Document:

Unassociated Document

    SEPARATION,
      RESTRICTIVE COVENANTS AND

    RELEASE
      AGREEMENT

    

    This
      SEPARATION, RESTRICTIVE COVENANTS AND RELEASE AGREEMENT (the “Agreement”) is
      made and entered into as of June 28, 2007, by and between infoUSA, Inc., a
      Delaware corporation (“infoUSA”), Guideline, Inc. a New York corporation
      (“Guideline”), and Peter Stone, an individual (“Stone”).

    

    BACKGROUND

    

    
      	 	
              A.

            	
              Guideline
                and Stone are parties to that certain employment agreement dated
                May 13,
                2002, as amended January 1, 2005 (the “Employment Agreement”), pursuant to
                which Stone is currently employed as the Chief Financial Officer
                of
                Guideline.

            

    

    

    
      	 	
              B.

            	
              Contemporaneously
                herewith, infoUSA and Guideline have entered into an Agreement and
                Plan of
                Merger (the “Merger Agreement”), pursuant to which a wholly-owned
                subsidiary of infoUSA (the “Subsidiary”) will conduct a tender offer for
                all of the outstanding shares of capital stock of Guideline, after
                which
                such subsidiary will be merged with and into Guideline (the “Merger”),
                with Guideline continuing as the surviving corporation (the “Surviving
                Corporation”).

            

    

    

    
      	 	
              C.

            	
              Contemporaneously
                herewith, infoUSA and Stone, in his capacity as a stockholder of
                Guideline, have entered into a Shareholder Support Agreement (the
“Support
                Agreement”), pursuant to which Stone has agreed to tender all shares of
                Guideline capital stock owned by him to the aforementioned wholly-owned
                subsidiary of infoUSA, to vote in favor of the Merger and against
                any
                competing proposal, and to take (or refrain from taking) various
                other
                actions to facilitate the consummation of the
                Merger.

            

    

    

    
      	 	
              D.

            	
              As
                a condition to entering into the Merger Agreement, infoUSA has requested
                that Guideline and Stone enter into this Agreement providing for
                the
                termination of Stone’s employment, the satisfaction of the obligations of
                Guideline pursuant to the Employment Agreement, and certain
                non-competition, non-interference, confidentiality and intellectual
                property related obligations on the part of Stone, and Guideline
                and Stone
                have agreed to do the same, subject to the closing of the tender
                offer
                contemplated by the Merger Agreement (the
                “Closing”).

            

    

    

    AGREEMENT

    

    NOW
      THEREFORE, in consideration of the discharge of the obligations of Guideline
      pursuant to the Employment Agreement and the other promises contained in this
      Agreement, and for other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, infoUSA, Guideline and Stone,
      intending to be legally bound, hereby agree as follows:

     

    1. Employment. Stone’s
      employment will continue through the three (3) month anniversary of the Closing
      (the “Termination Date”), at which time Stone’s employment with Guideline will
      terminate; provided,
      however,
      that
      Guideline may terminate Stone’s employment after the Closing Date but prior
      to the Termination Date for “cause” (as defined below).   Stone will
      continue to receive his salary and benefits, at their current levels, up to
      and
      including the Termination Date. So long as Stone’s employment was not terminated
      for “cause” and Stone did not resign prior to the Termination Date,
      then commencing as of the Termination Date and continuing through the end of
      the
      Covenant Period, Guideline will pay to Stone an aggregate sum
      of Three Hundred Seventy-Five Thousand Dollars ($375,000), subject to
      applicable withholding and payable in accordance with Guideline’s normal
      payroll policy from time to time in effect.  Any amounts payable shall be
      made to Stone’s estate in the event of his death. If, in accordance with any
      applicable federal or state continuation coverage laws, including the
      Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), Stone
      elects continuation coverage under Guideline’s medical, disability, dental or
      other health insurance provided to Stone as of the Termination Date, Guideline
      will continue to pay the employer portion of the premiums for such coverage
      through the end of the Covenant Period or, if
      earlier, until Stone is no longer eligible to continue such
      coverage or Stone receives comparable benefits from another employer. All
      rights which Stone may have under Guideline’s group plans are subject to
      the terms of such plans, applicable laws and the continuation of such plans
      for
      active Guideline employees.  Stone will not be eligible to participate
      in, or receive any payments pursuant to, any bonus plan of Guideline
      or the Surviving Corporation for any period following the Termination
      Date.  For purposes of this Agreement, “cause” shall be defined as (a)
      Stone’s conviction in a court of law of any crime involving money or other
      property or of a felony; (b) Stone’s failure or refusal to substantially perform
      his duties hereunder, other than any such failure or refusal resulting from
      his
      incapacity, or his failure or refusal to carry out the directives of Guideline’s
      or the Surviving Corporation’s Chief Executive Officer, or the willful taking of
      any action by Stone not directed by Guideline’s or the Surviving Corporation’s
      Chief Executive Officer which results in material damage to Guideline or the
      Surviving Corporation, or the material default or breach by Stone of any
      obligation, representation, warranty, covenant or agreement made by Stone
      herein; provided,
      however,
      that
      Guideline or the Surviving corporation shall have given Stone written notice
      of
      any such cause for termination and Stone shall have failed to cure such cause
      (if curable) within fifteen (15) days after the date of such notice.  If
      the cause for termination is cured within the fifteen (15) day period, it shall
      be deemed for all purposes that cause for termination has not occurred (except
      that if the same or a similar event to the one resulting in notice pursuant
      to
      this Section recurs after a cure, the right to cure the second cause of
      termination, after notice of such second event shall have been given, shall
      expire within twenty-four (24) hours after the time the notice is
      given).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.     Effect
      of Agreement. 
      The terms of the Employment Agreement shall govern Stone’s employment from
      the date of this Agreement through the date of Closing; provided,
      however,
      that in
      no event will Stone be entitled to terminate his employment on the basis of
“good reason” (as defined in Section 2.4 of the Employment Agreement),
      and any provisions of the Employment Agreement relating to a Nonrenewal
      Event will be disregarded; provided,
      further,
      that
      Stone will be entitled to work not less than one (1) day per week from
      home.  Effective as of the date of Closing, and with no further action
      by any party, all other agreements between Stone and Guideline or any
      affiliate of Guideline relating to Stone’s employment or the terms and
      conditions thereof, including the Employment Agreement, shall be terminated
      and
      superseded by this Agreement, and the terms of this Agreement shall govern
      thereafter.  In the event the Merger Agreement is terminated, this
      Agreement shall be deemed terminated and null and void.

    

    3. Restrictive
      Covenants.
      Stone
      acknowledges that Guideline is in the information services business and that
      Stone, as Chief Financial Officer of Guideline, is familiar in detail with
      the
      activities of Guideline and has participated in formulating such activities;
      that he is familiar in detail with the activities and future plans of Guideline;
      and that his position has given him a thorough knowledge of Guideline’s
      customers, suppliers and servicing and marketing operations. Accordingly, in
      consideration of the receipt of the Termination Payment, but subject to the
      Closing, Stone hereby agrees and covenants as follows:

    

    
      	 	
              a.

            	
              Noncompetition.
                For a period commencing on the Closing and for a period ending on
                the
                fifteen (15) month anniversary of the Closing (the “Covenant Period”),
                unless otherwise consented to by the Surviving Corporation or infoUSA
                in
                writing, Stone shall not: 

            

    

    

    
      	 	
              i.

            	
              within
                any city, town, county, state or country in which Guideline or any
                of its
                affiliates, successors or assigns currently conducts or does business,
                either for himself or as an equity owner, director, manager, officer,
                employee, independent contractor or representative, directly or indirectly
                render services to or solicit business on behalf of any other business
                or
                corporation, firm, partnership, association, trust, group, joint
                venture,
                or individual proprietorship that is engaged in any line of business
                that
                is competitive with any line of business in which Guideline or its
                affiliates, as of the date of this Agreement, or their successors
                or
                assigns, were engaged (or in which they intended to engage, as evidenced
                by some writing (e.g., a plan, corporate minutes, memoranda or letter,
                expenditure or other indication of a genuine interest in the line
                of
                business)) on or before the date hereof (a “Competing Business”);
                or

            

    

     

    
      
        
        

      

      
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          2

        
          

        

      

      
        
        

      

    

     

    
      	 	
              ii.
                

            	
              acquire
                a direct or indirect interest or an option to acquire such interest
                in any
                Competing Business (other than an interest of not more than five
                percent
                (5%) of the outstanding stock of any company which is publicly traded
                on a
                national stock exchange or the over-the-counter
                market).

            

    

     

    
      	 	
              b.

            	
              Noninterference.
                During the Covenant Period, unless otherwise consented to by the
                Surviving
                Corporation or infoUSA in writing, Stone shall
                not:

            

    

    

    
      	 	
              i.

            	
              encourage,
                in any way or for any reason, any supplier or customer of Guideline
                or its
                affiliates, successors or assigns to sever or alter the relationship
                of
                such supplier or customer with Guideline or its affiliates, successors
                or
                assigns;

            

    

    

    
      	 	
              ii.

            	
              aid
                any other person attempting to take suppliers or customers from Guideline
                or its affiliates, successors or
                assigns;

            

    

    

    
      	 	
              iii.

            	
              serve
                or work in any way for any customers of Guideline or its affiliates,
                or
                their successors or assigns, who were such customers as of the Closing
                or
                during the preceding one (1) year period that would be competitive
                with
                Guideline;

            

    

    

    
      	 	
              iv.

            	
              solicit,
                employ, retain as a consultant, interfere with or attempt to entice
                away
                from Guideline or its affiliates, successors or assigns any current
                employee thereof or any individual who has agreed to be, or has been,
                employed or retained by Guideline or an affiliate, or their successors
                or
                assigns, within one (1) year prior to such solicitation, employment,
                retention, interference or
                enticement.

            

    

    

    
      	 	
              c.

            	
              Nondisparagement.
                Stone shall not disparage or defame infoUSA, Guideline, the Surviving
                Corporation, or their respective affiliates, successors or assigns,
                or any
                director, officer or employee of any of the foregoing, or otherwise
                cause
                any negative publicity to be disseminated about such entities or
                persons
                   or their products or services either orally or in writing. Without
                limiting the generality of the foregoing, Stone shall not, without
                the
                prior written consent of infoUSA or the Surviving Corporation, in
                any
                manner disclose, divulge or discuss any Confidential Information,
                as
                hereinafter defined; provided,
                however,
                that Stone shall be permitted to disclose the dates of his employment
                with
                Guideline and his position and responsibilities and to disclose any
                facts
                that infoUSA, Guideline, the Surviving Corporation or their respective
                affiliates, successors or assigns have previously publicly disclosed.
                Neither infoUSA, the Surviving Corporation or any affiliate, successor
                or
                assign of the foregoing shall disparage or defame Stone or otherwise
                cause
                any negative publicity to be disseminated about Stone either orally
                or in
                writing.

            

    

     

    
      
        
        

      

      
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          3

        
          

        

      

      
        
        

      

    

     

    
      	 	
              d.

            	
              Confidentiality.
                Stone shall not use, appropriate or disclose to any person, directly
                or
                indirectly, any “Confidential Information” of infoUSA, Guideline, the
                Surviving Corporation or their affiliates, successors or assigns
                during
                the Covenant Period. Upon termination of Stone’s employment, Stone shall
                immediately return to the Surviving Corporation, in good condition,
                all
                Confidential Information, including all copies of the same, as well
                as all
                documents, data and records of any kind and in any form (including
                computer records) which contain any Confidential Information of infoUSA,
                Guideline or their affiliates, successors or assigns or which were
                prepared based on such Confidential Information. “Confidential
                Information” means confidential and proprietary information of the
                specified entity that includes, but is not limited to, information
                about
                products, services, markets, customers, prospective customers, personnel,
                compensation, accounting, financial and technical data, business
                plans and
                operational and marketing strategies. “Confidential Information” shall not
                include any information that is (i) generally known to the industry
                or the
                public other than as a result of Stone’s breach of this covenant or any
                breach of other confidentiality obligations by third parties; or
                (ii)
                required by law or judicial process to be disclosed; provided
                that Stone shall give prompt written notice to infoUSA and Guideline
                of
                such requirement, disclose no more information that is so required,
                and
                cooperative with any attempts by infoUSA or Guideline to obtain a
                protective order or similar
                treatment.

            

    

    

    
      	 	
              e.

            	
              Intellectual
                Property.
                Stone shall not, directly or indirectly, use, appropriate or interfere
                with any “Intellectual Property,” as defined below, of Guideline or its
                affiliates, successors or assigns or any combination, abbreviation
                or
                derivation thereof, or any applicable logos of such entities. Stone
                covenants and agrees that he: 

            

    

    

    
      	 	
              i.

            	
              has
                disclosed to Guideline, and that Guideline owns, all right, title
                and
                interest in, all inventions, improvements, technical information,
                methods,
                computer software and other intellectual property (the “Stone Developed
                Intellectual Property”) which Stone conceived or developed during the
                course of his employment (excluding that which Stone conceived or
                developed without the use of time, resources or facilities of Guideline
                and which does not relate to the past, present or prospective activities
                of Guideline);

            

    

    

    
      	 	
              ii.

            	
              will,
                at the request of Guideline or the Surviving Corporation, affix
                appropriate legends and copyright notices indicating Guideline’s or the
                Surviving Corporation’s ownership of all Stone Developed Intellectual
                Property and all underlying documentation; and

            

    

    

    
      	 	
              iii.

            	
              will
                execute such further assignments and other documents as may be reasonably
                requested by Guideline or the Surviving Corporation in order to vest,
                perfect, maintain or defend Guideline’s or the Surviving Corporation’s
                right, title and interest in the Stone Developed Intellectual
                Property.

            

    

    

    
      	 	
              iv.

            	
              “Intellectual
                Property” means: (a) all inventions (whether patentable or unpatentable
                and whether or not reduced to practice), all improvements thereto,
                and all
                patents, patent applications and patent disclosures, together with
                all
                reissuances, continuations, continuations-in-part, revisions, extensions
                and reexaminations thereof; (b) all trademarks, service marks, trade
                dress, logos, trade names, corporate names and domain names, together
                with
                all abbreviations, translations, adaptations, derivations and combinations
                thereof and including all goodwill associated therewith, and all
                applications, registrations and renewals in connection therewith;
                (c) all
                copyrightable works, all copyrights and all applications, registrations
                and renewals in connection therewith; (d) all mask works and all
                applications, registrations and renewals in connection therewith;
                (e) all
                trade secrets and confidential business information (including ideas,
                research and development, know-how, formulas, compositions, manufacturing
                and production processes and techniques, technical data, designs,
                drawings, specifications, customer and supplier lists, pricing and
                cost
                information and business and marketing plans and proposals); (f)
                all
                computer software (including data and related documentation); (g)
                all
                other proprietary rights; and (h) all copies and tangible embodiments
                thereof (in whatever form or
                medium).

            

    

     

    
      
        
        

      

      
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          4

        
          

        

      

      
        
        

      

    

     

    4. Return
      of Guideline Property.
      Upon
      termination of Stone’s employment, Stone shall immediately return to Guideline
      or the Surviving Corporation all Guideline property including, without
      limitation, Guideline credit cards, Guideline keys, and Guideline calling
      cards.

    

    5. No
      Admission.
      The
      parties agree that neither this Agreement nor any obligations under this
      Agreement constitute an admission by infoUSA, Guideline, the Surviving
      Corporation or Stone of any violation of any federal, state or local laws,
      rules, regulations or ordinances, or of any liability under contract or tort
      theories, of any nature whatsoever.

    

    6. Release.
      Subject
      to the Closing and payment of all severance payments due hereunder, and
      effective as of the Termination Date, Stone, on behalf of himself and his
      agents, family members, heirs, successors and assigns, hereby releases infoUSA,
      Guideline, the Surviving Corporation, and the affiliates of each of the
      foregoing, and their respective shareholders, directors, officers, employees,
      and partners (or persons or entities of a comparable status (e.g., members
      and
      partners) or holding comparable positions (e.g., governors and managers)) and
      the successors and assigns of each of the foregoing (the “Released Parties”)
      from all claims and liabilities of any kind (including attorney’s fees)
      (“Claims”) that could have been asserted prior to, or based on facts or
      circumstances existing as of, the Termination Date, whether vested or
      contingent, known or unknown. Claims include, but are not limit to, any Claim
      alleging breach of contract, express or implied, promissory estoppel or any
      tort, and Claims under any federal, state statute or local ordinance, or
      government regulation or common laws, including, but not limited to, the Age
      Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964,
      the
      Americans With Disabilities Act, the Fair Labor Standards Act, Family and
      Medical Leave Act, Employee Retirement Income Security Act, the New York Fair
      Employment Practices Act and the New York Wage Payment and Collection Act,
      all
      as amended. Guideline, infoUSA and the Surviving Corporation, and the affiliates
      of each of the foregoing, specifically acknowledge and agree that nothing
      contained herein shall be deemed to release Guideline, infoUSA, the Subsidiary
      and the Surviving Corporation from: (i) the breach of this Agreement; (ii)
      any
      statutory claims for state unemployment insurance, workers compensation and
      disability insurance benefits; (iii) legal claims regarding non-bonus or
      non-incentive compensation related to payment of wages earned; (iv) and any
      legal obligations by either Guideline, infoUSA, the Subsidiary and the Surviving
      Corporation to indemnify Stone. 

    

    Stone
      acknowledges that certain states provide that a general release of claims does
      not extend to claims that the person/entity executing the release does not
      know
      or suspect to exist in her/its favor at the time of executing the release that,
      if known, may have materially affected the decision to enter into the release.
      Being aware that such statutory protection may be available, Stone expressly,
      voluntarily and knowingly waives any arguable benefit or protection of any
      such
      statute in executing this agreement, whether such benefit or protection is
      known
      or unknown.

    

    Guideline
      represents and warrants to Stone that, to its knowledge, and infoUSA represents
      and warrants to Stone that, to its knowledge and based solely on information
      provided to it by Guideline, as of the date of this Agreement, they are not
      aware of any claims for actions arising from or related to Stone’s employment
      relationship with Guideline.

     

    
      
        
        

      

      
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          5

        
          

        

      

      
        
        

      

    

    

    7. Review
      Acknowledgment and Effective Date.
      By
      voluntarily executing this Agreement, Stone confirms and acknowledges that
      Stone
      has been advised to consult with and has consulted with an attorney, that Stone
      has read and understands this Agreement, that Stone has signed this Agreement
      freely and voluntarily. Stone further acknowledges that Stone has been given
      up
      to twenty-one (21) calendar days to consider signing this Agreement and Stone
      agrees that the changes, whether material or immaterial, made through
      negotiation with Stone’s legal counsel did not restart the running of the 21-day
      period. Stone may sign this Agreement at any time prior to the termination
      of
      the 21-day period. Additionally, Stone will have seven (7) calendar days
      following signing of this Agreement to rescind it and to reinstate federal
      age
      discrimination claims that he may have against Guideline. Such rescission must
      be in writing and received by infoUSA (attention: Fred Vakili) prior the end
      of
      the rescission period and accompanied by repayment to Guideline of all amounts
      that were previously paid to him pursuant to Section 1 of this Agreement, if
      any.

    

    8. Remedies.
      

    

    
      	 	
              a.

            	
              Stone
                acknowledges that each of infoUSA and the Surviving Corporation have
                relied on this Agreement and the covenants of Stone set forth herein
                in
                entering into the Merger Agreement and consummating the Merger, and
                therefore agrees that each of infoUSA and the Surviving Corporation
                are
                intended beneficiaries of this Agreement and that either or both
                of them
                will be entitled to the benefit of, and to enforce, the covenants
                of Stone
                set forth herein. infoUSA and/or the Surviving Corporation will have
                the
                right to injunctive relief to enforce the covenants set forth in
                this
                Agreement (including without limitation the restrictive provisions
                of
                Section 3) in addition to any other relief to which infoUSA and/or
                the
                Surviving Corporation may be entitled under law or in equity. Stone
                further agree that, if Stone violates any of the terms of this Agreement,
                including, but not limited to Section 3, or breaches any provision of
                the Support Agreement, infoUSA, Guideline and the Surviving Corporation
                will have no further obligations hereunder (including the payment
                obligation set forth in Section 1, if not yet performed), and infoUSA,
                Guideline or the Surviving Corporation will have the right to bring
                a
                legal action to recover damages for the damages resulting from Stone’s
                violation of this Agreement. 

            

    

    

    
      	 	
              b.

            	
              In
                the event of any action arising out of or relating to this Agreement
                or
                the enforcement thereof, the prevailing party will be entitled to
                recover,
                in addition to any damages awarded to such party, all costs and fees
                incurred in contemplation of and in connection with such action,
                including
                without limitation attorneys’ fees.

            

    

    

    9. General.

    

    
      	 	
              a.

            	
              Governing
                Law.
                This Agreement shall be governed by and construed and enforced in
                accordance with the laws of the State of New
                York.

            

    

    

    
      	 	
              b.

            	
              Entire
                Agreement.
                This Agreement sets forth the entire agreement and understanding
                of the
                parties relating to the subject matter hereof, and supersedes all
                prior
                agreements, arrangements and understandings, written or oral between
                the
                parties. Stone acknowledges that he has not relied on any representation
                or statement not set forth in this Agreement by any representative
                of the
                other parties hereto.

            

    

    

    
      	 	
              c.

            	
              Amendments
                and Assignment. Any
                amendment to, modification of, or supplement to this Agreement must
                be in
                writing and signed by infoUSA, Guideline and Stone. This Agreement
                shall
                not be assignable or delegable by Stone. This Agreement may be assigned
                by
                infoUSA or Guideline to any person or entity which is an affiliate
                and
                shall be assignable to any successor in interest to any part of the
                business of infoUSA or Guideline.

            

    

     

    
      
        
        

      

      
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          6

        
          

        

      

      
        
        

      

    

     

    
      	 	
              d.

            	
              Severability.
                If
                any of the covenants, agreements or restrictions contained in this
                Agreement shall be determined by a court of competent jurisdiction
                to be
                invalid or unenforceable, the same shall not affect the remainder
                of the
                covenants, agreements, restrictions, rights or remedies, which shall
                be
                given full effect without regard to the invalid or unenforceable
                portions,
                it being understood and agreed that all such covenants, agreements,
                restrictions, rights and remedies shall be deemed separate and severable.
                Additionally, and without limiting the foregoing, the parties hereto
                agree
                that if, at the time of enforcement of this Agreement, a court of
                competent jurisdiction shall hold that the duration, scope or area
                of the
                restrictions stated herein, including but not limited to any of the
                restrictive covenants set forth in Section 3 (inclusive), are unreasonable
                under the circumstances then existing, the maximum restrictions reasonable
                under such circumstances as then exist shall be substituted for the
                restrictions stated herein. 

            

    

    

    
      	 	
              e.

            	
              Counterparts/Electronic
                Transmission.
                This Agreement may be executed in one or more counterparts, any of
                which
                may be executed and transmitted by facsimile or other electronic
                method,
                and each of which shall be deemed an original, but all of which together
                shall constitute one and the same
                instrument.

            

    

    

    
      	 	
              f.

            	
              Further
                Assurances.
                The parties agree to promptly execute and deliver to each other any
                and
                all other documents and writings, in form approved by their respective
                counsel, that are necessary or appropriate for the full and efficient
                implementation of this agreement.

            

    

    

    
      	 	
              g.

            	
              Successors.
                This agreement shall inure to the benefit of and be enforceable by
                and
                binding upon infoUSA, the Subsidiary, Guideline and the Surviving
                Corporation, as well as their successors and assigns. This agreement
                shall
                inure to the benefit of and be enforceable by and binding upon Stone
                and
                his legal representatives.

            

    

    

    *
      * * * *
      *

    

    [Remainder
      of Page Intentionally Left Blank. Signature Page Follows]

     

    
      
        
        

      

      
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          7

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Separation, Restrictive
      Covenants and Release Agreement as of the day and year first above
      written.

     

    
      	 	infoUSA,
              Inc.
	 	 
	 	
              /s/
                Fred Vakili

            
	 	
              By:

            	Fred
              Vakili 
	 	
              Its:

            	Chief
              Administrative Officer
	 	 	 
	 	
              Guideline,
                Inc.

            
	 	 

    

    
      	 	/s/
              David Walke
	 	
              By:

            	David
              Walke
	 	
              Its:

            	Chief Executive
              Officer 
	 	 	 
	 	
              Stone:

            
	 	 	 
	 	
              /s/
                Peter Stone

            
	 	
              Peter
                Stone

            

    

     

    
      
        
        

      

      
        Page
          8Unassociated Document

    EMPLOYMENT
      AGREEMENT

     

    This
      Employment Agreement (this “Agreement”), is made and entered into as of June 29,
      2007, by and between Guideline, Inc., a New York corporation (“Company”), and
      Marc Litvinoff (“Employee”).

     

    BACKGROUND

    

    
      	 	
              A.

            	
              On
                June 28, 2007, infoUSA
                Inc., a Delaware Corporation (“infoUSA”) and the Company entered into an
                Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which a
                wholly-owned subsidiary of infoUSA (the “Subsidiary”) will conduct a
                tender offer for all of the outstanding shares of capital stock of
                the
                Company, after which such subsidiary will be merged with and into
                the
                Company (the “Merger”), with the Company continuing as the surviving
                corporation.

            

    

     

    
      	 	
              B.

            	
              As
                a condition to entering into the Merger Agreement, infoUSA has requested
                that the Company and Employee enter into this Agreement providing
                for the
                Employee’s employment and certain non-competition, non-interference,
                confidentiality and intellectual property related obligations on
                the part
                of Employee, and the Company and Employee have agreed to do the same,
                subject to the closing of the tender offer contemplated by the Merger
                Agreement.

            

    

     

    NOW
      THEREFORE, in consideration of the mutual covenants and obligations hereinafter
      set forth, and for other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, Company and Employee, intending
      to
      be legally bound, hereby agree as follows:

    

    1. Position.
      During
      the Employment Term (as defined below), Employee shall be employed as CEO and
      shall perform such duties as are consistent with such position for Company
      as
      well as such other duties as determined from time to time by Company. The
      Company acknowledges that in the event Employee terminates his employment as
      the
      result of any attempt by the Company to materially reduce or otherwise
      materially diminish Employee's job, title or Base Salary, such termination
      shall
      be considered a Termination without Cause, as set forth in Section 7(d) below.
      Employee shall diligently devote all of Employee’s business time to performing
      Employee’s duties pursuant to this Agreement. Notwithstanding the foregoing, and
      provided that such activities do not interfere with the fulfillment of
      Employee’s obligations hereunder in any material respect, Employee may
      (a) serve as a director or trustee of any charitable or non-profit entity;
      and (b) acquire solely as an investment any securities so long as
      (i) he remains a passive investor in such entity and (ii) such entity
      is not, directly or indirectly, in competition with Company or any of its
      affiliates (other than an interest of not more than 5% of the outstanding stock
      of any entity which is publicly traded on a national stock exchange or
      over-the-counter market). 

     

    2. Term
      of Employment.
      Employee’s term of employment under this Agreement shall begin on the date that
      infoUSA and/or the Subsidiary accept tender of a total of at least sixty-six
      and
      two-thirds percent (66 2/3%) or more of the outstanding shares of capital stock
      of the Company pursuant to the Merger Agreement and shall continue for
      five (5) years (the “Employment Term”), unless sooner terminated as
      described in paragraph 7. In the event the Merger Agreement is terminated,
      this
      Agreement shall be deemed negated and all provisions hereof shall be null and
      void, and Employee's current Employment Agreement shall remain in full force
      and
      effect. 

     

    3. Compensation.
      As
      compensation for Employee’s services pursuant to this Agreement, Employee shall
      receive: 

     

    
      	 	
              (a)

            	
              An
                annual base salary of $350,000, less applicable withholdings, which
                shall
                be payable in regular periodic installments according to Company’s normal
                payroll practices (the “Base Salary”). Company shall review the Base
                Salary at least once a year to determine whether the Base Salary
                should be
                increased at Company’s discretion. 

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              (b)

            	
              Employee
                shall also be entitled to participate in the Company incentive bonus
                plan
                for fiscal year 2007 (the “Incentive Bonus Plan”), as described in the
                documents attached hereto as Exhibit
                A.
                Such incentive bonus shall be payable on or before that date which
                is one
                month after the end of the Company’s fiscal year. Vinod Gupta, on behalf
                of the Company, and Employee shall negotiate and determine the structure
                and criteria for the Incentive Bonus Plan for fiscal year 2008 and
                any
                subsequent years at a later date. Employee shall be entitled to receive
                a
                prorated portion of the incentive bonus he would have been entitled
                to
                receive under the Incentive Bonus Plan in any year in which Employee
                is
                terminated pursuant to the provisions of Section 7(d). 

            

    

     

    
      	 	
              (c)

            	
              Employee
                shall also be entitled to receive an automobile allowance in the
                amount of
                $500 per month during the term of his
                employment.

            

    

     

    
      	 	
              (d)

            	
              Employee
                shall receive a one-time sign-on bonus of $200,000, less applicable
                withholdings, payable within 10 business days of the date of this
                Agreement. 

            

    

     

    4. Employee
      Benefits.
      Employee shall be entitled to participate in any Company-sponsored employee
      benefit plans on substantially the same terms as other similarly situated
      employees of Company. Employee shall also be entitled to such other fringe
      benefits as may be offered from time to time to other similarly situated
      executive employees of Company, subject to the terms and conditions applicable
      to such fringe benefits. If Employee elects COBRA coverage after termination
      of
      his employment with Company, Company shall pay the premium for Employee’s COBRA
      coverage during any period in which Employee is receiving severance payments
      under this Agreement; provided,
      however
      that
      Employee’s severance payments will be reduced by an aggregate amount equal to
      the amount which Employee was responsible to pay on a monthly basis for such
      insurance coverage under the Company’s plan immediately prior to termination
      multiplied by the total number of months of severance the Employee is to
      receive.

     

    5. Paid
      Time Off.
      Employee shall be entitled to a prorated portion of four weeks paid time off
      for
      the remainder of 2007. Except as set forth in the previous sentence, Employee
      shall be entitled to paid time off consistent with similarly situated employees
      of Company as set forth in Company’s Employee Handbook.

     

    6. Expenses.
      Company
      shall pay or reimburse Employee, in accordance with Company’s reimbursement
      policy, for any expenses reasonably incurred by Employee in furtherance of
      Employee’s duties hereunder, including, but not limited to, expenses for
      reasonable traveling, meals and hotel accommodations, upon submission by
      Employee of vouchers or itemized lists prepared in compliance with such rules
      and policies as Company may from time to time adopt and as may be required
      in
      order to permit such payments as proper deductions to Company under the Internal
      Revenue Code and the rules and regulations adopted now or hereafter in
      effect.

     

    7. Termination.
      Employee’s employment with Company may be terminated prior to the end of the
      Employment Term upon the occurrence of any one of following events:

     

    
      	 	
              (a)

            	
              Death.
                Immediately upon the death of Employee. In such event, Company shall
                pay
                Employee severance in an amount equal to one (1) times Employee’s
                then-current Base Salary to be paid over a one-year period in regular
                periodic installments and in accordance with Company’s then-current
                payroll practices.

            

    

     

    
      	 	
              (b)

            	
              Disability.
                Employee’s physical or mental disability (as defined by the Americans With
                Disabilities Act), which prevents Employee from performing the essential
                functions of Employee’s duties, with or without reasonable accommodation,
                for a continuous period of 90 days or for a period of 120 days in
                any six
                month period.

            

    

     

    
      	 	
              (c)

            	
              Voluntary
                Termination.
                Voluntary termination of this employment by Employee upon giving
                Company
                at least thirty (30) days’ advance written notice. In such event,
                Company shall pay Employee severance in an amount equal to one (1)
                times
                Employee’s then-current Base Salary to be paid over a one-year period in
                regular periodic installments and in accordance with Company’s
                then-current payroll practices. Severance payments provided under
                this
                Section 7(c) shall be reduced by the amount earned by Employee in
                any
                other employment during the severance period.

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              (d)

            	
              Termination
                Without Cause.
                Termination of this employment by Company without cause upon giving
                thirty
                (30) days’ advance written notice to Employee. In such event, Company
                shall pay Employee severance in an amount equal to two (2) times
                Employee’s then-current Base Salary to be paid over a two-year period in
                regular periodic installments and in accordance with Company’s
                then-current payroll practices. 

            

    

     

    
      	 	
              (e)

            	
              Termination
                For Cause.
                Termination of this employment by Company for cause upon giving written
                notice to Employee. As used herein, “cause” means (i) conviction of
                or entering of a guilty or nolo contendere plea to a felony or a
                misdemeanor involving moral turpitude; (ii) conduct that is
                detrimental to the business or reputation of Company or any of its
                affiliates; (iii) fraud, misappropriation or embezzlement against any
                person or entity; (iv) material refusal to comply with directives of
                Company consistent with the terms of this Agreement, following written
                notice of such failure from the Company and Employee's failure to
                cure
                such refusal within seven (7) days of such notice; or (v) failure
                to
                perform or neglect of Employee’s material duties, following written notice
                of such failure from the Company and Employee's failure to cure such
                conduct within seven (7) days of such notice.

            

    

     

    
      	 	
              (f)

            	
              Mutual
                Agreement.
                Termination of this employment by mutual written agreement of Employee
                and
                Company.

            

    

     

    
      	 	
              (g)

            	
              Non-Renewal
                of Employment Agreement.
                In the event that the Company does not renew this Agreement following
                its
                expiration, Company shall pay Employee severance in an amount equal
                to one
                (1) times Employee’s then-current Base Salary to be paid over a one-year
                period in regular periodic installments and in accordance with Company’s
                then-current payroll practices.

            

    

     

    Upon
      notice of termination of employment pursuant to paragraph 7(c) or 7(d), Company
      shall have the right, in its sole and absolute discretion, to immediately
      relieve Employee of Employee’s duties pursuant to this Agreement but to continue
      paying Employee’s Base Salary through the remainder of the notice period. If
      Employee is not relieved of Employee’s regular duties through this notice
      period, Employee acknowledges and agrees that Employee shall continue to perform
      Employee’s duties in a professional and ethical manner. 

     

    Upon
      termination of Employee’s employment for any reason, Employee acknowledges and
      agrees that, except as specifically provided herein, Employee is not entitled
      to
      any other compensation or benefits following the effective date of termination.
      Payment of any severance amount pursuant to this agreement is conditioned upon
      (i) Employee’s execution of a signed general release from Employee to Company in
      a form to be determined and provided by Company in its reasonable discretion
      and
      (ii) Employee’s continued compliance with any and all applicable
      confidentiality, nonsolicitation, noncompetition, and noninterference
      obligations. 

     

    8. Noncompetition.
      Employee shall not during the Restrictive Period, directly or
      indirectly:

     

    
      	 	
              (a)

            	
              engage
                in direct or indirect competition with the Business as conducted
                and
                operated by Company during Employee's employment with the Company,
                and as
                conducted and operated on the date of termination of such employment
                ("Company's Business") in any state or country in which the Company's
                Business is conducted or operated; provided
                that Employee
                shall not violate this Section 8(a) if (i) Employee is employed by
                a
                company whose primary business is not competitive with Company's
                Business,
                and (ii) Employee's service for such company does not compete, directly
                or
                indirectly, with Company's
                Business;

            

    

     

    
      	 	
              (b)

            	
              solicit,
                for himself or any other person, business that is competitive with
                Company's Business from any customers, clients or accounts, or active
                prospective customers, clients or accounts of Company's Business,
                except
                on behalf of Company in the course of his employment with Company;
                or

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              (c)

            	
              acquire
                a direct or indirect interest or an option to acquire such interest
                in any
                business engaged in competition with Company's Business (other than
                an
                interest of not more than 5% of the outstanding stock of any company
                which
                is publicly traded on a national stock exchange or the over-the-counter
                market).

            

    

     

    9. Noninterference.
      Employee acknowledges that the past relationship between Employee and the
      customers and employees of Company has resulted in a unique and special
      situation whereby Employee is placed in a position to either further or damage
      Company's Business. Accordingly, Employee shall not during the Restrictive
      Period, directly or indirectly:

     

    
      	 	
              (a)

            	
              encourage,
                in any way or for any reason, any customer, client or account of
                Company's
                Business, to sever or alter the relationship of such customer, client
                or
                account with Company's Business;

            

    

     

    
      	 	
              (b)

            	
              aid
                any other person attempting to take customers, clients or accounts
                from
                Company's Business;

            

    

     

    
      	 	
              (c)

            	
              unless
                approved in writing by Company, serve or work, outside of his employment
                with Company, in any way for any customers, clients or accounts of
                Company's Business;

            

    

     

    
      	 	
              (d)

            	
              while
                employed by Company, fail to promptly notify Company whenever he
                has any
                leads or information which may further Company's Business, or furnish
                such
                leads or information to any other
                person;

            

    

     

    
      	 	
              (e)

            	
              defame
                or make false statements regarding Company or any of its affiliates,
                or
                any of its directors, officers or employees, nor engage in any deceptive
                trade practices toward Company or any of its affiliates;
                or

            

    

     

    
      	 	
              (f)

            	
              solicit,
                employ, retain as a consultant, interfere with or attempt to entice
                away
                from Company any current employee of Company or any individual who
                has
                agreed to be, or has been, employed or retained by Company within
                2 years
                prior to such solicitation, employment, retention, interference or
                enticement.

            

    

     

    10. Intellectual
      Property.
      Employee shall not use (except for use within the scope of his employment with
      Company), appropriate or interfere with, directly or indirectly, any
      Intellectual Property of Company or any of its affiliates, or any combination,
      abbreviation or derivation thereof, or any applicable logos of Company, or
      any
      of its affiliates, at any time during or after the Restrictive Period. Employee
      covenants and agrees that Employee will: 

     

    
      	 	
              (a)

            	
              promptly
                disclose to Company, and Company will own all right, title and interest
                in, all inventions, improvements, technical information, methods
                and
                suggestions, computer software and other intellectual property (the
                “Employee Developed Intellectual Property”) which Employee conceives or
                develops during the course of Employee’s employment (excluding that which
                Employee conceives or develops without the use of time, resources
                or
                facilities of Company and which does not relate to the past, present
                or
                perspective activities of Company);

            

    

     

    
      	 	
              (b)

            	
              at
                the request of Company, affix appropriate legends and copyright notices
                indicating Company’s ownership of all Employee Developed Intellectual
                Property and all underlying documentation; and

            

    

     

    
      	 	
              (c)

            	
              execute
                such further assignments and other documents as may be reasonably
                requested by Company in order to vest, perfect, maintain or defend
                Company’s right, title and interest in the Employee Developed Intellectual
                Property.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

     

    11. Confidentiality.
      Employee shall not use (except for use within the scope of his employment with
      Company), appropriate or disclose to any person, directly or indirectly, any
      Confidential Information of Company (including any Confidential Information
      of
      Company's Business) or any of its affiliates, at any time during or after the
      Restrictive Period. Upon the termination of Employee’s employment with Company,
      Employee will promptly return to Company in good condition all documents, data
      and records of any kind which contain any Confidential Information or which
      were
      prepared based on Confidential Information.

     

    12. Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing and shall be given by hand delivery, telecopy, overnight courier
      service, or United States certified or registered mail, return receipt
      requested. Each such notice, request, demand or other communication shall be
      effective (a) if delivered by hand or by overnight courier service, when
      delivered at the address specified in this paragraph; (b) if given by
      facsimile, when such facsimile is transmitted to the facsimile number specified
      in this paragraph and the appropriate machine confirmation is received; and
      (c) if given by certified or registered mail, three (3) days after the
      mailing thereof.

     

    Address
      for notices (unless and until written notice is given of any other
      address):

     

    
      	
              If
                to Employer, to:

               

              5711
                South 86th Circle

              Omaha,
                NE 68127

              Attention:
                General Counsel

              Fax:
                (402) 537-6197

            	
              If
                to Employee, to:

               

              10
                River Knoll

              Westport,
                CT 06880

               

              With
                a copy to:

              Cuddy
                & Feder LLP

              445
                Hamilton Avenue, 14th
                Floor

              White
                Plains, NY 10601

              Attention:
                Robert J. Levine, Esq.

              Fax:
                (914) 761-5372

               

            

    

    13. Definitions.
      As used
      in this Agreement the following terms shall have the following meanings:

     

    
      	 	
              (d)

            	
              "Business"
                means the business of [customized research and analysis designed
                to help
                companies make more informed decisions about critical business issues,
                including, but not limited to, custom market research, strategic
                intelligence and on-demand
                research].

            

    

     

    
      	 	
              (e)

            	
              “Confidential
                Information” means sensitive, confidential and proprietary information of
                Company that includes, but is not limited to, information about products,
                services, markets, customers, prospective customers, personnel,
                compensation, accounting, financial and technical data, business
                plans and
                operational and marketing strategies regarding
                Company.

            

    

     

    
      	 	
              (f)

            	
              “Intellectual
                Property” means (a) all inventions (whether patentable or
                unpatentable and whether or not reduced to practice), all improvements
                thereto, and all patents, patent applications and patent disclosures,
                together with all reissuances, continuations, continuations-in-part,
                revisions, extensions and reexaminations thereof; (b) all trademarks,
                service marks, trade dress, logos, trade names, corporate names and
                domain
                names, together with all abbreviations, translations, adaptations,
                derivations and combinations thereof and including all goodwill associated
                therewith, and all applications, registrations and renewals in connection
                therewith; (c) all copyrightable works, all copyrights and all
                applications, registrations and renewals in connection therewith;
                (d) all mask works and all applications, registrations and renewals
                in connection therewith; (e) all trade secrets and confidential
                business information (including ideas, research and development,
                know-how,
                formulas, compositions, manufacturing and production processes and
                techniques, technical data, designs, drawings, specifications, customer
                and supplier lists, pricing and cost information and business and
                marketing plans and proposals); (f) all computer software (including
                data and related documentation); (g) all other proprietary rights;
                and (h) all copies and tangible embodiments thereof (in whatever form
                or medium).

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              (g)

            	
              "Restrictive
                Period" means that period of time which commences on the date of
                this
                Agreement and ends two (2) years after the termination or expiration
                of
                Employee's employment with Company; provided,
                however
                that if termination of Employee’s employment with the Company is pursuant
                to Section 7(c) of the Employment Agreement (Voluntary Termination),
                then
                Restrictive Period shall mean that period of time which commences
                on the
                date of this Agreement and ends one (1) year after the termination
                of
                Employee’s employment with Company.

            

    

     

    14. Intended
      Third Party Beneficiaries.
      Employee acknowledges and understands that some of the Confidential Information
      and/or Intellectual Property accessible to Employee in the performance of
      Employee’s duties during Employee’s employment with Company may belong to and be
      provided by one of Company’s affiliates. Employee expressly acknowledges and
      agrees that the affiliates are intended third party beneficiaries of this
      Agreement as it pertains to Employee’s obligations under this Agreement and
      shall have the right to enforce this Agreement directly against Employee in
      their own names or jointly with Company or each other. This Agreement is not
      intended to and shall not grant any third party beneficiary any ownership
      interest in any of Company’s Confidential Information or Intellectual
      Property.

     

    15. Governing
      Law and Venue.
      This
      Agreement shall be governed by, and construed and enforced in accordance with
      the laws of the State of New
      York.
      Each party agrees that any action by either party to enforce the terms of this
      Agreement must be brought in an appropriate court in New York, and waives all
      objections based on lack of jurisdiction or improper or inconvenient venue
      of
      any such court.

     

    16. Captions.
      The
      paragraph headings contained herein are for reference purposes only and shall
      not in any way affect the meaning or interpretation of this
      Agreement.

     

    17. Entire
      Agreement.
      This
      Agreement sets forth the entire agreement and understanding of the parties
      relating to the subject matter hereof, and supersedes all prior agreements,
      arrangements and understandings, written or oral, between the parties concerning
      such subject matter. The previous sentence notwithstanding, Employee expressly
      acknowledges that Employee may be subject to additional policies instituted
      for
      the purpose of protecting the Confidential Information and Intellectual
      Property; as such, Employee expressly acknowledges that all such policies and
      agreements shall be used together with this Agreement to protect such interests
      of Company to the fullest extent allowed by law.

     

    18. Successors
      and Assigns.
      This
      Agreement is binding upon and shall inure to the benefit of Company and its
      successors and assigns and upon Employee and Employee’s heirs and personal
      representatives; provided, however, in no event may Employee assign any of
      Employee’s duties or obligations under this Agreement. 

     

    19. Severability.
      Employee and Company intend and agree that if a court of competent jurisdiction
      determines that the scope of any provision of this Agreement is too broad to
      be
      enforced as written, the court should reform such provisions to such narrower
      scope as it determines to be enforceable. Employee and Company further agree
      that if any provision of this Agreement is determined to be unenforceable for
      any reason, such provision shall be deemed separate and severable and the
      unenforceability of any such provisions shall not invalidate or render
      unenforceable any of the remaining provisions hereof. In addition, each of
      the
      parties to this Agreement recognizes and acknowledges that the covenants and
      provisions contained in this Agreement are properly required for the adequate
      protection of Company, the Company's Business and the goodwill of the Business.
      Each of the parties to this Agreement also recognizes and acknowledges that
      the
      covenants and restrictions contained in this Agreement are accepted as part
      of
      the consideration paid.

     

    20. Amendments;
      Waivers.
      This
      Agreement may be amended, modified, superseded, canceled, renewed or extended,
      and the terms or covenants hereof may be waived only by a written instrument
      executed by all of the parties hereto, or in the case of a waiver, by the party
      waiving compliance. The failure of any party at any time or times to require
      performance of any provision hereof shall in no manner affect the right of
      such
      party at a later time to enforce the same. No waiver by any party of the breach
      of any term or covenant contained in this Agreement, whether by conduct or
      otherwise, in any one or more instances, shall be deemed to be, or construed
      as,
      a further or continuing waiver of any such breach, or a waiver of the breach
      of
      any other term or covenant contained in this Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    21. Counterparts/Electronic
      Transmission.
      This
      Agreement may be executed in one or more counterparts, any of which may be
      executed and transmitted by facsimile or other electronic method, and each
      of
      which shall be deemed an original, but all of which together shall constitute
      one and the same instrument.

     

    

     

    [Balance
      of page intentionally left blank. Signatures follow.]

     

    

     

    

     

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

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

     

    
      	 	Guideline,
              Inc., a New York corporation, Employer
	 	 	 
	 	
              By:

            	/s/
              David Walke
	 	
              Its:

            	Chief
              Executive Officer
	 	 	 
	 	 	 
	 	/s/
              Marc Litvinoff 
	 	
              Marc
                Litvinoff, Employee

            

    

    

    

     

    
      
        
        

      

      
        8

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