Document:

exv10w3

 

Exhibit 10.3

INTELIUS INC.

2005 STOCK INCENTIVE PLAN

(Amended as of January 8, 2008)

SECTION 1. PURPOSE

     The purpose of the Intelius Inc. 2005 Stock Incentive Plan (the “Plan”) is to enhance the
long-term stockholder value of Intelius Inc., a Delaware corporation (the “Company”), by offering
opportunities to selected persons to participate in the Company’s growth and success, and to
encourage them to remain in the service of the Company or a Related Company (as defined in Section
2) and to acquire and maintain stock ownership in the Company.

SECTION 2. DEFINITIONS

     “Award” means any Option or Stock Award.

     “Board” means the Board of Directors of the Company.

     “Cause,” unless otherwise defined in the instrument evidencing the Award or in a written
employment, or services or other agreement between the Participant and the Company or a Related
Company and the Participant, means (a) the unauthorized use or disclosure of the confidential
information or trade secrets of the Company, which use or disclosure causes material harm to the
Company, (b) conviction of, or a plea of “guilty” or “no contest” to, a felony under the laws of
the United States or any State thereof, (c) gross negligence, or (d) willful misconduct, in each
case as determined by the Plan Administrator which determination shall be conclusive and binding.
The foregoing, however, shall not be deemed an exclusive list of all acts or omissions that the
Company may consider as grounds for the discharge of the Participant without Cause

     “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     “Common Stock” means the Common Stock, par value $0.0001 per share, of the Company.

     “Company Transaction,” unless otherwise defined in the instrument evidencing the Award or in a
written employment, services or other agreement between the Participant and the Company or a
Related Company, means consummation of either

     (a) a merger or consolidation of the Company with or into any other company, entity or person
or

 

 

     (b) a sale, lease, exchange or other transfer in one transaction or a series of related
transactions undertaken with a common purpose of all or substantially all the Company’s then
outstanding securities or all or substantially all the Company’s assets;

     provided, however, that a Company Transaction shall not include a Related Party Transaction.

     “Disability,” unless otherwise defined by the Plan Administrator or in the instrument
evidencing the Award or in a written employment or services agreement between the Participant and
the Company or a Related Company, means a mental or physical impairment of the Participant that is
expected to result in death or that has lasted or is expected to last for a continuous period of 12
months or more and that causes the Participant to be unable, in the opinion of the Plan
Administrator, to perform his or her duties for the Company or a Related Company and to be engaged
in any substantial gainful activity.

     “Early Retirement” means Termination of Service prior to Retirement on terms and conditions
approved by the Plan Administrator.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Fair Market Value” means the per share value of the Common Stock as established in good faith
by the Board.

     “Grant Date” means the date on which the Plan Administrator completes the corporate action
authorizing the grant of an Award or such later date specified by the Plan Administrator provided
that conditions to the exercisability or vesting of Awards shall not defer the Grant Date.

     “Incentive Stock Option” means an Option granted with the intention that it qualify as an
“incentive stock option” as that term is defined in Section 422 of the Code.

     “Nonqualified Stock Option” means an Option other than an Incentive Stock Option.

     “Option” means the right to purchase Common Stock granted under Section 7

     “Option Expiration Date” has the meaning set forth in Section 7.6.

     “Option Term” has the meaning set forth in Section 7.3.

     “Participant” means the person to whom an Award is granted.

     “Plan Administrator” has the meaning set forth in Section 3.1.

     “Related Company” means any entity that, directly or indirectly, is in control of, is
controlled by, or is under common control with the Company.

     “Related Party Transaction” means (a) a merger or consolidation of the Company in which the
holders of the outstanding voting securities of the Company immediately prior to the

 

 

merger or consolidation hold at least a majority of the outstanding voting securities of the
Successor Company immediately after the merger or consolidation; (b) a sale, lease, exchange or
other transfer of the Company’s assets to a majority-owned subsidiary company; (c) a transaction
undertaken for the principal purpose of restructuring the capital of the Company, including but not
limited to, reincorporating the Company in a different jurisdiction or creating a holding company;
or (d) a corporate dissolution or liquidation.

     “Retirement,” unless otherwise defined by the Plan Administrator from time to time for
purposes of the Plan, means Termination of Service on or after the date the individual reaches
“normal retirement age” as that term is defined in Section 41 l(a)(8) of the Code.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Stock Award” means an Award of shares of Common Stock or units denominated in Common Stock
granted under Section 9, the rights of ownership of which may be subject to restrictions prescribed
by the Plan Administrator.

     “Successor Company” means the surviving company, the successor company or its parent, as
applicable, in connection with a Company Transaction.

     “Termination of Service” means a termination of employment or service relationship with the
Company or a Related Company for any reason, whether voluntary or involuntary, including death,
Disability, Early Retirement or Retirement, as determined by the Plan Administrator in its sole
discretion. Any question as to whether and when there has been a Termination of Service for the
purposes of an Award and the cause of such Termination of Service shall be determined by the Plan
Administrator and its determination shall be final. Transfer of the Participant’s employment or
service relationship between Related Companies, or between the Company and any Related Company,
shall not be considered a Termination of Service for purposes of an Award, but unless the Plan
Administrator determines otherwise, a Termination of Service shall be deemed to occur if the
Participant’s employment or service relationship is with an entity that has ceased to be a Related
Company.

     “Vesting Commencement Date” means the Grant Date or such other date selected by the Plan
Administrator as the date from which the Option begins to vest for purposes of Section 7.4.

SECTIONS 3. ADMINISTRATION

3.1 Plan Administrator

     The Plan shall be administered by the Board and/or a committee or committees (which term
includes subcommittees) appointed by, and consisting of two or more members of, the Board (a “Plan
Administrator”). Notwithstanding the foregoing, the Board may delegate the responsibility for
administering the Plan with respect to designated classes of eligible persons to different
committees consisting of one or more members of the Board, subject to such limitations

 

 

as the Board deems appropriate. Committee members shall serve for such term as the Board may
determine, subject to removal by the Board at any time.

3.2 Administration and Interpretation by Plan Administrator

     Except for the terms and conditions explicitly set forth in the Plan, the Plan Administrator
shall have exclusive authority, in its discretion, to determine all matters relating to Awards
under the Plan, including selecting the persons to be granted Awards, determining the type of
Awards, the number of shares of Common Stock subject to an Award, and all terms, conditions,
restrictions and limitations, if any, of an Award, and approving the forms of agreement for use
under the Plan. The Plan Administrator shall also have exclusive authority to interpret the Plan
and the terms of any instrument evidencing the Award and may from time to time adopt and change
rules and regulations of general application for the Plan’s administration. The Plan
Administrator’s interpretation of the Plan and its rules and regulations, and all actions taken and
determinations made by the Plan Administrator pursuant to the Plan, shall be conclusive and binding
on all parties involved or affected. The Plan Administrator may delegate ministerial duties to
such of the Company’s officers as it so determines. For purposes of determining the effect on
vesting an Award of a Company-approved leave of absence or a Participant’s working less than full
time, the human resources director or other person performing that function may be deemed the Plan
Administrator.

SECTION 4. STOCK SUBJECT TO THE PLAN

4.1 Authorized Number of Shares

     Subject to adjustment from time to time as provided in Section 12.1, a maximum of 9,250,000
shares of Common Stock shall be available for issuance under the Plan. Shares issued under the
Plan shall be drawn from authorized and unissued shares or shares now held or subsequently acquired
by the Company.

4.2 Reuse of Shares

     (a) Shares of Common Stock covered by an Award shall not be counted as used unless and until
they are actually issued and delivered to a Participant. If any Award lapses, expires, terminates
or is cancelled prior to the issuance of shares thereunder or if shares of Common Stock are issued
under the Plan to a Participant and are thereafter reacquired by the Company, the shares subject to
such Awards or the reacquired shares shall again be available for issuance under the Plan. Any
shares of Common Stock (i) tendered by a Participant or retained by the Company as full or partial
payment to the Company for the purchase price of an Award or to satisfy tax withholding
obligations, or (ii) covered by an Award that is settled in cash shall be available for Awards
under the Plan. All shares issued under the Plan may be either authorized and unissued shares or
issued shares reacquired by the Company.

     (b) The Committee shall have the authority to grant awards as an alternative to or as the form
of payment for grants or rights earned or due under other compensation plans or arrangements of the
Company.

 

 

     (c) Notwithstanding the foregoing, the maximum number of shares that may be issued upon the
exercise of Incentive Stock Options shall equal the share number stated in Section 4.1, subject to
adjustment from time to time as provided in Section 12.1.

SECTION 5. ELIGIBILITY

     An Award may be granted to any officer, director or employee of the Company or a Related
Company that the Plan Administrator from time to time selects. An Award may also be granted to any
consultant, advisor or independent contractor who provides services to the Company or any Related
Company, so long as such Participant (a) renders bona fide services that are not in connection with
the offer and sale of the Company’s securities in a capital-raising transaction and (b) does not
directly or indirectly promote or maintain a market for the Company’s securities.

SECTION 6. AWARDS

6.1 Form and Grant of Awards

     The Plan Administrator shall have the authority, in its sole discretion, to determine the type
or types of Awards to be granted under the Plan. Awards may be granted singly or in combination.

6.2 Settlement of Awards

     The Company may settle Awards through the delivery of shares of Common Stock, the granting of
replacement Awards or any combination thereof as the Plan Administrator shall determine. Any Award
settlement may be subject to such conditions, restrictions and contingencies as the Plan
Administrator shall determine. The Plan Administrator may permit or require the deferral of any
Award payment, subject to such rules and procedures as it may establish, which may include
provisions for the payment or crediting of interest, or dividend equivalents, including converting
such credits into deferred stock equivalents.

6.3 Acquired Company Awards

     Notwithstanding anything in the Plan to the contrary, the Plan Administrator may grant Awards
under the Plan in substitution for awards issued under other plans, or assume under the Plan awards
issued under other plans, if the other plans are or were plans of other acquired entities
(“Acquired Entities”) (or the parent of an Acquired Entity) and the new Award is substituted, or
the old award is assumed, by reason of a merger, consolidation, acquisition of property or stock,
reorganization or liquidation (the “Acquisition Transaction”). In the event that a written
agreement pursuant to which the Acquisition Transaction is completed is approved by
the Board and said agreement sets forth the terms and conditions of the substitution for or
assumption of outstanding awards of the Acquired Entity, said terms and conditions shall be deemed
to be the action of the Plan Administrator without any further action by the Plan

 

 

Administrator,
except as may be required for compliance with Rule 16b-3 under the Exchange Act, and the persons
holding such awards shall be deemed to be Participants.

SECTION 7. AWARDS OF OPTIONS

7.1 Grant of Options

     The Plan Administrator shall have the authority, in its sole discretion, to grant Options
designated as Incentive Stock Options or as Nonqualified Stock Options.

7.2 Option Exercise Price

     The exercise price for shares purchased under an Option shall be as determined by the Plan
Administrator, however, with respect to Incentive Stock Options the exercise price shall not be
less than the minimum exercise price required by Section 8.3.

7.3 Term of Options

     Subject to earlier termination in accordance with the terms of the Plan and the instrument
evidencing the Option, the maximum term of an Option (the “Option Term”) shall be as established
for that Option by the Plan Administrator or, if not so established, shall be ten years from the
Grant Date. For Incentive Stock Options, the Option Term shall be as specified in Section 8.4.

7.4 Exercise of Options

     The Plan Administrator shall establish and set forth in each instrument that evidences an
Option the time at which, or the installments in which, the Option shall vest and become
exercisable, any of which provisions may be waived or modified by the Plan Administrator at any
time. If not so established in the instrument evidencing the Option, the Option shall vest and
become exercisable according to the following schedule, which may be waived or modified by the Plan
Administrator at any time:

	 	 	 
	Period of Participant’s Continuous
Employment or Service With the
Company or Its Related Companies From
the Vesting Commencement Date

	 	Portion of Total Option That
Is Vested and Exercisable
	 
	 	 
	After 1 year

	 	1/4th 
	 
	 	 
	Each additional one-month period of
continuous service completed thereafter

	 	An additional 1/48th
	 
	 	 
	After 4 years

	 	100% 

 

 

     To the extent an Option has vested and become exercisable, the Option may be exercised in
whole or from time to time in part by delivery to the Company of a written stock option exercise
agreement or notice, in a form and in accordance with procedures established by the Plan
Administrator, setting forth the number of shares with respect to which the Option is being
exercised, the restrictions imposed on the shares purchased under such exercise agreement, if any,
and such representations and agreements as may be required by the Plan Administrator, accompanied
by payment in full as described in Section 7.5. An Option may be exercised only for whole shares
and may not be exercised for less than a reasonable number of shares at any one time, as determined
by the Plan Administrator.

7.5 Payment of Exercise Price

     The exercise price for shares purchased under an Option shall be paid in full to the Company
by delivery of consideration equal to the product of the Option exercise price and the number of
shares purchased. Such consideration must be paid before the Company will issue the shares being
purchased and must be in a form or a combination of forms acceptable to the Plan Administrator for
that purchase, which forms may include:

     (a) cash;

     (b) check;

     (c) tendering (either actually or, if the Common Stock is registered under Section 12(b) or
12(g) of the Exchange Act, by attestation) shares of Common Stock already owned by the Participant
for at least six months (or any shorter period necessary to avoid a charge to the Company’s
earnings for financial reporting purposes) that have a Fair Market Value equal to the aggregate
exercise price of the shares being purchased under the Option;

     (d) if the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act,
delivery of a properly executed exercise notice, together with irrevocable instructions to a
brokerage firm designated by the Company to deliver promptly to the Company the aggregate amount of
sale or loan proceeds to pay the Option exercise price and any withholding tax obligations that may
arise in connection with the exercise, all in accordance with the regulations of the Federal
Reserve Board; or

     (e) such other consideration as the Plan Administrator may permit.

     In addition, to assist a Participant (including a Participant who is an officer or a director
of the Company) in acquiring shares of Common Stock pursuant to an Award granted under the Plan,
the Plan Administrator, in its sole discretion, may authorize, either at the Grant Date or at any
time before the acquisition of Common Stock pursuant to the Award, (i) the payment by a
Participant of the purchase price of the Common Stock by a promissory note or (ii) the guarantee by
the Company of a loan obtained by the Participant from a third party; provided that the Company is
not then subject to the Sarbanes-Oxley Act of 2002. Such notes or loans must be full recourse to
the extent necessary to avoid charges to the Company’s earnings for financial reporting purposes.
Subject to the foregoing, the Plan Administrator shall in its sole discretion

 

 

specify the terms of
any loans or loan guarantees, including the interest rate and terms of and security for repayment.

7.6 Post-Termination Exercises

     The Plan Administrator shall establish and set forth in each instrument that evidences an
Option whether the Option shall continue to be exercisable, and the terms and conditions of such
exercise, if a Participant ceases to be employed by, or to provide services to, the Company or a
Related Company, which provisions may be waived or modified by the Plan Administrator at any time.
If not so established in the instrument evidencing the Option, the Option shall be exercisable
according to the following terms and conditions, which may be waived or modified by the Plan
Administrator at any time:

     (a) Any portion of an Option that is not vested and exercisable on the date of a Participant’s
Termination of Service shall expire on such date.

     (b) Any portion of an Option that is vested and exercisable on the date of a Participant’s
Termination of Service shall expire on the earliest to occur of

     (i) if the Participant’s Termination of Service occurs for reasons other than Cause,
Retirement or Early Retirement, Disability or death, the date which is three months after such
Termination of Service;

     (ii) if the Participant’s Termination of Service occurs by reason of Retirement or Early
Retirement, Disability or death, the one-year anniversary of such Termination of Service; and

     (iii) the last day of the Option Term (the “Option Expiration Date”).

     Notwithstanding the foregoing, if a Participant dies after his or her Termination of Service
but while an Option is otherwise exercisable, the portion of the Option that is vested and
exercisable on the date of such Termination of Service shall expire upon the earlier to occur of
(y) the Option Expiration Date and (z) the one-year anniversary of the date of death, unless the
Plan Administrator determines otherwise.

     Also notwithstanding the foregoing, in case a Participant’s Termination of Service occurs for
Cause, all Options granted to the Participant shall automatically expire upon first notification to
the Participant of such termination, unless the Plan Administrator determines otherwise. If a
Participant’s employment or service relationship with the Company is suspended pending an
investigation of whether the Participant shall be terminated for Cause, all the Participant’s
rights under any Option shall likewise be suspended during the period of investigation. If any facts that
would constitute termination for Cause are discovered after a Participant’s Termination of Service,
any Option then held by the Participant may be immediately terminated by the Plan Administrator, in
its sole discretion.

 

 

     (c) A Participant’s change in status from an employee to a consultant, advisor or independent
contractor or a change in status from a consultant, advisor or independent contractor to an
employee, shall not be considered a Termination of Service for purposes of this Section 7.

     (d) The effect of a Company-approved leave of absence on the application of this Section 7
shall be determined by the Plan Administrator, in its sole discretion.

SECTION 8. INCENTIVE STOCK OPTION LIMITATIONS

     Notwithstanding any other provisions of the Plan, and to the extent required by Section 422 of
the Code, Incentive Stock Options shall be subject to the following additional terms and
conditions:

8.1 Dollar Limitation

     To the extent the aggregate Fair Market Value (determined as of the Grant Date) of Common
Stock with respect to which a Participant’s Incentive Stock Options become exercisable for the
first time during any calendar year (under the Plan and all other stock option plans of the Company
and its parent and subsidiary corporations) exceeds $100,000, such portion in excess of $100,000
shall be treated as a Nonqualified Stock Option. In the event the Participant holds two or more
such Options that become exercisable for the first time in the same calendar year, such limitation
shall be applied on the basis of the order in which such Options are granted.

8.2 Eligible Employees

     Individuals who are not employees of the Company or one of its parent or subsidiary
corporations may not be granted Incentive Stock Options.

8.3 Exercise Price

     The exercise price of an Incentive Stock Option shall be at least 100% of the Fair Market
Value of the Common Stock on the Grant Date, and in the case of an Incentive Stock Option granted
to a Participant who owns more than 10% of the total combined voting power of all classes of the
stock of the Company or of its parent or subsidiary corporations (a “Ten Percent Stockholder”),
shall not be less than 110% of the Fair Market Value of the Common Stock on the Grant Date. The
determination of more than 10% ownership shall be made in accordance with Section 422 of the Code.

8.4 Option Term

     Subject to earlier termination in accordance with the terms of the Plan and the instrument
evidencing the Option, the Option Term of an Incentive Stock Option shall not exceed ten years, and
in the case of an Incentive Stock Option granted to a Ten Percent Stockholder, shall not exceed
five years.

 

 

8.5 Exercisability

     An Option designated as an Incentive Stock Option shall cease to qualify for favorable tax
treatment as an Incentive Stock Option to the extent it is exercised (if permitted by the terms of
the Option) (a) more than three months after the date of a Participant’s termination of service as
an employee if termination was for reasons other than death or Disability, (b) more than one year
after the date of a Participant’s Termination of Service if termination was by reason of
Disability, or (c) after the Participant has been on leave of absence for more than 90 days, unless
the Participant’s reemployment rights are guaranteed by statute or contract.

8.6 Taxation of Incentive Stock Options

     In order to obtain certain tax benefits afforded to Incentive Stock Options under Section 422
of the Code, the Participant must hold the shares acquired upon the exercise of an Incentive Stock
Option for two years after the Grant Date and one year after the date of exercise.

     A Participant may be subject to the alternative minimum tax at the time of exercise of an
Incentive Stock Option. The Participant shall give the Company prompt notice of any disposition of
shares acquired on the exercise of an Incentive Stock Option prior to the expiration of such
holding periods. Participants should consult their own accounting or tax advisors as to the
specific tax consequences to them resulting from any grant or exercise of Incentive Stock Options
or the sale of the shares acquired therefrom.

8.7 Promissory Notes

     The amount of any promissory note delivered pursuant to Section 7.5 in connection with an
Incentive Stock Option shall bear interest at a rate specified by the Plan Administrator, but in no
case less than the rate required to avoid imputation of interest (taking into account any
exceptions to the imputed interest rules) for federal income tax purposes.

8.8 Code Definitions

     For the purposes of this Section 8, “parent corporation” and “subsidiary corporation” shall
have the meanings attributed to those terms for purposes of Section 422 of the Code.

SECTION 9. STOCK AWARDS

9.1 Grant of Stock Awards

     The Plan Administrator is authorized to make Awards of Common Stock or Awards denominated in
units of Common Stock on such terms and conditions and subject to such repurchase or forfeiture
restrictions, if any (which may be based on continuous service with the Company or the achievement
of performance goals where such goals may be stated in absolute terms or relative to comparison
companies), as the Plan Administrator shall determine, in its sole discretion, which terms,
conditions and restrictions shall be set forth in the instrument evidencing

 

 

the Award. The terms,
conditions and restrictions that the Plan Administrator shall have the power to determine shall
include, without limitation, the manner in which shares subject to Stock Awards are held during the
periods they are subject to restrictions and the circumstances under which repurchase or forfeiture
of the Stock Award shall occur by reason of a Participant’s Termination of Service.

9.2 Issuance of Shares

     Upon the satisfaction of any terms, conditions and restrictions prescribed in respect to a
Stock Award, or upon a Participant’s release from any terms, conditions and restrictions of a Stock
Award, as determined by the Plan Administrator, the Company shall release, as soon as practicable,
to the Participant or, in the case of the Participant’s death, to the personal representative of
the Participant’s estate or as the appropriate court directs, the appropriate number of shares of
Common Stock.

9.3 Waiver of Restrictions

     Notwithstanding any other provisions of the Plan, the Plan Administrator may, in its sole
discretion, waive the repurchase or forfeiture period and any other terms, conditions or
restrictions on any Stock Award under such circumstances and subject to such terms and conditions
as the Plan Administrator shall deem appropriate.

SECTION 10. WITHHOLDING

     The Company may require the Participant to pay to the Company the amount of any taxes that the
Company is required by applicable federal, state, local or foreign law to withhold with respect to
the grant, vesting or exercise of an Award. The Company shall not be required to issue any shares
of Common Stock under the Plan until such obligations are satisfied.

     The Plan Administrator may permit or require a Participant to satisfy all or part of his or
her tax withholding obligations by (a) paying cash to the Company, (b) having the Company withhold
from cash amounts otherwise due or to become due from the Company to the Participant, or (c) having
the Company withhold a number of shares of Common Stock that would otherwise be issued to the
Participant (or become vested in the case of Stock Awards) having a value equal to the tax
withholding obligations, or (d) surrendering a number of shares of Common Stock the Participant
already owns having a value equal to the tax withholding
obligations. The value of the shares so withheld may not exceed the employer’s minimum required
tax withholding rate, and the value of the shares so tendered may not exceed such rate to the
extent the Participant has owned the tendered shares for less than six months if such limitation is
necessary to avoid a charge to the Company for financial reporting purposes.

SECTION 11. ASSIGNABILITY

     No Award or interest in an Award may be assigned, pledged or transferred by the Participant or
made subject to attachment or similar proceedings otherwise than by will or by the applicable laws
of descent and distribution, except to the extent a Participant designates a

 

 

beneficiary on a
Company-approved form who may exercise the Award or receive payment under the Award after the
Participant’s death. During a Participant’s lifetime, an Award may be exercised only by the
Participant. Notwithstanding the foregoing and to the extent permitted by Section 422 of the Code,
the Plan Administrator, in its sole discretion, may permit a Participant to assign or transfer an
Award; provided, however, that an Award so assigned or transferred shall be subject to all the
terms and conditions of the Plan and those contained in the instrument evidencing the Award.

SECTION 12. ADJUSTMENTS

12.1 Adjustment of Shares

     In the event, at any time or from time to time, a stock dividend, stock split, spin-off,
combination or exchange of shares, recapitalization, merger, consolidation, distribution to
stockholders other than a normal cash dividend, or other change in the Company’s corporate or
capital structure results in (a) the outstanding shares of Common Stock, or any securities
exchanged therefor or received in their place, being exchanged for a different number or kind of
securities of the Company or of any other company or (b) new, different or additional securities of
the Company or of any other company being received by the holders of shares of Common Stock of the
Company, then the Plan Administrator shall make proportional adjustments in (i) the maximum number
and kind of securities subject to the Plan and issuable as Incentive Stock Options as set forth in
Section 4 and (ii) the number and kind of securities that are subject to any outstanding Award and
the per share price of such securities, without any change in the aggregate price to be paid
therefor. The determination by the Plan Administrator as to the terms of any of the foregoing
adjustments shall be conclusive and binding. Notwithstanding the foregoing, a dissolution or
liquidation of the Company or a Company Transaction shall not be governed by this Section 12.1 but
shall be governed by Sections 12.2 and 12.3, respectively.

12.2 Dissolution or Liquidation

     To the extent not previously exercised or settled, and unless otherwise determined by the Plan
Administrator in its sole discretion, Options and Stock Awards denominated in units shall terminate
immediately prior to the dissolution or liquidation of the Company. To the extent a forfeiture
provision or repurchase right applicable to an Award has not been waived by the Plan Administrator,
the Award shall be forfeited immediately prior to the consummation of the dissolution or
liquidation.

12.3 Company Transaction

     12.3.1 Options

     In the event of a Company Transaction, except as otherwise provided in the instrument
evidencing the Award, each outstanding Option shall be assumed or continued or an equivalent option
or right substituted by the surviving corporation, the successor corporation or its parent
corporation, as applicable (the “Successor Corporation”). In the event that the Successor
Corporation refuses to assume, continue or substitute for the Option, the Plan Administrator may

 

 

provide in the instrument evidencing the Award, or subsequently, that a Participant may vest in and
have the right to exercise the Option as to some or all the shares of Common Stock subject thereto,
including shares as to which the Option would not otherwise be vested or exercisable, but unless so
provided no such vesting shall occur. The Plan Administrator shall notify the Participant in
writing or electronically of any such vesting and of the time period in connection with the Company
Transaction in which the Option must be exercised, and the Option shall terminate upon the
expiration of such period. If the consideration received in the Company Transaction is not solely
common stock of the Successor Corporation, the Plan Administrator may, with the consent of the
Successor Corporation, provide for the consideration to be received upon the exercise of the
Option, for each share of Common Stock subject thereto, to be solely common stock of the Successor
Corporation equal in fair market value to the per share consideration received by holders of Common
Stock in the Company Transaction. All Options shall terminate and cease to remain outstanding
immediately following the consummation of the Company Transaction, except to the extent assumed by
the Successor Corporation.

     12.3.2 Stock Awards

     In the event of a Company Transaction, except as otherwise provided in the instrument
evidencing the Award and unless otherwise provided in any written agreement between a Participant
and the Company or a Related Company, the vesting of shares subject to Stock Awards shall continue
in effect, and the forfeiture provisions to which such shares are subject shall continue in effect.
The number of shares subject to such converted restricted stock awards shall be adjusted in the
same manner as provided in Section 12.3.1 for Options.

12.4 Further Adjustment of Awards

     Subject to Sections 12.2 and 12.3, the Plan Administrator shall have the discretion,
exercisable at any time before a sale, merger, consolidation, reorganization, liquidation,
dissolution or change of control of the Company, as defined by the Plan Administrator, to take such
further action as it determines to be necessary or advisable with respect to Awards. Such
authorized action may include (but shall not be limited to) establishing, amending or waiving the
type, terms, conditions or duration of, or restrictions on, Awards so as to provide for earlier,
later, extended or additional time for exercise, lifting restrictions and other modifications, and
the Plan Administrator may take such actions with respect to all Participants, to certain
categories of Participants or only to individual Participants. The Plan Administrator may take
such action before or after granting Awards to which the action relates and before or after any
public announcement with respect to such sale, merger, consolidation, reorganization, liquidation,
dissolution or change of control that is the reason for such action.

12.5 Limitations

     The grant of Awards shall in no way affect the Company’s right to adjust, reclassify,
reorganize or otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate or sell or transfer all or any part of its business or assets.

 

 

12.6 Fractional Shares

     In the event of any adjustment in the number of shares covered by any Award, each such Award
shall cover only the number of full shares resulting from such adjustment.

SECTION 13. FIRST REFUSAL AND REPURCHASE RIGHTS

13.1 First Refusal Rights

     Until the date on which the initial registration of the Common Stock under Section 12(b) or
12(g) of the Exchange Act first becomes effective, the Company shall have the right of first
refusal with respect to any proposed sale or other disposition by a Participant of any shares of
Common Stock issued pursuant to an Award. Such right of first refusal shall be exercisable in
accordance with the terms and conditions established by the Plan Administrator and set forth in the
stock purchase agreement evidencing the purchase of the shares.

13.2 Repurchase Rights

     Until the date on which the initial registration of the Common Stock under Section 12(b) or
12(g) of the Exchange Act first becomes effective, upon a Participant’s Termination of Service, all
shares of Common Stock issued pursuant to an Award (whether issued before or after such Termination
of Service) shall be subject to repurchase by the Company, at the Company’s sole discretion, at the
Fair Market Value of such shares on the date of such repurchase. The terms and conditions upon
which such repurchase right shall be exercisable (including the period and procedure for exercise)
shall be established by the Plan Administrator and set forth in the stock purchase agreement
evidencing the purchase of the shares.

13.3 General

     The Company may not exercise its first refusal or repurchase rights under Sections 13.1 and
13.2 earlier than six months and one day following the date the shares were purchased by a
Participant (or any shorter period determined by the Company to be sufficient to avoid a charge to
the Company’s earnings for financial reporting purposes or required by applicable law).

     The Company’s first refusal and repurchase rights under this Section 13 are assignable by the
Company at any time.

SECTION 14. MARKET STANDOFF

     In the event of an underwritten public offering by the Company of its equity securities
pursuant to an effective registration statement filed under the Securities Act, including the
Company’s initial public offering, no person may sell, make any short sale of, loan,
hypothecate, pledge, grant any option for the purchase of, or otherwise dispose of or transfer for
value or otherwise agree to engage in any of the foregoing transactions with respect to any shares
issued pursuant to an Award granted under the Plan without the prior written consent of the Company
or its underwriters. Such limitations shall be in effect for such period of time as may

 

 

be requested by the Company or such underwriters; provided, however, that in no event shall such
period exceed 180 days. The limitations of this Section 14 shall in all events terminate two years
after the effective date of the Company’s initial public offering.

     In the event of any stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the Company’s outstanding Common Stock effected as a
class without the Company’s receipt of consideration, any new, substituted or additional securities
distributed with respect to the purchased shares shall be immediately subject to the provisions of
this Section 14, to the same extent the purchased shares are at such time covered by such
provisions.

     In order to enforce the limitations of this Section 14, the Company may impose stop-transfer
instructions with respect to the purchased shares until the end of the applicable standoff period.

SECTION 15. AMENDMENT AND TERMINATION

15.1 Amendment, Suspension or Termination of Plan

     The Board may amend, suspend or terminate the Plan or any portion of the Plan at any time and
in such respects as it shall deem advisable; provided, however, that to the extent required for
compliance with Section 422 of the Code or any applicable law or regulation, stockholder approval
shall be required for any amendment that would (a) increase the total number of shares available
for issuance under the Plan, (b) modify the class of employees eligible to receive Options, or (c)
otherwise require stockholder approval under any applicable law or regulation. Any amendment made
to the Plan that would constitute a “modification” to Incentive Stock Options outstanding on the
date of such amendment shall not, without the consent of the Participant, be applicable to such
outstanding Incentive Stock Options but shall have prospective effect only.

15.2 Term of Plan

     The Plan shall have no fixed expiration date; provided, however, that no Incentive Stock
Options may be granted more than ten years after the later of (a) the adoption by the Board of the
Plan and (b) the adoption by the Board of any amendment to the Plan that constitutes the adoption
of a new plan for purposes of Section 422 of the Code.

15.3 Consent of Participant

     The suspension, amendment or termination of the Plan or a portion thereof or the amendment of
an outstanding Award shall not, without the Participant’s consent, materially
adversely affect any rights under any Award theretofore granted to the Participant under the Plan.
Any change or adjustment to an outstanding Incentive Stock Option shall not, without the consent of
the Participant, be made in a manner so as to constitute a “modification” that would cause such
Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option.

 

 

Notwithstanding the foregoing, any adjustments made pursuant to Sections 12.1 through 12.3 shall
not be subject to these restrictions.

SECTION 16. GENERAL

16.1 Evidence of Awards

     Awards granted under the Plan shall be evidenced by a written instrument that shall contain
such terms, conditions, limitations and restrictions as the Plan Administrator shall deem advisable
and that are not inconsistent with the Plan.

16.2 No Individual Rights

     Nothing in the Plan or any Award granted under the Plan shall be deemed to constitute an
employment contract or confer or be deemed to confer on any Participant any right to continue in
the employ of, or to continue any other relationship with, the Company or any Related Company or
limit in any way the right of the Company or any Related Company to terminate a Participant’s
employment or other relationship at any time, with or without Cause.

16.3 Issuance of Shares

     Notwithstanding any other provision of the Plan, the Company shall have no obligation to issue
or deliver any shares of Common Stock under the Plan or make any other distribution of benefits
under the Plan unless, in the opinion of the Company’s counsel, such issuance, delivery or
distribution would comply with all applicable laws (including, without limitation, the requirements
of the Securities Act or the laws of any state or foreign jurisdiction), and the applicable
requirements of any securities exchange or similar entity.

     The Company shall be under no obligation to any Participant to register for offering or resale
or to qualify for exemption under the Securities Act, or to register or qualify under the laws of
any state or foreign jurisdiction, any shares of Common Stock, security or interest in a security
paid or issued under, or created by, the Plan, or to continue in effect any such registrations or
qualifications if made.

     To the extent the Plan or any instrument evidencing an Award provides for issuance of stock
certificates to reflect the issuance of shares of Common Stock, the issuance may be effected on a
noncertificated basis, to the extent not prohibited by applicable law or the
applicable rules of any stock exchange. As a condition to the exercise of an Option or any other
receipt of Common Stock pursuant to an Award under the Plan, the Company may require (a) the
Participant to represent and warrant at the time of any such exercise or receipt that such shares
are being purchased or received only for the Participant’s own account and without any present
intention to sell or distribute such shares and (b) such other action or agreement by the
Participant as may from time to time be necessary to comply with the federal, state and foreign
securities laws. At the option of the Company, a stop-transfer order against any such shares may
be placed on the official stock books and records of the Company, and a legend indicating that such
shares may not be pledged, sold or otherwise transferred, unless an opinion of counsel is

 

 

provided (concurred in by counsel for the Company) stating that such transfer is not in violation of any
applicable law or regulation, may be stamped on stock certificates to ensure exemption from
registration. The Plan Administrator may also require the Participant to execute and deliver to
the Company a purchase agreement or such other agreement as may be in use by the Company at such
time that describes certain terms and conditions applicable to the shares.

16.4 No Rights as a Stockholder

     No Option or Stock Award denominated in units shall entitle the Participant to any cash
dividend, voting or other right of a stockholder unless and until the date of issuance under the
Plan of the shares that are the subject of such Award.

16.5 Compliance With Laws and Regulations

     Notwithstanding anything in the Plan to the contrary, the Plan Administrator, in its sole
discretion, may bifurcate the Plan so as to restrict, limit or condition the use of any provision
of the Plan to Participants who are officers or directors subject to Section 16 of the Exchange Act
without so restricting, limiting or conditioning the Plan with respect to other Participants.
Additionally, in interpreting and applying the provisions of the Plan, any Option granted as an
Incentive Stock Option pursuant to the Plan shall, to the extent permitted by law, be construed as
an “incentive stock option” within the meaning of Section 422 of the Code.

16.6 Participants in Other Countries

     The Plan Administrator shall have the authority to adopt such modifications, procedures and
subplans as may be necessary or desirable to comply with provisions of the laws of other countries
in which the Company or any Related Company may operate to assure the viability of the benefits
from Awards granted to Participants employed in such countries and to meet the objectives of the
Plan.

16.7 No Trust or Fund

     The Plan is intended to constitute an “unfunded” plan. Nothing contained herein shall require
the Company to segregate any monies or other property, or shares of Common Stock, or to create any
trusts, or to make any special deposits for any immediate or deferred amounts payable to any
Participant, and no Participant shall have any rights that are greater than those of a general
unsecured creditor of the Company.

16.8 Taxes

     All taxes in connection with a Participant’s Awards are the responsibility of the individual
Participant. Participants should consult their own accounting or tax advisors as to the specific
tax consequences to them resulting from any grant, exercise or sale of the Awards or the underlying
securities, including the applicability and effect of any state, local or foreign tax laws and of
changes in applicable tax laws.

 

 

16.9 Severability

     If any provision of the Plan or any Award is determined to be invalid, illegal or
unenforceable in any jurisdiction, or as to any person, or would disqualify the Plan or any Award
under any law deemed applicable by the Plan Administrator, such provision shall be construed or
deemed amended to conform to applicable laws, or, if it cannot be so construed or deemed amended
without, in the Plan Administrator’s determination, materially altering the intent of the Plan or
the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the
remainder of the Plan and any such Award shall remain in full force and effect.

16.10 Choice of Law

     The Plan and all determinations made and actions taken pursuant hereto, to the extent not
otherwise governed by the laws of the United States, shall be governed by the laws of the State of
Washington without giving effect to principles of conflicts of law.

SECTION 17. EFFECTIVE DATE

     The effective date is the date on which the Plan is adopted by the Board. If the stockholders
of the Company do not approve the Plan within 12 months after the Board’s adoption of the Plan, any
Incentive Stock Options granted under the Plan will be treated as Nonqualified Stock Options.

 

 

INTELIUS INC.

2005 STOCK INCENTIVE PLAN

STOCK OPTION GRANT NOTICE

     Intelius Inc. (the “Company”) hereby grants to Participant an Option (the “Option”) to
purchase shares of the Company’s Class A Common Stock. The Option is subject to all the terms and
conditions set forth in this Stock Option Grant Notice (this “Grant Notice”) and in the Stock
Option Agreement and the Company’s 2005 Stock Incentive Plan (the “Plan”), which are attached to
and incorporated into this Grant Notice in their entirety.

	 	 	 
	Participant:

	 	«FirstName» «LastName»
	 
	 	 
	Grant Date:

	 	«Date1»
	 
	 	 
	Vesting Commencement Date:

	 	«Date1»
	 
	 	 
	Number of Shares Subject to Option:

	 	«Options»
	 
	 	 
	Exercise Price (per Share):

	 	$«Price»
	 
	 	 
	Option Expiration Date:

	 	«Date2», 2016 (subject to earlier
termination in accordance with the
terms of the Plan and the Stock
Option Agreement)
	 
	 	 
	Type of Option:

	 	o Incentive Stock Option
	 

	 	o Nonqualified Stock Option
	 
	 	 
	Vesting and Exercisability Schedule:

	 	1/4th of the shares subject to the
Option will vest and become
exercisable on the one-year
anniversary of the Vesting
Commencement Date.
	 
	 	 
	 

	 	1/48th of the shares subject to the
Option will vest and become
exercisable monthly thereafter over
the next three years.

Additional Terms/Acknowledgment: The undersigned Participant acknowledges receipt of, and
understands and agrees to, this Grant Notice, the Stock Option Agreement and the Plan. Participant
further acknowledges that as of the Grant Date, this Grant Notice, the Stock Option Agreement and
the Plan set forth the entire understanding between Participant and the Company regarding the
Option and supersede all prior oral and written agreements on the subject. Participant hereby
agrees to accept as binding, conclusive and final all decisions or interpretations of the Plan
Administrator upon any questions arising under this Grant Notice, the Stock Option Agreement or the
Plan.

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	INTELIUS INC.	 	 	 	PARTICIPANT  
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Its:
	 	 	 	 	 	«FirstName»
	 	«LastName»	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Dated as of «Date1».	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Attachments:	 	 	 	Address:	 	 
	 	 
	1. Stock Option Agreement	 	 	 	 	 	 
	 	 
	2. 2005 Stock Incentive Plan	 	 	 	Taxpayer ID:	 	 
	 	 

2

 

INTELIUS INC.

2005 STOCK INCENTIVE PLAN

STOCK OPTION AGREEMENT

     Pursuant to your Stock Option Grant Notice (the “Grant Notice”) and this Stock Option
Agreement, Intelius Inc. (the “Company”) has granted you an Option under its 2005 Stock Incentive
Plan (the “Plan”) to purchase the number of shares of the Company’s Class A Common Stock indicated
in your Grant Notice (the “Shares”) at the exercise price indicated in your Grant Notice.
Capitalized terms not explicitly defined in this Stock Option Agreement but defined in the Plan
shall have the same definitions as in the Plan.

     The details of the Option are as follows:

     1. Vesting and Exercisability. Subject to the limitations contained herein, the Option will
vest and become exercisable as provided in your Grant Notice, provided that vesting will cease upon
the termination of your employment or service relationship with the Company or a Related Company
and the unvested portion of the Option will terminate.

     2. Securities Law Compliance. Notwithstanding any other provision of this Agreement, you may
not exercise the Option unless the Shares issuable upon exercise are registered under the
Securities Act or, if such Shares are not then so registered, the Company has determined that such
exercise and issuance would be exempt from the registration requirements of the Securities Act.
The exercise of the Option must also comply with other applicable laws and regulations governing
the Option, and you may not exercise the Option if the Company determines that such exercise would
not be in material compliance with such laws and regulations.

     3. Incentive Stock Option Qualification. If so designated in your Grant Notice, all or a
portion of the Option is intended to qualify as an Incentive Stock Option under federal income tax
law, but the Company does not represent or guarantee that the Option qualifies as such.

     If the Option has been designated as an Incentive Stock Option and the aggregate Fair Market
Value (determined as of the grant date) of the shares of Common Stock subject to the portions of
the Option and all other Incentive Stock Options you hold that first become exercisable during any
calendar year exceeds $100,000, any excess portion will be treated as a Nonqualified Stock Option,
unless the Internal Revenue Service changes the rules and regulations governing the $100,000 limit
for Incentive Stock Options. A portion of the Option may be treated as a Nonqualified Stock Option
if certain events cause exercisability of the Option to accelerate.

     4. Notice of Disqualifying Disposition. To the extent the Option has been designated as an
Incentive Stock Option, to obtain certain tax benefits afforded to Incentive Stock Options, you
must hold the Shares issued upon the exercise of the Option for two years

 

 

after the Grant Date and one year after the date of exercise. You may be subject to the alternative
minimum tax at the time of exercise. All taxes resulting from the exercise of your Options are
your responsibility. You should obtain tax advice when exercising the Option and prior to the
disposition of the Shares. By accepting the Option, you agree to promptly notify the Company if
you dispose of any of the Shares within one year from the date you exercise all or part of the
Option or within two years from the Grant Date.

     5. Method of Exercise. You may exercise the Option by giving written notice to the Company,
in form and substance satisfactory to the Company, which will state your election to exercise the
Option and the number of Shares for which you are exercising the Option. The written notice must
be accompanied by full payment of the exercise price for the number of Shares you are purchasing.
You may make this payment in any combination of the following: (a) by cash; (b) by check
acceptable to the Company; (c) if permitted by the Plan Administrator, by using shares of Common
Stock you have owned for at least six months; (d) if the Common Stock is registered under the
Exchange Act, by instructing a broker to deliver to the Company the total payment required; or (e)
by any other method permitted by the Plan Administrator.

     6. Repurchase and First Refusal Rights. So long as the Common Stock is not registered under
the Exchange Act, the Company may, in its sole discretion at the time of exercise, require you to
sign a stock purchase agreement, in the form to be provided, pursuant to which you will grant to
the Company certain repurchase and/or first refusal rights to purchase the Shares acquired by you
upon exercise of the Option. Upon request to the Company, you may review a current form of this
agreement prior to exercise of the Option.

     7. Market Standoff. By exercising the Option you agree that the Shares will be subject to the
market standoff restrictions on transfer set forth in the Plan.

     8. Treatment Upon Termination of Employment or Service Relationship. The unvested portion of
the Option will terminate automatically and without further notice immediately upon termination of
your employment or service relationship with the Company or a Related Company for any reason
(“Termination of Service”). You may exercise the vested portion of the Option as follows:

          (a) General Rule. You must exercise the vested portion of the Option on or before the earlier
of (i) three months after your Termination of Service and (ii) the Option Expiration Date;

          (b) Early Retirement, Retirement or Disability. If your employment or service relationship
terminates due to Early Retirement, Retirement or Disability, you must exercise the vested portion
of the Option on or before the earlier of (i) one year after your Termination of Service and (ii)
the Option Expiration Date.

          (c) Death. If your employment or service relationship terminates due to your death, the
vested portion of the Option must be exercised on or before the earlier of (i) one year after your
Termination of Service and (ii) the Option Expiration Date. If you die after your Termination of
Service but while the Option is still exercisable, the vested portion of the Option

2

 

may be exercised until the earlier of (x) one year after the date of death and (y) the Option
Expiration Date; and

          (d) Cause. The vested portion of the Option will automatically expire at the time the Company
first notifies you of your Termination of Service for Cause, unless the Plan Administrator
determines otherwise. If your employment or service relationship is suspended pending an
investigation of whether you will be terminated for Cause, all your rights under the Option
likewise will be suspended during the period of investigation. If any facts that would constitute
termination for Cause are discovered after your Termination of Service, any Option you then hold
may be immediately terminated by the Plan Administrator.

     The Option must be exercised within three months after termination of employment for reasons
other than death or Disability and one year after termination of employment due to Disability to
qualify for the beneficial tax treatment afforded Incentive Stock Options.

     It is your responsibility to be aware of the date the Option terminates.

     9. Limited Transferability. During your lifetime only you can exercise the Option. The
Option is not transferable except by will or by the applicable laws of descent and distribution,
except that Nonqualified Stock Options may be transferred to the extent permitted by the Plan
Administrator. The Plan provides for exercise of the Option by a beneficiary designated on a
Company-approved form or the personal representative of your estate.

     10. Withholding Taxes. As a condition to the exercise of any portion of an Option, you must
make such arrangements as the Company may require for the satisfaction of any federal, state, local
or foreign withholding tax obligations that may arise in connection with such exercise.

     11. Option Not an Employment or Service Contract. Nothing in the Plan or any Award granted
under the Plan will be deemed to constitute an employment contract or confer or be deemed to confer
any right for you to continue in the employ of, or to continue any other relationship with, the
Company or any Related Company or limit in any way the right of the Company or any Related Company
to terminate your employment or other relationship at any time, with or without Cause.

     12. No Right to Damages. You will have no right to bring a claim or to receive damages if you
are required to exercise the vested portion of the Option within three months (one year in the case
of Early Retirement, Retirement, Disability or death) of the Termination of Service or if any
portion of the Option is cancelled or expires unexercised. The loss of existing or potential
profit in Awards will not constitute an element of damages in the event of your Termination of
Service for any reason even if the termination is in violation of an obligation of the Company or a
Related Company to you.

     13. Binding Effect. This Agreement will inure to the benefit of the successors and assigns of
the Company and be binding upon you and your heirs, executors, administrators, successors and
assigns.

3

 

     14. Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation. By
entering into this Agreement and accepting the grant of the Option evidenced hereby, you
acknowledge: (a) that the Plan is discretionary in nature and may be suspended or terminated by
the Company at any time; (b) that the grant of the Option is a one-time benefit which does not
create any contractual or other right to receive future grants of options, or benefits in lieu of
options; (c) that all determinations with respect to any such future grants, including, but not
limited to, the times when options will be granted, the number of shares subject to each option,
the option price, and the time or times when each option will be exercisable, will be at the sole
discretion of the Company; (d) that your participation in the Plan is voluntary; (e) that the value
of the Option is an extraordinary item of compensation which is outside the scope of your
employment contract, if any; (f) that the Option is not part of normal or expected compensation for
purposes of calculating any severance, resignation, redundancy, end of service payments, bonuses,
long-service awards, pension or retirement benefits or similar payments; (g) that the vesting of
the Option ceases upon your Termination of Service for any reason except as may otherwise be
explicitly provided in the Plan or this Agreement or otherwise permitted by the Plan Administrator;
(h) that the future value of the Shares underlying the Option is unknown and cannot be predicted
with certainty; and (i) that if the Shares underlying the Option do not increase in value, the
Option will have no value.

     15. Employee Data Privacy. By entering this Agreement, you (a) authorize the Company and your
employer, if different, and any agent of the Company administering the Plan or providing Plan
recordkeeping services, to disclose to the Company or any of its affiliates any information and
data the Company requests in order to facilitate the grant of the Option and the administration of
the Plan; (b) waive any data privacy rights you may have with respect to such information; and (c)
authorize the Company and its agents to store and transmit such information in electronic form.

	 	 	 	 	 
	PARTICIPANT

	 	 	 	 
	 
	 	 	 	 
	 

«FirstName» «LastName»
	 	 	 	 
	 
	 	 	 	 
	Dated as of «Date1».
	 	 	 	 

4

 

INTELIUS INC.

2005 STOCK INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

	 	 	 
	Payment for Shares

	 	No payment is required for the Units you receive.
	 
	 	 
	Vesting

	 	The Units vest based upon the schedule set forth in the
Notice of Restricted Stock Unit Award, including the
achievement of certain Company performance measures. In
the event of a Company Transaction (as defined in the
2005 Stock Incentive Plan), the vesting of the Units
shall continue to be in effect. The Compensation
Committee shall have sole discretion to interpret and
re-measure the performance measures based on particular
business developments that the Committee deems
appropriate, including without limitation, any changes
in the assumptions that formed the basis of the design
and development of the operating plan, and the
objectives, revenue and EBITDA goals thereunder.
No additional shares vest after your service as an
employee of the Company or a subsidiary of the Company
has terminated for any reason.
	 
	 	 
	Units Restricted

	 	Unvested Units will be considered “Restricted Units.”
You may not sell, transfer, pledge or otherwise dispose
of any Restricted Units.
	 
	 	 
	Forfeiture

	 	If your service as an employee of the Company or a
subsidiary of the Company terminates for any reason,
then your Units will be forfeited to the extent that
they have not vested before the termination date and do
not vest as a result of the termination. This means
that the Restricted Units will immediately revert to
the Company. You receive no payment for Restricted
Units that are forfeited.
The Company determines when your service terminates for
this purpose.
	 
	 	 
	Leaves of Absence

	 	For purposes of this award, your service does not
terminate when you go on a military leave, a sick leave
or another bona fide leave of absence, if the leave was
approved by the Company in writing and if continued
crediting of service is required by the terms of the
leave or by applicable law. But your service terminates
when the approved leave ends, unless you immediately
return to active work.
	 
	 	 
	Settlement

	 	Upon vesting, Units shall be settled in Company
Class A Common Stock.

1

 

	 	 	 
	Stock Certificates

	 	Within a reasonable amount of time after vesting, a
stock certificate representing those settled Units
in Class A Common Stock will be released to you.
	 
	 	 
	Voting Rights

	 	You do not have any voting rights or other rights
as a stockholder until the Units vest and are
settled in Class A Common Stock.
	 
	 	 
	Withholding Taxes

	 	No stock certificates will be released to you
unless you have made acceptable arrangements to pay
any withholding taxes that may be due as a result
of this award or the vesting of the Units. These
arrangements may include withholding shares of
Company stock that otherwise would be released to
you when they vest. These arrangements may also
include surrendering shares of Company stock that
you already own. The fair market value of the
shares you surrender, determined as of the date
when taxes otherwise would have been withheld in
cash, will be applied as a credit against the
withholding taxes.
	 
	 	 
	Restrictions on Resale

	 	You agree not to sell any shares at a time when
applicable laws or Company policies prohibit a
sale, including, but not limited to the Market
Standoff provisions set forth in Section 14 of the
Plan.
	 
	 	 
	No Retention Rights

	 	Your award or this Agreement do not give you the
right to be employed or retained by the Company or
a subsidiary of the Company in any capacity. The
Company and its subsidiaries reserve the right to
terminate your service at any time, with or without
cause.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a stock dividend or
a similar change in Company stock, the number of
Units will be adjusted accordingly.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted and enforced
under the laws of the State of Washington.
	 
	 	 
	The Plan and
Other Agreements

	 	The text of the 2005 Stock Incentive Plan is
incorporated in this Agreement by reference.
	 
	 	 
	 

	 	This Agreement and the Plan constitute the entire
understanding between you and the Company regarding
this award. Any prior agreements, commitments or
negotiations concerning this award are superseded.
This Agreement may be amended only by another
written agreement, signed by both parties.

By signing the cover sheet of this Agreement,

you agree to all of the terms and conditions

described above and in the Plan.

2

 

	 	 	 	 	 

INTELIUS INC.

2005 STOCK INCENTIVE PLAN

NOTICE OF RESTRICTED STOCK AWARD

     You have been granted restricted shares of Class A Common Stock (the “Shares”) of Intelius
Inc. (the “Company”) on the following terms:

	 	 	 
	Name of Recipient:

	 	[NAME]
	Total Number of Shares Granted:

	 	[NUMBER]
	Fair Market Value per Share:

	 	Fair Market Value of the Company’s Common
Stock, as determined by Grant Thornton LLP
for the quarter ended [DATE]
	Date of Grant:

	 	[DATE]
	Vesting Schedule:

	 	[NUMBER OF SHARES] on [DATE]
	 

	 	[NUMBER OF SHARES] on [DATE]

By your signature and the signature of the Company’s representative below, you and the Company
agree that these shares are granted under and governed by the terms and conditions of the 2005
Stock Incentive Plan (the “Plan”) and the Restricted Stock Agreement, both of which are attached to
and made a part of this document.

	 	 	 	 	 	 	 	 	 
	RECIPIENT:	 	 	 	INTELIUS INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:  	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	Its:  	 	 	 
	 

	 	 	 	 	 	 	 	 

1

 

INTELIUS INC.

2005 STOCK INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

	 	 	 
	Payment for Shares

	 	No payment is required for the shares you receive.
	 
	 	 
	Vesting

	 	The shares vest in installments, as shown in the
Notice of Restricted Stock Award. No shares shall
vest after your service as a director of the
Company has terminated for any reason.
	 
	 	 
	Shares Restricted

	 	Unvested shares will be considered “Restricted
Shares.” You may not sell, transfer, pledge or
otherwise dispose of any Restricted Shares, except
as provided in the next sentence. With the consent
of the Compensation Committee of the Company’s
Board of Directors, you may transfer Restricted
Shares to your spouse, children or grandchildren or
to a trust established by you for the benefit of
yourself or your spouse, children or grandchildren.
A transferee of Restricted Shares must agree in
writing on a form prescribed by the Company to be
bound by all provisions of this Agreement.
	 
	 	 
	Forfeiture

	 	If your service a director of the Company
terminates for any reason, then your shares will be
forfeited to the extent that they have not vested
before the termination date. This means that the
Restricted Shares will immediately revert to the
Company. You receive no payment for Restricted
Shares that are forfeited.
	 
	 	 
	Stock Certificates

	 	Your Restricted Shares will be held for you by the
Company. After shares have vested, a stock
certificate for those shares will be released to
you.
	 
	 	 
	Voting Rights

	 	Your Restricted Shares have full voting rights.
	 
	 	 
	Withholding Taxes

	 	No stock certificates will be released to you
unless you have made acceptable arrangements to pay
any withholding taxes that may be due as a result
of this award or the vesting of the shares. These
arrangements may include withholding shares of
Company stock that otherwise would be released to
you when they vest. These arrangements may also
include surrendering shares of Company stock that
you already own. The fair market value of the
shares you surrender, determined as of the date
when taxes otherwise would have been withheld in
cash, will be applied as a credit against the
withholding taxes.

2

 

	 	 	 
	Restrictions on Resale

	 	By signing this Agreement, you agree not to sell
any shares at a time when applicable laws or
Company policies prohibit a sale, including, but
not limited to the Market Standoff provisions set
forth in Section 14 of the Plan.
	 
	 	 
	No Retention Rights

	 	Your award or this Agreement do not give you the
right to be employed or retained by the Company or
a subsidiary of the Company in any capacity.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a stock dividend or
a similar change in Company stock, the number of
Restricted Shares that remain subject to forfeiture
will be adjusted accordingly.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted and enforced
under the laws of the State of Washington.
	 
	 	 
	The Plan and
Other Agreements

	 	The text of the 2005 Stock Incentive Plan is incorporated
in this Agreement by reference.

	 
	 	 
	 

	 	This Agreement and the Plan constitute the entire
understanding between you and the Company regarding this
award. Any prior agreements, commitments or negotiations
concerning this award are superseded. This Agreement may
be amended only by another written agreement, signed by
both parties.

By signing the cover sheet of this Agreement,

you agree to all of the terms and conditions

described above and in the Plan.

3exv10w4

 

Exhibit 10.4

DESCRIPTION OF DIRECTOR COMPENSATION PLAN

     On June 29, 2007, the Board of Directors adopted a non-employee director compensation program
under which each new non-employee director of the Company (those first appointed or elected to
serve on the Company’s Board after June 15, 2007) shall be granted on the date the individual
becomes a director 25,000 restricted shares of the Company’s Common Stock. In addition to the
initial grant received by a new Company director, each new director of the Company shall be granted
10,000 restricted shares of the Company’s Common Stock on the first anniversary of such director’s
appointment or election to the Board and annually on such date thereafter. Each current director
of the Company (those first appointed or elected to serve on the Company’s Board prior to June 15,
2007) shall be granted 10,000 restricted shares of the Company’s Common Stock on the second
anniversary of such director’s appointment or election to the Board and annually on such date
thereafter. Each of the above grants shall vest over 2 years with one half of the grant vesting on
the first anniversary of the grant and the remaining one half vesting on the second anniversary of
the grant, during which the non-employee director continuously serves as a Company director. On
December 21, 2007, the Board of Directors approved additional compensation for the non-employee
chairman of the Board in the amount of 4,000 restricted shares of the Company’s Common Stock
granted on the date of the Directors election as chairman and annually thereafter on the
anniversary of the election so long as the director continuously serves as chairman.

     In addition to the above grants, each new director who is appointed to serve on the Board’s
Audit Committee, and each current director first appointed to the Audit Committee after June 15,
2007, shall receive on the date of the appointment, and annually thereafter on the anniversary date
of such appointment, a grant of 2,500 restricted shares of the Company’s Common Stock. In addition
to the above grants, each new director who is appointed to serve on the Board’s Compensation
Committee, and each current director first appointed to the Compensation Committee after June 15,
2007, shall receive on the date of the appointment, and annually thereafter on the anniversary date
of such appointment, a grant of 1,500 restricted shares of the Company’s Common Stock. The Chair
of the Audit Committee shall receive on the date the director is appointed or elected Chair of the
Audit Committee and annually thereafter on the anniversary date of such appointment an additional
grant of 1,000 restricted shares of the Company’s Common Stock. The Chair of the Compensation
Committee shall receive on the date the director is appointed or elected Chair of the Compensation
Committee and annually thereafter on the anniversary date of such appointment an additional grant
of 500 restricted shares of the Company’s Common Stock. Any director serving in any of the above
listed committee positions as the result of an appointment occurring prior to June 15, 2007 shall
begin receiving the above described applicable additional compensation on the second anniversary of
such appointment and then annually thereafter on the anniversary date of the appointment so long as
the director continues to serve in such position. Each of the above grants for committee service
shall vest over 2 years with one half of the grant vesting on the first anniversary of the grant
and the remaining one half vesting on the second anniversary of the grant, during which the
non-employee director continuously serves in the capacity for which the grant was made.

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