Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.20    
    

CONFIDENTIAL  

May 7,
2005 

Perry
Evans

Chief Executive Officer

Aptas, Inc.

1517 Blake Street

Second Floor

Denver, CO 80202 

Dear
Perry: 

        This
letter will confirm our understanding that SG Cowen & Co., LLC ("SG Cowen") has been engaged to act as exclusive placement agent to Aptas, Inc. (the "Company") in
connection with a proposed private placement (the "Placement") to institutional "accredited investors" as such term is defined in Regulation D under the Securities Act of 1933, as amended (the
"1933 Act"), of the Company's securities (the "Securities"). 

1.     Placement Agent Services

        As
may be requested by the Company, in its capacity as placement agent, SG Cowen will perform the following financial advisory and investment banking services as it may deem necessary
and appropriate in connection with the Placement: 

	a.
	review
the business and operations of the Company and its historical and projected financial condition;

	b.
	assist
the Company in the drafting, preparation and distribution of an offering memorandum (the "Memorandum") and other related documentation (together with the Memorandum, the
"Offering Materials") describing the Company, the Securities and the terms of the Placement;

	c.
	assist
the Company in identifying and contacting prospective purchasers of the Securities;

	d.
	advise
the Company as to the strategy and tactics of negotiations with prospective purchasers of the Securities and, participate in such negotiations;

	e.
	advise
the Company as to the timing and structure of the Placement; and

	f.
	render
such other financial advisory and investment banking services as may from time to time be agreed upon by SG Cowen and the Company. 

        It
is expressly understood and acknowledged that SG Cowen's engagement does not constitute any commitment, express or implied, on the part of SG Cowen or of any of its affiliates to
purchase or place the Securities or to provide any type of financing and that the Placement will be a "best efforts placement" made by SG Cowen on a reasonable efforts basis. It is further understood
that SG Cowen's services hereunder shall be subject to, among other things, satisfactory completion of due diligence by SG Cowen, market conditions, the absence of adverse changes to the Company's
business or financial condition, approval of SG Cowen's internal committee and any other conditions that SG Cowen may deem appropriate for placements of such nature. It is expressly understood and
agreed that SG Cowen is not undertaking to provide any advice relating to legal, regulatory, accounting or tax matters. In furtherance thereof, the Company acknowledges and agrees that (a) it
and its affiliates have relied and will continue to rely on the advice of its own legal, tax and accounting advisors for all matters relating to the Placement, and all other matters and
(b) neither it, nor any of its affiliates, has received, or has relied upon, the advice of SG Cowen or any of its affiliates regarding matters of law, taxation or accounting. 

 

        This
Agreement does not constitute an agreement or commitment (express or implied) on the part of the Company to enter into or consummate any transaction or financing, and nothing in
this Agreement shall prevent the Company from abandoning or otherwise electing not to proceed with any transaction or financing. The Company shall have final authority to make all decisions with
respect to any transaction, financing or investor including the right to determine whether to proceed with such transaction or financing. This Agreement does not create any agency relationship between
the Company and SG Cowen, and SG Cowen accordingly has no power to enter into any agreement or incur any obligation on behalf of the Company. 

2.     Term

        SG
Cowen's engagement shall terminate upon the earlier of (i) the closing of the Placement (ii) twelve (12) months from the date of this Agreement, or
(iii) at any time on 10 days' prior written notice by either party, unless extended in writing by SG Cowen and the Company. A "Residual Period" shall extend as follows: (i) for
any investor initially contacted by SG Cowen on behalf of the Company, or any affiliate thereof (a "Cowen Investor"), the Residual Period will extend until the earlier of (A) the date on which
SG Cowen has received payment of a Placement Fee based on at least $20 million of gross proceeds of Securities sold in all placements to date (B) 12 months from the date of
termination or expiration of this Agreement; or (C) the date on which the Company files a registration statement with the Securities and Exchange Commission for an initial public offering
naming SG Cowen as an underwriter; and (ii) for any other investor other than Cowen Investors or Identified Investors (as
defined below), the Residual Period will extend until the earlier of (A) the date on which SG Cowen has received payment of a Placement Fee based on at least $20 million of gross
proceeds of Securities sold in all placements to date or (B) 180 days from the date of termination or expiration of this Agreement. There shall be no Residual Period for Identified
Investors. 

3.     Fees

        The
Company agrees to pay SG Cowen as compensation for its services under this engagement the following fees: 

	a.
	Retainer Fee. A non-refundable Retainer Fee of U.S. $75,000 shall be payable in cash upon execution
of this Agreement. The Retainer Fee shall be credited against the cash portion of the first Placement Fee payable under this Agreement.

	b.
	Placement Fee. A Placement Fee payable at each closing of a Placement equal to (i) cash in an amount equal to 6% of the gross
proceeds of the Securities sold in the Placement and (ii) warrants to purchase 2% of the Securities sold in the Placement. Such warrants shall have a five year term, an exercise price equal to
the price per share of the Securities sold in the Placement, cashless exercise provisions, customary anti-dilution provisions and the same other terms, conditions, rights and preferences
as the Securities sold in the Placement. A Placement shall be consummated at the closing thereof for the purpose of determining when the Placement Fee is payable.

	

	Notwithstanding
the foregoing, if the Company undertakes an initial public offering of its Common Stock (the "IPO") after the completion of the Placement
and the NASD, Inc. (the "NASD") determines (i) all or a portion of the items of compensation set forth in this Section 3, or as a result of purchases described in
Section 12 below, are deemed to be "Underwriting Compensation" in accordance with NASD Rule 2710(c)(1), SG Cowen agrees to take any action required by the NASD to adjust or reduce the
value of the compensation it received in connection with the Placement (including "locking up" shares or securities held by it) to an amount which, when aggregated with the compensation to be paid by
the Company to the underwriters in the IPO (as negotiated in the sole discretion of the Company and such 

2

 

underwriters),
is less than or equal to the maximum Underwriting Compensation otherwise allowable pursuant to NASD Rule 2710(c)(1). 

	

	Notwithstanding
the foregoing, for the first $10 million of gross proceeds sold in the Placement to investors identified in Schedule II or any
affiliate thereof ("Identified Investors"), a placement fee shall be payable at each closing of a Placement equal to (i) cash in an amount equal to 3% of the gross proceeds of the Securities
sold in the Placement to the Identified Investors and (ii) warrants to purchase 1.5% of the Securities sold in the Placement to the Identified Investors.

	

	The
Company shall also pay SG Cowen a Placement Fee, if Securities are sold by the Company through a private placement during the Residual Period in
accordance with the provisions of section 2 hereof.

	

	A
Placement may be consummated in one or a series of closings. The Company acknowledges that at each closing of the Placement, simultaneously with the
receipt by the Company of the gross proceeds of the Securities sold in the Placement at such closing, the Company shall, or at its option, shall cause the investors purchasing the Securities to, wire
to SG Cowen (pursuant to wire transfer instructions to be given by SG Cowen) the cash portion of the Placement Fee (calculated on the gross proceeds received at such closing) and any outstanding
out-of-pocket expenses as set forth in paragraph 4 (to the extent such expenses have been invoiced prior to the closing); it being understood that if the investors have
placed the gross proceeds to be received by the Company in an escrow account, the Company shall cause to be wired to SG Cowen its fees and expenses simultaneously with the release of funds to the
Company. In addition, the Company shall at each closing of the Placement, simultaneously with the delivery of the Securities to the investors in the Placement, deliver the warrant portion of the
Placement Fee to SG Cowen (calculated on the gross proceeds received at such closing). 

4.     Out-of-Pocket Expenses

        The
Company shall, upon request and from time to time, reimburse SG Cowen for travel and all other reasonable out-of-pocket expenses (including the reasonable
fees and disbursements of SG Cowen's counsel, if any) incurred in connection with the engagement; provided that in no event shall such out-of-pocket expenses (including the
reasonable fees and disbursements of SG Cowen's counsel, if any) exceed $35,000 without the Company's prior written consent, such consent not to be unreasonably withheld. Further, the Company agrees
to reimburse SG Cowen for reasonable, documented out-of-pocket travel and related living expenses of up to an additional $10,000 (in addition to the $35,000 set forth above)
if, in the course of this engagement, SG Cowen is required to undertake travel and living expenses in excess of $20,000. 

5.     Information

        The
Company acknowledges that SG Cowen will be using information provided by others, including, without limitation, information provided by or on behalf of the Company, and that SG Cowen
does not assume responsibility for and may rely, without independent verification, on the accuracy and completeness of any such information. 

        The
Company hereby warrants that the Memorandum will not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained
therein, in the light of circumstances under which they were made, not misleading. During the term of the Agreement, the Company agrees to provide SG Cowen with (i) prompt notice of the Company
becoming aware of any material development affecting the Company or the occurrence of any event or other change known to the Company that could result in the Memorandum containing an untrue 

3

 

statement
of a material fact or omitting to state any material fact necessary to make the statements contained therein, in the light of the circumstances under which they were made, not misleading,
(ii) copies of any financial reports prepared by the Company for distribution or presentation to third parties as soon as reasonably practicable and (iii) such other information
concerning the business and financial condition of the Company as SG Cowen may from time to time reasonably request. SG Cowen will have the right to approve the Memorandum and the other Offering
Materials and other written communications furnished by or on behalf of the Company in connection with the Placement; provided that such approval is not unreasonably withheld. 

6.     Compliance with Law

        Neither
the Company nor SG Cowen has taken, nor will they take, any action, directly or indirectly, that may cause the Placement to fail to be entitled to exemption from registration
under the U.S. federal securities laws, or applicable state securities or "blue sky" laws, or the applicable laws of the foreign countries in which the Securities will be offered or sold. The Company
shall be responsible for any costs and expenses associated with filings, applications or registrations with any governmental or regulatory body, including, without limitation, those associated with
any sales pursuant to Regulation D under the 1933 Act, "blue sky" laws, and the laws of the foreign countries in which the Securities will be offered or sold. 

7.     Closing Matters

        The
Company will cause to be furnished to the purchasers of the Securities, on the closing date of the Placement, opinions of counsel and such other documents, letters, certificates and
opinions as the purchasers may reasonably request in form and substance reasonably satisfactory to and the purchasers and their counsel. 

8.     Confidentiality

        SG
Cowen agrees that, except as otherwise required by law, regulation or legal process, SG Cowen shall keep confidential, for a period of two years from the date of this
Agreement, all material non-public information provided to it by the Company, and shall not disclose such information to any third party without the Company's consent, other than to such
of its employees and advisors as SG Cowen determines have a need to know. SG Cowen will be responsible for any breaches of this provision by such employees or advisors. At the conclusion of this
engagement, at the Company's written request, SG Cowen will return all copies of any such non-public information which is in writing, and will destroy any materials generated by SG Cowen
that include or refer to any such non-public information, without retaining a copy of any such materials (except that SG Cowen may retain one copy of such materials for archival purposes). 

9.     Disclosure

        The
Company agrees that any information or advice rendered by SG Cowen or its representatives in connection with this Agreement is solely for the confidential use of the Company and its
representatives and, except as otherwise required by applicable law, regulation or legal process, the Company will not and will not permit any third party to disclose, reproduce, disseminate, quote or
otherwise refer to such advice or information in any manner, except to purchasers, or potential purchasers of the Securities, without SG Cowen's prior written consent, which consent shall not be
unreasonably withheld. 

4

 

10.   No Third Party Beneficiaries

        The
Company acknowledges and agrees that SG Cowen has been retained to act as exclusive placement agent to the Company, and not as an advisor to or agent of any other person, and that
the Company's engagement of SG Cowen is not intended to confer rights upon any person not a party to this
Agreement (including shareholders, employees or creditors of the Company) as against SG Cowen or its affiliates, or their respective directors, officers, employees or agents. 

11.   Independent Contractor

        SG
Cowen shall act as an independent contractor under this Agreement, and any duties arising out of its engagement shall be owed solely to the Company. It is understood that SG Cowen's
responsibility to the Company is solely contractual in nature and SG Cowen does not owe the Company, or any other party, any fiduciary duty as a result of this Agreement. 

12.   SG Cowen Affiliates

        At
SG Cowen's discretion, any right set forth herein may be exercised, and any services to be provided by SG Cowen may be provided, by an affiliate of SG Cowen. The Company hereby agrees
that if SG Cowen and/or any affiliate or employee of SG Cowen purchases Securities for its or their own account, such purchase will not constitute a conflict of interest for purposes of SG Cowen's
engagement hereunder. 

13.   Indemnification

        The
Company and SG Cowen agree to the provisions with respect to the Company's indemnity of SG Cowen and other matters set forth in Schedule I, the terms of which are incorporated
herein in their entirety. 

14.   Publicity

        The
Company acknowledges that upon completion of the Placement, (unless the Company is in a "quiet period"), SG Cowen may, at its own expense, place an announcement in such newspapers
and periodicals as it may choose, stating that SG Cowen has acted as exclusive placement agent to the Company in connection with such Placement; provided that, such public disclosure has been approved
in writing by the Company prior to publication or use. 

15.   Amendments and Successors

        This
Agreement may not be waived, amended, modified or assigned, in any way, in whole or in part, including by operation of law, without the prior written consent of the Company and SG
Cowen. The provisions of this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company and SG Cowen. 

16.   Entire Agreement

        This
Agreement constitutes the entire agreement between SG Cowen and the Company, and supersedes any prior agreements and understandings, with respect to the subject matter of this
Agreement. 

17.   No Brokers

        The
Company acknowledges and agrees that there are no brokers, agents, representatives or other parties that have an interest in compensation paid or payable to SG Cowen hereunder. SG
Cowen acknowledges and agrees that the terms of that certain Placement Agency Agreement by and between 

5

 

the
Company and Spencer Trask Ventures, Inc. dated as of January 7, 2005 may require the Company to pay fees to Spencer Trask as a result of the Placement, and the Company acknowledges
and agrees that this will not in any way affect the Company's obligations to pay any compensation payable to SG Cowen pursuant to the terms hereof. SG Cowen will not be liable for the acts and/or
omissions of Spencer Trask. 

18.   Termination & Expiration

        Upon
termination or expiration, this Agreement shall have no further force or effect, except that the provisions concerning the Company's obligations to SG Cowen and certain related
persons provided in Schedule I, the Company's obligation to pay SG Cowen fees and expenses as described in this Agreement, the status of SG Cowen as an independent contractor, SG Cowen's
obligation of
confidentiality set forth in Section 8, the limitation on to whom SG Cowen shall owe any duties, governing law, and successors and assigns, and waiver of the right to trial by jury shall
survive any such termination or expiration of this Agreement. 

19.   Governing Law and Jurisdiction

        This
letter and any claim or dispute of any kind or nature whatsoever arising out of or in any way relating to this Agreement, directly or indirectly (including any claim concerning
advice provided pursuant to this Agreement), shall be governed by and construed in accordance with the laws of the State of New York. Any rights to trial by jury with respect
to any claim or proceeding related to, or arising out of, this Agreement are waived by SG Cowen and the Company.

        We
are pleased to accept this engagement and look forward to working with the Company. Please confirm that the foregoing is in accordance with your understanding by signing and returning
to us the enclosed duplicate of this letter, which shall thereupon constitute a binding Agreement. 

	Very truly yours,	 	 
	

SG COWEN & CO., LLC	
 	

 
	

By:	

/s/  CHARLES E. MATHER      
 Charles E. Mather
 Managing Director	
 	

 
	

Agreed as of the date hereof	
 	

 
	

APTAS, INC.	
 	

 
	

By:	

/s/  PERRY EVANS      
 Perry Evans
 Chief Executive Officer	
 	

 

6

Schedule I  

        The Company agrees to indemnify SG Cowen, each controlling person and each of their respective directors, officers, employees, agents,
affiliates and representatives (each of the foregoing, an "Indemnified Party") and hold each of them harmless against any and all losses, claims, damages, expenses, liabilities, joint or several
(collectively, "Liabilities") to which the Indemnified Parties may become subject arising in any manner out of or in connection with the letter agreement to which this Schedule I is attached
(the "Letter Agreement"), unless it is finally judicially determined that the Liabilities resulted primarily from the gross negligence or willful misconduct of an Indemnified Party. The Company
further agrees to reimburse each Indemnified Party immediately upon request for all expenses (including attorneys' fees and expenses) as they are incurred in connection with the investigation of,
preparation for, defense of, or providing evidence in, any commenced or threatened action, claim, proceeding or investigation (including, without limitation, usual and customary per diem compensation
for any Indemnified Party's involvement in discovery proceedings or testimony), in connection with or as a result of either SG Cowen's engagement or any matter referred to in the Letter Agreement
whether or not SG Cowen is a party to such proceeding. The Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the
Company or its securityholders or creditors related to or arising out of the engagement of SG Cowen pursuant to, or the performance by SG Cowen of the services contemplated by, the Letter Agreement,
unless it is finally judicially determined that such liability resulted primarily from the gross negligence or willful misconduct of SG Cowen. The Company and SG Cowen will promptly notify the other
party in writing of the assertion against it or any other person of any claim or the commencement of any action, proceeding or investigation relating to or arising out of any matter referred to in the
Letter Agreement, including an Indemnified Party's services thereunder; provided that SG Cowen's failure to notify will not affect the Indemnified Parties' right to indemnification except to the
extent the Company is materially prejudiced thereby.

        The Company agrees that, without an Indemnified Party's prior written consent, which consent shall not be unreasonably withheld, it will not settle, compromise or
consent to the entry of any judgment in any commenced or threatened claim, action, proceeding or investigation in respect of which indemnification could be sought under the indemnification provisions
of the Letter Agreement (whether or not SG Cowen or any other Indemnified Party is an actual or potential party to such claim, action, proceeding or investigation).

        The Company and SG Cowen agree that if any indemnification or reimbursement sought pursuant to the preceding paragraph is for any reason unavailable or
insufficient to hold it harmless (except by reason of the gross negligence or willful misconduct of an Indemnified Party) then, whether or not SG Cowen is the person entitled to indemnification or
reimbursement, the Company and SG Cowen shall contribute to the Liabilities for which such indemnification or reimbursement is held unavailable in such proportion as is appropriate to reflect
(a) the relative benefits to the Company on the one hand, and SG Cowen on the other hand, in connection with the transaction to which such indemnification or reimbursement relates,
(b) the
relative fault of the parties, and (c) other equitable considerations; provided, however, that in no event shall the amount to be contributed by SG Cowen exceed the fees actually received by SG
Cowen under the Letter Agreement. The Company agrees that for the purposes of this paragraph the relative benefits to the Company and any Indemnified Party of the contemplated transaction (whether or
not such transaction is consummated) shall be deemed to be in the same proportion that the aggregate cash consideration and value of securities or any other property payable, exchangeable or
transferable (or contemplated to be payable, exchangeable or transferable) in such transaction bears to the fees paid or payable to SG Cowen under the Letter Agreement.

Schedule II  

Investors
and customers of Aptas, Inc. as of the date hereof;

Yellowpages.com, Inc.

World Directories Company

Apax Partners

Cinvan

Carlyle

Welsh Carson

FAST Search and Transfer

IBM

Amdocs 

[LOGO] 

October 17,
2005 

Perry
Evans

Chief Executive Officer

Local Matters, Inc.

1517 Blake Street, Second Floor

Denver, CO 80202 

Dear
Perry: 

        This
letter will confirm our understanding and agreement between SG Cowen and Co., LLC ("SG Cowen") and Local Matters, Inc. (the "Company"), the successor entity to
Aptas, Inc., to amend that certain letter agreement, dated May 6, 2005, between SG Cowen and Aptas, Inc. (the "Initial Agreement"). (Capitalized terms not otherwise defined herein
shall have the meaning ascribed to them in the Initial Agreement.) 

	1.
	SG
Cowen and the Company hereby agree to amend the Initial Agreement by deleting Section 2 in its entirety and substituting it with the following:

	"2.
	Term

SG
Cowen's engagement shall terminate upon the earlier of (i) the closing of the Placement, (ii) twelve (12) months from the date of this Agreement, or (iii) at anytime on
10 days' prior written notice by either party, unless extended in writing by SG Cowen and the Company. A "Residual Period" shall extend for 120 days from October 17, 2005." 

	2.
	SG
Cowen and the Company hereby agree to amend the Initial Agreement by deleting Section 3(b) in its entirety and substituting it with the following:

	"3.
	Fees

	b.
	Placement Fee. A Placement Fee payable at each closing of a Placement equal to (i) cash in an amount equal to 6% of the gross
proceeds of the Securities sold in the Placement and (ii) warrants to purchase 2% of the Securities sold in the Placement. Such warrants shall have a five year term, an exercise price equal to
the price per share of the Securities sold in the Placement, cashless exercise provisions, customary anti-dilution provisions and the same other terms, conditions, rights and preferences
as the Securities sold in the Placement. A Placement shall be consummated at the closing thereof for the purpose of determining when the Placement Fee is payable. 

Notwithstanding
the foregoing, if the Company undertakes an initial public offering of its Common Stock (the "IPO") after the completion of the Placement and the NASD, Inc. (the "NASD")
determines (i) all or a portion of the items of compensation set forth in this Section 3, or as a result of purchases described in Section 12 below, are deemed to be "Underwriting
Compensation" in accordance with NASD Rule 2710(c)(1), SG Cowen agrees to take any action required by the NASD to adjust or reduce the value of the compensation it received in connection with
the Placement (including "locking up" shares or securities held by it) to an amount which, when aggregated with the compensation to be paid by the Company to the underwriters in the IPO (as negotiated
in the sole discretion of the Company and such underwriters), is less than or equal to the maximum Underwriting Compensation otherwise allowable pursuant to NASD Rule 2710(c)(1). 

Notwithstanding
the foregoing, for the first $10 million of gross proceeds sold in a Placement during the term of this Agreement to investors identified in Schedule II or any affiliate
thereof ("Identified Investors"), a placement fee shall be payable at each closing of a Placement equal to (i) cash in an amount equal to 3% of the gross proceeds of the 

Securities
sold in the Placement to the Identified Investors and (ii) warrants to purchase 1.5% of the Securities sold in the Placement to the Identified Investors. 

The
Company shall also pay SG Cowen a Placement Fee, in accordance with the first paragraph of this Section 3(b), if Securities are sold by the Company through a private placement during the
Residual Period in accordance with the provisions of section 2 hereof. 

A
Placement may be consummated in one or a series of closings. The Company acknowledges that at each closing of the Placement, simultaneously with the receipt by the Company of the gross proceeds of
the Securities sold in the Placement at such closing, the Company shall, or at its option, shall cause the investors purchasing the Securities to, wire to SG Cowen (pursuant to wire transfer
instructions to be
given by SG Cowen) the cash portion of the Placement Fee (calculated on the gross proceeds received at such closing) and any outstanding out-of-pocket expenses as set forth in
paragraph 4 (to the extent such expenses have been invoiced prior to the closing); it being understood that if the investors have placed the gross proceeds to be received by the Company in an
escrow account, the Company shall cause to be wired to SG Cowen its fees and expenses simultaneously with the release of funds to the Company. In addition, the Company shall at each closing of the
Placement, simultaneously with the delivery of the Securities to the investors in the Placement, deliver the warrant portion of the Placement Fee to SG Cowen (calculated on the gross proceeds received
at such closing)." 

	3.
	Except
as expressly set forth herein, all other terms and provisions of the Initial Agreement remain in full force and effect. 

        Please
confirm that the foregoing is in accordance with our understanding by signing and returning to us the enclosed duplicate of this letter, which shall thereupon constitute a binding
agreement. 

	 	 	 	Very truly yours,
	

SG COWEN & CO., LLC	
 	

 
	

By:	

/s/  CHARLES E. MATHER      
 Charles E. Mather
 Managing Director	
 	

 
	

Agreed as of the date hereof	
 	

 
	

LOCAL MATTERS, INC.	
 	

 
	

By:	

/s/  PERRY EVANS      
 Perry Evans
 Chief Executive Officer	
 	

 

QuickLinks

Exhibit 10.20QuickLinks
 -- Click here to rapidly navigate through this document

 
 

Exhibit 10.21    
    

 
 

SECURITY AGREEMENT    
    

        THIS SECURITY AGREEMENT dated as of April 14, 2005 ("Security
Agreement"), is made by APTAS, INC., a Delaware corporation ("Grantor"),
in favor of YP WEB PARTNERS, LLC, a Louisiana limited liability company ("Secured Party"). 

RECITALS  

        Pursuant to that certain Asset Purchase Agreement dated as of March 31, 2005 (as the same may be amended, modified or supplemented from time to time, the
"Purchase Agreement") among Grantor, Secured Party, YPSolutions.com, Inc., a Nevada corporation, and The Hammack-Jones Group, LLC, a Louisiana
limited liability company (collectively, the "Members"), Grantor has agreed to purchase from Secured Party the Assets (as defined in the Purchase
Agreement). At the Closing (as defined in the Purchase Agreement) the Grantor will pay to Secured Party, in cash, a total of $10,000,000, and will issue to Secured Party a promissory note in the face
amount of $10,000,000, subject to conversion, adjustment and offset upon the terms thereof, substantially in the form attached to the Purchase Agreement as  Exhibit B (the "Consideration Note"). At closing Grantor will also assume the Assumed Liabilities
(as defined in the Purchase Agreement) by delivering to the Secured Party an Assumption Agreement in substantially the form of Exhibit C to the
Purchase Agreement. 

AGREEMENT  

        NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
and intending to be legally bound, Grantor hereby represents, warrants, covenants and agrees as follows: 

        1.    DEFINED TERMS.    When used in this Security Agreement the following terms shall have the following meanings
(such meanings being equally applicable to both the singular and plural forms of the terms defined): 

        "Assets" has the meaning ascribed to such term in the Purchase Agreement. 

        "Closing Date" has the meaning ascribed to such term in the Purchase Agreement. 

        "Collateral" shall have the meaning assigned to such term in Section 2 of this Security Agreement. 

        "Event of Default" means any "Event of Default" as defined in the Consideration Note. 

        "Disclosure Schedule" shall mean the Disclosure Schedule as defined in and attached to the Purchase Agreement. 

        "Intellectual Property" means algorithms, APIs, apparatus, IP cores, net lists, databases, data collections, diagrams, formulae,
inventions (whether or not patentable), know-how, logos, marks (including brand names, product names, logos, and slogans), methods, network configurations and architectures, processes,
proprietary information, protocols, schematics, specifications, software, software code (in any form, including source code and executable or object code), subroutines, techniques, user interfaces,
URLs, web sites, works of authorship and other forms of technology (whether or not embodied in any tangible form and including all tangible embodiments of the foregoing, such as instruction manuals,
laboratory notebooks, prototypes, samples, studies and summaries). 

        "Intellectual Property Rights" means all past, present, and future rights of the following types, which may exist or be created under the
laws of any jurisdiction in the world: (A) rights associated with works of authorship, including exclusive exploitation rights, copyrights, moral rights and mask works; (B) trademark and
trade name rights and similar rights; (C) trade secret rights; (D) patent and industrial property rights; (E) other proprietary rights in Intellectual Property; and
(F) rights in or 

 

relating
to registrations, renewals, extensions, combinations, divisions, and reissues of, and applications for, any of the rights referred to in clauses "(A)" through "(E)" above. 

        "Lien" means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 

        "Permitted Lien" means: (a) any Liens existing on the Closing Date created by Secured Party or any Member; (b) Liens for
taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; (c) the claims or demands of landlords,
carriers, warehousemen, mechanics, laborers, materialmen, and other like Persons arising by operation of law in the ordinary course of business, either not delinquent or being contested in good faith
by appropriate proceedings; (d) licenses or sublicenses granted to others in the ordinary course of Grantor's business; (e) any right, title or interest of a licensor under a license;
(f) Liens incurred or deposits made in the ordinary course of business in connection with workers' compensation, unemployment insurance and other types of social security; (g) Liens
incurred or deposits made to secure the performance of tenders, bids, leases, statutory or regulatory obligations, surety and appeal bonds, government contracts, performance and
return-of-money bonds, and other obligations of like nature (but not securing debt for borrowed money or the deferred purchase price of property), in each case in the ordinary
course of business; and (h) Liens arising from judgments, decrees or attachments that have been stayed or bonded within fifteen (15) days after notice thereof. 

        "Secured Obligations" means the obligation of Grantor to repay Secured Party all of the unpaid principal amount of, and accrued interest
on (including any interest that accrues after the commencement of bankruptcy), the Consideration Note. 

        "Security Agreement" means this Security Agreement and all Exhibits hereto, as the same may from time to time be amended, modified,
supplemented or restated. 

        "UCC" means the Uniform Commercial Code as the same may from time to time be in effect in the State of Colorado;  provided, however, in the event that, by reason
of mandatory provisions of law, any or all of the attachment, perfection or priority of Secured Party's
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of Colorado, the term
"UCC" shall mean the Uniform Commercial Code as in effect at such time in such other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions related to such provisions. 

        2.    GRANT OF SECURITY INTEREST.    As collateral security for the full, prompt, complete and
final payment and performance when due (whether at stated maturity, by acceleration or otherwise) of all the Secured Obligations, Grantor hereby assigns, conveys, mortgages, pledges, hypothecates and
transfers to Secured Party, and hereby grants to Secured Party, a first-priority continuing security interest in and to
all of Grantor's right, title and interest in and to the following properties and assets, in each case whether now or hereafter existing, whether tangible or intangible, or in which Grantor now has or
hereafter acquires an interest and wherever the same may be located (the "Collateral"): 

        (a)   All inventories and work-in-progress of Grantor sold by Secured Party to Grantor; 

        (b)   All equipment, materials, prototypes, tools, supplies, vehicles, furniture, fixtures and improvements sold by Secured
Party to Grantor, including without limitation the tangible assets identified in Part 2.10 of the Disclosure Schedule; 

        (c)   All advertising and promotional materials possessed by Grantor sold by Secured Party to Grantor; 

        (d)   All Intellectual Property and Intellectual Property Rights and related goodwill of Grantor sold by Secured Party to
Grantor, including without limitation the right to use the names "YPSolutions", "YPSolutions.com", and "YP Web Partners" and variations of each such name, 

2

 

including
without limitation the Intellectual Property and Intellectual Property Rights identified in Part 2.12 of the Disclosure Schedule, and all modifications, improvements, new versions or
other enhancements of any of the foregoing (but excluding any portion of such modifications, improvements, new versions and other enhancements that result primarily from integration of Intellectual
Property sold by Secured Party with Intellectual Property of Grantor or its affiliates); 

        (e)   All rights of Grantor under any contract assigned to Grantor by Secured Party, including without limitation those
contracts identified in Part 2.13 of the Disclosure Schedule, and under any contract to which Grantor becomes a party after the Closing, but only if and to the extent that such Contract
pertains or relates to the Intellectual Property and Intellectual Property Rights sold by Secured Party to Grantor, together with all amendments, modifications, or replacements of any of the
foregoing; 

        (f)    All claims (including claims for past infringement or misappropriation of Intellectual Property or Intellectual Property
Rights sold by Secured Party to Grantor) and causes of action of Grantor against other persons (regardless of whether or not such claims and causes of action have been asserted by Grantor), and all
rights of indemnity, warranty rights, rights of contribution, rights to refunds, rights of reimbursement and other rights of recovery possessed by Grantor (regardless of whether such rights are
currently exercisable), in each case arising from or relating to the Assets, but excluding all claims and causes of action of Grantor under the Asset Purchase Agreement against Secured Party or the
Members; and 

        (g)   All books, records, files and data of Grantor sold by Secured Party to Grantor (but excluding the minute books, stock
books and other internal corporate documents of Grantor). 

Grantor
shall mark its books and records as may be necessary or appropriate to evidence Secured Party's security interest in the Collateral. 

        3.    REPRESENTATIONS AND WARRANTIES.    Grantor hereby represents and warrants to Secured
Party that: 

        (a)   Upon the closing of the acquisition of the Assets pursuant to the Purchase Agreement, Grantor will be the sole legal and
equitable owner of each item of the Collateral in which it purports to grant a security interest hereunder free and clear of any Lien or other right, title or interest of any person, except Permitted
Liens. 

        (b)   Grantor has full power, authority and legal right to grant to Secured Party a security interest in the Collateral
pursuant to this Security Agreement, and the execution and delivery of this Security Agreement has been duly authorized by Grantor. 

        (c)   No authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory
body is required for the grant by Grantor to Secured Party of a security interest in the Collateral pursuant to this Security Agreement or for the execution, delivery or performance of this Security
Agreement by Grantor except such as have been obtained on or prior to the Closing Date. 

        (d)   No effective security agreement, financing statement, equivalent security or lien instrument or continuation statement
covering all or any part of the Collateral exists, (i) except such as may have been filed by Grantor in favor of Secured Party pursuant to this Security Agreement and except for Permitted Liens
and (ii) except such as may have been filed by Secured Party or a Member (which filings shall have been terminated on or prior to the Closing Date). 

        (e)   Except for Permitted Liens, this Security Agreement creates a legal and valid first-priority continuing security interest
on and in all of the existing Collateral in which Grantor now has rights. Except for Permitted Liens, this Security Agreement will create a legal and valid first-priority continuing security interest
on and in all of the Collateral in which Grantor later acquires rights. 

3

 

        (f)    Grantor's exact legal name as it appears in its certificate of incorporation is Aptas, Inc. Grantor's taxpayer
identification number is, and chief executive office, principal place of business, and the place where Grantor maintains its records concerning the Collateral are presently located at the address set
forth on the signature page hereof. 

        4.    COVENANTS.    Unless Secured Party otherwise consents in writing (which consent shall
not be unreasonably withheld), Grantor covenants and agrees with Secured Party that from and after the date of this Security Agreement and until the Secured Obligations have been performed and paid in
full: 

        4.1    Disposition of Collateral.    Grantor shall not sell, lease,
transfer or otherwise dispose of any of the Collateral (each, a "Transfer"), or attempt or contract to do so, other than (a) the sale of
inventory in the ordinary course of business, (b) the granting of licenses in the ordinary course of business, (c) the disposal of worn-out or obsolete equipment in the
ordinary course of business, and (d) Transfers of Collateral for fair market value as determined by Grantor in its good faith business judgment, not exceeding $50,000 in the aggregate in any
given fiscal year. 

        4.2    Change of Jurisdiction of Organization, Relocation of
Business.    Grantor shall not change its jurisdiction of organization or relocate its chief executive office, principal place of business or its records from such
address(es) provided to Secured Party pursuant to Section 3(f) above without at least thirty (30) days prior written notice to Secured Party. 

        4.3    Limitation on Liens on Collateral.    Grantor shall not,
directly or indirectly, create, permit or suffer to exist, and shall defend the Collateral against and take such other action as is necessary to remove, any Lien on the Collateral, except
(a) Permitted Liens and (b) the Lien granted to Secured Party under this Security Agreement. 

        4.4    Insurance.    Grantor shall maintain insurance policies
insuring the Collateral against loss or damage from such risks and in such amounts and forms and with such companies as are customarily maintained by businesses similar to Grantor. 

        4.5    Payment of Taxes.    Grantor shall pay promptly when due all
property and other taxes, assessments and government charges or levies imposed upon, and all claims (including claims for labor, materials and supplies) against, the Collateral, except to the extent
the validity or amount thereof is being contested in good faith and adequate reserves are being maintained in connection therewith. 

        4.6    Further Assurances.    At any time and from time to time, upon
the written request of Secured Party, and at the sole expense of Grantor, Grantor shall promptly and duly execute and deliver any and all such further instruments and documents and take such further
action as Secured Party may reasonably deem necessary or desirable to obtain the full benefits of this Security Agreement, including, without
limitation, (a) executing, delivering and causing to be filed any financing or continuation statements under the UCC with respect to the security interests granted hereby, (b) at Secured
Party's reasonable request, filing or cooperating with Secured Party in filing any forms or other documents required to be recorded with the United States Patent and Trademark Office or the United
States Copyright Office, and (c) executing and cooperating with Secured Party in obtaining a deposit account control agreement with the depositary bank issuing the pledged Certificate of
Deposit as part of the Collateral. 

        5.    RIGHTS AND REMEDIES UPON DEFAULT.    If any Event of Default shall occur and be
continuing, then, in each and every such case, Secured Party may, at any time thereafter exercise and/or enforce any of the following rights and remedies, at Secured Party's option: (a) take
possession or control of, license, sell or otherwise dispose of, all or any part of the Collateral; (b) take any other action which Secured Party deems necessary or desirable to protect and
realize upon its security interest in the Collateral; and (c) in addition to the foregoing, and not in substitution therefor, exercise any one or more of the rights and remedies exercisable by
Secured Party under any other provisions of this 

4

 

Security
Agreement, the Purchase Agreement, the Consideration Note, or as provided by applicable law including, without limitation, the Uniform Commercial Code. In taking possession of the Collateral,
Secured Party may enter Grantor's premises and otherwise proceed without legal process, if this can be done without breach of the peace, and also may require Grantor to, and Grantor agrees that it
will at its expense and upon request of Secured Party forthwith, assemble all or part of the Collateral as directed by Secured Party and make it available to Secured Party at a place to be designated
by Secured Party that is reasonably convenient to both parties. Prior to the disposition of the Collateral, the Secured Party may store, process, repair or recondition the Collateral or otherwise
prepare the Collateral for disposition in any manner to the extent Secured Party deems appropriate. Secured Party may sell the Collateral or any part thereof in one or more parcels at public or
private sale, at any of Secured Party's offices or elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or prices and upon such other terms as Secured Party
may deem commercially reasonable. Each purchaser at any such sale shall hold the property sold absolutely free of any claim or right on the part of Grantor, and Grantor hereby waives (to the extent
permitted by applicable law) all rights of redemption, stay and/or appraisal which it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted.
Grantor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days' notice to Grantor of the time and place of any public sale or the time after which any
private sale is to be made shall constitute reasonable notification. Secured Party shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. Secured Party
may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned. Grantor hereby waives any claims against Secured Party arising by reason of the fact that the price at which any Collateral may have been sold at such a private sale was less than the
price which might have been obtained at a public sale, even if Secured Party accepts the first offer received and does not offer such Collateral to more than one offeree. Secured Party shall have the
right (but not the obligation) to bring suit, in the name of Grantor, Secured Party or otherwise, to enforce any Intellectual Property Rights constituting part of the Collateral, in which event
Grantor shall, at the request of Secured Party, do any and all lawful acts and execute and any documents required by Secured Party in aid of such enforcement. Upon written demand from Secured Party,
Grantor shall execute and deliver to Secured Party an assignment or assignments of the Intellectual Property constituting part of the Collateral and such other documents as are necessary or
appropriate to carry out the intent and purposes of this Security Agreement, but such an assignment and/or recording shall be applied to reduce the Secured Obligations outstanding only to the extent
that Secured Party receives cash proceeds in respect of the sale of, or other realization upon, such Intellectual Property. 

        6.    REINSTATEMENT.    This Security Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against Grantor for liquidation or reorganization, should Grantor become insolvent or make an assignment for the benefit of creditors or
should a receiver or trustee be appointed for all or any significant part of Grantor's property and assets, and shall continue to be effective or be reinstated, as the case may be, if at any time
payment and performance of the Secured Obligations, or any part thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or returned by any obligee of the
Secured Obligations, whether as a "voidable preference," "fraudulent conveyance," or otherwise, all as though such payment or performance had not been made. In the event that any payment, or any part
thereof, is rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned. 

5

 

        7.    MISCELLANEOUS.    

        7.1    Waivers; Modifications.    None of the terms or provisions of
this Security Agreement may be waived, altered, modified or amended except by an instrument in writing, duly executed by Grantor and Secured Party. 

        7.2    Termination of this Security Agreement.    Subject to
Section 6 hereof, this Security Agreement shall terminate upon the payment and performance in full of the Secured Obligations. 

        7.3    Successor and Assigns.    This Security Agreement and all
obligations of Grantor hereunder shall be binding upon the successors and assigns of Grantor, and shall, together with the rights and remedies of Secured Party hereunder, inure to the benefit of
Secured Party, any future holder of any of the Secured Obligations and their respective successors and assigns. 

        7.4    Expenses.    Grantor will upon demand pay to Secured Party the
amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which Secured Party may actually incur in connection with
(a) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral; (b) the exercise or enforcement of any of the rights of Secured
Party hereunder; and (c) the failure by Grantor to perform or observe any of the provisions hereof. 

        7.5    Governing Law.    In all respects, including all matters of
construction, validity and performance, this Security Agreement and the Secured Obligations arising hereunder shall be governed by, and construed and enforced in accordance with, the laws of the State
of Colorado applicable to contracts made and
performed in such state, without regard to the principles thereof regarding conflict of laws, except to the extent that the UCC provides for the application of the law of a different jurisdiction. 

[Signature pages follow.] 

6

 

        IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be executed and delivered by its duly authorized
officer on the date first set forth above. 

	ADDRESS OF GRANTOR	APTAS, INC., a Delaware corporation, as Grantor
	

1517 Blake St., 2nd Floor	

By:	

/s/ Perry Evans

	Denver, CO 80202	 	 	 
	 	Printed Name:	Perry Evans

	

 	

Title:	

CEO

	
TAXPAYER IDENTIFICATION NUMBER OF GRANTOR	

JURISDICTION OF ORGANIZATION OF GRANTOR
	 	Delaware
	
	 	 	 

	ACCEPTED AND ACKNOWLEDGED BY:	 
	
YP WEB PARTNERS, LLC, a Louisiana limited liability company, as Secured Party	

 
	

By:	

/s/ Donald F. Jones
	

 
	Printed Name:	Donald F. Jones
	 
	

Title:	

President
	

 

[SIGNATURE PAGE TO SECURITY AGREEMENT]

7

QuickLinks

Exhibit 10.21

SECURITY AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]