Document:

Exhibit
4.3

CARSDIRECT.COM, INC.

FIFTH AMENDED AND
RESTATED

INVESTOR RIGHTS AGREEMENT

February 6, 2001

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  1.

  	
   

  	
  Certain
  Definitions

  	
   

  	
  2

  
	
  2.

  	
   

  	
  Restrictions on
  Transferability

  	
                  

  	
  3

  
	
  3.

  	
   

  	
  Restrictive
  Legend

  	
   

  	
  3

  
	
  4.

  	
   

  	
  Notice of Proposed
  Transfers

  	
   

  	
  4

  
	
  5.

  	
   

  	
  Registration

  	
   

  	
  5

  
	
   

  	
   

  	
  5.1

  	
  Requested
  Registration

  	
   

  	
  5

  
	
   

  	
   

  	
  5.2

  	
  Company
  Registration

  	
   

  	
  7

  
	
   

  	
   

  	
  5.3

  	
  Registration on
  Form S-3

  	
   

  	
  8

  
	
   

  	
   

  	
  5.4

  	
  Subsequent
  Registration Rights

  	
   

  	
  9

  
	
   

  	
   

  	
  5.5

  	
  Expenses of
  Registration

  	
   

  	
  9

  
	
   

  	
   

  	
  5.6

  	
  Registration
  Procedures

  	
   

  	
  10

  
	
   

  	
   

  	
  5.7

  	
  Indemnification

  	
   

  	
  10

  
	
   

  	
   

  	
  5.8

  	
  Information by
  Holder

  	
   

  	
  12

  
	
   

  	
   

  	
  5.9

  	
  Rule 144
  Reporting

  	
   

  	
  12

  
	
   

  	
   

  	
  5.10

  	
  Termination of
  Registration Rights

  	
   

  	
  13

  
	
  6.

  	
   

  	
  Financial
  Information Rights

  	
   

  	
  13

  
	
  7.

  	
   

  	
  Lockup Agreement                

  	
   

  	
  14

  
	
  8.

  	
   

  	
  Right of First
  Refusal

  	
   

  	
  14

  
	
  9.

  	
   

  	
  Vesting of
  Employee Options

  	
   

  	
  17

  
	
  10.

  	
   

  	
  Employment,
  Confidential Information and Invention Assignment Agreements

  	
   

  	
  17

  
	
  11.

  	
   

  	
  Transfer of
  Rights

  	
   

  	
  17

  
	
  12.

  	
   

  	
  Series B
  Preferred Board Members

  	
   

  	
  18

  
	
  13.

  	
   

  	
  Amendment

  	
   

  	
  18

  
	
  14.

  	
   

  	
  Governing Law

  	
   

  	
  18

  

 

i

TABLE OF CONTENTS 

(continued)

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
  15.

  	
   

  	
  Entire Agreement

  	
   

  	
  18

  
	
  16.

  	
   

  	
  Notices, etc.

  	
   

  	
  18

  
	
  17.

  	
   

  	
  Counterparts

  	
   

  	
  19

  

 

ii

TABLE OF CONTENTS 

(Continued)

EXHIBITS

 

	
   

  	
  A. 

  	
   

  	
  Schedule of Purchasers

  
	
   

  	
  B. 

  	
   

  	
  Schedule of Investors

  

 

iii

CARSDIRECT.COM,
INC.

FIFTH AMENDED AND RESTATED

INVESTOR RIGHTS AGREEMENT

This Fifth Amended and
Restated Investor Rights Agreement (this “Agreement”)  is made effective as of February 6, 2001,
by and among CarsDirect.com, Inc., a Delaware corporation (the “Company”),
purchasers of the Company’s Series E Preferred Stock who are
signatories to this Agreement (the “Purchasers”), the investors listed on Exhibit B
attached hereto and other persons or entities who are or become signatories to
this Agreement and/or the Prior Agreement (as defined below).

RECITALS

A.       In connection with the sale and issuance of its Series D
Preferred Stock, the Company entered into that certain Fourth Amended and
Restated Investor Rights Agreement dated October 27, 1999 (the “Prior Agreement”)  with the purchasers of Series A Preferred
Stock (the “Series A Investors”), the purchasers of Series B Preferred
Stock (the “Series B Investors”), the purchasers of the Series C Preferred
Stock (the “Series C Investors”)  and the purchasers of the Series D
Preferred Stock (the “Series D Investors”), all of whom are listed on Exhibit B
attached hereto.

B.        The Company and the Purchasers are parties to the Agreement
of Merger and Plan of Reorganization dated as of the date hereof by and among
the Company, CD Merger Sub, Inc., Greenlight.com, Inc. KPCB Holdings, Inc.,
Asbury-Everest Holdings L.L.C. and Joel Manby, as securityholder agent (the “Merger Agreement”), whereby the Company will issue, pursuant
to the merger contemplated therein, to Purchasers Series E Preferred Stock of
the Company.

C.        The obligations of the Company and the Purchasers under the
Merger Agreement are conditioned, among other things, upon the execution and
delivery of this Agreement by the Company and the Purchasers.

D.       Section 13 of the Prior Agreement provides that the consent of
the Company and a majority of the outstanding Registrable Securities is
required to amend the Prior Agreement.

E.        The Company and certain stockholders, who together hold not
less than a majority of the Registrable Securities (as defined under the Prior
Agreement) now desire to amend and restate the Prior Agreement in its entirety
as set forth below in order to add additional Purchasers as parties hereto and
to make certain other changes.

 

AGREEMENT

NOW, THEREFORE, in
consideration of the mutual promises and covenants herein, the receipt and
sufficiency are hereby acknowledged, the parties hereto agree to amend and
restate the Prior Agreement in its entirety as follows:

1.        Certain Definitions.
As used in this Agreement, the following terms shall have the following
respective meanings:

“Commission”  means the Securities and Exchange Commission or any other
federal agency at the time administering the Securities Act.

“Conversion Stock”  means the Company’s Common Stock issued
or issuable pursuant to conversion of the Preferred Stock.

“Exchange Act”  means the Securities Exchange Act of 1934, as amended, or
any similar federal rule or statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time.

“Holder” means (i) any Series A Investor,
any Series B, Series C or Series D Investor or Purchaser holding Registrable
Securities, (ii) any person or entity that the Board of Directors of the
Company authorizes to be a Holder and who becomes a signatory to this
Agreement, and (iii) any person holding Registrable Securities to whom the
rights under this Agreement have been transferred in accordance with Section 11
hereof or, prior to the date hereof, in accordance with Section 11 of the Prior
Agreement.

“Initiating Holders”  means any Holder or Holders who, in the
aggregate, hold not less than 50% of the Registrable Securities then outstanding.

“Preferred Stock”  shall mean the Company’s Series A Preferred Stock, Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Series
E Preferred Stock.

“Qualified Initial Public Offering”  shall mean the Company’s initial public
offering pursuant to an effective registration statement under the Securities
Act covering the offer and sale of the Company’s Common Stock to the public
with gross proceeds to the Company not less than $20 million at a per share
price of at least $7.00.

“Registrable Securities”  means (i) the Conversion Stock, (ii) any
Common Stock of the Company issued or issuable in respect of any of the
foregoing upon any stock split, stock dividend, recapitalization or similar
event; provided, however, that securities shall only be treated as Registrable
Securities if and so long as (x) they have not been registered or sold to or
through a broker or dealer or underwriter in a public distribution or a public
securities transaction and (y) the

 

2

registration rights with respect to such securities
have not terminated pursuant to Section 5.10, and (iii) Common Stock of the
Company that the Board of Directors of the Company authorizes to be Registrable
Securities under this Agreement.

The terms “register,”
“registered” and “registration”  refer to a registration effected by preparing and filing a
registration statement in compliance with the Securities Act, and the
declaration or ordering of the effectiveness of such registration statement.

“Registration Expenses”  shall mean all expenses, except as
otherwise stated below, incurred by the Company in complying with Sections 5.1,
5.2 and 5.3 hereof, including without limitation, all registration,
qualification and filing fees, printing expenses, escrow fees, fees and
disbursements of counsel for the Company, blue sky fees and expenses, the
expense of any special audits incident to or required by any such registration
(but excluding the compensation of regular employees of the Company which shall
be paid in any event by the Company). Registration Expenses shall also include
the fees and disbursements for one special counsel to the selling stockholders,
not to exceed $15,000 per registration.

“Restricted Securities”  shall mean the securities of the Company
required to bear the legends set forth in Section 3 hereof.

“Rule 144”
and “Rule 145”  shall mean Rules 144 and 145,
respectively, promulgated under the Securities Act, or any similar federal
rules thereunder, all as the same shall be in effect at the time.

“Securities Act” shall mean the Securities
Act of 1933, as amended, or any similar federal rule or statute and the rules
and regulations of the Commission thereunder, all as the same shall be in
effect at the time.

“Selling Expenses”  shall mean all underwriting discounts,
selling commissions and stock transfer taxes applicable to the securities
registered by the Holders and, except as set forth above, all fees and
disbursements of counsel for any Holder.

2.        Restrictions on Transferability.
The Preferred Stock, the Conversion Stock and any other securities issued in
respect of such stock upon any stock split, stock dividend, recapitalization,
merger, or similar event, shall not be sold, assigned, transferred or pledged
except upon the conditions specified in this Agreement, which conditions are
intended to ensure compliance with the provisions of the Securities Act. Each
Holder or transferee will cause any proposed purchaser, assignee, transferee,
or pledgee of any such shares held by the Holder or transferee to agree to take
and hold such securities subject to the restrictions and upon the conditions
specified in this Agreement.

3.        Restrictive Legend.
Each certificate representing the Preferred Stock, the Conversion Stock or any
other securities issued in respect of such stock upon any stock split, stock

 

3

dividend, recapitalization, merger, or similar event,
shall (unless otherwise permitted by the provisions of Section 4 below) be
stamped or otherwise imprinted with legends in substantially the following form
(in addition to any legends required by agreement or by applicable state
securities laws):

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”). SUCH SECURITIES MAY NOT BE TRANSFERRED UNLESS A
REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO SUCH TRANSFER OR IN THE
OPINION OF COUNSEL FOR THE COMPANY, SUCH TRANSFER MAY BE MADE PURSUANT TO RULE
144 OR REGISTRATION UNDER THE ACT IS OTHERWISE UNNECESSARY IN ORDER FOR SUCH
TRANSFER TO COMPLY WITH THE ACT.

THE SHARES REPRESENTED BY
THIS CERTIFICATE ARE SUBJECT TO A LOCKUP PERIOD OF UP TO 180 DAYS FOLLOWING THE
EFFECTIVE DATE OF A REGISTRATION STATEMENT OF THE COMPANY FILED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AS SET FORTH IN AN AGREEMENT BETWEEN THE
ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED
AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH LOCKUP PERIOD IS BINDING ON
TRANSFEREES OF THESE SHARES.

Each Holder consents to
the Company making a notation on its records and giving stop transfer
instructions to any transfer agent of its capital stock in order to implement
the restrictions on transfer established in this Agreement.

4.        Notice of Proposed Transfers.
The holder of each certificate representing Restricted Securities by acceptance
thereof agrees to comply in all respects with the provisions of this Section 4.
Without in any way limiting the immediately preceding sentence, no sale,
assignment, transfer or pledge of Restricted Securities shall be made by any
holder thereof to any person unless such person shall first agree in writing to
be bound by the restrictions of this Agreement. Prior to any proposed sale,
assignment, transfer or pledge of any Restricted Securities, unless there is in
effect a registration statement under the Securities Act covering the proposed
transfer, the holder thereof shall give written notice to the Company of such
holder’s intention to effect such transfer, sale, assignment or pledge. Each
such notice shall describe the manner and circumstances of the proposed
transfer, sale, assignment or pledge in sufficient detail, and, if requested by
the Company, the holder shall also provide, at such holder’s expense, either
(i) a written opinion of legal counsel who shall be, and whose legal opinion
shall be, reasonably satisfactory to the Company addressed to the Company, to
the effect that the proposed transfer of the Restricted Securities may be
effected without registration under the Securities Act, or (ii) a “no action”
letter from the Commission to the effect that the transfer of such securities
without registration will not result in a recommendation by the staff of the

 

4

Commission that action be taken with respect thereto,
whereupon the holder of such Restricted Securities shall be entitled to
transfer such Restricted Securities in accordance with the terms of the notice
delivered by the holder to the Company; provided, however, that the Company
shall not request an opinion of counsel or “no action” letter with respect to
(i) a transfer not involving a change in beneficial ownership, (ii) a
transaction involving the distribution without consideration of Restricted
Securities by the holder to its constituent partners or members in proportion
to their ownership interests in the holder, or (iii) a transaction involving
the transfer without consideration of Restricted Securities by an individual
holder during such holder’s lifetime by way of gift or on death by will or
intestacy. Each certificate evidencing the Restricted Securities transferred as
above provided shall bear, except if such transfer is made pursuant to Rule
144, the appropriate restrictive legend set forth in Section 3 above, except
that such certificate shall not bear such restrictive legend if in the opinion
of counsel for such holder and counsel for the Company such legend is not
required in order to establish compliance with any provision of the Securities
Act. Notwithstanding the foregoing, each holder of Restricted Securities agrees
that it will not request that a transfer of the Restricted Securities be made
or that the legend set forth in Section 3 be removed from the certificate
representing the Restricted Securities, solely in reliance on Rule 144(k), if
as a result thereof the Company would be rendered subject to the reporting
requirements of the Exchange Act.

5.        Registration.

5.1      Requested Registration.

(a)       Request for Registration. In case the
Company shall receive from Initiating Holders a written request that the
Company effect any registration with respect to shares of Registrable
Securities, the Company will:

(i)        promptly give written notice of the
proposed registration to all other Holders; and

(ii)       as soon as practicable, use commercially
reasonable efforts to effect such registration as part of a firm commitment
underwritten public offering with underwriters reasonably acceptable to the
Initiating Holders and the Company (including, without limitation, appropriate
qualification under applicable state securities laws and appropriate compliance
with applicable regulations issued under the Securities Act and any other
governmental requirements or regulations) as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such
Registrable Securities as are specified in such request, together with all or
such portion of the Registrable Securities of any Holder or Holders joining in
such request by delivering a written notice to such effect to the Company
within twenty days after the date of such written notice from the Company.

Notwithstanding the
foregoing, the Company shall not be obligated to take any action to effect or
complete any such registration pursuant to this Section 5.1:

 

5

(A)        Prior to the earlier of (i) one year
after the effective date of the Company’s first registered public offering of
its Common Stock or (ii)  five
years from the date hereof;

(B)         Unless the requested registration would
have an aggregate offering price of all Registrable Securities sought to be
registered by all Holders, net of underwriting discounts and commissions,
exceeding $5,000,000;

(C)         Following the filing of, and for 180
days immediately following the effective date of, any registration statement
pertaining to securities of the Company (other than a registration of
securities in a Rule 145 transaction or with respect to an employee benefit
plan), provided that the Company is actively employing in good faith
commercially reasonable efforts to cause such registration statement to become
effective;

(D)         After the Company has effected two
registrations pursuant to this Section 5.1 (a) in which the Initiating Holders were
able to sell at least 50% of the Registrable Securities sought to be included
and such registration has been declared or ordered effective;

(E)         If the Initiating Holders are able to
request a registration on Form S-3 pursuant to Section 5.3 hereof;

(F)         Within twelve months after the Company
has effected such a registration pursuant to this Section 5.1 (a), and such
registration has been declared or ordered effective; or

(G)         If the Company shall furnish to the
Initiating Holders a certificate signed by the President of the Company (i)
giving notice of its bona fide intention to effect the filing of a registration
statement with the Commission, or (ii) stating that in the good faith judgment
of the Board of Directors it would be seriously detrimental to the Company or
its stockholders for a registration statement to be filed in the near future.
In such case, the Company’s obligation to use its commercially reasonable
efforts to register, qualify or comply under this Section 5.1(a) shall be
deferred one or more times for a period not to exceed 180 days from the receipt
of the request to file such registration by such Initiating Holder or Holders,
provided that the Company may not exercise this deferral right more than once
per twelve month period.

Subject to the foregoing
clauses (A) through (G), the Company shall file a registration statement
covering the Registrable Securities so requested to be registered as soon as
practicable after receipt of the request or requests of the Initiating Holders.

(b)      Underwriting. In the event of a
registration pursuant to Section 5.1, the Company shall advise the Holders as
part of the notice given pursuant to Section 5.1(a)(i) that the right of any
Holder to registration pursuant to Section 5.1 shall be conditioned upon such
Holder’s

 

6

participation in the underwriting arrangements
required by this Section 5.1, and the inclusion of such Holder’s Registrable
Securities in the underwriting to the extent requested shall be limited to the
extent provided herein.

The Company shall,
together with all Holders proposing to distribute their securities through such
underwriting, enter into an underwriting agreement in customary form with the
managing underwriter selected for such underwriting by a majority in interest
of the Initiating Holders, but subject to the Company’s reasonable approval.
Notwithstanding any other provision of this Section 5.1, if the managing
underwriter determines that marketing factors require a limitation of the number
of shares to be underwritten, the managing underwriter may limit the
Registrable Securities to be included in such registration (i) in the case of
the Company’s initial public offering, to zero, and (ii) in the case of any
other offering, to an amount no less than 33% of all shares to be included in
such offering. The Company shall so advise all Holders requesting to be
included in the registration and underwriting and the number of shares of
Registrable Securities that may be included in the registration and
underwriting shall be allocated among all Holders requesting to be included in
the registration and underwriting in proportion, as nearly as practicable, to
the respective amounts of Registrable Securities held by them at the time of
filing the registration statement. No Registrable Securities excluded from the
underwriting by reason of the underwriter’s marketing limitation shall be
included in such registration. To facilitate the allocation of shares in
accordance with the above provisions, the Company or the underwriters may round
the number of shares allocated to any Holder to the nearest 100 shares. If any
Holder of Registrable Securities disapproves of the terms of the underwriting,
such person may elect to withdraw therefrom by written notice to the Company.

5.2      Company Registration.

(a)       Notice of Registration. If at any
time or from time to time the Company shall determine to register any of its
equity securities, either for its own account or the account of a Holder or
other holders, other than (i) a registration relating solely to employee
benefit plans, (ii) a registration relating solely to a Rule 145 transaction,
or (iii) a registration in which the only equity security being registered is
Common Stock issuable upon conversion of convertible debt securities which are
also being registered, the Company will:

(i)        promptly give to each Holder written
notice thereof; and

(ii)       include in such registration (and any
related qualifications including compliance with Blue Sky laws), and in any
underwriting involved therein, all the Registrable Securities specified in a
written request or requests, made within ten days after the date of such
written notice from the Company, by any Holder.

(b)      Underwriting. If the registration
of which the Company gives notice is for a registered public offering involving
an underwriting, the Company shall so advise the Holders as a part of the
written notice given pursuant to Section 5.2(a)(i). In such event, the right of
any Holder to registration pursuant to Section 5.2 shall be conditioned upon
such Holder’s participation in such

 

7

underwriting and the inclusion of Registrable
Securities in the underwriting shall be limited to the extent provided herein.

All Holders proposing to
distribute their securities through such underwriting shall (together with the
Company and the other Holders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the
managing underwriter selected for such underwriting by the Company.
Notwithstanding any other provision of this Section 5.2, if the managing
underwriter determines that marketing factors require a limitation of the
number of shares to be underwritten, the managing underwriter may limit the
Registrable Securities to be included in such registration (i) in the case of
the Company’s initial public offering, to zero, and (ii) in the case of any
other offering, to an amount no less than 33% of all shares to be included in such
offering. The Company shall so advise all Holders requesting to be included in
the registration and underwriting and the number of shares of Registrable
Securities that may be included in the registration and underwriting shall be
allocated among all the Holders requesting to be included in the registration
and underwriting in proportion, as nearly as practicable, to the respective
amounts of Registrable Securities held by them at the time of filing the
registration statement. To facilitate the allocation of shares in accordance
with the above provisions, the Company or the underwriters may round the number
of shares allocated to any Holder to the nearest 100 shares. If any HoIder
disapproves of the terms of any such underwriting, such person may elect to withdraw
therefrom by written notice to the Company.

(c)       Right to Terminate Registration.
The Company shall have the right to terminate or withdraw any registration
initiated by it under this Section 5.2 prior to the effectiveness of such
registration whether or not any Holder has elected to include securities in
such registration.

5.3      Registration on Form S-3.

(a)       Request for Registration. In case
the Company shall receive from Initiating Holders a written request that the
Company file a registration statement on Form S-3 (or any successor form to
Form S-3) for a public offering of shares of the Registrable Securities the
aggregate price to the public of which, net of underwriting discounts and
commissions, would exceed $3,000,000, and the Company is a registrant entitled
to use Form S-3 to register the Registrable Securities for such an offering,
the Company shall use commercially reasonable efforts to cause such Registrable
Securities to be registered for the offering on such form and to cause such
Registrable Securities to be qualified in such jurisdictions as such Holder or
Holders may reasonably request; provided, however, that the Company shall not
be required to effect more than one registration pursuant to this Section 5.3
in any twelve month period. If such offer is to be an underwritten offer, the
underwriters must be acceptable to both the Initiating Holders and the Company.
The Company shall inform the other Holders of the proposed registration and
offer them the opportunity to participate. In the event the registration is
proposed to be part of a firm commitment underwritten public offering, the
substantive provisions of Section 5.1(b) shall be applicable to each such
registration initiated under this Section 5.3.

 

8

(b)      Notwithstanding the foregoing, the Company
shall not be obligated to take any action pursuant to this Section 5.3:

(i)        Following the filing of, and for 180
days immediately following the effective date of, any registration statement pertaining
to securities of the Company (other than a registration of securities in a Rule
145 transaction or with respect to an employee benefit plan), provided that the
Company is actively employing in good faith commercially reasonable efforts to
cause such registration statement to become effective;

(ii)       Within twelve months after the Company
has effected such a registration pursuant to this Section 5.3(a), and such
registration has been declared or ordered effective; or

(iii)      If the Company shall furnish to the
Initiating Holders a certificate signed by the President of the Company (i)
giving notice of its bona fide intention to effect the filing of a registration
statement with the Commission, or (ii) stating that, in the good faith judgment
of the Board of Directors, it would be seriously detrimental to the Company or
its stockholders for a registration statement to be filed in the near future,
then the Company’s obligation to use its commercially reasonable efforts to
file a registration statement shall be deferred one or more times for a period
not to exceed 180 days from the receipt of the request to file such
registration by such Initiating Holder or Holders, provided that the Company
may not exercise this deferral right more than once per twelve month period.

5.4      Subsequent Registration Rights.

(a)       Without the consent of any holder of
Registrable Securities hereunder, the Company may grant to any holder of
securities of the Company registration rights inferior to those granted
hereunder.

(b)      The Company shall not enter into any
agreement granting any holder or prospective holder of any securities of the
Company registration rights superior to or on a pari passu basis with the
rights granted the Holders hereunder without the written consent of the holders
of a majority of the Registrable Securities. Notwithstanding the foregoing, the
Company may, without obtaining any further consent of the holders of
Registrable Securities, amend this Agreement to the extent necessary to grant
rights and obligations on a pari passu basis with the rights and obligations of
the Holders to investors in any subsequent round of financing with respect to
the securities purchased by such investors in such financing.

5.5      Expenses of Registration.
All Registration Expenses incurred in connection with (i) two registrations
pursuant to Section 5.1, (ii) all registrations pursuant to Section 5.2, and
(iii) all registrations pursuant to Section 5.3, shall be borne by the Company.
Notwithstanding the foregoing, in the event that Initiating Holders cause the
Company to begin a registration pursuant to Section 5.1, and the request for
such registration is subsequently withdrawn by the Initiating Holders

 

9

or such registration is not completed due to failure
to meet the net proceeds requirement set forth in such section or is otherwise
not successfully completed due to no fault of the Company, all Holders shall be
deemed to have forfeited their right to one registration under Section 5.1 unless
the Initiating Holders pay for, or reimburse the Company for, the Registration
Expenses incurred in connection with such withdrawn or incomplete registration.
Unless otherwise stated, all Selling Expenses relating to securities registered
on behalf of the Holders and all other registration expenses shall be borne by
the Holders of such securities pro rata on the basis of the number of shares so
registered or proposed to be so registered.

5.6      Registration Procedures.
In the case of each registration effected by the Company pursuant to this
Agreement, the Company will keep each Holder advised in writing as to the
initiation of such registration and as to the completion thereof. The Company
will:

(a)       Prepare and file with the Commission a
registration statement and such amendments and supplements as may be necessary
and use commercially reasonable efforts to cause such registration statement to
become and remain effective for at least 90 days or until the distribution
described in the registration statement has been completed, whichever first
occurs; provided, however, that such 90 day period shall be extended for a
period of time equal to that which the Holder refrains from selling any
securities at the request of any underwriter of the Company; and

(b)      Furnish to the Holders participating in
such registration and to the underwriters of the securities being registered
such reasonable number of copies of the registration statement, preliminary
prospectus, final prospectus and such other documents as such underwriters may
reasonably request in order to facilitate the public offering of such
securities.

5.7      Indemnification.

(a)       The Company will indemnify each Holder,
each of its officers and directors and partners, and each person controlling
such Holder within the meaning of Section 15 of the Securities Act, with
respect to which registration has been effected pursuant to this Agreement,
against all expenses, claims, losses, damages or liabilities (or actions in
respect thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus, offering circular or other document, or any
amendment or supplement thereto, incident to any such registration, or based on
any omission (or alleged omission) to state therein a material fact required to
be stated therein or necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, or any violation by the
Company of the Securities Act, the Exchange Act, state securities laws or any
rule or regulation promulgated under such laws applicable to the Company in
connection with any such registration, and the Company will reimburse each such
Holder, each of its officers and directors, and each person controlling such
Holder, for any legal and any other expenses reasonably incurred, as such
expenses are incurred, in connection with investigating, preparing or defending
any such claim, loss, damage, liability or action, provided that the Company
will not be liable in any such case to the extent that any

 

10

such claim, loss, damage, liability or expense arises
out of or is based on any untrue statement or omission or alleged untrue
statement or omission, made in reliance upon and in conformity with written
information furnished to the Company by an instrument duly executed by such
Holder or controlling person, and stated to be specifically for use therein;
provided, however, that the foregoing indemnity Agreement is subject to the
condition that, insofar as it relates to any such untrue statement, alleged
untrue statement, omission or alleged omission made in a preliminary prospectus
on file with the Commission at the time the registration statement becomes
effective or the amended prospectus is filed with the Commission pursuant to
Rule 424(b) (the “Final Prospectus”),  such indemnity Agreement shall not inure to
the benefit of any Holder, if a copy of the Final Prospectus was not furnished
to the person asserting the loss, liability, claim or damage at or prior to the
time such action is required by the Securities Act, and if the Final Prospectus
would have cured the defect giving rise to the loss, liability, claim or
damage.

(b)      Each Holder will, if Registrable
Securities held by such Holder are included in the securities as to which such
registration is being effected, indemnify the Company, each of its directors
and officers, other holders of the Company’s securities covered by such
registration statement, each person who controls the Company within the meaning
of Section 15 of the Securities Act, and each other such Holder, each of its
officers and directors and each person controlling such Holder within the
meaning of Section 15 of the Securities Act, against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any such registration statement, prospectus, offering circular or
other document, or any omission (or alleged omission) to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or any violation by the Holder of the Securities Act,
the Exchange Act, state securities laws or any rule or regulation promulgated
under such laws applicable to the Holder, and will reimburse the Company, such
other Holders, such directors, officers, persons, underwriters or control
persons for any legal or any other expenses reasonably incurred, as such
expenses are incurred, in connection with investigating or defending any such
claim, loss, damage, liability or action, but in the case of the Company or the
other Holders or their officers, directors or controlling persons, only to the
extent that such untrue statement (or alleged untrue statement) or omission (or
alleged omission) is made in such registration statement, prospectus, offering
circular or other document in reliance upon and in conformity with information
furnished to the Company by such Holder. Notwithstanding the foregoing, the
liability of each Holder under this subsection 5.7(b) shall be limited in an
amount equal to the initial public offering price of the shares sold by such
Holder, unless such liability arises out of or is based on willful misconduct
or fraud by such Holder.

(c)       Each party entitled to indemnification
under this Section 5.7 (the “Indemnified
Party”)  shall give
notice to the party required to provide indemnification (the “Indemnifying Party”)  promptly after such Indemnified Party has
actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom, provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or litigation, shall be
approved by the Indemnified Party

 

11

(whose approval shall not unreasonably be withheld),
and the Indemnified Party may participate in such defense at such party’s
expense, and provided further that the failure of any Indemnified Party to give
notice as provided herein shall not relieve the Indemnifying Party of its
obligations under this Agreement unless the failure to give such notice is
materially prejudicial to an Indemnifying Party’s ability to defend such action
and provided further, that the Indemnifying Party shall not assume the defense
for matters as to which there is a conflict of interest or there are separate
and different defenses. No Indemnifying Party, in the defense of any such claim
or litigation, shall, except with the consent of each Indemnified Party (whose
consent shall not be unreasonably withheld), consent to entry of any judgment
or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a
release from all liability in respect to such claim or litigation.

(d)      Notwithstanding the foregoing, to the
extent that the provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with the underwritten public
offering are in conflict with the foregoing provisions, the provisions in the
underwriting agreement shall control.

5.8      Information by Holder.
The Holder or Holders of Registrable Securities included in any registration
shall furnish to the Company such information regarding such Holder or Holders,
the Registrable Securities held by them and the distribution proposed by such
Holder or Holders as the Company may request in writing and as shall be
required in connection with any registration referred to in this Agreement.

5.9      Rule 144 Reporting.
With a view to making available the benefits of certain rules and regulations
of the Commission which may at any time permit the sale of the Restricted
Securities to the public without registration, after such time as a public market
exists for the Common Stock of the Company, the Company agrees to use
commercially reasonable efforts to:

(a)       Make and keep public information
available, as those terms are understood and defined in Rule 144 under the
Securities Act, at all times after the effective date that the Company becomes
subject to the reporting requirements of the Securities Act or the Exchange
Act;

(b)      File with the Commission in a timely
manner all reports and other documents required of the Company under the
Securities Act and the Exchange Act (at any time after it has become subject to
such reporting requirements); and

(c)       So long as a Holder owns any Restricted
Securities, furnish to the Holder forthwith upon request a written statement by
the Company as to its compliance with the reporting requirements of said Rule
144 (at any time after 90 days after the effective date of the first
registration statement filed by the Company for an offering of its securities
to the general public), a copy of the most recent annual or quarterly report of
the Company, and such other reports and documents of the Company and other
information in the possession of or reasonably obtainable by the

 

12

Company as the Holder may reasonably request in availing
itself of any rule or regulation of the Commission allowing the Holder to sell
any such securities without registration.

5.10    Termination of Registration Rights.
The rights granted pursuant to Sections 5.1, 5.2 and 5.3 of this Agreement
shall terminate as to any Holder upon the earlier of (i) the date four years
after the effective date of the Company’s initial public offering and (ii) the
date such Holder is able to immediately sell all shares of Registrable
Securities held or entitled to be held upon conversion by such Holder under
Rule 144 during any 90-day period.

6.        Financial Information Rights.

(a)       The Company will, upon request, provide
the following documents to each Holder who continues to hold at least the
lesser of (A) 1,000,000 shares of Preferred Stock and/or Conversion Stock (as
adjusted for recapitalizations, stock combinations, stock dividends, stock
splits and the like) or (B) fifty percent (50%) of the shares of Preferred
Stock and/or Conversion Stock initially acquired by such Holder (as adjusted
for recapitalizations, stock combinations, stock dividends, stock splits and
the like):

(i)        As soon as practicable after the end of
the fiscal year ending December 31, 1998 and each fiscal year thereafter, and
in any event within 90 days after the end of each such fiscal year,
consolidated balance sheets of the Company and its subsidiaries, if any, as of
the end of such fiscal year, and consolidated statements of operations and
consolidated statements of cash flows and stockholders’ equity of the Company
and its subsidiaries, if any, for such year, prepared in accordance with
generally accepted accounting principles and setting forth in each case in
comparative form the figures for the previous fiscal year (except that no such
comparative data from the fiscal year ended December 31, 1997 need be
provided), all in reasonable detail and audited by independent public
accountants of national standing selected by the Company, and a capitalization
table in reasonable detail for such fiscal year;

(ii)       As soon as practicable after the end of
each monthly accounting period in each fiscal year of the Company and in any
event within 30 days after, a consolidated balance sheet of the Company and its
subsidiaries, if any, as of the end of each such quarterly period, and
consolidated statements of operations and consolidated statements of cash flows
of the Company and its subsidiaries, if any, for such period and for the
current fiscal year to date, prepared in accordance with generally accepted
accounting principles (other than accompanying notes), subject to changes
resulting from year-end audit adjustments, in reasonable detail and signed by
the principal financial or accounting officer of the Company, and a
capitalization table in reasonable detail for such quarterly period, and such
other documents generally distributed or made available to the Company’s
stockholders; provided, however, that the Company shall not be obligated to
provide information which it deems in good faith to be proprietary or confidential.

 

13

(iii)            such other documents generally
distributed or made available to the Company’s stockholders; provided, however,
that the Company shall not be obligated to provide information which it deems
in good faith to be proprietary or confidential.

(b)      For purposes of determining the minimum
holdings pursuant to this Section 6, any Holder which is a partnership or
limited liability company shall be deemed to hold any Preferred Stock
originally purchased by such Holder and subsequently distributed to constituent
partners or members of such Holder, but which have not been resold by such
partners or members. If the partnership or limited liability company is still
in existence, the Company may satisfy any obligation to distribute reports to
individual partners of the partnership or members of a limited liability
company by delivering a single copy of each report to the partnership or
limited liability company as agent for the constituent partners or members.

(c)       Each Holder or transferee of rights under
this Section 6 acknowledges and agrees that any information obtained pursuant
to this Section 6 which may be considered nonpublic information will be
maintained in confidence by such Holder or transferee and will not be utilized
by such Holder or transferee in connection with purchases or sales of the
Company’s securities except in compliance with applicable state and Federal
securities laws.

(d)      The covenants of the Company set forth in
this Section 6  shall terminate
and be of no further force or effect upon the earliest to occur of (i) the
closing of a Qualified Initial Public Offering; or (ii) the sale of all or
substantially all of the assets of the Company or the acquisition of the
Company by another entity by means of merger or consolidation resulting in the
exchange of the outstanding shares of the Company for securities or
consideration issued, or caused to be issued, by the acquiring corporation or
its subsidiary, unless the stockholders of the Company hold at least fifty
percent (50%) of the voting power of the surviving corporation in such a
transaction.

 

14

7.        Lockup Agreement.
Each Holder and transferee hereby agrees that, in connection with the first two
registrations of the offering of any securities of the Company under the
Securities Act for the account of the Company, if so requested by the Company
or any representative of the underwriters (the “Managing Underwriter’’),  such
Holder or transferee shall not sell or otherwise transfer any securities of the
Company during the period specified by the Company’s Board of Directors at the
request of the Managing Underwriter (the “Market
Standoff Period”), with
such period not to exceed (i)  180
days following the effective date of a registration statement of the Company
filed under the Securities Act. The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions
until the end of such Market Standoff Period. The Company shall use
commercially reasonable efforts to place similar contractual lockup
restrictions on all capital stock issued now or hereafter to officers,
directors, employees and consultants of the Company and holders of registration
rights with respect to capital stock of the Company.

8.        Right of First Refusal.

(a)       The Company hereby grants to idealab!
Holdings, L.L.C. (“idealab”),  MSD Portfolio L.P. - Investments, Susan
L. Dell Separate Property Trust, Black Marlin Investments, LLC, Vermear
Investments, LLC, Victory Partners - A, L.P., the Goldman Sachs Group, L.P.,
Stone Street Fund 1999, L.P. and Bridge Street Fund 1999, L.P. (the “Qualified Purchasers”)  the right of first refusal to purchase
its Pro Rata Share of New Securities (as defined in Section 8(d)) which the
Company may, from time to time, propose to sell and issue. A “Pro Rata Share,”  for purposes of this right of first refusal, equals the
proportion that the total number of shares of Common Stock then held by the
Qualified Purchasers plus the number of shares of Common Stock issuable upon
conversion of the Series A Preferred Stock, the Series C Preferred Stock and
the Series D Preferred Stock then held by the Qualified Purchasers bears to the
sum of the total number of shares of Common Stock then outstanding plus the
number of shares of Common Stock issuable upon exercise or conversion of all
then outstanding securities exercisable for or convertible into, directly or
indirectly, Common Stock.

(b)      Subject to the rights of all Qualified
Purchasers (other than idealab) as set forth in Section 8(a), in connection
with one or more equity financings of the Company subsequent to the date of
this Agreement pursuant to which New Securities (as defined in Section 8(d)
except that for purposes of this Section 8(b), New Securities shall include
capital stock issued or issuable in the Company’s Qualified Initial Public
Offering) are issued (a “Subsequent Financing”), the Company hereby covenants to provide
idealab the right to purchase an amount of New Securities that would enable
idealab to own following such Subsequent Financing 38.2% of the Common Stock of
the Company (on a fully diluted as converted to Common Stock basis) (the “Purchase Right”). In the event that the
Subsequent Financing is the Company’s Qualified Initial Public Offering, the
Purchase Right shall be reduced or eliminated if the Managing Underwriter
determines, in its sole discretion, that the exercise of the Purchase Right
would adversely impact the Qualified Initial Public Offering.

 

15

(c)       If the Company intends to commence a
Subsequent Financing, the Company shall deliver to idealab a written notice
(the “Written Notification”)  stating: (i) its bona fide intention to
commence a Subsequent Financing; (ii) the then projected amount of money to be
raised by the Company in the Subsequent Financing; and (iii) if then known, the
projected per share price of the capital stock sold in the Subsequent
Financing. idealab’s Purchase Right shall then be exercisable for ten (10) days
after the date of the Written Notification. idealab shall exercise its Purchase
Right by delivering to the Company a written notice indicating the number of
shares (or percentage of the shares of Common Stock of the Company on a
post-Subsequent Financing fully diluted as converted to Common Stock basis)
pursuant to the Purchase Right that it elects to purchase.

If idealab elects to
exercise its Purchase Right, its obligations to the Company will not exceed the
amount it elected to purchase based upon (i) the projected amount of money to
be raised by the Company in the Subsequent Financing; and (ii) the projected
per share price of the capital stock in the Subsequent Financing that were
stated in the Written Notification.

If idealab elects to
exercise its Purchase Right, such purchase of shares of capital stock shall be
on the same terms and conditions as the other purchasers of shares of capital
stock in the Subsequent Financing at the time of the first closing of the
Subsequent Financing. If the Subsequent Financing is the Company’s Qualified
Initial Public Offering, such purchase of shares of capital stock shall be at
the purchase price paid by the public. If the Subsequent Financing does not
close within six (6) months after the date of the Written Notification, then
idealab’s exercise of its Purchase Right shall be null and void and idealab
shall not be obligated, but may elect, to purchase shares of capital stock in
the Subsequent Financing.

(d)      Except as set forth below, “New Securities”  shall mean any shares of capital stock of the Company,
including Common Stock and any series of preferred stock, whether now
authorized or not, and rights, options or warrants to purchase said shares of
Common Stock or preferred stock, and securities of any type whatsoever that
are, or may become, convertible into or exchangeable for said shares of Common
Stock or preferred stock. Notwithstanding the foregoing, “New Securities” does
not include stock issued and issuable: (i) upon conversion of shares of
Preferred Stock; (ii) to employees, consultants or directors pursuant to stock
options, stock grants, or stock purchase rights under the Company’s 1998 Stock
Option Plan approved by the Board of Directors, including without limitation
upon the exercise of Options outstanding as of the Original Issue Date, or any
such options, grants or rights made outside of such plan to any person or group
(provided that any such non-plan options, grants, or rights do not exceed
200,000 shares (as adjusted for stock splits and the like) per person or group
of affiliated persons in one transaction or a series of related transactions);
(iii) to equipment lessors, banks, financial institutions or similar entities
in a transaction approved by the board of directors, the principle purpose of
which is other than the raising of capital; (iv) as a dividend or other
distribution; (v) in the Company’s Qualified Initial Public Offering; (vi) in a
merger or acquisition that is approved by the Board of Directors; (vii) pursuant
to any transactions approved by the Board of Directors primarily for the
purpose of (A) joint ventures, technology licensing or research and development
activities, (B) distribution or manufacture of the Company’s products or
service, or (C) any other transactions involving corporate partners that are

 

16

primarily for purposes other than raising capital; or
(viii) if the holders of a majority of the then outstanding Registrable
Securities agree in writing that such shares shall not constitute New
Securities.

(e)       In the event the Company proposes to
undertake an issuance of New Securities, it shall give the Qualified Purchaser
written notice of its intention, describing the amount and type of New
Securities, and the price and terms upon which the Company proposes to issue
the same. The Qualified Purchaser shall have ten days from the date of receipt
of any such notice to agree to purchase up to its Pro Rata Share of such New
Securities for the price and upon the terms specified in the notice by giving
written notice to the Company and stating therein the quantity of New
Securities to be purchased.

(f)       Beginning ten days after the notice given
pursuant to Section 8(b) above, the Company shall have 180 days to sell the New
Securities not elected or eligible to be purchased by the Qualified Purchaser
at the price and upon the terms no more favorable to the purchasers of such
securities than specified in the Company’s notice. In the event the Company has
not sold all of the New Securities within said 180 day period, the Company
shall not thereafter issue or sell any New Securities without first offering
such securities in the manner provided above.

(g)      The provisions of Sections 8(a), (c), (d),
(e) and (f) will terminate and be of no further force or effect upon the
earlier to occur of: (i) the closing of a Qualified Initial Public Offering, or
(ii) the sale of all or substantially all of the assets of the Company or the
acquisition of the Company by another entity by means of merger or
consolidation resulting in the exchange of the outstanding shares of the
Company for securities or consideration issued, or caused to be issued, by the
acquiring corporation or its subsidiary, unless the stockholders of the Company
hold at least fifty percent (50%) of the voting power of the surviving
corporation in such a transaction.

(h)      The provisions of Section 8(b) will
terminate and be of no further force or effect (i) following (but not
including) the closing of a Qualified Initial Public Offering, or (ii) the sale
of all or substantially all of the assets of the Company or the acquisition of
the Company by another entity by means of merger or consolidation resulting in
the exchange of the outstanding shares of the Company for securities or
consideration issued, or caused to be issued, by the acquiring corporation or
its subsidiary, unless the stockholders of the Company hold at least fifty
percent (50%) of the voting power of the surviving corporation in such a
transaction.

The provisions of Section
8 (a), (c), (d), (e), (f) and (g) may be amended only with the written consent
of the Qualified Purchasers of the Company and the provisions of Section 8(b)
and (h) may be amended only with the written consent of idealab and the Company.

9.        Vesting of Employee Options.
Unless otherwise agreed to by a majority of the Directors who are not then
employees of the Company, options granted to employees of the Company under the
Company’s 1998 Employee Stock Plan or other approved stock plans will vest,
until the option holder’s employment with or service to the Company terminates,
on terms no more

 

17

favorable to the employee than twenty percent (20%) of
such shares on the date of employment and twenty percent (20%) of such shares
at the end of each year for four (4) years thereafter.

10.      Employment, Confidential Information
and Invention Assignment Agreements. The Company will
maintain a policy requiring each person now or hereafter employed by it or any
subsidiary with access to confidential information to enter into an Employment,
Confidential Information and Invention Assignment Agreement substantially in a
form approved by the Board of Directors.

11.      Transfer of Rights.
The rights granted under Sections 5, 6 and 8 of this Agreement may be assigned
to any transferee or assignee, other than a competitor or potential competitor
of the Company (as determined in good faith by the Company’s Board of Directors
in connection with any transfer or assignment of Registrable Securities by the
Holder, provided that: (i) such transfer is otherwise effected in accordance
with applicable securities laws and the terms of this Agreement; (ii) such
assignee or transferee acquires at least the lesser of (A) 1,000,000 shares (as
adjusted for stock splits, stock dividends, stock combinations and the like) of
Registrable Securities (including Preferred Stock convertible into Registrable
Securities) or (B) fifty percent (50%) of the shares of Registrable Securities
(as adjusted for stock splits, stock dividends, stock combinations and the
like) initially acquired by the transferring Holder (including Preferred Stock
convertible into Registrable Securities), (iii) written notice is promptly
given to the Company; and (iv) such transferee or assignee agrees to be bound
by the provisions of this Agreement. Notwithstanding the foregoing, the rights
granted to the Holders hereunder may be assigned without compliance with item
(ii) above to any constituent partner or member of the Holder which is a
partnership or limited liability company, or to an affiliate (as such term is
defined in Rule 405 of the Securities Act) of the Holder which is a
corporation, partnership or limited liability company.

12.      Series B Preferred Board Members.
For so long as the holders of Series B Preferred Stock shall be entitled to
elect two directors under the Company’s Amended and Restated Certificate of
Incorporation, each Holder will: (i) vote for the nominee selected by idealab!
Capital Partners I-B, L.P. provided that idealab! Capital Partners I-A, L.P.
and idealab! Capital Partners I-B, L.P. together hold 500,000 shares of Series
B Preferred Stock; and (ii) vote for the nominee selected by Foundation Capital
II, L.P. (“Foundation”) provided that Foundation, Foundation Capital II
Entrepreneurs Fund, LLC and Foundation Capital II Principals Fund, LLC together
hold 500,000 shares of Series B Preferred Stock.

This Section 12 may be
amended only with the written consent of idealab! Capital Partners I-B, L.P.,
Foundation and the Company.

13.      Amendment. Except
as otherwise provided herein, additional parties may be added to this
Agreement, any provision of this Agreement may be amended or the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the Holders of a majority of the Registrable Securities then outstanding
provided that any amendment treats all holders of Registrable Securities in a similar

 

18

manner. Any amendment or waiver effected in accordance
with Section 5.4 or Section 13, as applicable, shall be binding upon each
Holder of Registrable Securities at the time outstanding, each future holder of
any of such securities, and the Company.

14.      Governing Law.
This Agreement shall be governed in all respects by the internal laws of the
State of California without regard to conflict of laws provisions.

15.      Entire Agreement.
This Agreement constitutes the full and entire understanding and Agreement
among the parties regarding the matters set forth herein and supersedes all
negotiations, agreements and understandings among the parties with respect to
the subject matter hereof, including without limitation the Greenlight.com,
Inc. Second Amended and Restated Investors’ Rights Agreement dated August 14,
2000. Except as otherwise expressly provided herein, the provisions hereof
shall inure to the benefit of, and be binding upon the successors, assigns,
heirs, executors and administrators of the parties hereto.

16.      Notices, etc. All
notices and other communications required or permitted hereunder shall be in
writing and shall be mailed by registered or certified mail, postage prepaid,
or otherwise delivered by facsimile transmission, by hand or by messenger,
addressed:

(a)       if to a Holder, at such Holder’s address
as set forth on the signature page, or at such other address as such Holder
shall have furnished to the Company.

(b)       if to the Company, to:

10567 Jefferson Boulevard

Culver City, California 90232

Attn: President 

Fax: (310) 280-4335

or at such other
address as the Company shall have furnished to the Holders,

with a copy to:

Munger, Tolles & Olson LLP

355 South Grand Avenue, 35th 
Floor

Los Angeles, California 90071-1560

Attn:      Judith T. Kitano, Esq.

Brian T. Daly, Esq.

Fax: (213) 687-3702

Each such notice or other
communication shall for all purposes of this Agreement be treated as effective
or having been given when delivered if delivered personally, if sent by
facsimile, the first business day after the date of confirmation that the
facsimile has been successfully transmitted to the facsimile number for the
party notified, or, if sent by mail, at the earlier of its receipt or

 

19

72 hours after the same has been deposited in a
regularly maintained receptacle for the deposit of the United States mail,
addressed and mailed as aforesaid.

17.      Counterparts.
This Agreement may be executed in any number of counterparts, each of which
shall be an original and all of which together shall constitute one instrument.

 

20

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the date first set forth above.

 

	
  CARSDIRECT.COM, INC.

  	
   

  	
  IDEALAB! HOLDINGS, L.L.C.

  
	
  By: 

  	
  

  /s/ Robert N. Brisco

  	
   

  	
  By: 

  	
  

  
	
  Name: 

  	
  Robert N. Brisco

  	
   

  	
  Name: 

  	
   

  
	
  Title: 

  	
  Chief Executive Officer

  	
   

  	
  Title: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
  130 W. Union Street

  Pasadena, CA 91103

  

 

	
   

  	
   

  	
  IDEALAB! CAPITAL PARTNERS-I-A, L.P.

  
	
   

  	
   

  	
   

  	
  By: 

  	
  

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
  130 W. Union Street

  Pasadena, CA 91103

  

 

	
   

  	
   

  	
  IDEALAB! CAPITAL PARTNERS-I-B, L.P.

  
	
   

  	
   

  	
   

  	
  By: 

  	
  

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Address:

  	
  130 W. Union Street

  Pasadena, CA 91103

  

 

 

 

 

[Signature Page to Fifth Amended and Restated Investor
Rights Agreement]QuickLinks
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Exhibit 10.2    
    

 
 

INTERNET BRANDS, INC.    
    
    2000 STOCK PLAN    
    

        1.    Purposes of the Plan.    The purposes of this Stock Plan are to attract and retain the best available personnel
for positions of substantial responsibility, to provide additional incentive to Employees, Directors and Consultants and to promote the success of the Company's business. Options granted under the
Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights may also be granted under the Plan. 

        2.    Definitions.    As used herein, the following definitions shall apply: 

        (a)   "Administrator"
means the Board or any of its Committees as shall be administering the Plan in accordance with Section 4 hereof. 

        (b)   "Applicable
Laws" means the requirements relating to the administration of stock option plans under U.S. state corporate laws, U.S. federal and state securities laws,
the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any other country or jurisdiction where Options or Stock Purchase Rights are
granted under the Plan. 

        (c)   "Board"
means the Board of Directors of the Company. 

        (d)   "Code"
means the Internal Revenue Code of 1986, as amended. 

        (e)   "Committee"
means a committee of Directors appointed by the Board in accordance with Section 4 hereof. 

        (f)    "Common
Stock" means the Class C Common Stock of the Company. 

        (g)   "Company"
means Internet Brands, Inc., a Delaware corporation. 

        (h)   "Consultant"
means any person who is engaged by the Company or any Parent or Subsidiary to render consulting or advisory services to such entity. 

        (i)    "Director"
means a member of the Board of Directors of the Company. 

        (j)    "Disability"
means the inability of a person, in the opinion of a qualified physician acceptable to the Company, to perform the major duties of that person's position
with the Company because of the sickness or injury of that person. 

        (k)   "Employee"
means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to
be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or
any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so guaranteed, then three (3) months following the 91st day of such leave any Incentive Stock Option held by the Optionee
shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Director nor payment of a director's fee by the
Company shall be sufficient to constitute "employment" by the Company. 

        (l)    "Exchange
Act" means the Securities Exchange Act of 1934, as amended. 

 

        (m)  "Fair
Market Value" means, as of any date, the value of Common Stock determined as follows: 

          (i)  If
the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq
SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system
for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; 

         (ii)  If
the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value shall be the mean between the high
bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination; or 

        (iii)  In
the absence of an established market for the Common Stock, the Fair Market Value thereof shall be determined in good faith by the Administrator. 

        (n)   "Incentive
Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code. 

        (o)   "Nonstatutory
Stock Option" means an Option not intended to qualify as an Incentive Stock Option. 

        (p)   "Officer"
means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder. 

        (q)   "Option"
means a stock option granted pursuant to the Plan. 

        (r)   "Option
Agreement" means a written or electronic agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant. The
Option Agreement is subject to the terms and conditions of the Plan. 

        (s)   "Option
Exchange Program" means a program whereby outstanding Options are exchanged for Options with a lower exercise price. 

        (t)    "Optioned
Stock" means the Common Stock subject to an Option or a Stock Purchase Right. 

        (u)   "Optionee"
means the holder of an outstanding Option or Stock Purchase Right granted under the Plan. 

        (v)   "Parent"
means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code. 

        (w)  "Plan"
means this 2000 Stock Plan. 

        (x)   "Restricted
Stock" means shares of Common Stock acquired pursuant to a grant of a Stock Purchase Right under Section 11 below. 

        (y)   "Section 16(b)"
means Section 16(b) of the Securities Exchange Act of 1934, as amended. 

        (z)   "Service
Provider" means an Employee, Director or Consultant. 

        (aa) "Share"
means a share of the Common Stock, as adjusted in accordance with Section 12 below. 

        (bb) "Stock
Purchase Right" means a right to purchase Common Stock pursuant to Section 11 below. 

2

 

        (cc) "Subsidiary"
means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code. 

        3.    Stock Subject to the Plan.    Subject to the provisions of Section 12 of the Plan, the maximum aggregate
number of Shares which may be subject to option and sold under the Plan is [                        ] Shares. The Shares may be
authorized but unissued or reacquired Common Stock. 

        If
an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full the unpurchased Shares which were subject thereto shall become available for
future grant or sale under the Plan (unless the Plan has terminated); provided, however, that Shares that have actually been issued under the Plan,
whether upon exercise of either an Option or Stock Purchase Right, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if Shares of
Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the Plan. 

        4.    Administration of the Plan.    

        (a)    Administrator.    The Plan shall be administered by the Board or a Committee appointed by the Board, which
Committee shall be constituted to comply with Applicable Laws. 

        (b)    Powers of the Administrator.    Subject to the provisions of the Plan and, in the case of a Committee, the
specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, the Administrator shall have the authority in its discretion: 

          (i)  to
determine the Fair Market Value; 

         (ii)  to
select the Service Providers to whom Options and Stock Purchase Rights may from time to time be granted hereunder; 

        (iii)  to
determine the number of Common Stock to be covered by each Option and Stock Purchase Right granted hereunder; 

        (iv)  to
approve forms of agreement for use under the Plan; 

         (v)  to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option or Stock Purchase Right granted hereunder. Such terms and conditions
include, but are not limited to, the exercise price, the time or times when Options or Stock Purchase Rights may be exercised (which may
be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or Stock Purchase Right or the Common Stock
relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine; 

        (vi)  to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 

       (vii)  to
prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the
purpose of satisfying applicable foreign laws; 

      (viii)  to
modify or amend each Option or Stock Purchase Right (subject to Section 14(c) of the Plan), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise provided for in the Plan; 

        (ix)  to
allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option or Stock
Purchase Right that number of Shares having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the
amount of tax to be withheld is to be determined. All 

3

 

elections
by Optionees to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable; and 

         (x)  to
authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option or Stock Purchase Right previously granted by the
Administrator; 

        (xi)  to
make all other determinations deemed necessary or advisable for administering the Plan. 

        (c)    Effect of Administrator's Decision.    All decisions, determinations and interpretations of the Administrator
shall be final and binding on all Optionees. 

        5.    Eligibility.    

        (a)   Nonstatutory
Stock Options and Stock Purchase Rights may be granted to Service Providers. Incentive Stock Options may be granted only to Employees. 

        (b)   Each
Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to
the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (under all plans
of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall be
taken into account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 

        (c)   Neither
the Plan nor any Option or Stock Purchase Right shall confer upon any Optionee any right with respect to continuing the Optionee's relationship as a Service
Provider with the Company, nor shall it interfere in any way with his or her right or the Company's right to terminate such relationship at any time, with or without cause. 

        6.    Term of Plan.    The Plan shall become effective upon its adoption by the Board. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 14 of the Plan. 

        7.    Term of Option.    The term of each Option shall be stated in the Option Agreement. In the case of an Incentive
Stock Option, the term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Option Agreement. Moreover, in the case of an Incentive Stock Option granted
to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or
any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement. 

        8.    Option Exercise Price and Consideration.    

        (a)   The
per share exercise price for the Shares to be issued upon exercise of an Option shall be such price as is determined by the Administrator, but shall be subject to
the following: 

          (i)  In
the case of an Incentive Stock Option 

        (A)  granted
to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of
stock of the Company
or any Parent or Subsidiary, the exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 

        (B)  granted
to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant. 

4

 

         (ii)  In
the case of a Nonstatutory Stock Option 

        (A)  granted
to a Service Provider who, at the time of grant of such Option, owns stock representing more than ten percent (10%) of the voting power of all classes of stock
of the Company or any Parent or Subsidiary, the exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant. 

        (B)  granted
to any other Service Provider, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant. 

        (iii)  Notwithstanding
the foregoing, Options may be granted with a per Share exercise price other than as required above pursuant to a merger or other corporate transaction. 

        (b)    Waiting Period and Exercise Dates.    At the time an Option is granted, the Administrator shall fix the period
within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised. 

        (c)    Form of Consideration.    The Administrator shall determine the acceptable form for exercising an Option,
including the method of payment. In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of the grant. Such consideration may
consist entirely of: 

          (i)  cash; 

         (ii)  check; 

        (iii)  promissory
note; 

        (iv)  other
Shares, provided Shares acquired from the Company, (A) have been owned by Optionee for more than six (6) months on the date of surrender, and
(B) have a Fair Market Value on the date of surrender equal to the aggregate price of the Shares as to which said Option shall be exercised; 

         (v)  consideration
received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; 

        (vi)  a
reduction in the amount of any Company liability to the Optionee, including any liability attributable to the Optionee's participation in any Company-sponsored
deferred compensation program or arrangement; 

       (vii)  any
combination of the foregoing methods of payment; or 

      (viii)  such
other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

        9.    Exercise of Option.    

        (a)    Procedure for Exercise; Rights as a Stockholder.    Any Option granted hereunder shall be exercisable according
to the terms hereof at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. Except in the case of Options granted to Officers, Directors and
Consultants, Options shall become exercisable at a rate of no less than 20% per year over five (5) years from the date the Options are granted. Unless the Administrator provides otherwise,
vesting of Options granted hereunder shall be tolled during any unpaid leave of absence. An Option may not be exercised for a fraction of a Share. 

        An
Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to
exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised. Full payment may consist of any consideration and method of payment authorized by the
Administrator 

5

 

and
permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee, in the name of the Optionee
and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares
promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in
Section 12 of the Plan. 

        Exercise
of an Option in any manner shall result in a decrease in the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of
Shares as to which the Option is exercised. 

        (b)    Termination of Relationship as a Service Provider.    If an Optionee ceases to be a Service Provider, other
than upon the Optionee's death or Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on
the date of termination (but in no event later than the expiration of the term of the Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for three (3) months following the Optionee's termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares
covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the
Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

        (c)    Disability of Optionee.    If an Optionee ceases to be a Service Provider as a result of the Optionee's
Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination (but in no
event later than the expiration of the term of such Option as set forth in the Option Agreement). In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for
twelve (12) months following the Optionee's termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of
the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan. 

        (d)    Death of Optionee.    If an Optionee dies while a Service Provider, the Option may be exercised within such
period of time as is specified in the Option Agreement to the extent that the Option is vested on
the date of death (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement) by the Optionee's estate or by a person who acquires the right to exercise
the Option by bequest or inheritance. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time of death, the Optionee is not vested as to the entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan. If the Option
is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

        (e)    Buyout Provisions.    The Administrator may at any time offer to buy out for a payment in cash or Shares, an
Option previously granted, based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made. 

6

 

        10.    Non-Transferability of Options and Stock Purchase Rights.    The Options and Stock Purchase Rights
may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. 

        11.    Stock Purchase Rights.    

        (a)    Rights to Purchase.    Stock Purchase Rights may be issued either alone, in addition to, or in tandem with
other awards granted under the Plan and/or cash awards made outside of the Plan. After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree
in writing or electronically of the terms, conditions and restrictions related to the offer, including the number of Shares that such person shall be entitled to purchase, the price to be paid, and
the time within which such person must accept such offer. The terms of the offer shall comply in all respects with Section 260.140.42 of Title 10 of the California Code of Regulations. The
offer shall be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the Administrator. 

        (b)    Repurchase Option.    Unless the Administrator determines otherwise, the Restricted Stock purchase agreement
shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser's service with the Company for any reason (including death or disability). The
purchase price for Shares repurchased pursuant to the Restricted Stock purchase agreement shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the
purchaser to the Company. The repurchase option shall lapse at such rate as the Administrator may determine. Except with respect to Shares purchased by Officers, Directors and Consultants, the
repurchase option shall in no case lapse at a rate of less than 20% per year over five (5) years from the date of purchase. 

        (c)    Other Provisions.    The Restricted Stock purchase agreement shall contain such other terms, provisions and
conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 

        (d)    Rights as a Stockholder.    Once the Stock Purchase Right is exercised, the purchaser shall have rights
equivalent to those of a stockholder and shall be a stockholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment shall be made
for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 12 of the Plan. 

        12.    Adjustments Upon Changes in Capitalization, Merger or Asset Sale.    

        (a)    Changes in Capitalization.    Subject to any required action by the stockholders of the Company, the number of
shares of Common Stock covered by each outstanding Option or Stock Purchase Right, and the number of shares of Common Stock which have been authorized for issuance under the Plan but as to which no
Options or Stock Purchase Rights have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right, as well as the price per share of
Common Stock covered by each such outstanding Option or Stock Purchase Right, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of issued shares of Common Stock effected
without receipt of consideration by the Company. The conversion of any convertible securities of the Company shall not be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of
any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason 

7

 

thereof
shall be made with respect to, the number or price of shares of Common Stock subject to an Option or Stock Purchase Right. 

        (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the
Administrator shall notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the
right to exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be
exercisable. In addition, the Administrator may provide that any Company repurchase option applicable to any Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse as to all
such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner
contemplated. To the extent it has not been previously exercised, an Option or Stock Purchase Right will terminate immediately prior to the consummation of such proposed action. 

        (c)    Merger or Asset Sale.    In the event of a merger of the Company with or into another corporation, or the sale
of substantially all of the assets of the Company, each outstanding Option and Stock Purchase Right shall be assumed or an equivalent option or right substituted by the successor corporation or a
Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Option or Stock Purchase Right, the Administrator shall notify
the Optionee in writing or electronically that the Option or Stock Purchase Right shall be exercisable, to the extent vested, for a period of fifteen (15) days from the date of such notice, and
the Option or Stock Purchase Right shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option or Stock Purchase Right shall be considered assumed if, following
the merger or sale of assets, the option or right confers the right to purchase or receive, for each Share of Optioned Stock subject to the Option or Stock Purchase Right immediately prior to the
merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Common Stock for each Share held on the
effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however,
that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor
corporation, provide for the consideration to be received upon the exercise of the Option or Stock Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase Right, to be
solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 

        13.    Time of Granting Options and Stock Purchase Rights.    The date of grant of an Option or Stock Purchase Right
shall, for all purposes, be the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other date as is determined by the Administrator. Notice
of the determination shall be given to each Service Provider to whom an Option or Stock Purchase Right is so granted within a reasonable time after the date of such grant. 

        14.    Amendment and Termination of the Plan.    

        (a)    Amendment and Termination.    The Board may at any time amend, alter, suspend or terminate the Plan. 

        (b)    Stockholder Approval.    The Board shall obtain stockholder approval of any Plan amendment to the extent
necessary and desirable to comply with Applicable Laws. 

        (c)    Effect of Amendment or Termination.    No amendment, alteration, suspension or termination of the Plan shall
impair the rights of any Optionee, unless mutually agreed otherwise 

8

 

between
the Optionee and the Administrator, which agreement must be in writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator's ability to
exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such termination. 

        15.    Conditions Upon Issuance of Shares.    

        (a)    Legal Compliance.    Shares shall not be issued pursuant to the exercise of an Option unless the exercise of
such Option and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 

        (b)    Investment Representations.    As a condition to the exercise of an Option, the Administrator may require the
person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute
such Shares if, in the opinion of counsel for the Company, such a representation is required. 

        16.    Inability to Obtain Authority.    The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

        17.    Reservation of Shares.    The Company, during the term of this Plan, shall at all times reserve and keep
available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 

        18.    Stockholder Approval.    The Plan shall be subject to approval by the stockholders of the Company within twelve
(12) months after the date the Plan is adopted. Such stockholder approval shall be obtained in the degree and manner required under Applicable Laws. 

        19.    Information to Optionees and Purchasers.    The Company shall provide to each Optionee and to each individual
who acquires Shares pursuant to the Plan, not less frequently than annually during the period such Optionee or purchaser has one or more Options or Stock Purchase Rights outstanding,
and, in the case of an individual who acquires Shares pursuant to the Plan, during the period such individual owns such Shares, copies of annual financial statements. The Company shall not be required
to provide such statements to key employees whose duties in connection with the Company assure their access to equivalent information. 

9

 
INTERNET BRANDS, INC.  

 AMENDMENT NO. 1 TO 2000 STOCK PLAN  

        This AMENDMENT NO. 1 (this "Amendment") amends the 2000 Stock Plan of Internet Brands, Inc. (the "Stock Plan"). Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in the Stock Plan. 

        1.    Stock Subject to the Plan.    The first paragraph of Section 3 of the Stock Plan is hereby amended and
restated in its entirety as follows: 

"Stock
Subject to the Plan. Subject to the provisions of Section 12 of the Plan, the maximum aggregate number of Shares which may be subject to option and sold under the Plan is decreased to
1,000,000. The Shares may be authorized but unissued, or reacquired Common Stock." 

        2.    No Other Changes.    Except as expressly set forth above, all of the provisions of the Stock Plan shall remain
unchanged and in full force and effect. After the later of the date this Amendment is adopted by the Board and the date this Amendment is adopted by the stockholders of the Company, any reference to
the Stock Plan shall mean the Stock Plan as amended or modified hereby. 

10

 
INTERNET BRANDS, INC.  

 AMENDMENT NO. 2 TO 2000 STOCK PLAN  

        This AMENDMENT NO. 2 (this "Amendment") amends the 2000 Stock Plan of Internet Brands, Inc. (the "Stock Plan"). Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in the Stock Plan. 

        1.    Stock Subject to the Plan.    The first paragraph of Section 3 of the Stock Plan is hereby amended and
restated in its entirety as follows: 

"Stock
Subject to the Plan. Subject to the provisions of Section 12 of the Plan, the maximum aggregate number of Shares which may be subject to option and sold under the Plan is decreased to
500,000. The Shares may be authorized but unissued, or reacquired Common Stock." 

        2.    No Other Changes.    Except as expressly set forth above, all of the provisions of the Stock Plan shall remain
unchanged and in full force and effect. After the later of the date this Amendment is adopted by the Board and the date this Amendment is adopted by the stockholders of the Company, any reference to
the Stock Plan shall mean the Stock Plan as amended or modified hereby. 

11

   INTERNET BRANDS, INC.

2000 STOCK PLAN

STOCK OPTION AGREEMENT  

        Unless otherwise defined herein, the terms defined in the 2000 Stock Plan shall have the same defined meanings in this Stock Option Agreement. 

I.    NOTICE OF STOCK OPTION GRANT  

	Name:	 	«First» «Last»	 	 
	

Address:	
 	

	
 	

 
	

 	
 	

	
 	

 

        The
undersigned Optionee has been granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows: 

	Grant Number	 	«Number»
	Date of Grant	 	«Option_Date»
	Vesting Commencement Date	 	«Vest_Base Date»
	Exercise Price per Share	 	«Price»
	Total Number of Shares Granted	 	«Shares_Granted_»
	Total Exercise Price	 	«Total_Price_»
	Type of Option	 	«Option_Type»
	Term/Expiration Date	 	«Exp_Date»

 Vesting Schedule:  

        This Option shall be exercisable in whole or in part, and shall vest according to the following vesting schedule: 

        «Vest_Template»

 Termination Period: 

        This
Option shall be exercisable for three (3) months after Optionee ceases to be a Service Provider. Upon Optionee's death or Disability, this Option may be exercised for one
year after Optionee ceases to be a Service Provider. In no event may Optionee exercise this Option after the Term/Expiration Date as provided above. 

II.    AGREEMENT  

        1.    Grant of Option.    The Plan Administrator of the Company hereby grants to the Optionee named in the Notice of
Grant (the "Optionee"), an option (the "Option") to purchase the number of Shares set forth in the Notice of Grant, at the exercise price per Share set forth in the Notice of Grant (the "Exercise
Price"), and subject to the terms and conditions of the Plan, which is incorporated herein by reference. Subject to Section 14(c) of the Plan, in the event of a conflict between the terms and
conditions of the Plan and this Option Agreement, the terms and conditions of the Plan shall prevail. 

        If
designated in the Notice of Grant as an Incentive Stock Option ("ISO"), this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code.
Nevertheless, to the 

1

 

extent
that it exceeds the $100,000 rule of Code Section 422(d), this Option shall be treated as a Nonstatutory Stock Option ("NSO"). 

        2.    Exercise of Option.    

        a.    Right to Exercise.    This Option shall be exercisable during its term in accordance with the Vesting Schedule
set out in the Notice of Grant and with the applicable provisions of the Plan and this Option Agreement. 

        b.    Method of Exercise.    This Option shall be exercisable by delivery of an exercise notice in the form attached
as Exhibit A (the "Exercise Notice") which shall state the election to exercise the Option, the number of Shares with respect to which the Option is being exercised, and such other
representations and agreements as may be required by the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. This Option shall be
deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price. 

        No
Shares shall be issued pursuant to the exercise of an Option unless such issuance and such exercise complies with Applicable laws. Assuming such compliance, for income tax purposes
the Shares shall be
considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares. 

        3.    Optionee's Representations.    In the event the Shares have not been registered under the Securities Act of
1933, as amended, at the time this Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his
or her Investment Representation Statement in the form attached hereto as Exhibit B. 

        4.    Lock-Up Period.    Optionee hereby agrees that, if so requested by the Company or any representative
of the underwriters (the "Managing Underwriter") in connection with any registration of the offering of any securities of the Company under the Securities Act, Optionee shall not sell or otherwise
transfer any Shares or other securities of the Company during the 180-day period (or such other period as may be requested in writing by the Managing Underwriter and agreed to in writing
by the Company) (the "Market Standoff Period") following the effective date of a registration statement of the Company filed under the Securities Act. Such restriction shall apply only to the first
registration statement of the Company to become effective under the Securities Act that includes securities to be sold on behalf of the Company to the public in an underwritten public offering under
the Securities Act. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period. 

        5.    Method of Payment.    Payment of the aggregate Exercise Price shall be by any of the following, or a combination
thereof, at the election of the Optionee: 

        a.     cash
or check; 

        b.     consideration
received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or 

        c.     surrender
of other Shares which, (i) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six (6) months
on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares. 

        6.    Restrictions on Exercise.    This Option may not be exercised until such time as the Plan has been approved by
the shareholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any Applicable Law. 

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        7.    Non-Transferability of Option.    This Option may not be transferred in any manner otherwise than by
will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by Optionee. The terms of the Plan and this Option Agreement shall be binding upon the
executors, administrators, heirs, successors and assigns of the Optionee. 

        8.    Term of Option.    This Option may be exercised only within the term set out in the Notice of Grant, and may be
exercised during such term only in accordance with the Plan and the terms of this Option. 

        9.    Tax Consequences.    Set forth below is a brief summary as of the date of this Option of some of the federal tax
consequences of exercise of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE OPTIONEE SHOULD CONSULT A TAX
ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 

        a.    Exercise of ISO.    If this Option qualifies as an ISO, there will be no regular federal income tax liability
upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as an adjustment to the alternative
minimum tax for federal tax purposes and may subject the Optionee to the alternative minimum tax in the year of exercise. 

        b.    Exercise of Nonstatutory Stock Option.    There may be a regular federal income tax liability upon the exercise
of a Nonstatutory Stock Option. The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the
Shares on the date of exercise over the Exercise Price. If Optionee is an Employee or a former Employee, the Company will be required to withhold from Optionee's compensation or collect from Optionee
and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver
Shares if such withholding amounts are not delivered at the time of exercise. 

        c.    Disposition of Shares.    In the case of an NSO, if Shares are held for at least one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal income tax purposes. In the case of an ISO, if Shares transferred pursuant to the Option are held for at
least
one year after exercise and of at least two years after the Date of Grant, any gain realized on disposition of the Shares will also be treated as long-term capital gain for federal income
tax purposes. If Shares purchased under an ISO are disposed of within one year after exercise or two years after the Date of Grant, any gain realized on such disposition will be treated as
compensation income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (1) the Fair Market Value of the Shares on the date of
exercise, or (2) the sale price of the Shares. Any additional gain will be taxed as capital gain, short-term or long-term depending on the period that the ISO Shares
were held. 

        d.    Notice of Disqualifying Disposition of ISO Shares.    If the Option granted to Optionee herein is an ISO, and if
Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date one year
after the date of exercise, the Optionee shall immediately notify the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by the Company on
the compensation income recognized by the Optionee. 

        10.    Entire Agreement; Governing Law.    The Plan is incorporated herein by reference. The Plan and this Option
Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof, and may not be modified adversely to the 

3

 

Optionee's
interest except by means of a writing signed by the Company and Optionee. This agreement is governed by the internal substantive laws but not the choice of law rules of California. 

        11.    No Guarantee of Continued Service.    OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO
THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).
OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF
CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO TERMINATE OPTIONEE'S
RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE. 

[Signatures appear on next page.]

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        Optionee
acknowledges receipt of a copy of the Plan and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts this Option subject to all of the
terms and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the
Plan or this Option. Optionee further agrees to notify the Company upon any change in the residence address indicated below. 

	OPTIONEE	 	INTERNET BRANDS, INC.
	 	 	 
	 	 	 
	
 «First» «Last»	 	
 By
	 	 	 
	 	 	
 Title
	 	 	 
	 	 	Internet Brands, Inc.

909 N. Sepulveda Blvd., 11th Floor

El Segundo, CA 90245

5

  

 
 

EXHIBIT A
  
    2000 STOCK PLAN
  EXERCISE NOTICE    
    

Internet
Brands, Inc.

909 N. Sepulveda Blvd., 11th Floor

El Segundo, CA 90245 

Attention:
Corporate Secretary 

        1.    Exercise of Option.    Effective as of today,
                        ,    , the undersigned ("Optionee")
hereby elects to exercise Optionee's option to purchase                        shares of the Common Stock (the "Shares") of
Internet Brands, Inc. (the "Company") under and pursuant to the 2000 Stock
Plan (the "Plan") and the Stock Option Agreement dated «Option            Date» (the "Option Agreement"). 

        2.    Delivery of Payment.    Purchaser herewith delivers to the Company the full purchase price of the Shares, as set
forth in the Option Agreement. 

        3.    Representations of Optionee.    Optionee acknowledges that Optionee has received, read and understood the Plan
and the Option Agreement and agrees to abide by and be bound by their terms and conditions. 

        4.    Rights as Shareholder.    Until the issuance of the Shares (as evidenced by the appropriate entry on the books
of the Company or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Shares shall be issued to the Optionee as soon as
practicable after the Option is exercised. No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in Section 12
of the Plan. 

        5.    Company's Right of First Refusal.    Before any Shares held by Optionee or any transferee (either being
sometimes referred to herein as the "Holder") may be sold or otherwise transferred (including transfer by gift or operation of law), the Company or its assignee(s) shall have a right of first refusal
to purchase the Shares on the terms and conditions set forth in this Section (the "Right of First Refusal"). 

        a.    Notice of Proposed Transfer.    The Holder of the Shares shall deliver to the Company a written notice (the
"Notice") stating: (i) the Holder's bona fide intention to sell or otherwise transfer such Shares; (ii) the name of each proposed purchaser or other transferee ("Proposed Transferee");
(iii) the number of Shares to be transferred to each Proposed Transferee; and (iv) the bona fide cash price or other consideration for which the Holder proposes to transfer the Shares
(the "Offered Price"), and the Holder shall offer the Shares at the Offered Price to the Company or its assignee(s). 

        b.    Exercise of Right of First Refusal.    At any time within thirty (30) days after receipt of the Notice,
the Company and/or its assignee(s) may, by giving written notice to the Holder, elect to purchase all, but not less than all, of the Shares proposed to be transferred to any one or more of the
Proposed Transferees, at the purchase price determined in accordance with subsection (c) below. 

        c.    Purchase Price.    The purchase price ("Purchase Price") for the Shares purchased by the Company or its
assignee(s) under this Section shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be
determined by the Board of Directors of the Company in good faith. 

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        d.    Payment.    Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in
cash (by check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination
thereof within 30 days after receipt of the Notice or in the manner and at the times set forth in the Notice. 

        e.    Holder's Right to Transfer.    If all of the Shares proposed in the Notice to be transferred to a given Proposed
Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section, then the Holder may sell or otherwise transfer such Shares to that Proposed Transferee at the
Offered Price or at a higher price, provided that such sale or other transfer is consummated within 120 days after the date of the Notice, that any such sale or other transfer is effected in
accordance with any applicable securities laws and that the Proposed Transferee agrees in writing that the provisions of this Section shall continue to apply to the Shares in the hands of such
Proposed Transferee. If the Shares described in the Notice are not transferred to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its
assignees shall again be offered the Right of First Refusal before any Shares held by the Holder may be sold or otherwise transferred. 

        f.    Exception for Certain Family Transfers.    Anything to the contrary contained in this Section notwithstanding,
the transfer of any or all of the Shares during the Optionee's lifetime or on the Optionee's death by will or intestacy to the Optionee's immediate family or a trust for the benefit of the Optionee's
immediate family shall be exempt from the provisions of this Section. "Immediate Family" as used herein shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister. In such
case, the transferee or other recipient shall receive and hold the Shares so transferred subject to the provisions of this Section, and there shall be no further transfer of such Shares except in
accordance with the terms of this Section. 

        g.    Termination of Right of First Refusal.    The Right of First Refusal shall terminate as to any Shares upon the
first sale of Common Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities
Act of 1933, as amended. 

        6.    Tax Consultation.    Optionee understands that Optionee may suffer adverse tax consequences as a result of
Optionee's purchase or disposition of the Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of
the Shares and that Optionee is not relying on the Company for any tax advice. 

        7.    Restrictive Legends and Stop-Transfer Orders.    

        a.    Legends.    Optionee understands and agrees that the Company shall cause the legends set forth below or legends
substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal
securities laws: 

        THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COMPANY COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE
THEREWITH. 

        THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE
NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH 

2

 

MAY
BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 

        SECURITIES
LEGISLATION IN THE PROVINCE OF ONTARIO IMPOSES CERTAIN RESTRICTIONS ON THE ABILITY TO TRADE THE COMMON SHARES OBTAINABLE ON THE EXERCISE OF THIS OPTION. IT IS THE
RESPONSIBILITY OF THE HOLDER OF THIS CERTIFICATE TO ENSURE THAT ALL SALES AND OTHER DISPOSTITIONS OF SUCH COMMON SHARES ARE CONDUCTED IN ACCORDANCE WITH ALL APPLICABLE LAWS. 

        b.    Stop-Transfer Notices.    Optionee agrees that, in order to ensure compliance with the restrictions
referred to herein, the Company may issue appropriate "stop transfer" instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records. 

        c.    Refusal to Transfer.    The Company shall not be required (i) to transfer on its books any Shares that
have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so transferred. 

        8.    Successors and Assigns.    The Company may assign any of its rights under this Agreement to single or multiple
assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon
Optionee and his or her heirs, executors, administrators, successors and assigns. 

        9.    Interpretation.    Any dispute regarding the interpretation of this Agreement shall be submitted by Optionee or
by the Company forthwith to the Administrator which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final and binding on all
parties. 

        10.    Governing Law; Severability.    This Agreement is governed by the internal substantive laws but not the choice
of law rules, of California. 

        11.    Entire Agreement.    The Plan and Option Agreement are incorporated herein by reference. This Agreement, the
Plan, the Option Agreement and the Investment Representation Statement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all
prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee's interest except by means of a writing
signed by the Company and Optionee. 

[Signatures appear on next page.]

3

 

	Submitted by:	 	Accepted by:
	 	 	 
	OPTIONEE:	 	INTERNET BRANDS, INC.
	 	 	 
	 	 	 
	
 «First» «Last»	 	
 By
	 	 	 
	 	 	
 Title
	 	 	 
	 	 	Address:
	 	 	 
	 	 	909 N. Sepulveda Blvd., 11th Floor

El Segundo, CA 90245
	 	 	 
	 	 	 
	 	 	
 Date Received

4

  

 
 

EXHIBIT B
  
    INVESTMENT REPRESENTATION STATEMENT    
    

	OPTIONEE:	«First» «Last»	 	 
	 	 	 	 
	COMPANY:	INTERNET BRANDS, INC.
	 	 	 	 
	SECURITY:	COMMON STOCK	 	 
	 	 	 	 
	AMOUNT:	                        shares	 	 
	 	 	 	 
	DATE:	 	 	 

        In
connection with the purchase of the above-listed Securities, the undersigned Optionee represents to the Company the following: 

        a.     Optionee
is aware of the Company's business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire
the Securities. Optionee is acquiring these Securities for investment for Optionee's own account only and not with a view to, or for resale in connection with, any "distribution" thereof within the
meaning of the Securities Act of 1933, as amended (the "Securities Act"). 

        b.     Optionee
acknowledges and understands that the Securities constitute "restricted securities" under the Securities Act and have not been registered under the Securities
Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Optionee's investment intent as expressed herein. In this connection,
Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee's representation was predicated solely upon a
present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the future. Optionee further understands that the Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available. Optionee further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee
understands that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless they are registered or such registration is not
required in the opinion of counsel satisfactory to the Company, a legend prohibiting their transfer without the consent of the Commissioner of Corporations of the State of California and any other
legend required under applicable state securities laws. 

        c.     Optionee
is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public
resale of "restricted securities" acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701
provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act. In the event
the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer period as any market
stand-off agreement may require) the Securities exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144,
including: (1) the resale being made through a broker in an unsolicited "broker's transaction" or in transactions directly with a market maker (as said term is defined under the 

1

 

Securities
Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Securities being sold during
any three month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable. 

        d.     In
the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one year after the later of the date the Securities were sold by the Company or the date
the Securities were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Securities by an affiliate, or by a
non-affiliate who subsequently holds the Securities less than two years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph
immediately above. 

        e.     Optionee
further understands that in the event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act,
compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rules 144 and 701 are not exclusive, the Staff of the
Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective
brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances can be given that any such other registration exemption will be available in such event. 

	 	 	Signature of Optionee:
	 	 	 	 
	 	 	 	 
	 	 	
 «First» «Last»
	 	 	 	 
	 	 	Date:	 

2

QuickLinks

Exhibit 10.2

INTERNET BRANDS, INC. 2000 STOCK PLAN

EXHIBIT A 2000 STOCK PLAN EXERCISE NOTICE

EXHIBIT B INVESTMENT REPRESENTATION STATEMENT

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