Document:

Brian Cowley Offer Letter

  Exhibit 10.28
 May 30, 2002
 Mr. Brian Cowley
 [address]

 Dear Brian:
 I am pleased to offer you a fulltime, regular position with LookSmart, Ltd. (the “Company”).  You have an outstanding
skill set which I believe will enable you to play an important role in the success of the Company.  This letter confirms our offer and sets out the specified details of employment.  Other terms required to be observed by law also
apply.
 Your position will be Senior Vice President, Business Development.  In this position you will be reporting directly to me.  The key functional areas that you will be responsible to
lead include:

	  
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 	 Developing new distribution partnerships for the Company
 
	  
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 	 Managing and growing existing distribution partnerships
 
	  
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 	 Leading the Business Development Team
 

 Your start date will be June 5, 2002.  This offer is contingent upon
the satisfactory results of our background check.
 Your compensation on joining will be US$225,000 per annum.  In addition, your incentive compensation at 100% of “plan” will be
$125,000.  Earned incentive compensation will be paid on a semi-annual basis, based on your achievement of approved semi-annual performance targets that are mutually developed by the two of us.  These targets will include measures of total
number of paid clicks, paid clicks/url, and average distribution cost as a percentage of revenue.
 Upon employment, you will also be eligible to enroll in the Company’s benefits package.  If
you enroll, the effective date of your coverage will be your date of hire.  In addition, upon employment you will be eligible to participate in the Company’s 401(k) Plan.  In the current Plan, the Company will match your contribution
dollar for dollar up to 5%.  You are also eligible to enroll in the Company’s Employee Stock Purchase Plan, which allows employees to purchase Company stock at a discount.  You should note that the Company may modify salaries and
benefits from time to time, as it deems necessary.
 As an employee of the US Company, you are entitled to vacation, holiday, sick and funeral leave.  Current policy consists of ten (10) days per
annum vacation leave, twelve (12) holidays,
 
 

  two (2) floating holidays, eight (8) days per annum sick leave (additional leave at discretion of manager) and two (2) days funeral leave.
 Stock Options
 At the first LookSmart Board of Directors’ meeting following your date of hire, we will recommend that you be granted 750,000 stock options (the
“Option Shares”).  The exercise price for your Option Shares will be the closing price of LookSmart, Ltd. stock as quoted on the NASDAQ exchange on the day prior to the Board of Directors’ approval of your grant.  The Option
Shares will vest over a period of three years, with 250,000 options vesting upon the one-year anniversary of your employment and 20,833 options vesting each month thereafter until all remaining Option Shares are vested.  Such Option Shares will
be subject to terms and conditions of the Company’s Stock Option Plan and Stock Option Agreements, such Agreements to be consistent with the terms outlined in this letter.  I am happy to provide you with a copy of the Plan. 

 Termination; At-Will Employment
 You should be aware that your employment with the Company is for no specified period and constitutes at-will
employment.  As a result you are free to resign at any time for any reason or no reason, similarly the Company is free to terminate its employment relationship with you at any time, with or without cause, and with or without notice.

Severance
 If you are terminated without “cause” or voluntarily resign for “good reason” (as defined below), the Company will provide
you with a severance package consisting of: (a) 3/12ths of your then current annual base salary and incentive compensation at 100% of “plan”, payable in one lump sum within five (5) business days of the termination, and (b) up to ninety
(90) days of continued benefits coverage from the date of the termination.
 Solely for the purpose of this severance provision, the following shall constitute “cause”:  That is, if
you

	  
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 	 are convicted of, or plead nolo contendere to, any felony or other offense involving moral turpitude or any crime related to your employment, or commit any act of personal dishonesty
resulting in personal enrichment in respect of your relationship with the Company or any subsidiary or affiliate or otherwise detrimental to the Company in any material respect;
 
	  
 	 •
 	 fail to perform your duties to the Company in good faith and to the best of your ability;
 
	  
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 	 willfully disregard, or fail to follow instructions from the Company’s senior management to do any legal act related to the Company’s business after notice to you and 10
days’ opportunity to cure such conduct;
 
	  
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 	 exhibit habitual drunkenness or engage in substance abuse which in any way materially affects your ability to perform your duties and obligations to the Company;
 

 2
 
 

	  
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 	 commit any material violation of any state or federal law relating to the workplace environment; or
 
	  
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 	 terminate or lose, through no fault or derogation of duty on the part of the Company, of your employment authorization from the U.S. Immigration and Naturalization Service or the
U.S. Department of State reflecting a right to work in the United States.
 

 Solely for the purposes of this paragraph regarding severance and the paragraph regarding accelerated
vesting below, the following shall constitute “good reason”:  That is, if you voluntarily cease employment with the Company due to (i) a significant change or reduction in your job duties or a significant reduction in your cash
compensation, or (ii) a change in your job location of more than 50 miles from its previous location in connection with a Change in Control.
 Accelerated Vesting 
 Solely for the purpose of this paragraph regarding accelerated vesting, “Change of Control” shall mean 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 consolidation or merger pursuant to which the then current stockholders of the Company shall hold less than Fifty Percent (50%) of the voting power of the surviving corporation; provided, however, that a reincorporation of the
Company in another jurisdiction shall not constitute a “Change of Control.”
 If within your first 12 months of employment (1) there is a “Change of Control” event and (2) you are
terminated “without cause” by the surviving corporation, or (3) you voluntarily resign for “good reason” (as defined above), then 1/36th of the Option Shares multiplied by the number of complete months you have been
employed by the Company, plus an additional 12/36ths of the Option Shares shall vest and become immediately exercisable.
 If after your first 12 months of employment (1) there is a “Change of
Control” event and (2) you are terminated “without cause” by the surviving corporation, or (3) you voluntarily resign for “good reason” (as defined above), then 12/36ths of the Option Shares shall vest and become immediately
exercisable, except that if there are fewer than 12/36ths of the Option Shares unvested, then all remaining unvested Option Shares shall vest and become immediately exercisable. 
 In addition, if (1)
there is a “Change of Control” event and (2) you are terminated “without cause” by the surviving corporation, or (3) you voluntarily resign for “good reason” (as defined above), then the time during which you may
exercise your Option Shares will be extended to one year.
 3
 
 

  Confidential Information
 Given the high value of information in this market, it is essential that during your employment
and at any time thereafter, you do not disclose any confidential information relating to the Company’s operations except as may be necessary for the proper performance of your duties.  By signing this letter, you also agree to sign a
separate Employment, Confidential Information and Arbitration Agreement.
 Other
 The Company, at its own expense, agrees to defend you and hold
you harmless against any action brought against you or the Company relating to your employment with the Company, to the same extent as the Company has agreed to indemnify its other officers.
 This
offer of employment is contingent upon presenting, in accordance with the immigration Reform and Control Act of 1986, verification of your identity and your legal right to work in the United States.  In the event you do not possess, or are
unable to obtain authorization to accept employment in the U.S., our offer of employment is withdrawn.
 It is important that you bring the appropriate documentation for verification with you on your
first day of employment, as you cannot be put on the LookSmart payroll until it is received. The required documentation is described in the enclosed package.
 You are required to observe at all times
all LookSmart policies and procedures (including, but not limited to, those provided to you before your starting date).  In accordance with LookSmart’s philosophy, these policies and procedures are formulated for the efficient and fair
administration of employment matters and may be varied from time to time.
 In the event of any dispute or claim relating to or arising out of our employment relationship, you and the Company agree
that all such disputes, including but not limited to, claims of harassment, discrimination and wrongful termination, shall be settled by arbitration held in San Francisco County, California, under the Arbitration Rules set forth in California Code
of Civil Procedure Section 1280, et seq., including section 1283.05, (the “Rules”) and pursuant to California law.  A copy of the Rules is available for your review prior to signing this Agreement.
 We look forward to you joining us, not just for your outstanding qualifications for this particular position, but because we hope that you may become part of a core team driving LookSmart’s development.

4
 
 

  In order to make this a valid agreement, we ask that you complete the following acknowledgment, initial each page of this letter and fax it to me at (415) 348-7034.  Please
send the original signed letter to me at your convenience or bring it on your first day of employment.  If you require clarification of any matter, please feel free to contact me.
 Sincerely,

	 /s/ JASON KELLERMAN
 	  
 	  
 
	 
 	 	 
	 Jason Kellerman
 Chief Operating Officer
 	 	 
	  
 	 	 
	 Accepted and agreed to by:
 	 /s/ BRIAN COWLEY
 	 	 Date: _____________
 
	 	 
 	 
	 	 Brian Cowley
 	 	 
					

 5Jason Kellerman Offer Letter

  Exhibit 10.29
 September 24, 2002
 Mr. Jason Kellerman

c/o LookSmart, Ltd.
 625 Second Street
 San Francisco, CA  94107
 Dear Jason:
           I am pleased to offer you a new position with LookSmart, Ltd. (the “Company”).  This letter confirms our offer and sets out the specified details of
employment.  Other terms required to be observed by law also apply.
           Your position will be Chief Executive Officer.  In this
position you will be reporting directly to the board of directors of the Company (the “Board”), and will have such duties as the Board reasonably may from time to time prescribe consistent with your position as Chief Executive
Officer.  
           Your start date in this new position will be October 1, 2002 (the “Commencement Date”).  As of the
Commencement Date, you will relinquish your title as Chief Operating Officer of the Company. 
           Your base compensation as of the Commencement
Date will be US$300,000 per annum, which will be subject to applicable tax and other withholdings and paid in accordance with Company payroll practices.  Your base compensation will be reviewed at least annually.  In addition, your
incentive compensation at 100% of “plan” will be $150,000; for partial performance against plan and for performance in excess of plan, the incentive compensation will be scaled pursuant to such formula as the Compensation Committee of the
Board may establish from time to time.  Earned incentive compensation will be paid on a semi-annual basis (April 1 and October 1), based on your achievement of approved semi-annual performance targets that are mutually developed by the two of
us, and reviewed and approved by the Compensation Committee.  
           In your new position, you will continue to be eligible to participate
in the Company’s benefits package.  The effective date of your coverage will be your original date of hire.  In addition, you will continue to be eligible to participate in the Company’s 401(k) Plan.  In the current Plan,
the Company will match your contribution dollar for dollar up to 5%.  You will also continue to be eligible to participate in the Company’s Employee Stock Purchase Plan, which allows employees to purchase Company stock at a discount. 
You should note that the Company may modify salaries and benefits from time to time, as it deems necessary.
           As an employee of the Company,
you are entitled to vacation, holiday, sick and funeral leave.  Current policy consists of fifteen (15) days per annum vacation leave, twelve (12) holidays, two (2) floating holidays, eight (8) days per annum sick leave (additional leave at the
Board’s discretion) and two (2) days funeral leave.
 
 

  Mr. Jason Kellerman
 September 24, 2002
 Page 2
 Stock Options
           As described herein, you will also receive additional nonqualified stock options for 3,500,000 shares of the Company’s common stock (the “Option
Shares”).  The Option Shares will be granted to you in three installments as follows:  (1) 1,500,000 shares on or about October 1, 2002; (2) 1,500,000 shares at the first meeting of the Compensation Committee in 2003 to be held not
later than January 22, 2003; and (3) 500,000 shares at the first meeting of the Compensation Committee in 2004.  The exercise price for your Option Shares will be the closing price of the Company’s common stock as quoted on the Nasdaq
National Market on the trading day prior to the approval of your grant.  The first installment of the Option Shares will vest over a period of five years, 1/60th per month, commencing on the Commencement Date (the “Vesting Commencement
Date”).  The vesting of the second and third installments will be over a period of five years, 1/60th per month, and will be adjusted to begin as of the Vesting Commencement Date.  Such Option Shares will be subject to the
terms and conditions of the Company’s Stock Option Plan and the applicable Stock Option Agreement, such agreement to be consistent with the terms outlined in this letter.  If any of the Option Shares are not granted for any reason as
described above, the vesting of the Option Shares that have been granted will be adjusted so that the number of issued, vested options will reflect the number of vested options that would have existed had the option grants been made as described
above.  To the extent vesting is so adjusted, such adjustment will offset on a share for share basis the Company’s obligation to issue new options.  
 At-Will
Employment
           You should be aware that your employment with the Company is for no specified period and constitutes “at-will”
employment.  As a result, you are free to resign at any time for any reason or no reason; similarly the Company is free to terminate its employment relationship with you at any time, with or without cause, and with or without notice.

Severance
           If you are terminated without “cause” or voluntarily resign for
“good reason” (each as defined below), the Company will provide you with a severance package consisting of: (a) 100% of your then current annual base salary, and one hundred percent (100%) of your annual incentive compensation at plan,
payable in one lump sum within five (5) business days after the date of termination, (b) 700,000 of the unvested Option Shares held by you on the date of termination shall vest and become immediately exercisable, such vesting to occur from the
unvested Option Shares granted to you on or about October 1, 2002, and any remainder from the successive grants of the Option Shares, vesting the earliest grants first, and (c) one (1) year of continued benefits coverage from the date of
termination; provided however, that such benefits coverage will terminate in less than one year if during such time you accept other employment that provides benefits.  In addition, if you are terminated without “cause” or voluntarily
resign for “good reason”, then the time during which you may exercise your Option Shares will be extended to a date which is twenty-four (24) months following the date of such termination.
           Solely for purposes of the severance provisions herein, and the provisions regarding accelerated vesting below, “cause” shall mean that you:

 

  Mr. Jason Kellerman
 September 24, 2002
 Page 3

	  
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 	 are convicted of, or plead nolo contendere to, any felony or other offense involving moral turpitude or any crime related to your employment, or commit any willful and knowing act of
personal dishonesty resulting in personal enrichment from your relationship with the Company or any subsidiary or affiliate or which is otherwise detrimental to the Company in any material respect;
 
	  
 	  
 	  
 
	  
 	 •
 	 fail to perform your duties to the Company in good faith and to the best of your ability after notice to you and 30 days’ opportunity to cure such failure;
 
	  
 	  
 	  
 
	  
 	 •
 	 willfully disregard or fail to follow reasonable instructions or material duties assigned from the Board to do any legal act related to the Company’s business after notice to
you and 10 days’ opportunity to cure such conduct;
 
	  
 	  
 	  
 
	  
 	 •
 	 exhibit habitual drunkenness or engage in substance abuse which in any way materially affects your ability to perform your duties and obligations to the Company; or
 
	  
 	  
 	  
 
	  
 	 •
 	 commit any material violation of any state or federal law relating to the workplace environment.
 

           Solely for purposes of the severance provisions herein, and the provisions regarding accelerated vesting below, “good reason” shall mean that you
voluntarily cease employment with the Company due to (i) a significant change or reduction in your job duties, responsibilities or authority or a reduction in your base cash compensation or bonus opportunity of more than 10%, or (ii) a change in
your job location of more than 50 miles from its location as of the date hereof (or such subsequent location as you approve in writing) in connection with a Change in Control (as defined below). 
 Accelerated Vesting 
           As used in this agreement, “Change of Control” shall mean 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 consolidation, merger, tender offer or new issuance of shares (other than pursuant to an employee stock option plan or any other employee
benefit plan) pursuant to which the then current stockholders of the Company shall hold less than fifty percent (50%) of the voting power of the surviving corporation; provided, however, that a reincorporation of the Company in another jurisdiction
shall not constitute a “Change of Control.”
           If, during the term of your employment there occurs a Change of Control, then, on the
effective date of such Change of Control, 1,750,000 (including all of the unvested Option Shares granted to you on or about October 1, 2002, and the remainder from the successive grants of the Option Shares, vesting the earliest grants first) of the
unvested Option Shares (and fifty percent (50%) of other stock option awards granted to you unless such award indicates otherwise) held by you on the date of such Change of Control shall vest and become immediately exercisable.  If there is a
Change of Control and you voluntarily resign without “good reason”, then the time during which you may exercise your Option Shares will be extended to a date which is twelve (12) months following the date of such resignation.  If
following such Change of Control (1) you are terminated without “cause” by the surviving corporation, or (2) you voluntarily resign for
 
 

  Mr. Jason Kellerman
 September 24, 2002
 Page 4
 “good reason” (the occurrence of either (1) or (2) following a
Change of Control, a “Double Trigger Event”), then all of your remaining unvested Option Shares shall vest and become immediately exercisable.  If your employment is terminated without “cause” within forty-five (45) days
before a Change of Control, then on the effective date of such Change of Control it will be deemed to constitute a Double Trigger Event.
           In
addition, if there is a Double Trigger Event, then the time during which you may exercise your Option Shares will be extended to a date which is twenty-four (24) months following the date of such Double Trigger Event.
           If a Change of Control occurs before all of the Option Shares have been granted, the surviving corporation (or purchaser of substantially all of the assets of the
Company) will grant the remainder of the Option Shares immediately, and will adjust the vesting of such Option Shares consistent with this letter.  The number of Option Shares to be granted hereunder by the surviving corporation will be
adjusted consistent with the consideration paid to holders of the Company’s common shares by the acquiring entity.
 Confidential Information
           Given the high value of information in this market, it is essential that during your employment and at any time thereafter you do not disclose any confidential
information relating to the Company’s operations except as may be necessary for the proper performance of your duties.  By signing this letter, you confirm that the Employment, Confidential Information and Arbitration Agreement between you
and the Company remains in full force and effect. 
 Other
           The Company, at its own
expense, agrees to defend you and hold you harmless against any action brought against you or the Company relating to your employment with the Company, pursuant to the terms of that certain Indemnification Agreement between you and the Company,
which agreement remains in full force and effect.
           You are required to observe at all times all LookSmart policies and procedures
(including, but not limited to, those provided to you before your starting date).  In accordance with LookSmart’s philosophy, these policies and procedures are formulated for the efficient and fair administration of employment matters and
may be varied from time to time.
           Except as otherwise expressly stated herein, this agreement supercedes any prior agreement (whether
written or oral) between you and the Company related to your employment, although it will not supercede the Company’s obligation to provide you with (i) a housing allowance of up to US$2800 per month through December 31, 2002; (ii) relocation
benefits from Sydney, Australia to San Francisco, California consistent with the Company’s relocation guidelines; and (iii) reimbursement for the preparation of your United States and Australian tax returns for the tax year 2001 and tax
equalization for such year.
           In the event of any dispute or claim relating to or arising out of our employment relationship, you and the
Company agree that all such disputes, including but not limited to, claims of harassment, discrimination and wrongful termination, shall be settled by arbitration in
 
 

  Mr. Jason Kellerman
 September 24, 2002
 Page 5
 accordance with the terms of the separate Employment, Confidential
Information and Arbitration Agreement between you and the Company, which agreement remains in full force and effect.
           Thank you for agreeing
to take on this critical role for the Company.
           In order to make this a valid agreement, we ask that you complete the following
acknowledgment, initial each page of this letter and return it to me.  If you require clarification of any matter, please feel free to contact me. 
 Sincerely,

	 /s/ EVAN THORNLEY
 	 	 	 	 	 
	 
 	 	 	 	 	 
	 Evan Thornley
 Chairman of the Board
 	 	 	 	 	 
	  
 	  
 	  
 	  
 	  
 	  
 
	 Accepted and agreed to by:
 	 /s/ JASON KELLERMAN
 	 	 Date: ___________
 
	 	 
 	 	 	 	 
	 	 Jason Kellerman

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