Document:

Exhibit 10.1

 

ALLOS THERAPEUTICS, INC.

 

CORPORATE BONUS PLAN

Adopted:
April 25, 2007

Amended
and Restated: September 15, 2008

Effective:
January 1, 2007

 

PLAN OBJECTIVES

 

The
objectives of the Corporate Bonus Plan (the “Plan”)
are to:

 

·                  provide certain employees of Allos
Therapeutics, Inc. (the “Company”) with
incentives to achieve the highest level of individual and team performance and
to meet or exceed specified objectives, which contribute to the overall success
of the Company;

·                  motivate participants to achieve both
corporate and individual objectives; and

·                  enable the Company to attract and retain
high-quality employees.

 

ADMINISTRATION

 

The
Plan will be administered by the Compensation Committee of the Company’s Board
of Directors (the “Compensation Committee”)
and the Chief Executive Officer; provided that any action permitted to be taken
by the Committee may be taken by the Board, in its discretion.  The Compensation Committee may correct any
defect or omission or reconcile any inconsistency in the Plan in the manner and
to the extent the Compensation Committee deems necessary or desirable.  Any decision of the Compensation Committee in
the interpretation and administration of the Plan, as described herein, shall
lie within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned.  The
Compensation Committee generally sets a one-year performance period under the
Plan to run from January 1 through December 31 (the “Performance Period”). 
The Compensation Committee is responsible for approving any incentive
compensation for executive officers, as that term is defined in Section 16
of the Securities Exchange Act of 1934, as amended (the “Executive
Officers”), and for recommending to the Company’s Board of Directors
(the “Board”) the incentive compensation for
the Chief Executive Officer.  The Chief
Executive Officer is responsible for any incentive compensation for employees
who are not Executive Officers (the “Non-Executive Officer
Employees”).

 

ELIGIBILITY

 

All
Company employees holding a position with the Company that is covered by the
Plan as determined by the Compensation Committee from time to time in its
discretion are eligible to participate in the Plan for each Performance Period;
provided, however, that in order to receive an award for a Performance Period,
if awards are available, eligible employees (“Participants”)
must: (i) be employed by the Company both on the last day of the
applicable Performance Period (which will generally be December 31 of each
year) and at the time awards are paid out under the Plan; (ii) have
completed at least three months of full-time, active service with the Company
during the applicable Performance Period (which shall include all family and
medical leaves of  absence) or have been
deemed by the Compensation Committee to be eligible to participate fully

 

1

 

in
the Plan; (iii) receive at least a “Meets Expectations” rating on the
employee’s performance review for the applicable Performance Period; and (iv) not
be subject to a written performance improvement plan at the time awards are
paid out under the Plan.

 

Participants
with at least three, but less than 12, months of active service during a
Performance Period may be eligible for a prorated bonus for such Performance
Period, depending on their length of service for that period.  A Participant who changes job grades during a
Performance Period may be eligible for a bonus based on the length of time in
each grade and the respective bonus targets that would apply for such grades
during such Performance Period.

 

Unless
the terms of an applicable severance plan or employment agreement provide
otherwise, a Participant who terminates employment (or gives notice of his or
her intent to terminate) for reasons other than death or disability prior to a
payout date of an award under the Plan will not be eligible for a bonus
award.  If an employee dies prior to a
payout date of an award under this Plan, then the award that the employee
otherwise would have been eligible to receive under the Plan, if any, may be
paid to his/her estate at the discretion of the Company.

 

TARGET BONUS AWARDS

 

Target
bonus awards will be determined and communicated to eligible employees
annually.  For Non-Executive Officer
Employees, the target bonus awards for such Participants will be determined by
the Chief Executive Officer.  For
Executive Officers (other than the Chief Executive Officer), the target bonus
awards for such Participants will be determined by the Compensation Committee,
in consultation with the Chief Executive Officer.  For the Chief Executive Officer, the target
bonus award for such Participant will be determined by the Compensation
Committee and the Board.  Target bonus
awards may be modified from time to time.

 

AWARD DETERMINATION

 

Actual
bonus payouts can range from 0 to 1.5 times the target bonus awards, based on
corporate and individual performance.

 

Following
are the weightings of the corporate and individual performance components used
for Participants in determining the actual bonus award amounts:

 

	
  Title

  	
   

  	
  Weighting of

  Corporate

  Performance

  Against

  Corporate

  Objectives

  	
   

  	
  Weighting of

  Individual

  Performance

  Against

  Individual

  Objectives

  	
   

  
	
  President and CEO

  	
   

  	
  100%

  	
   

  	
  0%

  	
   

  
	
  Executive or Senior Vice President

  	
   

  	
  60%

  	
   

  	
  40%

  	
   

  
	
  Vice President

  	
   

  	
  60%

  	
   

  	
  40%

  	
   

  
	
  Below Vice President

  	
   

  	
  50%

  	
   

  	
  50%

  	
   

  

 

2

 

At
the beginning of each Performance Period under the Plan, the criteria for
assessing the Company’s corporate performance will be (i) developed by the
Chief Executive Officer of the Company in consultation with management, (ii) reviewed
and approved by the Compensation Committee, and (iii) approved by the
Board.

 

At
the beginning of each Performance Period under the Plan, the criteria for
assessing an individual’s performance will be developed by the Company in
consultation with the Participant (the “Individual Bonus Criteria”).  For Non-Executive Officer Employees, the
Individual Bonus Criteria for such Participants must be approved by the Chief
Executive Officer.  For Executive
Officers with an individual performance component, the Individual Bonus
Criteria for such Participants must be approved by the Compensation Committee,
in consultation with the Chief Executive Officer.

 

After
the end of each Performance Period, the Compensation Committee will assess the
extent to which corporate goals and objectives have been met, identify any
unplanned achievements or adverse events that have occurred and recommend to
the Board for approval an overall percentage of weighted goals achieved with
respect to the corporate component of the Plan. 
This percentage of corporate goal achievement, together with the
percentage of achievement for the individual component, will be used to
calculate bonus payouts, if any, for each eligible Participant in the Plan.

 

After
the end of each Performance Period, individual performance will be evaluated
based on achievement of weighted goals and objectives as reflected in the
employee’s written performance objectives for the Performance Period.  For Non-Executive Officer Employees, the
Chief Executive Officer will assess the extent to which Individual Bonus
Criteria have been met, identify any unplanned achievements or adverse events
that have occurred and approve an overall percentage of weighted goals achieved
with respect to the individual component of the Plan.  For Executive Officers with an individual
performance component, the Compensation Committee will assess, in consultation
with the Chief Executive Officer, the extent to which Individual Bonus Criteria
have been met, identify any unplanned achievements or adverse events that have
occurred and approve an overall percentage of weighted goals achieved with
respect to the individual component of the Plan.

 

The
Company generally must achieve at least 75% of the Company’s weighted corporate
objectives (the “Bonus Trigger”) for the relevant
Performance Period in order for any bonus award payouts to occur; provided, however, that the Compensation Committee, in its
discretion, may determine to grant an award under the Plan even though certain
corporate objectives or Individual Bonus Criteria are not met.  The Compensation Committee and the Board
shall have the authority, in their discretion, to determine whether the Bonus
Trigger has been achieved for a particular Performance Period.

 

Awards
under the Plan are subject to applicable withholdings.  Participants who have elected to participate
in the Company’s 401(k) Plan will have the applicable funds withheld from
their bonus payment.

 

3

 

PAYMENT OF AWARDS

 

Payment of an award under the Plan to a Participant shall be made as
soon as practicable after determination of the amount of the award, and will
generally occur within 75 days after the end of the calendar year during which
the applicable Performance Period ends and, except as otherwise required by law
or this Plan, will be paid during the calendar year immediately following the
end of the Performance Period.

 

OTHER PROVISIONS

 

The
Company reserves the right to interpret, modify, suspend or terminate this Plan
at any time.

 

No
Participant will have the right to alienate, assign, encumber, hypothecate or
pledge his or her interest in any award under the Plan, voluntarily or
involuntarily, and any attempt to so dispose of any such interest will be void.

 

Participants
who engage in an activity that violates applicable local, state or federal
laws, or who violate Company policies, may be subject to having their awards
reduced or eliminated in the sole discretion of the Compensation Committee,
except in the case of the Chief Executive Officer where the Board shall make
the final determination after considering the Compensation Committee’s
recommendation.

 

Neither
this Plan nor any action taken hereunder shall be construed as giving any
employee or Participant the right to be retained in the employ of the
Company.  Employees of the Company are
employed “at will” unless they have an agreement signed by the Chief Executive
Officer or a member of the Board providing for other than at-will employment.

 

The
Company shall not be required to fund or otherwise segregate any cash or any
other assets which may at any time be paid to Participants under the Plan.  The Plan shall constitute an “unfunded” plan
of the Company.

 

In
the event of any conflict between a Participant’s employment agreement with the
Company and this Plan, the terms of the Participant’s employment agreement will
control.

 

The
provisions contained in this Plan set forth the entire understanding of the
Company with respect to the Plan and supercede any and all prior communications
between the Company and any employee with respect to the Plan.  This Plan supersedes and replaces the Company’s
previous Annual Incentive Plan.

 

CODE SECTION 409A COMPLIANCE

 

Payments
to Participants pursuant to this Plan are not intended to constitute deferrals
of compensation within the meaning of Section 409A of the Code.  Further, although payments hereunder are not
intended to constitute “separation pay” within the meaning of the Treasury
Regulations under Section 409A of the Code, in the event that the Company
determines that a payment to a Participant hereunder (or a payment based upon
the provisions of this Plan) does constitute “separation pay” within the
meaning of such Treasury Regulations, (i) such payment shall be subject to
the applicable provisions of any employment or separation agreement (if any) 

 

4

 

between
such Participant and the Company dealing with the timing and characterization
of such Participant’s separation pay for purposes of Section 409A of the
Code; and (ii) if such Participant is not subject to an employment or
separation agreement containing provisions dealing with the timing and
characterization of such Participant’s separation pay for purposes of Section 409A
of the Code, then to the extent any such payment (A) is required to be
paid during the period from the date of termination of Participant’s employment
through March 15 of the calendar year following such termination, such
payment is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of
the Treasury Regulations and thus payable pursuant to the “short-term deferral”
rule set forth in Section 1.409A-1(b)(4) of the Treasury
Regulations; (B) is payable following said March 15, such payment is
intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of
the Treasury Regulations made upon an involuntary separation from service and
payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury
Regulations, to the maximum extent permitted by said provision, and (C) is
in excess of the amounts specified in clauses (A) and (B) of this
paragraph, such payment shall (unless otherwise exempt under Treasury
Regulations) be considered a separate payment subject to the distribution
requirements of Section 409A(a)(2)(A) of the Internal Revenue Code of
1986, as amended (the “Code”),
including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of
the Code that payments be delayed until 6 months after such Participant’s
separation from service if such Participant is a “specified employee” within
the meaning of the aforesaid section of the Code at the time of such separation
from service.  In the event that a
6-month delay of such payment is required pursuant to the preceding sentence
(as determined by the Company), on the first regularly scheduled pay date
following the conclusion of the delay period the Participant shall receive such
payment (subject to applicable tax withholdings and deductions).

 

5

 

ATTACHMENT
I

CALCULATION
WORKSHEET

 

EXAMPLE
1:

 

A
Senior Director, assuming: (i) 50% Corporate + 50% Individual weighting; (ii) $160,000
base salary; (iii) a target bonus award set at 25% of base salary
($40,000) at the beginning of the Performance Period; (iv) a 75% corporate
threshold for any bonus payout; and (v) an individual achievement score of
110% (exceeded goals).

 

A
bonus award under the Plan will be based partially on corporate performance
against goals and a Participant’s individual performance against goals.  Each of these measures will account for 50%
of the total bonus goal, and will be measured over the same period.  The achievement of corporate goals also
determines the payout for individual goals, and thus, the corporate weighted
score must be at least 75% for any bonuses to be paid.

 

Example of Corporate Goals, Weighting and Calculation of Corporate
Score (as % achievement):

 

	
  Goal

  	
   

  	
  Corporate

  Bonus Criteria

  	
   

  	
  Weighting

  	
   

  	
  Score

  	
   

  	
  Total

  	
   

  
	
  1

  	
   

  	
  Goal 1

  	
   

  	
  30%

  	
   

  	
  100

  	
   

  	
  30%

  	
   

  
	
  2

  	
   

  	
  Goal 2

  	
   

  	
  25%

  	
   

  	
  80

  	
   

  	
  20%

  	
   

  
	
  3

  	
   

  	
  Goal 3

  	
   

  	
  20%

  	
   

  	
  95

  	
   

  	
  19%

  	
   

  
	
  4

  	
   

  	
  Goal 4

  	
   

  	
  10%

  	
   

  	
  120

  	
   

  	
  12%

  	
   

  
	
  5

  	
   

  	
  Goal 5

  	
   

  	
  5%

  	
   

  	
  75

  	
   

  	
  3.75%

  	
   

  
	
  6

  	
   

  	
  Goal 6

  	
   

  	
  5%

  	
   

  	
  100

  	
   

  	
  5%

  	
   

  
	
  7

  	
   

  	
  Goal 7

  	
   

  	
  5%

  	
   

  	
  115

  	
   

  	
  5.75%

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
  95.5%

  	
   

  

 

Corporate
Total = 95.5% (so it clears the 75% threshold to trigger bonus payouts)

 

Example of Calculation of Bonus Payouts:

 

	
   

  	
   

  	
  Base Salary

  	
   

  	
  Target %

  	
   

  	
  Weighting

  	
   

  	
  Score

  	
   

  	
  Bonus Amount

  	
   

  
	
  Corporate

  	
   

  	
  $

  	
  160,000

  	
   

  	
  25%

  	
   

  	
  50%

  	
   

  	
  95.5%

  	
   

  	
  $

  	
  19,100

  	
   

  
	
  Individual

  	
   

  	
  $

  	
  160,000

  	
   

  	
  25%

  	
   

  	
  50%

  	
   

  	
  110%

  	
   

  	
  $

  	
  22,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100%

  	
   

  	
   

  	
   

  	
  $

  	
  41,100

  	
   

  

 

160,000
x .25 x .5 x .955 = $19,100.00

160,000
x .25 x .5 x 1.10 = $22,000.00

 

6

 

EXAMPLE 2:

 

Vice
President, assuming: (i) 60% Corporate + 40% Individual weighting; (ii) $260,000
base salary; (iii) a target bonus award set at 25% of base salary
($65,000) at the beginning of the Performance Period; (iv) a 75% corporate
threshold for any bonus payout; and (v) multiple corporate and individual
achievement scenarios.

 

A.            If Corporate Perf =
100% and Individual Perf = 100%:

 

	
  Annual
  Target Incentive Opportunity:

  	
   

  	
  $260,000
  x 25% = $65,000

  
	
   

  	
   

  	
   

  
	
  Corporate
  Weighting

  	
   

  	
  60%

  
	
  Annual
  Tgt Based on 100% Corp Perf

  	
   

  	
  $65,000
  x 60% x 100% = $39,000

  
	
   

  	
   

  	
   

  
	
  Individual
  Weighting

  	
   

  	
  40%

  
	
  Annual
  Tgt Based on 100% Ind Perf

  	
   

  	
  $65,000
  x 40% x 100% = $26,000

  
	
   

  	
   

  	
   

  
	
  Total
  Bonus Award = $39,000 + $26,000 = $65,000

  	
   

  	
   

  

 

B.            If Corporate Perf =
95% and Individual Perf = 110% (exceeds):

 

	
  Annual
  Target Incentive:

  	
   

  	
  $260,000
  x 25% = $65,000

  
	
   

  	
   

  	
   

  
	
  Corporate
  Weighting

  	
   

  	
  60%

  
	
  Annual
  Tgt Based on 95% Corp Perf

  	
   

  	
  $65,000
  x 60% x 95% = $37,500

  
	
   

  	
   

  	
   

  
	
  Individual
  Weighting

  	
   

  	
  40%

  
	
  Annual
  Tgt Based on 110% Ind Perf

  	
   

  	
  $65,000
  x 40% x 110% = $28,600

  
	
   

  	
   

  	
   

  
	
  Total
  Bonus Award = $37,500 + $28,600 = $66,100

  	
   

  	
   

  

 

C.            If Corporate Perf
=110% (exceeds) and Individual Perf = 90%:

 

	
  Annual
  Target Incentive:

  	
   

  	
  $260,000
  x 25% = $65,000

  
	
   

  	
   

  	
   

  
	
  Corporate
  Weighting

  	
   

  	
  60%

  
	
  Annual
  Tgt Based on 110% Corp Perf

  	
   

  	
  $65,000
  x 60% x 110% = $42,900

  
	
   

  	
   

  	
   

  
	
  Individual
  Weighting

  	
   

  	
  40%

  
	
  Annual
  Tgt Based on 90% Ind Perf

  	
   

  	
  $65,000
  x 40% x 90% = $23,400

  
	
   

  	
   

  	
   

  
	
  Total
  Bonus Award = $42,900 + $23,400 = $66,300

  	
   

  	
   

  

 

7

 

D.                                    If Corporate Perf = 60% and
Individual Perf = 110% (exceeds): Corporate threshold cancels out all payouts

 

	
  Annual
  Target Incentive:

  	
   

  	
  $260,000
  x 25% = $65,000

  
	
   

  	
   

  	
   

  
	
  Corporate
  Weighted Score 60% is < 75% threshold

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total
  Bonus Award = $0

  	
   

  	
   

  

 

8EXHIBIT 10.1

 

INTERNET
BRANDS, INC.

 

 ROBERT BRISCO SEVERANCE PAYMENT AGREEMENT

 

This
Agreement is entered into by and among Internet Brands, Inc. (the “Company”)
and Robert Brisco (the “Employee”) on the 4th day of November, 2008.

 

WHEREAS,
the Employee is a senior executive of the Company in the capacity of Chief
Executive Officer;

 

WHEREAS,
this Agreement replaces the Robert Brisco Employment Agreement entered into by
and among the Company and Employee on the 8th day of November, 1999
and as previously amended on November 12, 1999, July 1, 2000, January 30,
2002 and July 11, 2007;

 

WHEREAS,
the Company desires to recognize Employee’s continued contribution to the
growth and stability of the Company and provide an additional incentive for
Employee to remain at the Company;

 

NOW
THEREFORE in consideration of the covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the parties agree as follows:

 

1.     Severance.   
Employee shall be entitled to the following severance benefits described
in this Section 1:

 

(a)    Upon Involuntary Termination Without Cause
or a Voluntary Resignation Within 60 Days of a Constructive Termination (Except
During the 6 Month Period Preceding or the 12 Month Period Following a Change
of Control).  In the event that Employee’s employment is
terminated by the Company for reasons other than “Cause” (as defined in Section 2)
or by Employee within 60 days following the occurrence of a “Constructive
Termination” (as defined in Section 2) (except during the 6 month period
preceding or the 12 month period following a “Change of Control,” as such term
is defined in Section 2), then Employee shall be entitled to receive (i) a
lump sum payment on the termination date, or as soon as practicable thereafter
(but in no event later than 60 days thereafter), equal to 9 times Employee’s
monthly Base Salary in effect immediately preceding the termination date plus 9/12 times Employee’s maximum annual
stated cash bonus target (“Annual Bonus Target”) for the year of termination
and (ii) 9 Months’ COBRA Benefits. 
Employee will become entitled to additional payments and benefits under Section 1(c) below
if a Change of Control occurs within 6 months following the date of termination
of employment.

 

(b)    Other Termination (Except During the 6 Month
Period Preceding or the 12 Month 

 

1

 

Period Following a Change of Control).    If,
during the term of this Agreement (except during the 6 month period preceding
and the 12 month period following a Change of Control, which is covered in
Sections 1(c) and (d) hereof), Employee’s employment is terminated by
the Company for Cause, or by Employee for any reason, including death or
disability, other than within 60 days following a Constructive Termination,
then Employee shall not be entitled to receive severance or other benefits
pursuant to Section 1(a).

 

(c)    Within the 6 Month Period Preceding or the
12 MonthPeriod Following a Change of Control, Upon Involuntary Termination
Without Cause or a Voluntary Resignation Within 60 days of a Constructive
Termination.     In the event that Employee’s employment is
terminated by the Company for reasons other than Cause or by Employee within 60
days following the occurrence of a “Constructive Termination” during the period
commencing 6 months before a Change of Control and ending 12 months after the
Change of Control, then Employee shall be entitled to receive the payments and
benefits described in Section 1(a), as well as (i) a lump sum payment
on the later of the date of such Change of Control or the termination date, or
as soon as practicable thereafter (but in no event later than 60 days
thereafter), equal to 9 times Employee’s monthly Base Salary in effect
immediately preceding the termination date plus
9/12 times Employee’s Annual Bonus Target for the year of
termination, and (ii) continuation of the 9 Months’ COBRA Benefits
provided in Section 1(a) for an additional 9 months. On the
occurrence of a Change of Control (i) each of Employee’s equity grants
that are not otherwise fully vested shall automatically vest on a daily prorata
basis over the period starting from the most recent vesting date of each such
grant prior to the Change of Control through immediately prior to the closing
date of the Change of Control; (ii) the remaining unvested  portion of each of Employee’s equity grants
shall automatically vest 50% immediately prior to the closing date of the
Change of Control. Immediately prior to the closing of the Change of Control
transaction, the Company or the successor entity will reserve amounts
sufficient to pay Employee for the remaining 50% of unvested equity grants (in
cash and/or publicly traded stock of the successor entity on the same terms as
provided to Company stockholders on the closing date). Such remaining 50% shall
continue to vest under the terms of such equity grant agreements through the
earlier of  the first anniversary of the
closing date of the Change of Control transaction or a termination of Employee
under this subsection (c), upon which date all remaining unvested equity grants
shall automatically vest and Employee shall be paid all amounts reserved for
such purpose to Employee.

 

(d)    Other Termination During the 6 Month Period
Preceding or the 12 Month Period Following a Change of Control.    If,
during the 6 month period preceding or the 12 month period following a Change
of Control, Employee’s employment is terminated by the Company for Cause, or by
Employee for any reason, other than within 60 days following a Constructive
Termination, or by virtue of Employee’s death or disability, then Employee
shall not be entitled to receive severance or other benefits pursuant to Section 1(c).  However, Employee shall be entitled to vesting
of all equity related to a Change of Control as described in Section 1(c).

 

(e)    No Mitigation.   
Employee shall not be required to mitigate the value of any severance
payments or benefits contemplated by Section 1 of this Agreement, nor
shall any such payments or benefits be reduced by any earnings or benefits that
the Employee may receive from any other source.

 

2

 

2.    Definitions.

 

(a)    Base Salary.    “Base
Salary” shall mean Employee’s annual Company salary at the rate in effect
immediately preceding Employee’s date of termination with the Company.

 

(b)    Cause.    “Cause”
shall mean (i) Employee’s commission of an act of fraud or embezzlement
upon the Company; (ii) Employee’s being convicted of or pleading guilty or nolo contendere  to a felony involving fraud, dishonesty or
moral turpitude, (iii) Employee’s willful and continued failure to perform
substantially Employee’s material duties with the Company (other than failure
resulting from incapacity due to physical or mental illness) which is not
remedied in a reasonable period of time after written demand for substantial
performance is delivered to Employee by the Board of Directors which
specifically identifies the manner in which the Board of Directors believes
Employee has not substantially performed his duties; provided, however, that
with respect to clause (iii), such failure shall not constitute Cause if it is
cured by Employee within thirty (30) days following delivery to Employee of a
written explanation specifying the basis for the Company’s beliefs with respect
to such clause.

 

(c)    Change of Control.    “Change
of Control” shall mean:

 

(i) the
consummation of a merger or consolidation of the Company with any other
corporation, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) at least fifty percent (50%) of
the total voting power represented by the voting securities of the Company or
such surviving entity outstanding immediately after such merger or
consolidation;

 

(ii) the
consummation of the sale or disposition by the Company of all or substantially
all the Company’s assets,

 

(d)    Constructive Termination.    “Constructive
Termination” shall mean (i) the assignment to Employee of duties not
commensurate with his status as Chief Executive Officer, or any material
reduction of the Employee’s duties, authority, responsibilities or title,
relative to the Employee’s duties, authority, responsibilities or title as in
effect immediately prior to such reduction, except if agreed to in writing by
the Employee; provided, however, that a reduction in duties, title, authority
or responsibilities solely by virtue of the consummation of a “Change of
Control,” shall not by itself constitute a Constructive Termination (for
example, if the Company becomes a division of the acquiring company in a Change
of Control and Employee remains Chief Executive Officer of the division of and
is not made Chief Executive Officer of the Acquirer and does not sit on the
board of directors of the Acquirer shall not by itself constitute a “Constructive
Termination” unless, notwithstanding the title of divisional Chief Executive
Officer, there is a material reduction of Employee’s duties, authority or
responsibilities with respect to the division relative to Employees duties,
authority and responsibilities as in effect prior to such reduction), (ii) any
material breach by the Company of the terms of this Agreement, (iii) any
reduction in Employee’s compensation, including, without limitation, a
reduction in 

 

3

 

Base
Salary or a reduction in the Annual Bonus Target, or (iv) the relocation
of the Employee to a facility or a location more than fifty (50) miles from the
Employee’s then present location, without the Employee’s written consent;
provided, however, that such actions shall not constitute Constructive
Termination unless the Company fails to cure such condition within thirty (30)
days following delivery to the Company of a written explanation specifying the
basis for the Employee’s beliefs with respect to such Constructive Termination
events, which written explanation must be provided by the Employee within
thirty (30) days of the initial existence of the condition.

 

3.    Arbitration.    

 

(a)   Employee agrees that any
dispute or controversy arising out of, relating to, or in connection with this
Agreement, or the interpretation, validity, construction, performance, breach,
or termination thereof, shall be settled by expedited, binding arbitration to
be held in Los Angeles, California in accordance with the National Rules for
the Resolution of Employment Disputes then in effect of the American
Arbitration Association (the “Rules”). The arbitrator may grant injunctions or
other relief in such dispute or controversy. The decision of the arbitrator
shall be final, conclusive and binding on the parties to the arbitration.
Judgment may be entered on the arbitrator’s decision in any court having
jurisdiction. The Company agrees to advance Employee all costs, including
attorney’s fees, relating to such arbitration. Employee agrees to reimburse the
Company for such costs in the event the arbitrator determines that the Company
has not breached this Agreement in such a manner as to give rise to financial
damages to the Employee in an amount greater than $5,000.

 

(b)   The arbitrator(s) shall
apply California law to the merits of any dispute or claim, without reference
to rules of conflicts of law. The arbitration proceedings shall be
governed by federal arbitration law and by the Rules, without reference to
state arbitration law. The Employee hereby consents to the personal
jurisdiction of the state and federal courts located in California for any
action or proceeding arising from or relating to this Agreement or relating to
any arbitration in which the parties are participants.

 

(c)   EMPLOYEE HAS READ AND
UNDERSTANDS THIS SECTION, WHICH DISCUSSES ARBITRATION. EMPLOYEE UNDERSTANDS
THAT BY SIGNING THIS AGREEMENT, EMPLOYEE AGREES TO SUBMIT ANY CLAIMS ARISING
OUT OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION,
VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH OR TERMINATION THEREOF TO BINDING
ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE’S
RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO
ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED
TO, DISCRIMINATION CLAIMS.

 

4.    Right to Advice of Counsel.   
Employee acknowledges that he has had the right to consult with counsel
and is fully aware of his rights and obligations under this Agreement.

 

4

 

5.    Successors.

 

(a)    Company’s Successors.  Any
successor to the Company (whether direct or indirect and whether by purchase,
lease, merger, consolidation, liquidation or otherwise) to all or substantially
all of the Company’s business and/or assets shall assume the obligations under
this Agreement and agree expressly to perform the obligations under this
Agreement in the same manner and to the same extent as the Company would be
required to perform such obligations in the absence of a succession. For all
purposes under this Agreement, the term “Company,” as applicable, shall include
any successor to the Company’s business and/or assets which executes and
delivers the assumption agreement described in this subsection (a) or
which becomes bound by the terms of this Agreement by operation of law.

 

(b)    Employee’s Successors.  
Without the written consent of the Company, Employee shall not assign or
transfer this Agreement or any right or obligation under this Agreement to any
other person or entity. Notwithstanding the foregoing, the terms of this
Agreement and all rights of Employee hereunder shall inure to the benefit of,
and be enforceable by, Employee’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.

 

6.    Notice Clause.    All
notices, requests, demands and other communications called for hereunder shall
be in writing and shall be deemed given if (i) delivered personally or by
facsimile, (ii) one (1) day after being sent by Federal Express or a
similar commercial overnight service, or (iii) three (3) days after
being mailed by registered or certified mail, return receipt requested, prepaid
and addressed to the parties or their successors in interest.

 

7.    Governing Law.   
This Agreement shall be governed by and construed in accordance with the
internal substantive laws, but not the choice of law rules, of the state of
California.

 

8.    Severability.    The
invalidity or unenforceability of any provision of this Agreement, or any terms
hereof, shall not affect the validity or enforceability of any other provision
or term of this Agreement.

 

9.    Taxes.    All
payments made pursuant to this Agreement shall be subject to withholding of
applicable income and employment taxes.

 

10.     Golden Parachute Tax.     In
the event that the severance and other benefits provided for in this Agreement
or otherwise payable to Employee constitute “parachute payments” within the
meaning of Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”) and will be subject to the excise tax imposed by Section 4999
of the Code, then Employee shall receive (i) a payment from the Company
sufficient to pay such excise tax, and (ii) an additional payment from the
Company sufficient to pay the income, employment, excise and any other taxes
arising from the payments made by the Company pursuant to the immediately
preceding clause, so that Employee shall be fully reimbursed for any such
excise tax and any taxes associated with the payments to reimburse Employee for
such excise tax. Unless the Company and Employee otherwise agree in writing,
the determination of Employee’s excise tax liability and the amount required to
be paid under this Section shall be made in writing by a nationally
recognized accounting firm satisfactory to both parties (the “Accountants”). In
the event that the 

 

5

 

excise
tax incurred by Employee is determined by the Internal Revenue Service to be
greater or lesser than the amount so determined by the Accountants, the Company
and Employee agree to promptly make payment to the other party of an amount
such that the net economic effect to Employee under this Section, on an
after-tax basis, is the same as if the Code Section 4999 excise tax did
not apply to Employee. For purposes of making the calculations required by this
Section, the Accountants may make reasonable assumptions and approximations
concerning applicable taxes and may rely on interpretations of the Code for
which there is a “substantial authority” tax reporting position. The Company
and Employee shall furnish to the Accountants such information and documents as
the Accountants may reasonably request in order to make a determination under
this Section. The Company shall bear all costs the Accountants may reasonably
incur in connection with any calculations contemplated by this Section 
Any payment pursuant to this Section 10 shall be made no later than the
end of the calendar year following the calendar year in which Employee remits
the taxes to which such payment relates.

 

11.     Section 409A.

 

(a)    General.   
This Agreement shall be interpreted, construed and administered in a
manner that satisfies the requirements of Section 409A of the Code and the
Department of Treasury Regulations and other guidance promulgated thereunder (“Section 409A”).

 

(b)    Six-Month Delay for Specified Employees.   
Each of the payments under this Agreement shall be considered a separate
payment for purposes of Section 409A. 
Notwithstanding any provision to the contrary in this Agreement, if (a) Employee
is a “specified employee” within the meaning of Section 409A for the
period in which any payment or benefits under this Agreement would otherwise
commence and (b) such payment or benefit under this Agreement would
otherwise subject Employee to any tax, interest or penalty imposed under Section 409A
if the payment or benefit were to commence within six months of a termination
of Employee’s employment with the Company, then all such payments or benefits
that would otherwise be paid during the first six months after Employee’s
separation from service within the meaning of Section 409A shall be
accumulated and shall be paid (together with, in the case of any cash payment,
interest credited at the Applicable Federal Rate in effect as of the date of
Employee’s separation from service) on the earlier of (1) the first day
which is at least six (6) months after Employee’s separation from service
within the meaning of Section 409A or (2) the date of Employee’s
death.

 

(c)    No Obligation to Indemnify.   
Nothing in this Agreement shall create any obligation on the part of the
Company to indemnify, reimburse, or otherwise compensate Employee for any
taxes, interest, penalties, costs, losses, damages, or expenses arising out of
any violation of Section 409A or any corresponding provision of state,
local, or foreign law.

 

6

 

IN
WITNESS WHEREOF, each of the parties has executed this Agreement, in the case
of the Company by its duly authorized officers, as of the day and year first
above written.

 

	
   

  	
  INTERNET BRANDS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Howard E. Morgan

  
	
   

  	
   

  	
  Howard
  E. Morgan

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman
  of the Board

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Robert N. Brisco

  
	
   

  	
  Robert
  N. Brisco

  

 

7

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