Document:

exv10w2

Exhibit 10.2

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the “Agreement”) dated as of February 23, 2009 (the “Date of this
Agreement”), is made by and between Local.com Corporation, a Delaware corporation (the “Employer”
or “Company”), and Brenda Agius (the “Executive”).

     WHEREAS, the Employer wishes to employ the Executive on the terms set forth below.

     WHEREAS, Executive wishes to accept such employment.

     Accordingly, the parties hereto agree as follows:

1. Term.

     The Employer hereby employs the Executive, and the Executive hereby accepts such employment,
for an initial term commencing as of the Date of this Agreement and ending on the first anniversary
of such date, unless sooner terminated in accordance with the provisions of Section 4 or Section 5;
with such employment to continue thereafter for successive one-year periods in accordance with the
terms of this Agreement beginning on each anniversary of the Date of this Agreement (subject to
termination as aforesaid) unless either party notifies the other party in writing not less than
thirty (30) days before expiration of the initial term and each annual renewal thereof (the period
during which the Executive is employed hereunder being hereinafter referred to as the “Term”) of an
intent not to renew this Agreement.

2. Duties.

     During the Term, the Executive shall be employed by the Employer as its Chief Financial
Officer, and as such, the Executive shall faithfully perform for the Employer the duties and have
the powers customary for such position, including general financial oversight of the Employer’s
operations and preservation of the Employer’s assets. During the Term, the Executive shall be
required to report to the Chief Executive Officer of the Employer (the “CEO”). The Executive shall
devote substantially all of her business time and effort to the performance of her duties
hereunder, and shall work primarily at the Employer’s main business offices. Executive shall not
be prohibited from engaging in such personal, charitable, or other nonemployment activities as do
not interfere with full time employment hereunder and which do not violate the other provisions of
this Agreement.

3. Compensation.

     3.1 Salary. In consideration of the services to be rendered under this Agreement, the
Employer shall pay the Executive during the Term a salary at the rate of Two Hundred Sixty Thousand
Dollars ($260,000) per annum (the “Annual Salary”), in accordance with the customary payroll
practices of the Employer applicable to senior executives, provided the payments are no less
frequent than monthly (or, if there is no such policy, payments shall be semi-monthly). The Annual
Salary shall be annually reviewed by the Employer for possible increases. The Annual Salary shall
be subject to possible further increase from time to time at the discretion of the CEO, the Board
of Directors of the Employee (“Board”), or a committee of

 

 

the Board designated for such purpose. Any increased Annual Salary shall thereupon be the
“Annual Salary” for the purposes hereof. The Executive’s Annual Salary shall not be decreased
without her prior written consent at any time during the Term.

     3.2 Incentive Compensation. During the Term, the Executive shall be eligible to
receive, in addition to her Annual Salary, an annual bonus (the “Bonus”) of up to forty percent
(40%) of the Annual Salary. Any increase in the bonus target shall thereupon be the “Bonus” for
the purposes hereof. The amount of such Bonus and any performance standards or goals required to be
attained in order to receive such Bonus shall be mutually agreed upon by Executive and the CEO or
such committee of the Board as they shall designate for such purpose from time to time and
memorialized in a writing executed by Executive and Employer, as may be amended from time to time
by the mutual written agreement of Employer and Executive. The Bonus shall be declared and paid
according to the Company’s payroll policies and practices. Any actual Bonus paid shall be
determined by achievement of mutually agreed goals and company performance.

     3.3 Stock Options. The Executive shall be granted options to purchase Two Hundred
Sixty (260,000) shares of the common stock of the Employer pursuant to the Employer’s Equity
Incentive Plans (the “Options”). At the option of the Executive as of the date of grant, the
Options may be intended to qualify as “incentive stock options” within the meaning of Section 422
of the Internal Revenue Code of 1986, as amended. The Options shall be granted on the Executive’s
first day of employment and shall have an exercise price equal to the closing stock price on such
date the Options will be issued as follows:

	 	Grant 1  	 	Options to purchase 130,000 shares of Employer’s common
stock (“Grant 1”).
	 
	 	Grant 2  	 	Options to purchase 43,333 shares of Employer’s common stock
(“Grant 2”).
	 
	 	Grant 3  	 	Options to purchase 43,333 shares of Employer’s common stock
(“Grant 3”).
	 
	 	Grant 4  	 	Options to purchase 43,334 shares of Employer’s common stock
(“Grant 4”).

Grant 1 will vest over a period of 3 years, with one-third (1/3) vesting after twelve months of
employment and the remainder on a quarterly basis thereafter, provided that the Executive is
employed by the Employer as of each such Option vesting date. Grant 2 will vest over a period of 3
years, with one-third (1/3) vesting after twenty-four months of employment and the remainder on a
quarterly basis thereafter, provided that the Executive is employed by the Employer as of each such
Option vesting date. Options in Grant 3 will vest over a period of 3 years, with one-third (1/3)
vesting after thirty-six months of employment and the remainder on a quarterly basis thereafter,
provided that the Executive is employed by the Employer as of each such Option vesting date.
Options in Grant 4 will vest over a period of 3 years, with one-third
(1/3) vesting after forty-eight months of employment and the remainder on a quarterly basis

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thereafter, provided that the Executive is employed by the Employer as of each such Option vesting
date. The vesting periods shall be subject to possible acceleration in the discretion of the CEO or
such committee of the Board as they shall designate for such purpose from time to time. The
Options shall become fully vested immediately and shall remain exercisable during the term of each
such option as if the Executive were still employed by Employer upon (i) a Change of Control,
defined below, of the Employer, or (ii) a termination of the executive by Employer without Cause
(defined in Section 5.1(a) below), or a termination by Executive for Good Reason (defined in
Section 5.2(a) below), if such event of termination without cause or for good reason occurs within
120 days prior and/or subsequent to the execution and delivery of an acquisition, merger,
consolidation or other agreement which results in a Change of Control. For purposes of this
Agreement “Change of Control” shall mean the occurrence of any one of the following events:

          (a) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company representing thirty-five percent (35%) or more, excluding in the calculation of
Beneficial Ownership securities acquired directly from the Company, of the combined voting power of
the Company’s then outstanding voting securities;

          (b) any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of
the Company representing over fifty percent (50.00%) or more of the combined voting power of the
Company’s then outstanding voting securities;

          (c) the following individuals cease for any reason to constitute a majority of the number of
directors of the Company then serving: individuals who, as of February 23, 2009, constitute the
Board of Directors of the Company (the “Board”) and any new director (other than a director whose
initial assumption of office is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation, relating to the election of directors of the
Company) whose appointment or election by the Board or nomination for election by the Company’s
stockholders was approved or recommended by a vote of the at least two-thirds (2/3) of the
directors then still in office who either were directors on February 23, 2009 or whose appointment,
election or nomination for election was previously so approved or recommended;

          (d) there is a consummated merger or consolidation of the Company or any direct or indirect
subsidiary of the Company with any other corporation, other than (A) 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 or parent entity) more than fifty percent (50.00%) of the combined
voting power of the voting securities of the Company or such surviving or parent equity outstanding
immediately after such merger or consolidation or (B) a merger or consolidation effected to
implement a recapitalization of the Company (or similar transaction) in which no person, directly
or indirectly, acquired twenty-five percent (25%) or more of the combined voting power of the
Company’s then outstanding securities (not including in the securities beneficially owned by such
person any securities acquired directly from the Company or its Affiliates); or

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          (e) the stock holders of the Company approve a plan of complete liquidation of the Company or
there is consummated an agreement for the sale or disposition by the Company of all or
substantially all of the Company’s assets (or any transaction having a similar effect), other than
a sale or disposition by the Company of all or substantially all of the Company’s assets to an
entity, at least fifty percent (50%) of the combined voting power of the voting securities of which
are owned by stockholders of the Company in substantially the same proportions as their ownership
of the Company immediately prior to such sale.

     The terms of this Section 3.3 shall be included in the applicable stock option agreements
between Employer and Executive relating to the issuance of the Options. For purposes of this
Section 3.3, the following terms used above shall have the following meanings:

     “Affiliate” shall mean an affiliate of the Company, as defined in Rule 12b-2
promulgated under Section 12 of the Securities Exchange Act of 1934, as amended from time to
time (the “Exchange Act”);

     “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange
Act; and

     “Person” shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not
include (1) the Company, (2) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company, (3) an underwriter temporarily holding securities
pursuant to an offering of such securities or (4) a corporation owned, directly or
indirectly, by the stockholders of the Company in substantially the same proportions as
their ownership of shares of Common Stock of the Company.

     3.4 Benefits. Except as otherwise provided herein, the Executive shall be entitled to
participate in any group life, medical or disability insurance plans, health programs, retirement
plans, fringe benefit programs and similar benefits that may be available to other senior
executives of the Employer generally, on the same terms as such other executives, to the extent
that the Executive is eligible under the terms of such plans or programs as they may be in effect
from time to time. Employer will provide coverage for the Executive under the Employer’s health
benefits plan and will pay 100% of the cost of spouse or dependent coverage up to a total of $1,500
per month. Coverage under the health benefits plan will be in effect commencing with the first
month following thirty (30) days of Executive’s employment.

     3.5 Expenses. The Employer shall pay or reimburse the Executive for all ordinary and
reasonable out-of-pocket expenses actually incurred (and, in the case of reimbursement, paid) by
the Executive during the Term in the performance of the Executive’s services under this Agreement,
provided that (i) such expenditure is of a nature qualifying it as a proper business expense
deduction on the Employer’s federal and state income tax returns and (ii) the Executive submits
proof of such expenses, with the properly completed forms as prescribed from time to time by the
Employer, no later than 30 days after the end of the monthly period in which such
expenses have been so incurred. In addition, the Employer will pay the Executive a
non-

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accountable relocation expense of $75,000, 1/2 which is payable on February 23, 2009 and the
remaining 1/2 payable on April 1, 2009. Should Executive’s employment terminate pursuant to Section
5.1 within one year of payment of relocation expense, then Executive will, within 180 days after
said Termination, reimburse Employer for 100% of the relocation expense already received from the
Employer, less any applicable taxes already paid or due.

     3.6 Compliance with Section 409A of the Internal Revenue Code; Short-Term Deferral
Exemption. This Agreement is not intended to provide for any deferral of compensation subject
to Section 409A of the Internal Revenue Code (the “Code”) and, accordingly, any compensation
provided pursuant to this Agreement is intended to be paid not later than the later of: (i) the
fifteenth day of the third month following Executive’s first taxable year in which such benefit is
no longer subject to a substantial risk of forfeiture, and (ii) the fifteenth day of the third
month following the first taxable year of the Employer in which such benefit is no longer subject
to a substantial risk of forfeiture, as determined in accordance with Section 409A of the Code and
any Treasury Regulations and other guidance issued thereunder. The date determined under this
subsection is referred to as the “Short-Term Deferral Date.” Notwithstanding anything to the
contrary herein, in the event that any benefits provided pursuant to this Agreement are not
actually or constructively received by the Executive on or before the Short-Term Deferral Date, to
the extent such benefit constitutes a deferral of compensation subject to Code Section 409A, then
such benefit shall be paid upon the Executive’s separation from service, with respect to the
Employer and its affiliates within the meaning of Section 409A of the Code. Notwithstanding any
other provision of this Agreement to the contrary, Executive and the Company shall in good faith
amend this Agreement to the extent necessary to comply with the requirements under Section 409A of
the Code and any regulations or other guidance issued thereunder, in order to ensure that any
amounts paid or payable hereunder are not subject to the additional 20% income tax thereunder while
maintaining to the maximum extent practicable the original intent of this Agreement.

4. Termination upon Death or Disability.

     If the Executive dies during the Term, the Term shall terminate as of the date of death, and
the obligations of the Employer to or with respect to the Executive shall terminate in their
entirety upon such date except as otherwise provided under this Section 4. If the Executive
becomes disabled for purposes of the long-term disability plan of the Employer for which the
Executive is eligible, or, in the event that there is no such plan, if the Executive by virtue of
ill health or other disability is unable to perform substantially and continuously the duties
assigned to her for more than 180 consecutive or non-consecutive days out of any consecutive
12-month period, then the Employer shall have the right, to the extent permitted by law, to
terminate the employment of the Executive upon notice in writing to the Executive. Upon
termination of employment due to death or disability, (i) the Executive (or the Executive’s estate
or beneficiaries in the case of the death of the Executive) shall be entitled to receive any Annual
Salary and other benefits earned and accrued under this Agreement prior to the date of termination
(and reimbursement under this Agreement for expenses incurred prior to the date of termination),
including, but not limited to a pro-rata Bonus for the year of termination (which in no event shall
be less than a similar pro-rata portion of the Executive’s bonus for the preceding
year) to be paid at such time as Bonuses are ordinarily paid; (ii) in the case of termination
due to

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disability, the Executive shall be entitled to receive her Annual Salary for twelve (12)
months following such termination less any amounts for which Executive is eligible to receive from
long term disability insurance benefits under disability coverage furnished by the Employer to the
Executive during such twelve (12) month period; (iii) the Executive (or, in the case of her death,
her spouse and/or dependents) shall continue to receive all applicable benefits elected by
Executive for which she received reimbursement for pursuant to Section 3.4 herein for a period of
twelve (12) months following such termination and Company shall continue to pay for the foregoing
in accordance with Section 3.4 herein as if no such termination had occurred; and (iv) the
Executive (or, in the case of her death, her estate and beneficiaries) shall have no further
rights to any other compensation or benefits hereunder on or after the termination of employment,
or any other rights hereunder, except as otherwise provided in the plans and policies of the
Employer.

5. Certain Terminations of Employment.

     5.1 Termination for Cause; Termination of Employment by the Executive without Good
Reason.

          (a) For purposes of this Agreement, “Cause” shall mean the Executive’s:

               (i) conviction of (or pleading nolo contendere to) a felony involving the crime of theft or a
related or similar act of unlawful taking, or a felony involving the federal or California
securities or pension laws, or any felony, which results in material economic harm to the Employer;

               (ii) engagement in the performance of her duties hereunder or otherwise to the material and
demonstrable detriment of the Employer, in willful misconduct, willful or gross neglect, fraud,
misappropriation or embezzlement;

               (iii) After notice from the Board of Directors, and, if requested by Executive, the
opportunity to be heard by the Board of Directors, the failure to adhere to the lawful and
reasonable directions of the Board that are consistent with the terms of this Agreement (so long as
the directive does not give the Executive Good Reason (as defined below) to terminate her
employment as described in Section 5.2), or the failure to devote substantially all of the business
time and effort to the Employer (except for any activities expressly authorized by the Employer);

               (iv) material breach of any of the provisions of Section 6, other than inadvertent breaches;
or

               (v) breach in any material respect of the terms and provisions of this Agreement and failure
to cure such breach within thirty (30) days following written notice from the Employer specifying
such breach; provided however, if Executive delivers written notice to Employer during the 30 day
cure period requesting to be heard at a meeting of the Board, her
termination under this Section 5.2(a)(v) shall not be effective until such Board meeting at
which Executive had an opportunity to be heard.

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provided that Cause shall not exist except on written notice given to the Executive at any time not
more than 60 days following the later of either the occurrence of any of the events described above
or Employer’s actual knowledge thereof, which events in any case must have occurred after the
effective date of this Agreement.

          (b) The Employer may terminate the Executive’s employment hereunder for Cause, and the
Executive may terminate her employment for any or no reason on at least 30 days’ and not more than
60 days’ written notice given to the Employer. If the Employer terminates the Executive for Cause,
or the Executive terminates her employment and the termination by the Executive is not covered by
Section 4 or 5.2, (i) the Executive shall receive Annual Salary and other benefits earned and
accrued under this Agreement prior to the termination of employment (and reimbursement under this
Agreement for expenses incurred prior to the termination of employment); and (ii) the Executive
shall have no further rights to any other compensation or benefits hereunder on or after the
termination of employment, or any other rights hereunder, except as otherwise provided in the plans
and policies of the Employer.

     5.2 Termination by the Employer without Cause; or by the Executive for Good Reason.

          (a) For purposes of this Agreement, “Good Reason” shall mean, unless otherwise consented to in
writing by the Executive;

               (i) a reduction in Annual Salary or in benefits of the Executive, or the failure of the
Employer timely to make any Annual Salary payment due to the Executive, provided that such deferral
or failure to pay continues unremedied for more than thirty (30) days;

               (ii) any action by the Employer that results in a material diminution in the Executive’s
title(s), status, position, authority, duties or responsibilities;

               (iii) a material breach of any provision of this Agreement by the Employer;

               (iv) a failure of the Employer to have any successor entity specifically assume this
Agreement;

               (v) if there is a Change of Control of the Company and Executive terminates her employment for
any reason or no reason at all during the 120 day period immediately following the Change of
Control;

               (vi) a relocation of the Executive to offices other than those set forth herein, or a
relocation of the offices set forth herein to a location more than 25 miles from its current
location, without Executive’s prior written consent;

               (vii) a change in Executive’s reporting so that she no longer reports directly to the CEO; or

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               (viii) the assignment to Executive of any duties or responsibilities which are inconsistent
with her status, position or responsibilities as set forth in Section 2 hereof.

     Notwithstanding the foregoing, (i) Good Reason shall not be deemed to exist unless notice of
termination on account thereof (specifying a termination date no later than 30 days from the date
of such notice) is given no later than the later of either (1) 60 days after the time at which the
event or condition giving rise to Good Reason first occurs or arises or (2) Executive’s actual
knowledge thereof; and (ii) if there exists (without regard to this clause (ii)) an event or
condition that constitutes Good Reason, the Employer shall have 30 days from the date notice of
such a termination is given to cure such event or condition and, if the Employer does so fully cure
such event or condition, such event or condition shall not constitute Good Reason hereunder, unless
the same or similar events or conditions occur again, in which case no further opportunity to cure
will be afforded Employer and Good Reason will exist as if all applicable notice requirements had
been met in their entirety.

          (b) The Employer may terminate the Executive’s employment at any time for any reason or no
reason and the Executive may terminate the Executive’s employment with the Employer for Good
Reason. A notice of non-renewal, as provided for pursuant to Section 1 above, shall constitute a
termination of employment by the Employer without Cause.

          (c) If the Employer terminates the Executive’s employment and the termination is not covered
by Section 4 or 5.1, or the Executive terminates her employment for Good Reason, the Executive
shall receive:

               (i) Annual Salary and other benefits earned and accrued under this Agreement prior to the
termination of employment (and reimbursement under this Agreement for expenses incurred prior to
the termination of employment);

               (ii) one (1) times the Annual Salary payable in accordance with standard payroll practices of
the Company;

               (iii) an amount equal to all Bonuses earned during the four quarters immediately prior to the
termination date (unless the termination occurs as a result of or in connection with a Change of
Control, in which case the amount will be equal to all Bonuses earned during the four quarters
immediately prior to the Change of Control if so requested by Executive), payable in accordance
with standard bonus payment practices of the Company, or (B) immediately, if and to the extent the
same will be used by Executive to exercise her stock options as provided in clause (v) below;

               (iv) reimbursement for COBRA payments equal to employee’s regular monthly contributions toward
the Executive’s health insurance benefits for the one (1) year period following the termination
date if the Executive elects COBRA benefits, and;

               (v) the right to exercise any or all vested stock options for a period of twelve (12) months
after the effective date of termination of Executive’s employment; provided however, (A) in the
event the termination occurs within 120 days of the execution of a Change of Control agreement as
provided in Section 3.3 above, vesting of all options shall be accelerated as

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provided in Section
3.3 above, and (B) in the event the termination occurs at a time not within such 120 day period,
for purposes of this provision, all unvested options that would have vested had this Agreement
remained in force through the end of the initial Term, shall be fully vested immediately prior to
the termination under this Section 5.2(c); The provisions of this subparagraph (v) shall be
included in any stock option agreement between the Employer and the Executive.

     In order to be eligible to receive the benefits specified under sections 5.2(c)(ii) — (iv),
the Executive must execute a general release of claims in a form acceptable to the Employer, which
shall not apply to the Employer’s obligations described above in this Section 5.2(c).

6. Invention, Non-Disclosure and Non-Competition.

     6.1 Inventions and Patents.

          (a) The Executive will promptly and fully disclose to the Employer any and all inventions,
discoveries, improvements, ideas, developments, designs, products, formulas, software programs,
processes, techniques, technology, know-how, negative know-how, data, research, technical data and
original works of authorship (whether or not patentable or registrable under patent, copyright or
similar statutes and including all rights to obtain, register, perfect and enforce those
proprietary interests) that are related to or useful in the Employer’s present or future business
or result from use of property owned, leased, or contracted for by the Employer and which the
Executive develops, makes, conceives or reduces to practice during the Executive’s employment by
the Employer, either solely or jointly with others (collectively, the “Developments”). All such
Developments shall be the sole property of the Employer, and the Executive hereby assigns to the
Employer, without further compensation, all of the Executive’s right, title and interest in and to
such Developments and any and all related patents, patent applications, copyrights, copyright
applications, trademarks, service marks and trade names in the United States and elsewhere.

          (b) The Executive shall disclose promptly to an officer or to attorneys of the Employer in
writing any inventions, discoveries, improvements, ideas, developments, designs, products,
formulas, software programs, processes, techniques, technology, know-how, negative know-how, data,
research, technical data and original works of authorship, whether or not patentable or registrable
under patent, copyright or similar statutes that are related to or useful in the Employer’s present
or future business, the Executive may conceive, make, develop or work on, in whole or in part,
solely or jointly with others during the Executive’s employment, for the purpose of permitting the
Employer to determine whether they constitute Developments. The Employer shall receive such
disclosures in confidence.

          (c) The Executive will keep and maintain adequate and current written records of all
Developments (in the form of notes, sketches, drawings and as may be specified by the
Employer), which records shall be available to and remain the sole property of the Employer at
all times.

          (d) The Executive will assist the Employer in obtaining and enforcing patent, copyright,
trademark, service marks and other forms of legal protection for the Developments in

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any country.
Upon request, the Executive will sign all applications, assignments, instruments and papers and
perform all acts necessary or desired by the Employer to assign all such Developments fully and
completely to the Employer and to enable the Employer, its successors, assigns and nominees, to
secure and enjoy the full and exclusive benefits and advantages thereof.

          (e) The Executive understands that the Executive’s obligations under this section will
continue after the termination of the Executive’s employment with the Employer and that during the
Executive’s employment the Executive will perform such obligations without further compensation,
except for reimbursement of expenses incurred at the request of the Employer. The Executive
further understands that if the Executive is not employed by the Employer as an employee at the
time the Executive is requested to perform any obligations under this section, the Executive shall
receive for such performance a reasonable per diem fee, as well as reimbursement of any expenses
incurred at the request of the Employer.

          (f) Any provision in this Agreement requiring the Executive to assign the Executive’s rights
in all Developments shall not apply to an invention that qualifies fully under the provisions of
California Labor Code section 2870, the terms of which are set forth below:

               (i) Any provision in an employment agreement which provides that an employee shall
assign, or offer to assign, any of his or her rights in an invention to his or her employer
shall not apply to an invention that the employee developed entirely on his or her own time
without using the employer’s equipment, supplies, facilities, or trade secret information
except for those inventions that either:

                    (1) Relate at the time of conception or reduction to practice of the invention to the
employer’s business, or actual or demonstrably anticipated research or development of the
employer; or

                    (2) Result from any work performed by the employee for the employer.

               (ii) To the extent a provision in an employment agreement purports to require an
employee to assign an invention otherwise excluded from being required to be assigned under
subdivision (i), the provision is against the public policy of this state and is
unenforceable.

     
6.2 Proprietary Information.

          (a) The Executive recognizes that the Executive’s relationship with the Employer is one of
high trust and confidence by reason of the Executive’s access to and contact with the trade secrets
and confidential and proprietary information of the Employer including, without limitation,
information not previously disclosed to the public regarding current and
projected revenues, expenses, costs, profit margins and any other financial and budgeting
information; marketing and distribution plans and practices; business plans, opportunities,
projects and any other business and corporate strategies; product information; names, addresses,
terms of contracts and other arrangements with customers, suppliers, agents and employees of the
Employer; confidential and sensitive information regarding other employees, including

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information
with respect to their job descriptions, performance strengths and weaknesses, and compensation; and
other information not generally known regarding the business, affairs and plans of the Employer
(collectively, the “Proprietary Information”). The Executive acknowledges and agrees that
Proprietary Information is the exclusive property of the Employer and that the Executive shall not
at any time, either during the Executive’s employment with the Employer or thereafter disclose to
others, or directly or indirectly use for the Executive’s own benefit or the benefit of others, any
of the Proprietary Information.

          (b) The Executive acknowledges that the unauthorized use or disclosure of Proprietary
Information would be detrimental to the Employer and would reasonably be anticipated to materially
impair the Employer’s value.

          (c) The Executive’s undertakings and obligations under this Section 6.2 will not apply,
however, to any Proprietary Information which: (a) is or becomes generally known to the public
through no action on the Executive’s part, (b) is generally disclosed to third parties by the
Employer without restriction on such third parties, (c) is approved for release by written
authorization of the Board, (d) is known to the Executive other than as a result of work performed
for the Employer, or (e) is required to be disclosed by law or governmental or court process or
order.

          (d) Upon termination of the Executive’s employment with the Employer or at any other time upon
request, the Executive will promptly deliver to the Employer all notes, memoranda, notebooks,
drawings, records, reports, written computer code, files and other documents (and all copies or
reproductions of such materials) in the Executive’s possession or under the Executive’s control,
whether prepared by the Executive or others, which contain Proprietary Information. The Executive
acknowledges that this material is the sole property of the Employer.

      6.3 Covenant Not to Compete.

          (a) During the time that this Agreement is in effect, the Executive shall not directly or
indirectly:

               (i) own (except for Executive’s ownership in Slingpge, Inc, and Hiremenow.com), engage in,
conduct, manage, operate, participate in, be employed by, be connected in any manner whatsoever
with, or render services or advice to (whether for compensation or without compensation), any other
person or business entity which, in the sole judgment of the Employer, directly or indirectly
competes with the Business of the Employer (as hereinafter defined); or

               (ii) recruit or otherwise solicit or induce any employee of the Employer to terminate his or
her employment with, or otherwise cease his or her relationship with, the Employer in order to join
any person or entity which, in the sole judgment of the Employer, competes with the Business of the
Employer.

          (b) For a period of six months after the expiration or termination of this Agreement, the
Executive shall not directly or indirectly recruit or otherwise solicit or induce

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any employee of
the Employer to terminate his or her employment with, or otherwise cease his or her relationship
with, the Employer in order to join any person or entity which, in the sole judgment of the
Employer, competes with the business of the employer as engaged in at the expiration or termination
of this Agreement.

          (c) The obligations set forth in paragraphs 6.3(a) and (b) above shall not restrict the
Executive’s right to invest in the securities (not to exceed 1% of the outstanding securities of
any class) of any publicly-held corporation in the management of which the Executive does not
participate.

          (d) For purposes of Section 6.3(a), “Business of the Employer” means the business of Employer
as engaged in from time to time during the term of this Agreement, including, but not limited to,
paid search.

          (e) The Executive hereby represents that, except as the Executive has disclosed in writing to
the Employer on Exhibit A attached hereto, the Executive is not bound by the terms of any agreement
with any previous employer or other party to refrain from using or disclosing any trade secret or
confidential or proprietary information in the course of the Executive’s employment with the
Employer or to refrain from competing, directly or indirectly, with the business of such previous
employer or any other party.

          (f) The Executive further represents that the Executive’s performance of all the terms of this
Agreement and as an employee of the Employer does not and will not breach any agreement to keep in
confidence proprietary information, knowledge or data acquired by the Executive in confidence or in
trust prior to her employment with the Employer, and the Executive will not disclose to the
Employer or induce the Employer to use any confidential or proprietary information or material
belonging to any previous employer or others.

     6.4 Other Obligations. The Executive acknowledges that the Employer from time to time
may have agreements with other persons or with the U.S. Government or agencies thereof, which
impose obligations or restrictions on the Employer regarding inventions made during the course of
work under such agreements or regarding the confidential nature of such work. The Executive agrees
to be bound by all such obligations and restrictions which are made known to the Executive and to
take all action necessary to discharge the obligations of the Employer under such agreements.

     6.5 Rights and Remedies upon Breach. The Executive acknowledges and agrees that any
breach by her of any of the provisions of Section 6 (the “Restrictive Covenants”) would result in
irreparable injury and damage for which money damages may not provide an adequate
remedy. Therefore, if the Executive breaches any of the provisions of Section 6, the Employer
shall have the following rights and remedies, each of which rights and remedies shall be
independent of the other and severally enforceable, and all of which rights and remedies shall be
in addition to, and not in lieu of, any other rights and remedies available to the Employer under
law or in equity (including, without limitation, the recovery of damages) the right and remedy to
have the Restrictive Covenants specifically enforced (without posting bond and without the need to
prove damages) by any court having equity jurisdiction, including, without limitation, the right to
an entry against the Executive of restraining orders and injunctions (preliminary,

12

 

mandatory,
temporary and permanent) against violations, threatened or actual, and whether or not then
continuing, of such covenants.

7. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment, award, benefit or distribution (or any acceleration of any payment,
award, benefit or distribution) by the Company (or any of its affiliated entities) or any entity
that effectuates a Change of Control (or any of its affiliated entities) to or for the benefit of
Executive (whether pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 7) (the “Payments”) would be subject
to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), or any interest or penalties are incurred by Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”), then the Company shall pay to Executive an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by Executive of all taxes (including any
income, employment and Excise Tax) imposed upon the Gross-Up Payment, Executive retains an amount
of the Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the Payments and (y)
the product of any deductions disallowed because of the inclusion of the Gross-Up Payment in
Executive’s adjusted gross income and the highest applicable marginal rates of each of federal,
state and local income taxation for the calendar year in which the Gross-Up Payment is to be made.
For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to
(i) pay federal income taxes at the highest marginal rate of federal income taxation for the
calendar year in which the Gross-Up Payment is to be made (ii) pay applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in which the Gross-Up
Payment is to be made, net of the maximum reduction in federal income taxes which could be obtained
from deduction of such state and local taxes, and (iii) pay all federal, state and local
employment-related taxes (including, but not limited to, FICA) at the highest marginal rate of
taxation. Notwithstanding the foregoing provisions of this Section 7(a), if it shall be determined
that Executive is entitled to a Gross-Up Payment, but that the Payments would not be subject to the
Excise Tax if the Payments were reduced by an amount that is less than 5% of the portion of the
Payments that would be treated as “parachute payments” under Section 280G of the Code, then the
amounts payable to Executive under this Agreement shall be reduced (but not below zero) to the
maximum amount that could be paid to Executive without giving rise to the Excise Tax (the “Safe
Harbor Cap”), and no Gross-Up Payment shall be made to Executive. The reduction of the amounts
payable hereunder, if applicable, shall be made by a method determined by Executive in her sole
discretion. If the reduction of the amounts payable hereunder would not result in a reduction
of the Payments to the Safe Harbor Cap, no amounts payable under this Agreement shall be reduced
pursuant to this provision.

     (b) Subject to the provisions of Section 7(a), all determinations required to be made under
this Section 7(b), including whether and when a Gross-Up Payment is required, the amount of such
Gross-Up Payment, the reduction of the Payments to the Safe Harbor Cap and the assumptions to be
utilized in arriving at such determinations, shall be made by the public accounting firm that is
retained by the Company as of the date immediately prior to the Change

13

 

in Control (the “Accounting
Firm”) which shall provide detailed supporting calculations both to the Company and Executive
within fifteen (15) business days of the receipt of notice from the Company or the Executive that
there has been a Payment, or such earlier time as is requested by the Company (collectively, the
“Determination”). In the event that the Accounting Firm is serving as accountant or auditor for the
individual, entity or group effecting the Change in Control, Executive may appoint another
nationally recognized public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses
of the Accounting Firm shall be borne solely by the Company and the Company shall enter into any
agreement requested by the Accounting Firm in connection with the performance of the services
hereunder. The Gross-Up Payment under this Section 7 with respect to any Payments shall be made no
later than thirty (30) days following such Payment. If the Accounting Firm determines that no
Excise Tax is payable by Executive, it shall furnish Executive with a written opinion to such
effect, and to the effect that failure to report the Excise Tax, if any, on Executive’s applicable
federal income tax return will not result in the imposition of a negligence or similar penalty. In
the event the Accounting Firm determines that the Payments shall be reduced to the Safe Harbor Cap,
it shall furnish Executive with a written opinion to such effect. The Determination by the
Accounting Firm shall be binding upon the Company and Executive. As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the Determination, it is possible that
Gross-Up Payments that will not have been made by the Company should have been made
(“Underpayment”) or Gross-Up Payments are made by the Company that should not have been made
(“Overpayment”), consistent with the calculations required to be made hereunder. In the event the
Executive thereafter is required to make payment of any Excise Tax or additional Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has occurred and any such
Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code)
shall be promptly paid by the Company to or for the benefit of Executive. In the event the amount
of the Gross-Up Payment exceeds the amount necessary to reimburse the Executive for Excise Tax, the
Accounting Firm shall determine the amount of the Overpayment that has been made and any such
Overpayment (together with interest at the rate provided in Section 1274(b)(2) of the Code) shall
be promptly paid by Executive (to the extent she has received a refund if the applicable Excise Tax
has been paid to the Internal Revenue Service) to or for the benefit of the Company. Executive
shall cooperate, to the extent Executive’s expenses are reimbursed by the Company, with any
reasonable requests by the Company in connection with any contests or disputes with the Internal
Revenue Service in connection with the Excise Tax.

8. Other Provisions.

     8.1 Severability. The Executive acknowledges and agrees that (i) she has had an
opportunity to seek advice of counsel in connection with this Agreement and (ii) the Restrictive
Covenants are reasonable in geographical and temporal scope and in all other respects. If it is
determined that any of the provisions of this Agreement, including, without limitation, any of the
Restrictive Covenants, or any part thereof, is invalid or unenforceable, the remainder of the
provisions of this Agreement shall not thereby be affected and shall be given full effect, without
regard to the invalid portions.

14

 

     8.2 Duration and Scope of Covenants. If any court or other decision-maker of
competent jurisdiction determines that any of the Executive’s covenants contained in this
Agreement, including, without limitation, any of the Restrictive Covenants, or any part thereof, is
unenforceable because of the duration or geographical scope of such provision, then, after such
determination has become final and unappealable, the duration or scope of such provision, as the
case may be, shall be reduced so that such provision becomes enforceable and, in its reduced form,
such provision shall then be enforceable and shall be enforced.

     8.3 Resolution of Differences Over Breaches of Agreement. The parties shall use good
faith efforts to resolve any controversy or claim arising out of, or relating to this Agreement or
the breach thereof. If, despite their good faith efforts, the parties are unable to resolve such
controversy or claim through the Employer’s internal review procedures, then such controversy or
claim shall be resolved by binding arbitration before a single, mutually acceptable arbitrator
under the rules of the Judicial Arbitration and Mediation Service in Orange County, California and
judgment upon the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction thereof. If any contest or dispute shall arise between the Employer and the Executive
regarding any provision of this Agreement, the prevailing party, as determined by the Arbitrator,
shall be entitled to an award of all legal fees, costs, and expenses reasonably incurred in
connection with such contest or dispute.

     8.4 Notices. All notices or deliveries authorized or required pursuant to this
Agreement shall be deemed to have been given when in writing and when (i) deposited in the U.S.
mail, certified, return receipt requested, postage prepaid, or (ii) otherwise delivered by hand or
by overnight delivery, against written receipt, by a common carrier or commercial courier or
delivery service addressed to the parties at the following addresses or to such other addresses as
either may designate in writing to the other party:

	 	 	 
	To the Employer:

	 	Local.com Corporation

Attn: Bruce Crair, COO

One Technology Drive, Building G

Irvine, CA 92618
	 
	to the Executive:

	 	Brenda Agius

One Technology Drive, Building G

Irvine, CA 92618

     8.5 Entire Agreement. This Agreement, together with the Option Agreement described in
Section 3.3, contains the entire agreement between the parties with respect to the subject matter
hereof and supersedes all prior agreements, written or oral, with respect thereto.

     8.6 Waivers and Amendments. This Agreement may be amended, superseded, canceled,
renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the
parties or, in the case of a waiver, by the party waiving compliance. No delay on the part of any
party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor
shall any waiver on the part of any party of any such right, power or

15

 

privilege nor any single or
partial exercise of any such right, power or privilege, preclude any other or further exercise
thereof or the exercise of any other such right, power or privilege.

     8.7 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF CALIFORNIA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

     8.8 Assignment. This Agreement, and the Executive’s rights and obligations hereunder,
may not be assigned by the Executive; any purported assignment by the Executive in violation hereof
shall be null and void. In the event of any sale, transfer or other disposition of all or
substantially all of the Employer’s assets or business, whether by merger, consolidation or
otherwise, the Employer may assign this Agreement and its rights hereunder, subject at all times to
Executive’s rights with respect to a Change of Control as set forth elsewhere herein; provided that
such assignment shall not limit the Employer’s liability under this Agreement to the Executive.

     8.9 Withholding. The Employer shall be entitled to withhold from any payments or
deemed payments any amount of tax withholding required by law.

     8.10 Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties and their respective successors, permitted assigns, heirs, executors and legal
representatives.

     8.11 Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original but all such
counterparts together shall constitute one and the same instrument. Each counterpart may consist
of two copies hereof each signed by one of the parties hereto.

     8.12 Survival. Anything contained in this Agreement to the contrary notwithstanding,
the provisions of Sections 4 through 9, and the other provisions of this Agreement to the extent
necessary to effectuate the survival of Sections 4 through 9, shall survive termination of this
Agreement and any termination of the Executive’s employment hereunder.

     8.13 Headings. The headings in this Agreement are for reference only and shall not
affect the interpretation of this Agreement.

     8.14 Indemnification; Directors and Officers Insurance. To the fullest extent
permitted by law, the Employer shall indemnify, defend and hold harmless the Executive from and
against
all actual or threatened actions, suits or proceedings, whether civil or criminal,
administrative or investigative, together with all attorneys’ fees and costs, fines, judgments or
settlements imposed upon or incurred by the Executive in connection therewith, that arise from the
Executive’s employment by, or serving as an officer of, the Employer, so long as the Executive
acted or refrained from acting legally and in good faith or reasonably believed that her actions or
refraining from acting were legal and performed or omitted in good faith. Employer currently has
directors and officers liability insurance and will use all reasonable efforts to maintain such
insurance coverage during the term of this Agreement, but if it is unable to do so, it will
immediately notify Executive of this fact. All agreements and obligations of the Company

16

 

contained
herein shall continue during the period Executive is a director, officer, employee or agent of the
Company (or is or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise) and shall
continue thereafter so long as Executive shall be subject to any possible claim or threatened,
pending or completed action, suit or proceeding, whether civil, criminal or investigative, by
reason of the fact that Executive was an officer or director of the Company or serving in any other
capacity referred to herein.

17

 

     IN WITNESS WHEREOF, the parties hereto have signed their names as of the day and year first
above written to this Executive Agreement.

	 	 	 	 	 
	 	EMPLOYER

LOCAL.COM CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Heath Clarke
 	 
	 	 	Heath Clarke 	 
	 	 	Chief Executive Officer 	 
	 
	 	EXECUTIVE

 	 
	 	/s/Brenda Agius
 	 
	 	Brenda Agius 	 
	 	 	 
	 

18

 

 STATEMENT OF ATTORNEYS FOR EXECUTIVE

The undersigned are the attorneys for ___, the Executive herein. We have been consulted in
connection with negotiation, preparation and execution of this Employment Agreement. We have
explained the terms and provisions of the Agreement to our client and have advised her in
connection with his legal rights related to this Agreement.

	 	 	 	 	 
	 	 	 
	Dated:                      	
 	 
	 	 	 
	 
	 	
 	 
	 	Attorney for Executive 	 
	 	 	 
	 

19

 

Invention, Non-Disclosure and Non-Competition Agreement

Exhibit A

     Please list terms of any agreements with any previous employer or other party which restrains
you from using or disclosing any trade secret or confidential or proprietary information acquired
by you in the course of your employment with any previous employer or restrains you from competing
directly or indirectly with the business of such previous employer or any other party.

20exv4w11

Exhibit 4.11

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED
HEREBY, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A
NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF
THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITORY.

CUSIP NO. 775371 AW 7

ROHM AND HAAS COMPANY

 

			
	 	 	 
	No. 001
	 	$250,000,000

     ROHM AND HAAS COMPANY, a corporation duly organized and existing under the laws of Delaware
(herein called the “Company”, which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede & Co. or registered
assigns, the principal sum of TWO HUNDRED FIFTY MILLION Dollars on March 15, 2013 and to pay
interest thereon from September 10, 2007 or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, semi-annually on March 15 and September 15 in each
year, commencing March 15, 2008, at the rate of 5.60% per annum, until the principal hereof is paid
or made available for payment. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the March 1 or September 1 (whether or
not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be
given to Holders of Securities of this series not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in said Indenture. Interest on
this Security will be computed on the basis of a 360-day year consisting of twelve 30 day months.

 

 

     Payment of the principal of (and premium, if any) and interest on this Security will be made
at the office or agency of the Company maintained for that purpose in New York City, in such coin
or currency of the United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person entitled thereto as such address
shall appear in the Security Register.

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under a
facsimile of its corporate seal.

Dated: September 10, 2007

	 	 	 	 	 	 	 
	 

	 	ROHM
	 	AND HAAS COMPANY	 	 
	 
	 	 	 	 	 	 
	[Corporate Seal]

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	Attest:
	 	 	 	 	 	 
	 
	 

	 	 	 	 	 	 

This is one of the Securities of a series designated under the Indenture described herein.

THE BANK OF NEW YORK,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Officer	 	 

 

 

[Reverse of Security]

     This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of
September 10, 2007 (herein called the “Indenture”), between the Company and The Bank of New York,
as Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one of the series
designated on the face hereof.

     The Securities of this series are subject to redemption upon not less than 30 nor more than 60
days’ notice by mail, at any time, as a whole or in part, at the election of the Company, at a
redemption price equal to the greater of:

	 	(i)	 	100% of the principal amount of the Securities to be redeemed; and
	 
	 	(ii)	 	the sum of the present values of the remaining scheduled payments of
principal and interest thereon (not including any portion of such payments of interest
accrued as of the date of redemption), discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the
Treasury Rate (as defined below), plus 20 basis points,

     plus, in each case, accrued and unpaid interest thereon to the date of redemption.
Notwithstanding the foregoing, installments of interest on the Securities that are due and payable
on interest payment dates falling on or prior to a redemption date will be payable on the interest
payment date to the registered holders as of the close of business on the relevant record date for
such interest payment date. “Comparable Treasury Issue” means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the remaining term of the
Securities to be redeemed that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Securities. “Comparable Treasury Price” means, with respect
to any redemption date, (i) the average of four Reference Treasury Dealer Quotations for such
redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations,
(ii) if the Trustee can only obtain less than four such Reference Treasury Dealer Quotations, the
average of all such quotations, or (iii) if the Trustee can only obtain one Reference Treasury
Dealer Quotation, such quotation. “Quotation Agent” means the Reference Treasury Dealer appointed
by us. “Reference Treasury Dealer” means (i) each of Citigroup Global Markets Inc. and J.P. Morgan
Securities Inc. (or their respective affiliates that are Primary Treasury Dealers) and their
respective successors; provided, however, that if any of the foregoing shall cease to be a primary
U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), we will
substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer

 

 

selected by us. “Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third business day preceding such redemption date. “Treasury Rate”
means, with respect to any redemption date, the rate per annum equal to the semi-annual equivalent
yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for such redemption date.

     If less than all of the Securities are to be redeemed, the Securities to be redeemed shall be
selected by lot by The Depository Trust Company. In the event of redemption of this Security in
part only, a new Security or Securities of this series and of like tenor for the unredeemed portion
hereof will be issued in the name of the Holder hereof upon the cancellation hereof.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     If a Change of Control Repurchase Event (as defined below) occurs, unless we have exercised
our right to redeem the Securities as described above, we will make an offer to each holder of
Securities to repurchase all or any part (in integral multiples of $1,000) of that holder’s
Securities at a repurchase price in cash equal to 101% of the aggregate principal amount of
Securities repurchased plus any accrued and unpaid interest on the Securities repurchased to the
date of purchase. Within 30 days following any Change of Control Repurchase Event or, at our
option, prior to any Change of Control (as defined below), but after the public announcement of an
impending Change of Control, we will mail a notice to each holder, with a copy to the Trustee,
describing the transaction or transactions that constitute or may constitute the Change of Control
Repurchase Event and offering to repurchase Securities on the payment date specified in the notice,
which date will be no earlier than 30 days and no later than 60 days from the date such notice is
mailed. The notice shall, if mailed prior to the date of consummation of the Change of Control,
state that the offer to purchase is conditioned on the Change of Control Repurchase Event occurring
on or prior to the payment date specified in the notice.

     On the Change of Control Repurchase Event payment date, we will, to the extent lawful: (1)
accept for payment all Securities or portions of Securities (in integral multiples of $1,000)
properly tendered pursuant to our offer; (2) deposit with the paying agent an amount equal to the
aggregate purchase price in respect of all Securities or portions of Securities properly tendered;
and (3) deliver or cause to be delivered to the Trustee the Securities properly accepted, together
with an officers’ certificate stating the aggregate principal amount of Securities being purchased
by us. The paying agent will promptly mail to each holder of Securities properly tendered the
purchase price for the Securities, and the Trustee will promptly authenticate and mail (or cause to
be transferred

 

 

by book-entry) to each holder a new note equal in principal amount to any unpurchased portion
of any Securities surrendered; provided, that each new note will be in a principal amount of $2,000
or an integral multiple of $1,000 above that amount. We will not be required to make an offer to
repurchase the Securities upon a Change of Control Repurchase Event if a third party makes such an
offer in the manner, at the times and otherwise in compliance with the requirements for an offer
made by us and such third party purchases all Securities properly tendered and not withdrawn under
its offer.

     “Below Investment Grade Rating Event” means the Securities are rated below Investment Grade by
each of the Rating Agencies on any date from the date of the public notice of an arrangement that
could result in a Change of Control until the end of the 60-day period following public notice of
the occurrence of a Change of Control (which period shall be extended so long as the rating of the
Securities is under publicly announced consideration for possible downgrade by any of the Rating
Agencies); provided that a Below Investment Grade Rating Event otherwise arising by virtue of a
particular reduction in rating shall not be deemed to have occurred in respect of a particular
Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event for purposes
of the definition of Change of Control Repurchase Event hereunder) if the Rating Agencies making
the reduction in rating to which this definition would otherwise apply do not announce or publicly
confirm or inform the Trustee in writing at its request that the reduction was the result, in whole
or in part, of any event or circumstance comprised of or arising as a result of, or in respect of,
the applicable Change of Control (whether or not the applicable Change of Control shall have
occurred at the time of the Below Investment Grade Rating Event). “Change of Control” means the
occurrence of any of the following: (1) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of our properties or assets and those of our subsidiaries
taken as a whole to any “person” or “group” (as that term is used in Section 13(d)(3) of the
Exchange Act), other than us or one of our subsidiaries; (2) the adoption of a plan relating to our
liquidation or dissolution; (3) the first day on which a majority of the members of our Board of
Directors are not Continuing Directors; (4) the consummation of any transaction or series of
related transactions (including, without limitation, any merger or consolidation) the result of
which is that any “person” or “group” (as that term is used in Section 13(d)(3) of the Exchange
Act), other than us, one or more of our wholly-owned subsidiaries, or one or more Haas Family
Members, becomes the beneficial owner, directly or indirectly, of more than 50% of the then
outstanding number of shares of our Voting Stock; or (5) the consummation of a so-called “going
private/Rule 13e-3 Transaction” that results in any of the effects described in paragraph
(a)(3)(ii) of Rule 13e-3 under the Exchange Act (or any successor provision), following which Haas
Family Members beneficially own, directly or indirectly, more than 50% of our Voting Stock,
measured by voting power rather than number of shares. “Change of Control Repurchase Event” means
the occurrence of both a Change of Control and a Below Investment Grade Rating Event. “Continuing
Directors” means, as of any date of determination, any member of our Board of Directors who (1) was
a member of such Board of Directors on the date of the issuance of the Securities; or (2) was
nominated for election or elected to such Board of Directors with

 

 

the approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election (either by a specific vote or by approval of
our proxy statement in which such member was named as a nominee for election as a director). “Haas
Family Members” includes only the following persons:  (i) each descendant of Otto Haas (a “Haas
Descendant”) and their respective estates, guardians, conservators or committees; (ii) each “Family
Controlled Trust” (as defined below); and (iii) the trustees, in their respective capacities as
such, of each Family Controlled Trust.  The term “Family Controlled Trust” means any trust the
primary beneficiaries of which are Haas Descendants, spouses of Haas Descendants and/or charitable
organizations, provided that if the trust is a wholly charitable trust, at least a majority of the
trustees of such trust consist of Haas Descendants or their spouses. “Investment Grade” means a
rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of
Moody’s) and a rating of BBB- or better by S&P (or its equivalent under any successor rating
categories of S&P) or the equivalent investment grade credit rating from any additional Rating
Agency or Rating Agencies selected by us. “Moody’s” means Moody’s Investors Service Inc. “Rating
Agency” means (1) each of Moody’s and S&P; and (2) if any of Moody’s or S&P ceases to rate the
Securities or fails to make a rating of the Securities publicly available for reasons outside of
our control, a “nationally recognized statistical rating organization” within the meaning of Rule
15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by us as a replacement agency for Moody’s or
S&P, as the case may be. “S&P” means Standard & Poor’s Ratings Services, a division of
McGraw-Hill, Inc. “Voting Stock” means, with respect to any person, capital stock of any class or
kind the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the
election of directors (or persons performing similar functions) of such Person, even if the right
so to vote has been suspended by the happening of such a contingency.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of (and premium, if any) and interest on this Security at the times, place and rate,
and in the coin or currency, herein prescribed.

 

 

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of (and premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

     The Securities of this series are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 above that amount. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series and of like tenor
of a different authorized denomination, as requested by the Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security be
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

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