that it supersedes any prior or contemporaneous communications,
agreements or understandings, whether written or oral, made by the parties. The terms of this
agreement may not be modified, except by mutual written consent of the parties:

10. If any provision of this agreement or any portion or provision hereof applicable to any
particular situation or circumstance is held invalid, the remainder of this agreement or the
remainder of such provision (as the case may be), and the application thereof to other situations
or circumstances, shall not be affected thereby.

11. Unless required to do so by legal process or by a court or government agency, you agree not to
disseminate or disclose the fact of or terms of this agreement, the discussions leading to this
agreement, or any subsidiary undertakings required by this agreement, except to legal counsel or
tax advisers, or as may become necessary to comply with or enforce the terms of this agreement.
You further agree that no part of this agreement is to be used as or admitted into evidence in any
proceeding of any character, judicial, administrative or otherwise, now pending or subsequently
instituted, except in accordance with this paragraph.

12. This agreement will be interpreted and enforced in accordance with the laws of the State of
Maryland without regard to its choice of law principles.

13. This agreement shall not be deemed an admission of liability, or of a violation of any
application law, rule, regulation or order, of any kind,

If the terms of this agreement are acceptable, please indicate your acceptance by signing below
and return to me a signed copy of this agreement.

 

 

Arthur D. Smith, Ph.D.

February 2, 2010

Page 6 of 6

Please let me know if you have any questions.

Sincerely,

Ciena Corporation

	 	 	 	 	 
	 	 	 
	  	/s/ Randy Harris
 	 	 
	 	Randy Harris 	 	 
	 	SVP & Chief Human Resources Officer 	 	 
	 

ACCEPTED AND AGREED:

	 	 	 	 
	
/s/ Arthur D. Smith

	 	2/2/2010	 
	 

	 	 	 
	Arthur D. Smith

	 	Date	 

 

 

EXHIBIT
A

GENERAL RELEASE

This General Release is made between Ciena Corporation, a Delaware corporation (the “Company”) and
Arthur D. Smith (the “Executive”).

WHEREAS, the Executive has been employed by the Company in the capacity of Senior Vice President
and Chief Integration Officer, and has resigned such employment; and

WHEREAS, the Company has agreed, pursuant to the terms of a letter agreement dated February 2,
2010 (the “Agreement”) to provide certain pay and other benefits to which the Executive would not
otherwise be entitled.

The Company and the Executive agree as follows:

1. In consideration of the pay and other benefits set forth in the Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Executive, on behalf of himself and his heirs, representative, successors and assigns, hereby
releases, waives and fully discharges the Company and its affiliates, subsidiaries, officers,
directors, employees, agents, representatives, successors and assigns (collectively, the “Company
et al.”), absolutely, unconditionally and irrevocably, from, against, and in respect of any and all
claims, actions, suits, proceedings, demands, judgments, costs and expenses (including attorneys’
fees and court costs), liabilities, obligations or damages of any kind or nature whatsoever,
whether asserted or unasserted, mature or contingent, known or unknown, which he ever had, now have
or may have against the Company et al., from the beginning of time up to the date of this General
Release, directly or indirectly relating to or arising out of his employment and employment
relationship with the Company and the separation thereof, including but not limited to any claims
of wrongful termination, constructive discharge, defamation, infliction of emotional distress,
breach of express or implied contract, fraud, misrepresentation or liability in any other theory of
tort of contract (whether at law, in equity or otherwise), claims of any kind that may be brought
in any court or administrative agency, any claims brought under Title VII of the Civil Rights Act
of 1964, the Civil Rights Act of 1991, the Fair Labor Standards Act, the Rehabilitation Act, the
Americans with Disabilities Act, the Age Discrimination in Employment Act, the Equal Pay Act, the
Employee Retirement Income Security Act, the Family and Medical Leave Act, or any other federal,
state or local law relating to employment, business expenses, employee benefits or the termination
of employment. The Executive hereby forever releases the Company et al. from any liability or
obligation to reinstate or reemploy him in any capacity, and waives any right to future employment
with the Company.

2. In consideration of the Agreement and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Company hereby releases, waives and fully
discharges the Executive and his heirs, representatives, successors and assigns, absolutely,
unconditionally and irrevocably, from, against and in respect of any and all claims, actions,
suits, proceedings, demands, judgments, costs and expenses (including attorneys’ fees and court
costs), liabilities, obligations or damages of any kind or nature whatsoever, whether asserted or
unasserted, mature or contingent, known or unknown, which the Company ever had, now has or may
have against the Executive from the beginning of time up to the date of this General Release,
directly or indirectly relating to or arising out of the Executive’s employment and employment
relationship with the Company and the separation thereof.

3. Nothing in this General Release will affect the ability of either the Company or the Executive
to enforce rights or entitlements provided for under the Agreement, or any rights or entitlements
that may arise after the date of this General Release. In the event that the Executive should
decide to commence
any
litigation, action or proceeding against the Company et al. except as it relates to the
enforcement of any rights he may have under the Agreement or that arise after the date of this
General Release, the Executive will be obligated to repay the Company the additional consideration
paid pursuant to the Agreement and will be deemed to have breached this General Release and will be
liable for any damages, costs and attorneys fees suffered by the
Company et al. as a result of such
breach.

 

 

4. The Executive expressly acknowledges and certifies that he has read this General Release
carefully, that he has been advised by the Company and has had the opportunity to consult with
counsel before signing this General Release if he believed that was necessary, and that he has
freely, voluntarily and knowingly entered into this General Release after due consideration. The
Executive acknowledges and confirms that no promise or inducement has been offered to him by the
Company or any of its agents, except as expressly set forth herein, and that he is not relying
upon any such promise or inducement in entering into this General Release. The Executive further
acknowledges and confirms that the consideration offered pursuant to this General Release exceeds
any payment, benefit or other thing of value to which he would otherwise be entitled.

5. The Executive understands that he 21 days to consider, execute and deliver this General Release
to the Company, but that if he knowingly and voluntarily chooses to do so, he may execute this
General Release before the 21 day consideration period has expired. The Executive further
understands that he may revoke his acceptance of this General Release within seven days of its
execution by providing written notice of revocation to the General Counsel of the Company on or
before the seventh calendar day after he signs this General Release.

6. This Release will be interpreted and enforced in accordance with the laws of the State of
Maryland. THIS IS A FINAL RELEASE. No modification, alteration or waiver of any provision hereof
shall be binding upon either Executive or the Company unless evidenced in writing and signed by
both
parties.

	 	 	 
	CIENA CORPORATION	 	EXECUTIVE
	 
	 	 
	By:  

	 	  

Arthur
D. Smith
	Name:  

	 	 
	Title:  

	 	Date: 

	Date:exv10w11

Exhibit 10.11

INDEMNITY AGREEMENT

     This Indemnity Agreement (this “Agreement”) dated as of ____________ ______, 20____, is
made by and between GSI Commerce, Inc., a Delaware corporation (the “Company”), and _______________ (“Indemnitee”).

Recitals

     A. The Company desires to attract and retain the services of highly qualified individuals as
directors, officers, employees and other fiduciaries.

     B. The Company’s bylaws (the “Bylaws”) require that the Company indemnify its directors, and
empowers the Company to indemnify its officers, employees and other fiduciaries, as authorized by
the Delaware General Corporation Law, as amended (the “DGCL”), under which the Company is organized
and such Bylaws expressly provide that the indemnification provided therein is not exclusive and
contemplates that the Company may enter into separate agreements with its directors, officers and
other persons to set forth specific indemnification provisions.

     C. Indemnitee does not regard the protection currently provided by applicable law, the
Company’s governing documents and available insurance as adequate under the present circumstances,
and the Company has determined that Indemnitee and other directors, officers, employees and other
fiduciaries of the Company may not be willing to serve or continue to serve in such capacities
without additional protection.

     D. The Company desires and has requested Indemnitee to serve or continue to serve as a
director, officer, employee or other fiduciary of the Company, as the case may be, and has
proffered this Agreement to Indemnitee as an additional inducement to serve or continue to serve in
such capacity.

     E. Indemnitee is willing to serve, or to continue to serve, as a director, officer, employee
or other fiduciary of the Company, as the case may be, if Indemnitee is furnished the indemnity
provided for herein by the Company.

Agreement

     Now Therefore, in consideration of the mutual covenants and agreements set forth
herein, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Definitions.

          (a) Agent. For purposes of this Agreement, the term “agent” of the Company means any person
who: (i) is or was a director, officer, employee or other fiduciary of the Company or a subsidiary
of the Company; or (ii) is or was serving at the request or for the convenience of, or representing
the interests of, the Company or a subsidiary of the Company, as a director, officer, employee or
other fiduciary of a foreign or domestic corporation, partnership, joint venture, trust or other
enterprise.

1.

 

          (b) Expenses. For purposes of this Agreement, the term “expenses” shall be broadly construed
and shall include, without limitation, all direct and indirect costs of any type or nature
whatsoever (including, without limitation, all attorneys’, witness or other professional fees and
related disbursements, and other out-of-pocket costs of whatever nature), actually and reasonably
incurred by Indemnitee in connection with the investigation, defense or appeal of a proceeding or
establishing or enforcing a right to indemnification under this Agreement, the DGCL or otherwise,
and amounts paid in settlement by or on behalf of Indemnitee, but shall not include any judgments,
fines or penalties actually levied against Indemnitee for such individual’s violations of law. The
term “expenses” shall also include reasonable compensation for time spent by Indemnitee for which
he is not compensated by the Company or any subsidiary or third party (i) for any period during
which Indemnitee is not an agent, in the employment of, or providing services for compensation to,
the Company or any subsidiary, and (ii) if the rate of compensation and estimated time involved is
approved by the directors of the Company who are not parties to any action with respect to which
expenses are incurred, for Indemnitee while an agent of, employed by, or providing services for
compensation to, the Company or any subsidiary.

          (c) Proceedings. For purposes of this Agreement, the term “proceeding” shall be broadly
construed and shall include, without limitation, any threatened, pending, or completed action,
suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative
hearing or any other actual, threatened or completed proceeding, whether brought in the right of
the Company or otherwise and whether of a civil, criminal, administrative or investigative nature,
and whether formal or informal in any case, in which Indemnitee was, is or will be involved as a
party or otherwise by reason of: (i) the fact that Indemnitee is or was an agent of the Company;
(ii) the fact that any action taken by Indemnitee or of any action on Indemnitee’s part while
acting as an agent of the Company; or (iii) the fact that Indemnitee is or was serving at the
request of the Company as an agent of another corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise, and in any such case described above, whether or not
serving in any such capacity at the time any liability or expense is incurred for which
indemnification, reimbursement, or advancement of expenses may be provided under this Agreement.

          (d) Subsidiary. For purposes of this Agreement, the term “subsidiary” means any corporation
or limited liability company of which more than 50% of the outstanding voting securities or equity
interests are owned, directly or indirectly, by the Company and one or more of its subsidiaries,
and any other corporation, limited liability company, partnership, joint venture, trust, employee
benefit plan or other enterprise of which Indemnitee is or was serving at the request of the
Company as an agent.

          (e) Independent Counsel. For purposes of this Agreement, the term “independent counsel” means
a law firm, or a partner (or, if applicable, member) of such a law firm, that is experienced in
matters of corporation law and neither presently is, nor in the past five (5) years has been,
retained to represent (i) the Company or Indemnitee in any matter material to either such party, or
(ii) any other party to the proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “independent counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would have a conflict of
interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s
rights under this Agreement.

2.

 

     2. Agreement to Serve. Indemnitee will serve, or continue to serve, as a director, officer,
employee or other fiduciary of the Company or any subsidiary, as the case may be, faithfully and to
the best of his or her ability, at the will of such corporation (or under separate agreement, if
such agreement exists), in the capacity Indemnitee currently serves as an agent of such
corporation, so long as Indemnitee is duly appointed or elected and qualified in accordance with
the applicable provisions of the bylaws or other applicable charter documents of such corporation,
or until such time as Indemnitee tenders his or her resignation in writing; provided, however, that
nothing contained in this Agreement is intended as an employment agreement between Indemnitee and
the Company or any of its subsidiaries or to create any right to continued employment of Indemnitee
with the Company or any of its subsidiaries in any capacity.

     The Company acknowledges that it has entered into this Agreement and assumes the obligations
imposed on it hereby, in addition to and separate from its obligations to Indemnitee under the
Bylaws, to induce Indemnitee to serve, or continue to serve, as a director, officer, employee or
other fiduciary of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving, or continuing to serve, as a director, officer, employee or other fiduciary
of the Company.

     3. Indemnification.

          (a) Indemnification in Third Party Proceedings. Subject to Section 10 below, the Company
shall indemnify Indemnitee to the fullest extent permitted by the DGCL, as the same may be amended
from time to time (but, only to the extent that such amendment permits broader indemnification
rights to Indemnitee than the DGCL permitted prior to adoption of such amendment), if Indemnitee is
a party to or threatened to be made a party to or otherwise involved in any proceeding, for any and
all expenses actually and reasonably incurred by Indemnitee in connection with the investigation,
defense, settlement or appeal of such proceeding.

          (b) Indemnification in Derivative Actions and Direct Actions by the Company. Subject to
Section 10 below, the Company shall indemnify Indemnitee to the fullest extent permitted by the
DGCL, as the same may be amended from time to time (but, only to the extent that such amendment
permits broader indemnification rights to Indemnitee than the DGCL permitted prior to adoption of
such amendment), if Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any proceeding by or in the right of the Company to procure a judgment in its favor,
for any and all expenses actually and reasonably incurred by Indemnitee in connection with the
investigation, defense, settlement, or appeal of such proceedings.

     4. Indemnification of Expenses of Successful Party. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in
defense of any proceeding or in defense of any claim, issue or matter therein, including the
dismissal of any action without prejudice, the Company shall indemnify

3.

 

Indemnitee against all expenses actually and reasonably incurred in connection with the
investigation, defense or appeal of such proceeding.

     5. Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement
to indemnification by the Company for some or a portion of any expenses actually and reasonably
incurred by Indemnitee in the investigation, defense, settlement or appeal of a proceeding, but is
precluded by applicable law or the specific terms of this Agreement from obtaining indemnification
for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

     6. Advancement of Expenses. To the extent not prohibited by law, the Company shall advance
the expenses incurred by Indemnitee in connection with any proceeding, and such advancement shall
be made within twenty (20) days after the receipt by the Company of a statement or statements
requesting such advances (which shall include invoices received by Indemnitee in connection with
such expenses but, in the case of invoices in connection with legal services, any references to
legal work performed or to expenditures made that would cause Indemnitee to waive any privilege
accorded by applicable law shall not be included with the invoice) and upon request of the Company,
an undertaking to repay the advancement of expenses if and to the extent that it is ultimately
determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that
Indemnitee is not entitled to be indemnified by the Company. Advances shall be unsecured, interest
free and without regard to Indemnitee’s ability to repay the expenses. Advances shall include any
and all expenses actually and reasonably incurred by Indemnitee pursuing an action to enforce
Indemnitee’s right to indemnification under this Agreement, or otherwise and this right of
advancement, including expenses incurred preparing and forwarding statements to the Company to
support the advances claimed. Indemnitee acknowledges that the execution and delivery of this
Agreement shall constitute an undertaking providing that Indemnitee shall, to the fullest extent
required by law, repay the advance if and to the extent that it is ultimately determined by a court
of competent jurisdiction in a final judgment, not subject to appeal, that Indemnitee is not
entitled to be indemnified by the Company. The right to advances under this Section shall continue
until final disposition of any proceeding, including any appeal therein. This Section 6 shall not
apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 10(b).

     7. Notice and Other Indemnification Procedures.

          (a) Notification of Proceeding. Indemnitee will notify the Company in writing promptly upon
being served with any summons, citation, subpoena, complaint, indictment, information or other
document relating to any proceeding or matter which may be subject to indemnification or
advancement of expenses covered hereunder. The failure of Indemnitee to so notify the Company
shall not relieve the Company of any obligation which it may have to Indemnitee under this
Agreement or otherwise.

          (b) Request for Indemnification and Indemnification Payments. Indemnitee shall notify the
Company promptly in writing upon receiving notice of any demand, judgment or other requirement for
payment that Indemnitee reasonably believes to be subject to indemnification under the terms of
this Agreement, and shall request payment thereof by the Company. Indemnification payments
requested by Indemnitee under Section 3 hereof shall be

4.

 

made by the Company no later than sixty (60) days after receipt of the written request of
Indemnitee. Claims for advancement of expenses shall be made under the provisions of Section 6
hereof.

          (c) Application for Enforcement. In the event the Company fails to make timely payments as
set forth in Section 6 or Section 7(b) above, Indemnitee shall have the right to apply to any court
of competent jurisdiction for the purpose of enforcing Indemnitee’s right to indemnification or
advancement of expenses pursuant to this Agreement. In such an enforcement hearing or proceeding,
the burden of proof shall be on the Company to prove that indemnification or advancement of
expenses to Indemnitee is not required under this Agreement or permitted by applicable law. Any
determination by the Company (including the Board of Directors of the Company (the “Board”),
stockholders or independent counsel) that Indemnitee is not entitled to indemnification hereunder,
shall not be a defense by the Company to the action nor create any presumption that Indemnitee is
not entitled to indemnification or advancement of expenses hereunder.

          (d) Indemnification of Certain Expenses. The Company shall indemnify Indemnitee against all
expenses incurred in connection with any hearing or proceeding under this Section 7 unless the
Company prevails in such hearing or proceeding on the merits in all material respects.

     8. Assumption of Defense. In the event the Company shall be requested by Indemnitee to pay
the expenses of any proceeding, the Company, if appropriate, shall be entitled to assume the
defense of such proceeding, or to participate to the extent permissible in such proceeding, with
counsel reasonably acceptable to Indemnitee. Upon assumption of the defense by the Company and the
retention of such counsel by the Company, the Company shall not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with respect to the same
proceeding, provided that Indemnitee shall have the right to employ separate counsel in such
proceeding at Indemnitee’s sole cost and expense. Notwithstanding the foregoing, if Indemnitee’s
counsel delivers a written notice to the Company stating that such counsel has reasonably concluded
that there may be a conflict of interest between the Company and Indemnitee in the conduct of any
such defense or the Company shall not, in fact, have employed counsel or otherwise actively pursued
the defense of such proceeding within a reasonable time, then in any such event the fees and
expenses of Indemnitee’s counsel to defend such proceeding shall be subject to the indemnification
and advancement of expenses provisions of this Agreement.

     9. Insurance. To the extent that the Company maintains an insurance policy or policies
providing liability insurance for directors, officers, employees or other fiduciaries of the
Company or of any subsidiary (“D&O Insurance”), Indemnitee shall be covered by such policy or
policies in accordance with its or their terms to the maximum extent of the coverage available for
any such director, officer, employee or other fiduciary under such policy or policies. If, at the
time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has D&O
Insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to
the insurers in accordance with the procedures set forth in the respective policies. The Company
shall thereafter take all necessary or desirable action to cause such insurers to pay,

5.

 

on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with
the terms of such policies.

     10. Exceptions.

          (a) Certain Matters. Any provision herein to the contrary notwithstanding, the Company shall
not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee on account of any
proceeding with respect to: (i) remuneration paid to Indemnitee if it is determined by final
judgment or other final adjudication that such remuneration was in violation of law (and, in this
respect, both the Company and Indemnitee have been advised that the Securities and Exchange
Commission believes that indemnification for liabilities arising under the federal securities laws
is against public policy and is, therefore, unenforceable and that claims for indemnification
should be submitted to appropriate courts for adjudication, as indicated in Section 10(d) below);
(ii) a final judgment rendered against Indemnitee for an accounting, disgorgement or repayment of
profits made from the purchase or sale by Indemnitee of securities of the Company against
Indemnitee or in connection with a settlement by or on behalf of Indemnitee to the extent it is
acknowledged by Indemnitee and the Company that such amount paid in settlement resulted from
Indemnitee’s conduct from which Indemnitee received monetary personal profit, pursuant to the
provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or other provisions of any federal, state or local statute or rules and regulations
thereunder; (iii) a final judgment or other final adjudication that Indemnitee’s conduct was in bad
faith, knowingly fraudulent or deliberately dishonest or constituted willful misconduct (but only
to the extent of such specific determination); or (iv) on account of conduct that is established by
a final judgment as constituting a breach of Indemnitee’s duty of loyalty to the Company or
resulting in any personal profit or advantage to which Indemnitee is not legally entitled. For
purposes of the foregoing sentence, a final judgment or other adjudication may be reached in either
the underlying proceeding or action in connection with which indemnification is sought or a
separate proceeding or action to establish rights and liabilities under this Agreement.

          (b) Claims Initiated by Indemnitee. Any provision herein to the contrary notwithstanding, the
Company shall not be obligated to indemnify or advance expenses to Indemnitee with respect to
proceedings or claims initiated or brought by Indemnitee against the Company or its directors,
officers, employees or other fiduciaries and not by way of defense, except (i) with respect to
proceedings brought to establish or enforce a right to indemnification under this Agreement or
under any other agreement, provision in the Bylaws or the Company’s Certificate of Incorporation or
applicable law, or (ii) with respect to any other proceeding initiated by Indemnitee that is either
approved by the Board or where Indemnitee’s participation is required by applicable law. However,
indemnification or advancement of expenses may be provided by the Company in specific cases if the
Board determines it to be appropriate.

          (c) Unauthorized Settlements. Any provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee
under this Agreement for any amounts paid in settlement of a proceeding effected without the
Company’s written consent. Neither the Company nor Indemnitee shall unreasonably withhold consent
to any proposed settlement; provided, however, that the Company may in any event decline to consent
to (or to otherwise admit or agree to any liability

6.

 

for indemnification hereunder in respect of) any proposed settlement if the Company is also a
party in such proceeding and determines in good faith that such settlement is not in the best
interests of the Company and its stockholders.

          (d) Securities Act Liabilities. Any provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement to indemnify Indemnitee or
otherwise act in violation of any undertaking appearing in and required by the rules and
regulations promulgated under the Securities Act of 1933, as amended (the “Act”), or in any
registration statement filed with the SEC under the Act. Indemnitee acknowledges that paragraph
(h) of Item 512 of Regulation S-K currently generally requires the Company to undertake in
connection with any registration statement filed under the Act to submit the issue of the
enforceability of Indemnitee’s rights under this Agreement in connection with any liability under
the Act on public policy grounds to a court of appropriate jurisdiction and to be governed by any
final adjudication of such issue. Indemnitee specifically agrees that any such undertaking shall
supersede the provisions of this Agreement and to be bound by any such undertaking.

     11. Nonexclusivity and Survival of Rights. The provisions for indemnification and advancement
of expenses set forth in this Agreement shall not be deemed exclusive of any other rights which
Indemnitee may at any time be entitled under any provision of applicable law, the Company’s
Certificate of Incorporation, the Bylaws or other agreements, both as to action in Indemnitee’s
official capacity and Indemnitee’s action as an agent of the Company, in any court in which a
proceeding is brought, and Indemnitee’s rights hereunder shall continue after Indemnitee has ceased
acting as an agent of the Company and shall inure to the benefit of the heirs, executors,
administrators and assigns of Indemnitee. The obligations and duties of the Company to Indemnitee
under this Agreement shall be binding on the Company and its successors and assigns until
terminated in accordance with its terms. The Company shall require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business or assets of the Company, expressly to assume and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform if no such
succession had taken place.

     No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or
restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by
such Indemnitee in his or her corporate status prior to such amendment, alteration or repeal. To
the extent that a change in the DGCL, whether by statute or judicial decision, permits greater
indemnification or advancement of expenses than would be afforded currently under the Company’s
Certificate of Incorporation, the Bylaws and this Agreement, it is the intent of the parties hereto
that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No
right or remedy herein conferred is intended to be exclusive of any other right or remedy, and
every other right and remedy shall be cumulative and in addition to every other right and remedy
given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, by Indemnitee shall not prevent the
concurrent assertion or employment of any other right or remedy by Indemnitee.

7.

 

     12. Change in Control. If, at any time subsequent to the date of this Agreement, continuing
directors do not constitute a majority of the members of the Board, or there is otherwise a change
in control of the Company (as contemplated by Item 403(c) of Regulation S-K under the Securities
Act and the Exchange Act), then upon the request of Indemnitee, the Company shall cause the
determination of indemnification and advances required by Section 3 hereof to be made by
independent counsel. The fees and expenses incurred by independent counsel in making the
determination of indemnification and advances shall be borne solely by the Company. If independent
counsel is unwilling and/or unable to make the determination of indemnification and advances, then
the Company shall cause the indemnification and advances to be made by a majority vote or consent
of a committee of the Board consisting solely of continuing directors. For purposes of this
Agreement, a “continuing director” means either a member of the Board as of the date of this
Agreement or a person nominated to serve as a member of the Board by a majority of the
then-continuing directors.

     13. Legal Action by the Company. No legal action shall be brought and no cause of action
shall be asserted by or in the right of the Company against an Indemnitee or an Indemnitee’s
estate, spouse, heirs, executors or personal or legal representatives after the expiration of five
(5) years from the date of accrual of such cause of action, and any claim or cause of action of the
Company shall be extinguished and deemed released unless asserted by the timely filing of a legal
action within such five-year period; provided, however, that if any shorter period of limitations
is otherwise applicable to such cause of action, such shorter period shall govern.

     14. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who, at
the request and expense of the Company, shall execute all papers required and shall do everything
that may be reasonably necessary to secure such rights, including the execution of such documents
necessary to enable the Company effectively to bring suit to enforce such rights.

     15. Interpretation of Agreement. It is understood that the parties hereto intend this
Agreement to be interpreted and enforced so as to provide indemnification to Indemnitee to the
fullest extent now or hereafter permitted by law.

     16. Severability. If any provision of this Agreement shall be held to be invalid, illegal or
unenforceable for any reason whatsoever, (a) the validity, legality and enforceability of the
remaining provisions of this Agreement (including without limitation, all portions of any
paragraphs of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that are not themselves invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby; and (b) to the fullest extent possible, the provisions of this
Agreement (including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable, that are not themselves
invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested
by the provision held invalid, illegal or unenforceable and to give effect to Section 14 hereof.

     17. Amendment and Waiver. No supplement, modification, amendment, or cancellation of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a

8.

 

waiver of any other provision hereof (whether or not similar) nor shall such waiver constitute
a continuing waiver.

     18. Notice. Except as otherwise provided herein, any notice or demand which, by the
provisions hereof, is required or which may be given to or served upon the parties hereto shall be
in writing and, if by telegram, telecopy or telex, shall be deemed to have been validly served,
given or delivered when sent, if by overnight delivery, courier or personal delivery, shall be
deemed to have been validly served, given or delivered upon actual delivery and, if mailed, shall
be deemed to have been validly served, given or delivered three (3) business days after deposit in
the United States mail, as registered or certified mail, with proper postage prepaid and addressed
to the party or parties to be notified at the addresses set forth on the signature page of this
Agreement (or such other address(es) as a party may designate for itself by like notice). If to
the Company, notices and demands shall be delivered to the attention of the Secretary of the
Company.

     19. Governing Law. This Agreement shall be governed exclusively by and construed according to
the laws of the State of Delaware, as applied to contracts between Delaware residents entered into
and to be performed entirely within Delaware.

     20. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall for all purposes be deemed to be an original but all of which together shall constitute but
one and the same Agreement. Only one such counterpart need be produced to evidence the existence
of this Agreement.

     21. Headings. The headings of the sections of this Agreement are inserted for convenience
only and shall not be deemed to constitute part of this Agreement or to affect the construction
hereof.

     22. Entire Agreement. This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and supersedes all prior agreements, understandings and
negotiations, written and oral, between the parties with respect to the subject matter of this
Agreement, including without limitation any existing agreement between the Company and Indemnitee
providing for indemnification of the type provided for herein; provided, however, that (a) this
Agreement is a supplement to and in furtherance of the Company’s Certificate of Incorporation, the
Bylaws, the DGCL and any other applicable law, and shall not be deemed a substitute therefor, and
does not diminish or abrogate any rights of Indemnitee thereunder, and (b) in no event shall any of
Indemnitee’s rights hereunder be diminished by reason of the fact that this Agreement supersedes
any other agreements, understandings or negotiations.

9.

 

     In Witness Whereof, the parties hereto have entered into this Agreement effective as
of the date first above written.

	 	 	 	 	 
	 	GSI Commerce, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Indemnitee

 	 
	 	 	 
	 	Signature of Indemnitee 	 
	 
	 	 	 
	 	
 	 
	 	Print or Type Name of Indemnitee

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