Document:

Exhibit 10.6

 

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (the  “Agreement”)
is made as of this 15th day of March 2006, by and
between LOCAL
MATTERS, INC., (the “Company”), and Jeanette McClennan (“Employee”) (collectively, the “Parties”).

 

WHEREAS, the Company wishes to employ Employee and to
assure itself of the continued services of Employee on the terms
set forth herein; and 

 

WHEREAS, Employee wishes to be so employed under the
terms set forth herein; and 

 

WHEREAS, the Parties intend that this Agreement shall
supersede and replace any similar agreements that presently exist or may
have previously existed between the Parties, whether written or oral, regarding the terms of Employee’s employment with
the Company. 

 

AGREEMENT

 

NOW, THEREFORE, in consideration
of the mutual promises and covenants contained herein, it is hereby agreed by and between the Parties hereto as
follows: 

 

1.             EMPLOYMENT. Employee shall serve the Company in the capacity of
President, Media Services and Chief Marketing Officer,
LMI.

 

2.             AT-WILL EMPLOYMENT.  Except as
expressly provided herein, it is understood and agreed by the Company and Employee that
(i) this Agreement does not contain any promise or representation concerning
the duration of Employee’s employment with the Company and (ii) Employee’s employment with the
Company is at-will and may be altered or terminated by either Employee or the Company at
any time, with or without cause and/or with or without notice. The nature, terms or conditions
of Employee’s employment with the Company cannot be changed by any oral
representation, custom, habit or practice, or any other writing. In the event of conflict between this disclaimer
and any other statement, oral or written, present or future, concerning terms and
conditions of employment, the at-will relationship confirmed by this disclaimer shall
control. This at-will status cannot be altered except in writing signed by
Employee and the Chief Executive Officer of the Company. 

 

3.             DUTIES.  Employee
will commence employment with the Company on March 15th, 2006 the date hereof (the “Start Date”). As President, Media Services and Chief Marketing Officer, Employee will be responsible for all aspects of
Profit and Loss for Area Guides and SEM Services as well as all
marketing activities related to product and market strategy, corporate communications and public relations. Employee will report to the Chief Executive Officer, Perry Evans. Employee shall perform services under this Agreement primarily at the Denver office of
the Company, and from time to time at such other locations as is necessary to perform the duties
of President, Media Services and Chief Marketing Officer under this Agreement. As
an exempt salaried employee, Employee will be expected to work additional hours as required by the nature of
Employee’s work assignment and will not be eligible to receive overtime pay. Employee’s responsibilities, working conditions and duties may be changed, added to or
eliminated during Employee’s employment at the sole discretion of

 

 

the Company. During Employee’s employment with the
Company, Employee shall devote Employee’s best efforts and Employee’s full
business time, skill and attention to the performance of
Employee’s duties on behalf of the Company. 

 

4.             POLICIES
AND PROCEDURES.  Employee
agree that Employee is subject to and will
comply with the policies and procedures of the Company, as such policies and
procedures may be modified, added to or eliminated from
time to time at the sole discretion of the Company, except
to the extent any such policy or procedure specifically conflicts with the
express terms of this Agreement. Employee further
agrees and acknowledges that any written or oral policies and procedures of the Company do not constitute
contracts between the Company and Employee. 

 

5.             COMPENSATION.  For
all services rendered and to be rendered hereunder, the Company agrees to pay to Employee,
and Employee agrees to accept a salary of $275,000 per annum (“Base Salary”) which will be paid periodically in
accordance with normal Company payroll
practices and shall be subject to such deductions or withholdings as the
Company is required to
make pursuant to law, or by further agreement with Employee. Employee’s Base Salary
shall be subject to annual review by the Company. 

 

6.             STOCK
OPTIONS.  Subject
to approval by the Board of Directors, the Company shall grant Employee an
option or options to purchase 125,000 shares of the Company’s common stock at an exercise price
equal to the fair market value of the stock as of the date of grant (collectively the “Option(s)”). To the maximum extent possible, the
Option(s) shall be incentive
stock options as such term is defined in Section 422 of the Internal Revenue
Code of 1986, as amended. To the
extent that any portions of the Option(s) do not qualify as incentive stock
options under Section 422 of the Code,
those portions of the Option(s) shall be treated as nonstatutory stock options.
The Option(s) shall be subject to the terms and conditions of the Company’s
2004 Equity Incentive Plan (the “Plan”), the
Company’s form stock option agreement
and stock option grant notice. 

 

7.             BONUS.  Employee may be eligible to receive an
annual performance bonus of up to 75% of Employee’s Base Salary (“Bonus”)
based upon Employee’s achievements of certain milestones and performance objectives established by the Company
(“Executive Incentive Bonus
Plan”). Employee must
remain employed with the Company throughout the applicable bonus year in order to be eligible for any bonus and must be an
employee on the date bonuses are
paid. The Company, in its sole discretion, shall
determine the extent to which Employee has achieved the performance targets upon which Employee’s Bonus
is based, and the amount of Bonus to be paid to Employee, if any. Bonuses
are not earned until they are approved in writing by the Company. 

 

8.             SIGN-ON-BONUS.  Employee
is eligible to receive a sign bonus in the amount of $35,000 dollars.
The bonus will be paid on the first payroll following the Employee’s date of hire. If the Employee
voluntarily resigns her position in the first calendar year, Employee agrees to repay the amount on a pro-rated basis based on months served. 

 

9.             RELOCATION.  Employee
agrees to move to Denver or the surrounding area within 12 months of the date of this agreement, unless
otherwise agreed upon in writing. The

 

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Company agrees to pay all relocation costs
for the Employee in accordance with the Executive Relocation
Policy. 

 

10.          OTHER BENEFITS.  While
employed by the Company as provided herein:

 

(a)           Employee’s Benefits.  Employee shall be entitled to all
benefits to which other Executive Vice
Presidents are entitled, on terms comparable thereto, which may be maintained by the Company for the benefit of its executives. The
Company reserves the right to alter and amend the benefits received by
Employee from time to time at the Company’s discretion. 

 

(b)           Expense Reimbursement.  Employee
shall receive, against presentation of
proper receipts and vouchers, reimbursement for direct and reasonable
out-of-pocket expenses incurred by Employee in connection with the
performance of Employee’s duties hereunder, according to the
policies of the Company. 

 

(c)           Paid
Time Off.  Employee
will be entitled to 25 days of PTO during Employee’s first four years of
employment with the Company, Twenty-seven (27) days during years five through eight, and 30 days each
year thereafter, which will accrue in bi-monthly increments. The maximum number of PTO days that Employee will be
allowed to accrue and carry over to the
next year is 160 hours of PTO from the prior year. 

 

11.          CONFIDENTIAL
INFORMATION, RIGHTS AND DUTIES.

 

(a)           Proprietary
Information,  Non-Competition and
Non-Solicitation. Employee will be required as a
condition of employment to sign and abide by the Company’s Proprietary Information and Inventions Agreement (the “Proprietary Information Agreement”), in the form attached hereto as Exhibit A.

 

(b)           Exclusive Property.  Employee
agrees that all Company-related business
procured by Employee, and all Company-related business opportunities and
plans made known to Employee while
employed by the Company, are and shall remain the permanent and exclusive property of the Company. 

 

12.          TERMINATION.
 Employee and the Company each
acknowledge that either party has
the right to terminate Employee’s employment with the Company at any time for
any reason whatsoever, with or with out cause or advance notice pursuant to and
in accordance with the following: 

 

(a)           Termination by Death or Disability.  Subject
to applicable state or federal law, in the event Employee shall die
during the period of Employee’s employment hereunder or become
permanently disabled, as evidenced by notice to the Company and Employee’
inability to carry out Employee’s job responsibilities for a continuous period
of more than three months,
Employee’s employment and the Company’s obligation to make payments hereunder shall terminate on the date of Employee’s death, or the date
upon which, in the reasonable determination of the Board of
Directors, Employee has become permanently disabled, except the Company shall pay
Employee(or Employee’s estate) any salary earned but unpaid prior to such
termination, any benefits accrued prior to such termination, all accrued but
unused

 

3

 

paid time off, and any business expenses referred to in paragraph 8(b)
that were incurred but not
reimbursed as of the date of
such termination. Vesting of the Options shall cease on the date of termination. 

 

(b)           Voluntary Resignation.  In
the event Employee voluntarily terminates
Employee’s employment with the
Company, the Company’s obligation to make payments hereunder shall cease
upon such termination, except the Company shall pay Employee any salary
earned but unpaid prior to such termination, any benefits accrued prior to such
termination, all accrued but
unused paid time off, and any business expenses referred to in paragraph 8(b)
that were incurred but not reimbursed as of the date of such termination.
Vesting of the Options shall cease on the date of termination. 

 

(c)           Termination for Cause.  In the event Employee is terminated by the Company for Cause (as defined
below), the Company’s obligation to make payments hereunder shall cease upon the date of receipt by Employee of written notice of
such termination (the “Termination Date”), except the Company shall pay
Employee any salary earned but unpaid prior to the Termination Date, any
benefits accrued prior to such termination, all accrued but unused personal time and any business expenses referred to in paragraph
8(b) that were incurred but not reimbursed as of the date of termination.
Vesting of the Options shall cease on the date of termination.
For purposes of this Agreement, “Cause” shall mean any of the following: (i) conviction of any felony or any crime involving dishonesty or
moral turpitude; (ii) participation in
any fraud against the Company or other dishonesty which is not the result of an
innocent or inadvertent mistake by Employee with respect
to the Company; (iii) Employee’s continued willful violation of Employee’s obligations to the Company after there
has been delivered to Employee a
written demand for performance from the Board of Directors which describes the
basis for the Board of Directors’
belief that Employee has not substantially satisfied Employee’s obligations to the Company; (iv) Employee’s
violation or breach of any material written Company policy, agreement with the Company, or any statutory
or fiduciary duty to the Company, provided however, that if in the
Company’s sole determination such a violation or breach is capable of cure, the Company shall provide to
Employee a written notification of such violation or breach and reasonable opportunity to cure such violation or breach; or (v) materially
damaging or misappropriating
or attempting to materially damage or misappropriate any property, including intellectual
property, of the Company. 

 

(d)           Termination by the Company without Cause.  The
Company will have the right to
terminate Employee’s employment with Company at any time without Cause. In the event Employee is
terminated without Cause and upon the execution of a release by Employee in
the form attached hereto as Exhibit B (“Release”) and written acknowledgment of Employee’s continuing obligations under the Proprietary Information Agreement,
Employee shall be entitled to receive the equivalent of six (6) months
of Employee’s Base Salary as in effect immediately prior to the termination
date, with all amounts paid on the same basis and at the same time as previously paid and subject to payroll tax withholdings and deductions.
Provided that Employee timely
elects continuation of Employee’s health insurance pursuant to COBRA, the
Company shall also reimburse Employee
for the cost of COBRA premiums to be paid in order for Employee to maintain medical
insurance coverage that is substantially equivalent to that which Employee received immediately prior to the
termination for a period of six (6) months (the salary

 

4

 

continuation and COBRA reimbursement are collectively referred to as
the “Severance Benefits”). 

 

10.          CHANGE IN CONTROL BENEFITS.  If
within the twelve (12) months immediately following
a Change in Control: (i) Employee is involuntarily terminated by the
Company (or its successor entity) other than for Cause; or
(ii) Employee voluntarily terminates Employee’s employment with the Company (or its successor entity) for Good
Reason (either constituting a “Change of Control Termination”), and in each case Employee signs a
Release and written acknowledgment of
Employee’s continuing obligations under the Proprietary Information
Agreement, Employee shall be entitled to the Severance Benefits set forth in
paragraph 9(d). In addition, the equivalent of an additional six
(6) months of the Options shall immediately become vested and exercisable.
All other terms and conditions set forth in the Option or the Plan shall remain
in full force and effect. 

 

(a)           Definition
of Change in Control.  For purposes of this Agreement, “Change
of Control” of the Company is defined as any of the following: (i) any “person” (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of
1934, as amended), other
than holder of capital stock of the Company as of the date hereof, or one or more affiliates thereof, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under said Act), directly or
indirectly, of previously outstanding securities of the Company representing 50% or more of the total voting power
represented by the Company’s then outstanding voting securities (provided, however,
that under no circumstance shall the issuance of equity securities in bona fide financing transactions
be deemed to constitute a Change of Control); or (ii) the closing
of a merger or consolidation of the Company with any other corporation, other
than a merger or consolidation
which would result in the voting securities of the Company outstanding immediately prior thereto continuing
to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than fifty percent (50%) of the total voting
power represented by the voting securities of the Company or such surviving
entity outstanding immediately after such merger or
consolidation; or (iii) the consummation of the sale or
disposition by the Company of all or substantially all the Company’s assets. 

 

(b)           Definition of Good Reason shall mean that after notification of the Company
or its successor by Employee of Employee’s intention to resign for Good Reason
and a reasonable opportunity for the Company to
cure any such alleged defect, the Company persists in any of the following: (i) a significant reduction in Employee’s
duties, position, or responsibilities in
effect immediately prior to such reduction, (ii) the Company materially reduces
Employee’s base salary relative
to the salary in effect immediately prior to such reduction; (iii) there is a material reduction by the Company in the kind or level of benefits to
which Employee is entitled immediately prior to such reduction with the
result that Employee’s overall benefits package is significantly reduced;
or (iv) without Employee’s express written consent, Employee’s relocation to a facility or a location more than fifty
(50) miles from his then current location. 

 

13.          MISCELLANEOUS.

 

(a)           Taxes.  Employee agrees to
be responsible for the payment of any taxes
due on any and all compensation
(other than the Company’s portion of any payroll taxes or other withholdings),
stock option, or benefit provided by the Company pursuant to this Agreement.

 

5

 

Employee agrees to indemnify the Company and
hold the Company harmless from any and all claims
or penalties asserted against the Company for any failure to pay taxes due on
any compensation, stock option, or benefit provided by the Company
pursuant to this Agreement. Employee
expressly acknowledges that the Company has not made, nor herein makes, any
representation about the tax consequences of any consideration provided by the
Company to Employee pursuant to this Agreement. 

 

(b)           Modification/Waiver.  This Agreement may not be amended, modified, superseded, canceled, renewed or expanded, or
any terms or covenants hereof waived, except by a writing executed by
each of the parties hereto or, in the case of a waiver, by the party waiving compliance. Failure of any party at
any time or times to require performance of any provision hereof shall in no
manner affect Employee’s or its right at a later time to enforce the same. No waiver by a party of a 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 agreement
contained in the Agreement. 

 

(c)           Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of any successor or assignee of the business of
the Company. This Agreement shall not be assignable by you. 

 

(d)           Notices.  All notices given hereunder shall be given by
certified mail, addressed, or delivered by hand, to the other
party at Employee’s or its address as set forth herein, or at any other address hereafter furnished by notice
given in like manner. Employee promptly shall notify Company of any change in Employee’s address.
Each notice shall be dated the date of its mailing or delivery and shall be
deemed given, delivered or completed on such date.

 

(e)           Governing Law; Personal Jurisdiction
and Venue.  This
Agreement and all disputes
relating to this Agreement shall be governed in all respects by the laws of the State of Colorado as such laws are
applied to agreements between Colorado residents entered into and performed entirely in Colorado. The Parties acknowledge that this Agreement
constitutes the minimum contacts to establish personal jurisdiction in
Colorado and agree to Colorado court’s
exercise of personal jurisdiction.

 

(f)            Entire Agreement.  This Agreement together with the Exhibits A and B attached
hereto sets forth the entire agreement and understanding of the parties hereto
with regard to Employee’s
employment by the Company and supersede any and all prior term sheets, agreements, arrangements and
understandings, written or oral, pertaining to the subject matter hereof. No representation, promise
or inducement relating to the subject matter hereof has been made to a party
that is not embodied in these Agreements, and no party shall be bound by or liable for any alleged representation,
promise or inducement not so set forth. 

 

(g)           IRCA.  Employee’s employment is conditioned on
Employee’s ability to document Employee’s identity and
authorization to work in the U.S.
pursuant to the Immigration Reform
Control Act of 1986 (“IRCA”).
Pursuant to the IRCA, Employee agrees to permit the Company to inspect
original documents that establish that Employee is authorized to work in the U.S.

 

6

 

(h)           Agents.  Employee represents and warrants that Employee
has not incurred any
liability for any employment agency or finders fees or commissions, or the
like, in connection with the employment
contemplated herein. Employee hereby agree to indemnify and hold the Company harmless from and against
and in respect of any claim for employment agency or finders fees or commissions or the like
relating to the employment contemplated by this Agreement.

 

If Employee wishes to accept this offer of employment, please sign and
date this letter and return
it to me along with the release
of current employment contract described above.

 

	
  Sincerely,

  
	
   

  
	
  LOCAL MATTERS, INC.

  
	
   

  
	
   

  
	
  /s/ Perry Evans

  	
   

  
	
  By: Perry Evans

  
	
   

  
	
  Title: Chief Executive Officer

  
	
   

  
	
  I have read, understand and agree to the foregoing terms.

  
	
   

  
	
   

  
	
  /s/ Jeanette McClennan

  	
   

  	
  3/16

  
	
  Jeanette McClennan

  	
  Date

  
				

 

7

 

MANAGER, EXECUTIVE PERSONNEL OR ASSISTANTS’

CONFIDENTIALITY AND INVENTIONS ASSIGNMENT AGREEMENT

 

This Manager, Executive
Personnel or Assistants’ Confidentiality and Inventions Assignment Agreement (“Agreement”) is made in consideration for my employment or continued employment by
[Company] or its subsidiaries or affiliates (the “Company”), and the compensation now and hereafter paid
to me. I hereby agree as follows:

 

1.             CONFIDENTIALITY.

 

1.1 Nondisclosure; Recognition of Company’s Rights.  At all times during my employment and thereafter, I will hold in confidence and
will not disclose, use,
lecture upon, or publish any of Company’s
Confidential Information (defined below), except as such use
is required in connection with my work for Company, or
unless the Chief Executive Officer (the “CEO”) of Company expressly authorizes in writing such disclosure or
publication. I will obtain the
CEO’s written approval before publishing or submitting for
publication any material (written, oral, or otherwise) that
relates to my work at Company and/or incorporates any
Confidential Information. I hereby assign to Company any rights I have or
acquire in any and all Confidential Information and recognize
that all Confidential Information shall be the sole and
exclusive property of Company and its assigns.

 

1.2 Confidential Information.    The term “Confidential Information”
shall mean any and all confidential knowledge, data or information
related to Company’s business or its actual or
demonstrably anticipated research or development,
including without limitation (a) trade secrets, inventions, ideas, processes, computer
source and object code, data, formulae, programs, other works
of authorship, know-how, improvements, discoveries, developments,
designs, and techniques; (b) information regarding products, plans for research and development, marketing and business plans, budgets,
financial statements, contracts, prices, suppliers, and
customers; (c) information
regarding the skills and compensation of Company’s employees,
contractors, and any other service providers of Company;
and (d) the existence of any business discussions,
negotiations, or agreements between Company and any third party.

 

1.3 Third Party Information.  I understand, in addition, that Company has
received and in the future will receive from third parties confidential or
proprietary information (“Third Party Information”) subject to a duty on Company’s part
to maintain the confidentiality of
such information and to use it
only for certain limited purposes. During the term of my
employment and thereafter, I will hold Third Party
Information in strict confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for Company) or use, except in connection with my work for Company, Third Party Information, unless expressly authorized by
an officer of Company in writing.

 

1.4 No Improper Use of Information of Prior Employers and Others.  I represent that my employment by Company does not and will not breach any agreement with any former employer, including any
noncompete agreement or any agreement to keep in
confidence information acquired by me in confidence or
trust prior to my employment by Company. I further represent that I have not entered into, and will not
enter into, any agreement, either written or oral, in
conflict herewith. During
my employment by Company, I will not improperly use or disclose any confidential
information or trade secrets of any former employer or other
third party to whom I have an obligation of confidentiality,
and I will not bring onto
the premises of Company or use any unpublished
documents or any property belonging to any former employer or other third party to whom I have an obligation
of confidentiality, unless consented to in writing by that former employer
or person. I will use in the performance
of my duties only information that is generally known and
used by persons with training and
experience comparable to my own,
is common knowledge in the industry or otherwise legally in the
public domain, or is otherwise provided or developed by Company.

 

2.             INVENTIONS.

 

2.1 Inventions and Proprietary Rights.  As
used in this Agreement, the term “Invention” means any ideas, concepts,
information, materials, processes, data, programs, know-how,
improvements, discoveries, developments,
designs, artwork, formulae, other copyrightable works, and techniques and all
Proprietary Rights therein. The term “Proprietary Rights”
means all trade secrets, copyrights, trademarks, mask
work rights, patents and other intellectual property rights
recognized by the laws of any jurisdiction or country.

 

2.2 Prior Inventions.  I agree that I will not incorporate, or permit to be incorporated, Prior Inventions (defined
below) in any Company Inventions (defined below) without Company’s
prior written consent. In addition, I agree that I will not incorporate
into any Company software or
otherwise deliver to Company any software code licensed under the GNU GPL or
LGPL or any other license that, by its terms,
requires or conditions the use or distribution of such code on the
disclosure, licensing, or distribution of any source code
owned or licensed by Company. I have disclosed on Exhibit A a complete list of all Inventions that I have, or I have caused to
be, alone or jointly with others, conceived, developed, or reduced
to practice prior to the commencement of my employment by Company, in which I have an ownership 

 

1

 

interest or which I have a license to use, and that I wish to have excluded from the scope of this
Agreement (collectively referred to as “Prior Inventions”). If no Prior Inventions are
listed in Exhibit A, I warrant that there are no Prior
Inventions. If, in the course of my
employment with Company, I
incorporate a Prior Invention into a Company process, machine or other
work, I hereby grant Company a non-exclusive, perpetual,
fully-paid and royalty-free, irrevocable and worldwide
license, with rights to sublicense through multiple levels of
sublicensees, to reproduce, make derivative works of,
distribute, publicly perform,
and publicly display in any form or medium, whether now known or
later developed, make, have made,
use, sell, import, offer for
sale, and exercise any and all present or future rights in, such Prior
Invention.

 

2.3 Assignment of Company
Inventions.  Subject to Sections 2.2 and 2.5, I hereby assign and agree to assign in the future
(when any such Inventions or Proprietary Rights are first reduced to
practice or first fixed in a tangible medium, as applicable) to
Company all my right, title, and
interest in and to any and all Inventions (and all Proprietary
Rights with respect thereto) made,
conceived, reduced to practice,
or learned by me, either alone or with others, during the period of my
employment by Company. Inventions assigned to Company or to a third party as directed
by Company pursuant to the section
titled “Government or Third
Party” are referred to in this Agreement as “Company
Inventions.”

 

2.4 Obligation to Keep Company
Informed.  During the period of my employment and for
one (1) year thereafter, I will promptly and fully
disclose to Company in writing
(a) all Inventions authored, conceived, or reduced to practice by
me, either alone or with others, and (b) all patent
applications filed by me or in which I am named as an inventor or
co-inventor.

 

2.5 Government or Third Party.  I
also agree to assign all my right, title, and interest in
and to any particular Company
Invention to a third party, including without limitation the United States, as directed by Company.

 

2.6 Enforcement of Proprietary
Rights and Assistance.  During the period of my employment and thereafter,
I will assist Company in every proper way to obtain and enforce
United States and foreign Proprietary Rights relating to
Company Inventions in all countries.
In the event Company is unable to secure my
signature on any document needed in connection with such
purposes, I hereby irrevocably designate and appoint
Company and its duly authorized officers and agents as my
agent and attorney in fact, which appointment is
coupled with an interest, to act
on my behalf to execute and file any such documents and to do all other
lawfully permitted acts to further such purposes with the same legal
force and effect as if executed by me.

 

3.             RECORDS.  I agree to keep and maintain adequate and
current records (in the form of notes, sketches, drawings and in any other form
that is required by Company) of
all Inventions made by me during the period of my employment by
Company, which records shall be available to, and remain the sole property
of, Company at all times.

 

4.             NO CONFLICTS
OR SOLICITATION.  I acknowledge that during my employment I will
have access to and knowledge of Proprietary
Information. I also acknowledge
that during my employment with the
Company, I have held and/or will
hold a management or executive position or am, or will be, an
assistant to a manager or executive. To protect the Company’s Proprietary
Information, I agree that during the period of my employment by the
Company I will not, without the Company’s express written consent, engage in
any other employment or business activity directly
related to the business in which the Company is now involved
or becomes involved, nor will I engage in any other activities which
conflict with my obligations to the Company. To protect the Company’s
Proprietary Information, and
because of the position in the Company that I hold, I agree that
during my employment with the Company whether full-time or part-time
and for a period of one year after my last day of employment with the Company, I will not (a) directly
or indirectly solicit or induce any employee of the Company
to terminate or negatively alter his or her relationship with the
Company or (b) directly or indirectly solicit the business of any client or customer of the Company
(other than on behalf of the Company) or (c) directly or indirectly
induce any client, customer, supplier, vendor, consultant or
independent contractor of the Company to terminate or negatively alter his,
her or its relationship with the Company. I agree that the geographic scope
of the non-solicitation should include the “Restricted Territory”
(as defined below). If any
restriction set forth in this Section is found by any court of
competent jurisdiction to be unenforceable because it extends for
too long a period of time or
over too great a range of activities or in too broad a geographic
area, it shall be interpreted to extend only over the maximum period of time,
range of activities or
geographic area as to which it may be enforceable.

 

5.            COVENANT NOT TO COMPETE.  I
acknowledge that during my employment I will have access
to and knowledge of Proprietary Information. I also acknowledge that
during my employment with the Company, I have held and/or will hold a
management or executive position or
am, or will be, an assistant to
a manager or executive. To protect
the Company’s Proprietary Information, and because of the position
in the Company that I may hold, I
agree that during my employment
with the Company whether
full-time or part-time and for a period of one year after
my last day of employment with the Company, I will not directly or
indirectly engage in (whether as an

 

2

 

employee, consultant, proprietor, partner, director or otherwise),
or have any ownership interest in, or participate in the financing,
operation, management or control of, any person, firm, corporation or business that engages in a “Restricted Business” in a “Restricted Territory” (as defined
below). It is agreed that
ownership of (i) no more than one percent (1%) of the outstanding
voting stock of a publicly traded corporation, or (ii) any
stock I presently own shall not constitute a violation of this
provision.

 

5.1 Reasonable.  I
agree and acknowledge that the time limitation on the restrictions in this
paragraph, combined with the geographic scope, is
reasonable. I also acknowledge
and agree that this paragraph is reasonably necessary for the
protection of Company’s Proprietary
Information as defined in
paragraph 1.2 herein, that through my employment I shall
receive adequate consideration for any loss of opportunity
associated with the provisions herein, and that these
provisions provide a reasonable way of protecting Company’s
business value which will be imparted to me. If any restriction set forth in this paragraph 4 is found by any court of
competent jurisdiction to be unenforceable because it
extends for too long a period of time or over too great a
range of activities or in too broad a geographic area, it shall
be interpreted to extend only
over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

 

5.2 As used herein, the terms:

 

(i)            “Restricted Business” shall mean the design, development,
marketing or sales of internet or
voice-based local search
services similar to or competitive
with those marketed, sold or
under development by the Company at any time during my employment with
the Company.

 

(ii)           “Restricted Territory” shall mean any state,
county, or locality in the United States in which the Company
conducts business and any other country, city, state, jurisdiction, or
territory in which the Company does
business.

 

6.             RETURN OF COMPANY PROPERTY.  Upon termination of my employment or upon Company’s request at
any other time, I will deliver to Company all of Company’s property, equipment, and documents, together with
all copies thereof, and any other material containing or disclosing any
Inventions, Third Party Information or Confidential
Information of Company and certify in writing that I have
fully complied with the foregoing
obligation. I agree that I will not copy, delete, or
alter any information contained
upon my Company computer before I return it to Company. I further agree that any property situated on Company’s premises and owned by
Company is subject to inspection by Company personnel at any time with
or without notice. Prior to leaving,
I will cooperate with
Company in attending an exit interview and
completing and signing Company’s
termination statement.

 

7.             NOTIFICATION OF NEW EMPLOYER.  In
the event that I leave the employ of Company, I hereby consent to the notification of my new employer of my rights and obligations under this
Agreement, by Company’s providing a copy of this Agreement
or otherwise.

 

8.             GENERAL PROVISIONS.

 

8.1
Governing Law and Venue.  This Agreement and any action
related thereto will be governed,
controlled, interpreted, and
defined by and under the laws of the State of Colorado, without giving
effect to any conflicts of laws
principles that require the application of the law of a different
state. I hereby expressly
consent to the personal jurisdiction and venue in the
state and federal courts for the county in which Company’s
principal place of business is located for any lawsuit filed
there against me by Company arising from or related to this
Agreement.

 

8.2 Severability.  If any provision of this Agreement
is, for any reason, held to be invalid or unenforceable, the other provisions of this Agreement will be
unimpaired and the invalid or unenforceable provision will
be deemed modified so that it is valid and enforceable to
the maximum extent permitted by law.

 

8.3 Survival.  This Agreement shall survive the termination
of my employment and the assignment of this Agreement by Company to
any successor-in-interest or other assignee and be binding upon my heirs
and legal representatives.

 

8.4 Employment.  I agree and understand that nothing
in this Agreement shall confer any right with respect to continuation of employment by Company, nor shall
it interfere in any way with my right or Company’s right to terminate my
employment at any time, with or without cause and with or without advance
notice.

 

8.5 Notices.  Each party must deliver all notices or
other communications required or permitted under this Agreement
in writing to the other party at the address listed on the signature page, by courier, by
certified or registered mail
(postage prepaid and return receipt requested), or by a nationally-recognized express mail service. Notice will be effective upon receipt or refusal of delivery. If delivered by certified or
registered mail, any such notice will be considered to have been
given five (5) business days after
it was mailed, as evidenced by
the postmark. If delivered by
courier or express mail service, any such notice shall be considered
to have been given on the delivery date reflected by the
courier or express mail service receipt. Each party may change
its address for receipt of notice by giving notice of such change to the other party. 

 

3

 

8.6 Injunctive Relief.  I
acknowledge that, because my services are personal and unique
and because I will have access to the Confidential
Information of Company, any
breach of this Agreement by me would
cause irreparable injury to
Company for which monetary damages would not be an adequate remedy and,
therefore, will entitle Company to injunctive relief
(including specific performance). The rights and remedies provided to each party in this Agreement are cumulative and in addition to any
other rights and remedies available to such party at law or in equity.

 

8.7 Waiver.  Any waiver or failure to enforce any provision of this Agreement on one occasion
will not be deemed a waiver of any other provision or of
such provision on any other occasion.

 

8.8 Export.  I
agree not to export, directly or indirectly, any U.S.
technical data acquired from Company
or any products utilizing such
data, to countries outside the United
States, because such export could be in violation of the United States export laws or regulations.

 

8.9 Entire Agreement.  The obligations pursuant to sections of this Agreement titled “Confidentiality” and “Inventions”
shall apply to any time during which I was previously employed, or
am in the future employed, by Company as an independent contractor if no
other agreement governs nondisclosure and
assignment of inventions during such period. This Agreement is the final,
complete and exclusive agreement of the parties with respect
to the subject matters hereof and supersedes and merges all prior
communications between us with respect to such matters. No modification of or amendment to this Agreement,
or any waiver of any rights under this Agreement, will be
effective unless in writing and signed by me and the CEO of
Company. Any subsequent change or changes in my duties, salary or
compensation will not affect the validity or scope of this Agreement.

 

This Agreement shall be
effective as of the first day of my employment with Company.

 

	
  EMPLOYEE:

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  
	
  I ACKNOWLEDGE THAT I HAVE READ
  AND UNDERSTAND
  THIS AGREEMENT AND HAVE BEEN GIVEN THE OPPORTUNITY TO DISCUSS IT WITH INDEPENDENT LEGAL COUNSEL.

  	
   

  	
  ACCEPTED AND AGREED:

  
	
   

  	
   

  	
   

  	
  /s/
  Perry Evans

  
	
   

  	
  /s/ Jeannette McClennan

  	
   

  	
   

  	
  (Signature)

  
	
   

  	
  (Signature)

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Jeannette McClennan

  	
   

  	
   

  	
  By:

  	
  Perry Evans

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  President Media Services Div, CMO

  	
   

  	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  3/16/06

  	
   

  	
   

  	
  Date:

  	
  March 17/06

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  109 W 118 St NY, NY 10026

  	
   

  	
   

  	
  Address:

  
										

 

4

 

EXHIBIT A

 

	
  TO:

  	
  Local Matters, Inc.

  
	
   

  	
   

  
	
  FROM:

  	
   

  	
   

  
	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  
	
   

  	
   

  
	
  SUBJECT:

  	
  Previous Inventions

  
	
   

  	
   

  
	
  1.             Except
  as listed in Section 2 below, the following is a complete list of all
  inventions or improvements
  relevant to the subject  matter of my
  employment by Local Matters, Inc.
  (the “Company”) that have been made or conceived or first reduced to practice by me alone or
  jointly with others prior to my engagement by the Company:

  

 

	
   

  	
  ý

  	
  No inventions or improvements.

  
	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  See below:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  o

  	
  Additional sheets attached.

  
	
   

  	
   

  	
   

  
	
  2.             Due to a prior confidentiality agreement, I cannot complete the
  disclosure under Section 1 above
  with respect to inventions or
  improvements generally listed below, the proprietary rights and duty of
  confidentiality with respect to which I owe to the following party(ies):

  

 

	
  Invention
  or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  

 

	
   

  	
  o

  	
  Additional sheets attached.

  

 

 

EXHIBIT B

 

RELEASE

 

In exchange for the consideration provided to
me by this Agreement that I am not otherwise entitled to receive, I hereby
generally and completely release the Company and its directors, officers, employees, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates, and assigns from any and all claims, liabilities and obligations,
both known and unknown, that arise out of or are in any way related to events,
acts, conduct, or omissions
related to my employment with the Company or the termination of that employment (except any claim for the
payment of benefits or other amounts that have accrued and are or may be payable under any plan, policy, program, arrangement
or agreement maintained
by the Company, including any amount payable to me under Section 8(d) of that certain letter dated October 14,
2005, or for any continuation coverage under the Company’s group health plan to which I may be entitled as a matter of law),
including, but not limited to:
(1) all claims related to
my compensation or benefits from the Company, including salary, bonuses, commissions,
vacation pay, expense reimbursements, severance pay, fringe benefits, stock,
stock options, or any other ownership interests in the Company; (2) all
claims for breach of contract, wrongful
termination, and breach of the implied covenant of good faith and fair dealing; (3) all tort claims, including
claims for fraud, defamation, emotional distress, and discharge in violation of public policy; and (4) all federal, state, and local statutory
claims, including claims for discrimination,
harassment, retaliation, attorneys’ fees, or other claims arising under the
federal Civil Rights Act of 1964
(as amended), the federal Americans with Disabilities Act of 1990, the federal
Age Discrimination in Employment Act of 1967 (as amended) (“ADEA”), and the Colorado
Civil Rights Act (as amended).

 

ADEA Waiver and Release.  I acknowledge that I am knowingly and
voluntarily waiving and releasing any
rights I may have under the ADEA, as amended. I also acknowledge that the consideration given
for the waiver and release in the preceding paragraph hereof is in addition to
anything of value to which I was
already entitled. I further
acknowledge that I have been advised
by this writing, as required by the ADEA, that: (a) my waiver and
release does not apply to any rights or
claims that may arise after the execution date of this Agreement; (b) I
have been advised that I have
the right to consult with an attorney prior to executing this Agreement; (c) I have been given twenty-one (21) days to consider this
Agreement; (d) I have seven (7) days following the execution of this
Agreement by the parties to revoke the Agreement; and (e) this Agreement will not be effective until
the date upon which the revocation period has expired, which will be the
eighth day after this Agreement is executed by you, provided that the Company
has also executed this Agreement by that date (“Effective Date”). The parties acknowledge and agree that revocation by Employee of the
ADEA Waiver and Release is not effective to revoke Employee’s waiver or release of any other claims pursuant to this
Agreement.

 

	
  By:

  	
  /s/ Jeannette
  McClennan

  	
   

  	
  Date:

  	
   

  	
  3/16/06Exhibit 10.7

 

DATED         April
20, 2001

 

(1)           INFORMATION SERVICES EXTENDED LIMITED

 

(2)           JOHN H KEMP

 

EMPLOYMENT CONTRACT

 

Tite
& Lewis

www.titeandlewis.com

 

1

 

AGREEMENT

 

Dated:           19
April 2001

 

BETWEEN:

 

(1)                                  INFORMATION SERVICES EXTENDED
LIMITED having its
registered office at 7 Rolls Buildings, Fetter Lane, London EC4 1NH (the “Company”);
and

 

(2)                                  JOHN H KEMP of “Creekside”, 20 Derwent Close, Farnham,
Surrey, GU9 0DD (the “Executive”), have entered into the following agreement:

 

1                                          The Executive is employed as Vice President
and General Manager of Europe, the Middle East and Asia. The Executive will
report to the Chief Operating Officer or, in his absence, the Chief Executive
Officer of Information Services Extended, Inc. (the “Parent Company”). In addition
to the duties which this job normally entails the Executive may from time to
time be required to undertake additional or other duties as necessary to meet
the needs of the Company’s business which may include duties for other
subsidiaries or associated companies of the Parent Company (collectively, the “Group”).

 

2                                          The Executive’s usual place of work is 20
Derwent Close, Farnham, Surrey, GU9 0DD; however, the Executive agrees to work
at such other places within the United Kingdom as the Board may reasonably
require. The Executive may be required to travel to such places in the world
and at such times as the Board may require in the proper performance of his
duties.

 

3                                          The Company shall pay the Executive an annual
salary of £100,740 payable by equal monthly installments in advance on or
around the sixth of each calendar month. Payment will be paid via BACS into the
Executive’s nominated bank account. The Executive’s salary will be reviewed
annually.

 

4                                          The Executive’s normal hours of employment
shall be the normal business hours of the Company. The Executive may be
required to work such hours outside normal hours of employment as are necessary
to perform his duties and the Executive shall not be paid for such further
hours. The Executive confirms that he has opted out of the provisions of the
Working Time Regulations limiting the average working week and may withdraw the
opt-out at any time by giving three months’ prior written notice.

 

5                                          The Executive is entitled, in addition to the
normal paid public holidays to take 20 working days as holidays in each holiday
year which runs from 1 January to 31 December and the Executive will be paid
his normal basic remuneration during such holidays.

 

6                                          The Executive will be paid his normal basic
remuneration less the amount of any statutory sick pay or social security
sickness benefit to which he may be entitled for 120 working days in total in
any one sick pay year or such period or periods of absence from work as the Company
shall see fit at the company’s discretion. Entitlement to payment is subject to
notification of absence and production of medical certificates in accordance
with the Company’s statutory
sick pay scheme.

 

7                                          The Executive shall be entitled to an annual
car allowance of £10,500, payable in equal monthly installments at the same
time as salary under clause 3.

 

8                                          The Executive will be reimbursed for the cost
of Private Medical cover for himself, spouse and dependants under the age of
21. This cover to be purchased by the Executive (after approval by the Parent Company).

 

1

 

9                                          The Company will provide Life Assurance cover
to the level of 4 X annual salary, 2 X annual salary coverage will be provided
by the Parent Company and an additional 2 X cover will be purchased by the
Executive and reimbursed by the Company (after approval by the Parent Company).

 

10                                    To the extent permitted by law the Company
will provide full indemnity and liability insurance for the Executive’s
directorships in any or all of the Parent Company’s subsidiaries in which he
holds directorships.

 

11                                    The Executive will be entitled to hold
non-executive directorship positions in other companies that are not competing
with the Parent Company or the Company. Such directorships must be approved by
the Parent Company.

 

12                                    The Executive shall be entitled to
participate in a share option scheme run by the Parent Company. The Executive
will receive options over 375,000 shares in the Parent Company. The share options
will vest in five equal tranches of 75,000. The first tranche shall vest on joining
the Company, and each successive tranche shall vest on 31 December, the first
such vesting to occur on 31 December 2001. The exercise price for shares in
each tranche shall be at the price determined by the Board of Directors of the
Parent Company. The Executive acknowledges that he has made a joint election
with the Company regarding these options and that he shall be personally
responsible for all taxes and national insurance contributions due in respect
of such options. The full terms of the Executive’s option entitlement including
the periods during which he may exercise his options and the dates on which
such options will lapse will be provided in the Parent Company’s 2001 Stock
Plan.

 

13                                    The Executive is entitled to an annual bonus
of up to 27.5 per cent of salary based upon personal and business performance.
Details of bonus structure and measurement criteria will be notified in writing
from the Company and agreed by the Executive in the first quarter of each year.
The Chief Operating Officer of the Parent Company will assess any bonus due and
notify the Executive. In the first year of employment the parties acknowledge
that the Executive’s targeted bonus is £27,778.

 

14                                    The Company shall reimburse the Executive all
reasonable travel, hotel, communication, capital and other expenses incurred by
him in or about the performance of his duties under this Agreement provided
that the Executive shall obtain prior approval for all expenses above £1,000
and provide reasonable evidence of all such expenditure as required by the
Company from time to time.

 

15                                    Subject to other provisions of this Agreement
the Executive may terminate this Agreement by giving the Company three months’
written notice of termination and the Company may terminate this Agreement by
giving the Executive six months written notice of termination.

 

16                                    The Company shall be entitled to terminate
the Employment with immediate effect and without any obligation to make any
payment of compensation if the Executive:

 

16.1         is guilty of any
gross default or misconduct in connection with or affecting the business of the
Company; or

 

16.2         is guilty of any
serious or repeated breach or non-observance of any of the terms of this Agreement;
or

 

16.3         becomes bankrupt or
makes any composition or enters into any deed of arrangement with his creditors;
or

 

16.4         is convicted of a
criminal offence, other than a road traffic offence not punishable by a period of
imprisonment; or

 

2

 

16.5                           resigns as a director of the Company or any
member of the Group other than at the request of the Board; or

 

16.6                           has performed any act tending in the
reasonable opinion of the Board to bring the Company or any member of the Group
into disrepute.

 

17                                    If the Company serves notice to terminate the
contract with the Executive other than under clause 16 above, it may terminate
the contract during the period of notice with immediate effect by making a
payment in Ileu of the salary and benefits the Executive would have earned over
the outstanding balance of the notice period.

 

18                                    If either party has served notice to
terminate the Employment the Executive acknowledges that the Company is under
no obligation to provide him with any duties and may for up to [six] months
require the Executive to:

 

18.1                           perform no duties whatsoever;

 

18.2                           refrain from contacting employees, customers,
suppliers of the Company without the prior written approval of the Parent
Company;

 

18.3                           perform alternative duties which are
commensurate with his status but which do not involve contact with clients,
customers or suppliers; and

 

18.4                           resign as a director or officer of the
Company and any member of the Group with immediate effect.

 

19                                    During any such period of suspension or
variation of duties, the Executive shall continue to be an employee of the
Company, shall receive the Salary and benefits to which he is entitled under
this Agreement and shall continue to be bound by all other terms of this
Agreement.

 

20                                    The Executive acknowledges that in the course
of the Employment he will have access to and be entrusted with information in
respect of the business and finances of the Company and of its clients,
customers and suppliers. The Executive undertakes that he shall not, other than
in the proper course of his duties under this Agreement, make any use of any
such information and shall use his reasonable endeavours to prevent the
publication or disclosure of such information. This restriction applies without
limit in time and shall survive termination of this Agreement, but will not
apply to information which comes into the public domain other than through
unauthorised disclosure by the Executive.

 

21                                    All records made during the Employment,
whether recorded manually, electronically, or otherwise made in the course of
the Employment concerning the business of the Company or any member of the
Group or any of its or their clients, customers and suppliers shall be the
exclusive property of the Company and shall be delivered up by the Executive to
the Company if requested by the Board and in any event immediately upon
termination of employment.

 

22                                    The Executive acknowledges that in the course
of the employment he may make or discover or create Intellectual Property and
that the nature of his duties place the Executive under a special obligation to
further the Interests of the Company/Group. The Executive acknowledges that,
subject to the provisions of the Patents Act 1977 and the Copyright Designs and
Patents Act 1998, any intellectual property made, developed or discovered by
the Executive during the Employment and which relates to or is capable of being
used in the business for the time being carried on by the Group is the property
of the Company and all rights in such Intellectual property will on creation
vest in the Company in the United Kingdom and the Executive undertakes to
assign all such rights to the Company in respect of any jurisdiction where the
same does not vest automatically in the Company.

 

23                                    For the purposes of Section 1 of the
Employment Rights Act 1996:

 

3

 

23.1                           the Executive's period of continous employment
will commence on 1 May 2001;

 

23.2                           there are disciplinary rules applicable to the Executive;

 

23.3                           there is no grievance policy applicable to the Executive; and

 

there are no collective agreements
relevant to the Executive.

 

24                                    This
employment contract replaces all other previous contracts between the Company and
the Executive or any other subsidiaries. 

 

25                                    The Executive consents to the Executive
holding and processing, whether manually or electronically, data relating to
him for the proper performance of his duties and this contract and he consents
to the transfer and storage of such data outside of the European economic area.

 

26                                    This Agreement is governed by and
shall be construed in accordance with the
laws of England.

 

27                                    The
parties to the Agreement submit to the jurisdiction of the England Courts.

 

 

	
  /s/ Steven Klein

  	
   

  
	
  For and on behalf of Information Services
  Executed Limited

  
	
  Steven Klein

  

 

	
  Date 

  	
  April 25, 2001

  	
   

  
	
   

  
	
  Place 

  	
  U.S.A.

  	
   

  
	
   

  	
   

  
	
  /s/ John Kemp

  	
   

  
	
  John Kemp

  
	
   

  	
   

  
	
  Date 

  	
  26th April 2001

  	
   

  
	
   

  
	
  Place England

  
					

 

4

 

 

 

 

6301 NORTHWEST FIFTH WAY,
SUITE 4000

FORT LAUDERDALE, FL
33309-6186 U.S.A. 

TELEPHONE: 954-689-6300

 

February 14,
2005

 

John Kemp

 

Re: Retention Plan 

 

Dear John:

 

Information
Services Extended, Inc. (the “Company”) is currently considering a possible transaction (the “Transaction”), in which the
Company would become a wholly-owned subsidiary of Aptas, Inc. (“Aptas”),
another entity in which Spencer Trask Intellectual Capital Company LLC
(“Spencer Trask”), or one or more of its affiliates holds a significant
interest. It is currently contemplated that Aptas would, prior to the
Transaction, directly or indirectly raise capital through a private placement,
the majority of the proceeds of which would be used to acquire the web service portion of the business of YP Solutions (the
“Acquired YP Solutions Business”). It is anticipated that following the
consummation of these transactions, the Company, Aptas and the Acquired YP
Solutions Business would be operated by Aptas as part of a single business unit
so as to maximize synergies and take advantage of cross marketing and
development opportunities, undertake a name change, and that Aptas would
undertake an initial public offering (the “IPO”) after a reasonable period of
time in which the constituent companies had operated on a consolidated basis,
provided that the Transaction would be subject to being unwound (the “Unwind”)
if the IPO was not consummated by June 30, 2005.

 

In order to motivate you to remain with the
Company given the uncertainties and challenges inherent in the consideration and
implementation of the Transaction, the integration of the constituent
companies, and the IPO, the Company is willing to offer to you a retention payment in the amount of $25,000 (the
“Retention Payment”) that is in addition to any other benefits, if any, to
which you may be entitled. You will become eligible to receive 50% of the Retention
Payment allocated to you upon the execution of the definitive transaction
document relating to the Transaction
and the remaining 50% of your Retention Payment upon the earlier of (a) the
closing of the IPO, and (b) a Change of Control (as defined on Schedule A
hereto) of either Aptas or the Company; provided that, you shall only
receive your Retention Payment on the three month anniversary of the
consummation of the IPO or the Change of Control; and provided further
that, you will only be eligible to receive your Retention Payment if (a) you
remain employed by the Company or any successor entity, including Aptas, on the
three month anniversary of the consummation of the IPO or the change of
Control, or (b) if your employment by the Company or any successor entity,
including Aptas, was terminated by the Company or any successor entity, including Aptas, without Cause (as defined on
Schedule A hereto) on or prior to the three (3) month anniversary of the
consummation of the IPO or the Change of Control. If the IPO or the
Change of Control is not consummated for any reason prior to 

 

 

December 31, 2005, no Retention Payment will
be paid whether or not you have become eligible to receive such Retention
Payment.

 

The Retention
Payment will be paid in a lump sum cash payment on the three (3) month
anniversary of the closing of the IPO or the Change of Control, subject to the
provisos in the preceding paragraph. The Retention Payment will be reduced by
any applicable federal, state, and local tax withholdings and/or wage
reductions.

 

Please confirm
your agreement to the foregoing by signing the enclosed copy of this letter
where indicated below and returning the same to me.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  INFORMATION SERVICES EXTENDED, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edgar Downs

  	
   

  
	
   

  	
   

  	
  Edgar Downs, President

  

 

Acknowledged and agreed to on 

February 14, 2005:

 

 

	
  /s/ John Kemp

  	
   

  
	
  John Kemp, individually

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