Document:

ReachLocal, Inc. 2004 Stock Plan

 Exhibit 10.04 
 REACHLOCAL, INC. 
 2004 STOCK PLAN 
 ADOPTED ON APRIL 21, 2004 

 TABLE OF CONTENTS 
  

					
	SECTION 1.	  	ESTABLISHMENT AND PURPOSE	  	
	SECTION 2.	  	ADMINISTRATION	  	
	(a) Committees of the Board of Directors	  	
	(b) Authority of the Board of Directors	  	
	SECTION 3.	  	ELIGIBILITY	  	
	(a) General Rule	  	
	(b) Ten-Percent Stockholders	  	
	SECTION 4.	  	STOCK SUBJECT TO PLAN	  	2
	(a) Basic Limitation	  	2
	(b) Additional Shares	  	2
	SECTION 5.	  	TERMS AND CONDITIONS OF AWARDS OR SALES	  	2
	(a) Stock Purchase Agreement	  	2
	(b) Duration of Offers and Nontransferability of Rights	  	2
	(c) Purchase Price	  	2
	(d) Withholding Taxes	  	2
	(e) Restrictions on Transfer of Shares and Minimum Vesting	  	3
	(f) Accelerated Vesting	  	
	SECTION 6.	  	TERMS AND CONDITIONS OF OPTIONS	  	3
	(a) Stock Option Agreement	  	3
	(b) Number of Shares	  	3
	(c) Exercise Price	  	3
	(d) Withholding Taxes	  	3
	(e) Exercisability	  	4
	(f) Accelerated Exercisability	  	
	(g) Basic Term	  	4
	(h) Nontransferability	  	4
	(i) Termination of Service (Except by Death)	  	4
	(j) Leaves of Absence	  	5
	(k) Death of Optionee	  	5
	(l) No Rights as a Stockholder	  	5
	(m) Modification, Extension and Assumption of Options	  	5
	(n) Restrictions on Transfer of Shares and Minimum Vesting	  	6
	(o) Accelerated Vesting	  	
	SECTION 7.	  	PAYMENT FOR SHARES	  	6
	(a) General Rule	  	6
	(b) Surrender of Stock	  	6
	(c) Services Rendered	  	6
	(d) Promissory Note	  	6
	(e) Exercise/Sale	  	7
	(f) Exercise/Pledge	  	7
	SECTION 8.	  	ADJUSTMENT OF SHARES	  	7
	(a) General	  	7
	(b) Mergers and Consolidations	  	7
	(c) Reservation of Rights	  	8

  

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	SECTION 9.	  	SECURITIES LAWS REQUIREMENTS	  	8
	(a) General	  	8
	(b) Financial Reports	  	8
	SECTION 10.	  	NO RETENTION RIGHTS	  	8
	SECTION 11	  	DURATION AND AMENDMENTS	  	8
	(a) Term of the Plan	  	8
	(b) Right to Amend or Terminate the Plan	  	9
	(c) Effect of Amendment or Termination	  	9
	SECTION 12.	  	DEFINITIONS	  	9
	SECTION 13.	  	EXECUTION	  	12

  

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 REACHLOCAL, INC. 
 2004 STOCK PLAN 
 SECTION 1. Establishment And Purpose.

 The purpose of the Plan is to offer selected individuals an opportunity to acquire a proprietary interest in the success of the Company,
or to increase such interest, by purchasing Shares of the Company’s Stock. The Plan provides both for the direct award or sale of Shares and for the grant of Options to purchase Shares. Options granted under the Plan may include Nonstatutory
Options as well as ISOs intended to qualify under Section 422 of the Code. 
 Capitalized terms are defined in Section 12. 

SECTION 2. Administration. 
  

	(a)	Committees of the Board of Directors. The Plan may be administered by one or more Committees. Each Committee shall consist of two or more members of the Board of
Directors who have been appointed by the Board of Directors. Each Committee shall have such authority and be responsible for such functions as the Board of Directors has assigned to it. If no Committee has been appointed, the entire Board of
Directors shall administer the Plan. Any reference to the Board of Directors in the Plan shall be construed as a reference to the Committee (if any) to whom the Board of Directors has assigned a particular function. 

  

	(b)	Authority of the Board of Directors. Subject to the provisions of the Plan, the Board of Directors shall have full authority and discretion to take any actions
it deems necessary or advisable for the administration of the Plan. All decisions, interpretations and other actions of the Board of Directors shall be final and binding on all Purchasers, all Optionees and all persons deriving their rights from a
Purchaser or Optionee. 

 SECTION 3. Eligibility. 
  

	(a)	General Rule. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Options or the direct award or sale of Shares. Only Employees
shall be eligible for the grant of ISOs. 

  

	(b)	Ten-Percent Stockholders. An individual who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, its Parent
or any of its Subsidiaries shall not be eligible for designation as an Optionee or Purchaser unless (i) the Exercise Price is at least 110% of the Fair Market Value of a Share on the date of grant, (ii) the Purchase Price (if any) is at
least 100% of the Fair Market Value of a Share and (iii) in the case of an ISO, such ISO by its terms is not exercisable after the expiration of five years from the date of grant. For purposes of this Subsection (b), in determining stock
ownership, the attribution rules of Section 424(d) of the Code shall be applied. 

 SECTION 4. Stock Subject To Plan 
  

	(a)	Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares. The aggregate number of Shares that may be issued under the Plan (upon
exercise of Options or other rights to acquire Shares) shall not exceed 382,445 Shares, subject to adjustment pursuant to Section 8. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall
not exceed the number of Shares that then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan.

  

	(b)	Additional Shares. In the event that any outstanding Option or other right for any reason expires or is canceled or otherwise terminated, the Shares allocable to
the unexercised portion of such Option or other right shall again be available for the purposes of the Plan. In the event that Shares issued under the Plan are reacquired by the Company pursuant to any forfeiture provision, right of repurchase or
right of first refusal, such Shares shall again be available for the purposes of the Plan, except that the aggregate number of Shares which may be issued upon the exercise of ISOs shall in no event exceed 382,445 Shares (subject to adjustment
pursuant to Section 8). 

 SECTION 5. Terms And Conditions Of Awards Or Sales. 
  

	(a)	Stock Purchase Agreement. Each award or sale of Shares under the Plan (other than upon exercise of an Option) shall be evidenced by a Stock Purchase Agreement
between the Purchaser and the Company. Such award or sale shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of
Directors deems appropriate for inclusion in a Stock Purchase Agreement. The provisions of the various Stock Purchase Agreements entered into under the Plan need not be identical. 

  

	(b)	Duration of Offers and Nontransferability of Rights. Any right to acquire Shares under the Plan (other than an Option) shall automatically expire if not
exercised by the Purchaser within 30 days after the grant of such right was communicated to the Purchaser by the Company. Such right shall not be transferable and shall be exercisable only by the Purchaser to whom such right was granted.

  

	(c)	Purchase Price. The Purchase Price of Shares to be offered under the Plan shall not be less than 85% of the Fair Market Value of such Shares, and a higher
percentage may be required by Section 3(b). Subject to the preceding sentence, the Purchase Price shall be determined by the Board of Directors at its sole discretion. The Purchase Price shall be payable in a form described in Section 7.

  

	(d)	Withholding Taxes. As a condition to the purchase of Shares, the Purchaser shall make such arrangements as the Board of Directors may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such purchase. 

  

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	(e)	Restrictions on Transfer of Shares and Minimum Vesting. Any Shares awarded or sold under the Plan shall be subject to such special forfeiture conditions,
accelerated vesting provisions, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Purchase Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of a Purchaser who is not an officer of the Company, an Outside Director or a Consultant, any right to repurchase the Purchaser’s Shares at the original
Purchase Price (if any) upon termination of the Purchaser’s Service shall lapse at least as rapidly as 20% per year over the five year period commencing on the date of the award or sale of the Shares. In addition, the applicable Stock
Purchase Agreement may provide the Company an additional right to repurchase the Purchaser’s Shares at a purchase price not less than the Fair Market Value of the Shares on the date Purchaser’s Service terminates, and such right of
repurchase shall terminate when the Company’s securities become publicly traded. Any such rights of repurchase may be exercised only within 90 days after the termination of the Purchaser’s Service for cash or for cancellation of
indebtedness incurred in purchasing the Shares. 

 SECTION 6. Terms And Conditions Of Options. 
  

	(a)	Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option
shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Board of Directors deems appropriate for inclusion in a Stock Option
Agreement. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. 

  

	(b)	Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for the adjustment of such
number in accordance with Section 8. The Stock Option Agreement shall also specify whether the Option is an ISO or a Nonstatutory Option. 

  

	(c)	Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value
of a Share on the date of grant, and a higher percentage may be required by Section 3(b). The Exercise Price of a Nonstatutory Option shall not be less than 85% of the Fair Market Value of a Share on the date of grant, and a higher percentage
may be required by Section 3(b). Subject to the preceding two sentences, the Exercise Price under any Option shall be determined by the Board of Directors at its sole discretion. The Exercise Price shall be payable in a form described in
Section 7. 

  

	(d)	 Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Board of Directors may require
for the satisfaction of any

  

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federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Board of Directors may require
for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. 

  

	(e)	Exercisability. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become exercisable. In the case of an Optionee
who is not an officer of the Company, an Outside Director or a Consultant, an Option shall become exercisable at least as rapidly as 20% per year over the five-year period commencing on the date of grant. Subject to the preceding sentence, the
exercisability provisions of any Stock Option Agreement (including any accelerated vesting) shall be determined by the Board of Directors at its sole discretion, and unless otherwise determined by the Board of Directors, no Option shall be
exercisable during the first six months following the date of the option grant. 

  

	(f)	Basic Term. The Stock Option Agreement shall specify the term of the Option. The term shall not exceed 10 years from the date of grant, and a shorter term may be
required by Section 3(b). Subject to the preceding sentence, the Board of Directors at its sole discretion shall determine when an Option is to expire. 

  

	(h)	Nontransferability. No Option shall be transferable by the Optionee other than by beneficiary designation, will or the laws of descent and distribution. An
Option may be exercised during the lifetime of the Optionee only by the Optionee or by the Optionee’s guardian or legal representative. No Option or interest therein may be transferred, assigned, pledged or hypothecated by the Optionee during
the Optionee’s lifetime, whether by operation of law or otherwise, or be made subject to execution, attachment or similar process. 

  

	(i)	Termination of Service (Except by Death). Unless the applicable Stock Option Agreement provides for a longer period of time, if an Optionee’s Service
terminates for any reason other than the Optionee’s death, then the Optionee’s Options shall expire on the earliest of the following occasions: 

  

	 	(i)	The expiration date determined pursuant to Subsection (g) above; 

  

	 	(ii)	The date three months after the termination of the Optionee’s Service for any reason other than Disability, or such later date as the Board of Directors may
determine; 

  

	 	(i)	The date six months after the termination of the Optionee’s Service by reason of Disability, or such later date as the Board of Directors may determine; or

  

	 	(ii)	The date of the termination of the Optionee’s Service for Cause, or such later date as the Board of Directors may determine. 

  

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 The Optionee may exercise all or part of the Optionee’s Options at any time before the
expiration of such Options under the preceding sentence, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of the termination) and the underlying Shares
had vested before the Optionee’s Service terminated (or vested as a result of the termination). The balance of such Options shall lapse when the Optionee’s Service terminates. In the event that the Optionee dies after the termination of
the Optionee’s Service but before the expiration of the Optionee’s Options, all or part of such Options may be exercised (prior to expiration) by the executors or administrators of the Optionee’s estate or by any person who has
acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s Service terminated (or became exercisable as a result of
the termination) and the underlying Shares had vested before the Optionee’s Service terminated (or vested as a result of the termination). 
  

	(j)	Leaves of Absence. For purposes of Subsection (i) above, Service shall be deemed to continue while the Optionee is on a bona fide leave of absence, if such
leave was approved by the Company in writing and if continued crediting of Service for this purpose is expressly required by the terms of such leave or by applicable law (as determined by the Company). 

  

	(k)	Death of Optionee. If an Optionee dies while the Optionee is in Service, unless the applicable Stock Option Agreement provides for a longer period of time, then
the Optionee’s Options shall expire on the earlier of the following dates: 

  

	 	(i)	The expiration date determined pursuant to Subsection(g) above; or 

  

	 	(ii)	The date 12 months after the Optionee’s death. 

 All or part of the Optionee’s Options may be exercised at any time before the expiration of such Options under the preceding sentence by the executors or administrators of the Optionee’s estate
or by any person who has acquired such Options directly from the Optionee by beneficiary designation, bequest or inheritance, but only to the extent that such Options had become exercisable before the Optionee’s death or became exercisable as a
result of the death. The balance of such Options shall lapse when the Optionee dies. 
  

	(1)	No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares covered by the
Optionee’s Option until such person becomes entitled to receive such Shares by filing a notice of exercise and paying the Exercise Price pursuant to the terms of such Option. 

  

	(m)	 Modification, Extension and Assumption of Options. Within the limitations of the Plan, the Board of Directors may modify, extend or assume
outstanding Options or may accept the cancellation of outstanding Options (whether granted by the Company or another issuer) in return for the grant of new Options for the same or a different number of Shares and at the same or a different Exercise
Price. The foregoing notwithstanding,

  

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no modification of an Option shall, without the consent of the Optionee, impair the Optionee’s rights or increase the Optionee’s obligations under such Option.

  

	(n)	Restrictions on Transfer of Shares and Minimum Vesting. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions,
accelerated vesting provision, rights of repurchase, rights of first refusal and other transfer restrictions as the Board of Directors may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in
addition to any restrictions that may apply to holders of Shares generally. In the case of an Optionee who is not an officer of the Company, an Outside Director or a Consultant, (i) any right to repurchase the Optionee’s Shares shall be at
a purchase price not less than the Fair Market Value of the Shares on the date Optionee’s Service terminates, and such right of repurchase shall terminate when the Company’s securities become publicly traded or (ii) any right to
repurchase the Optionee’s Shares at the original Exercise Price upon termination of the Optionee’s Service shall lapse at least as rapidly as 20% per year over the five-year period commencing on the date of the option grant. Any such
repurchase right may be exercised only within 90 days after the termination of the Optionee’s Service (or in the case of Shares issued upon exercise of options after the date when the Optionee’s service terminates, within 90 days after the
date of exercise) for cash or for cancellation of indebtedness incurred in purchasing the Shares. 

 SECTION 7. Payment For
Shares. 
  

	(a)	General Rule. The entire Purchase Price or Exercise Price of Shares issued under the Plan shall be payable in cash or cash equivalents at the time when such
Shares are purchased, except as otherwise provided in this Section 7. 

  

	(b)	Surrender of Stock. To the extent that a Stock Option Agreement so provides, all or any part of the Exercise Price may be paid by surrendering, or attesting to
the ownership of, Shares that are already owned by the Optionee. Such Shares shall be surrendered to the Company in good form for transfer and shall be valued at their Fair Market Value on the date when the Option is exercised. The Optionee shall
not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting
purposes. 

  

	(c)	Services Rendered. At the discretion of the Board of Directors, Shares may be awarded under the Plan in consideration of services rendered to the Company, a
Parent or a Subsidiary prior to the award. 

  

	(d)	 Promissory Note. To the extent that a Stock Option Agreement or Stock Purchase Agreement so provides, all or a portion of the Exercise Price or
Purchase Price (as the case may be) of Shares issued under the Plan, other than the par value of such Shares, which must be paid in cash or cash equivalents, may be paid with a full-recourse promissory note. The Shares shall be pledged as security
for payment of the principal

  

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amount of the promissory note and interest thereon. The interest rate payable under the terms of the promissory note shall not be less than the minimum rate (if any) required to avoid the
imputation of additional interest under the Code. Subject to the foregoing, the Board of Directors (at its sole discretion) shall specify the term, interest rate, amortization requirements (if any) and other provisions of such note.

  

	(e)	Exercise/Sale. To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on a
form prescribed by the Company) of an irrevocable direction to a securities broker approved by the Company to sell Shares and to deliver all or part of the sales proceeds to the Company in payment of all or part of the Exercise Price and any
withholding taxes. 

  

	(f)	Exercise/Pledge. To the extent that a Stock Option Agreement so provides, and if Stock is publicly traded, payment may be made all or in part by the delivery (on
a form prescribed by the Company) of an irrevocable direction to pledge Shares to a securities broker or lender approved by the Company, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of all or part
of the Exercise Price and any withholding taxes. 

 SECTION 8. Adjustment Of Shares. 
  

	(a)	General. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of an extraordinary dividend
payable in a form other than Shares in an amount that has a material effect on the Fair Market Value of the Stock, a combination or consolidation of the outstanding Stock into a lesser number of Shares, a recapitalization, a spin-off, a
reclassification or a similar occurrence, the Board of Directors shall make appropriate adjustments in one or more of (i) the number of Shares available for future grants under Section 4, (ii) the number of Shares covered by each
outstanding Option or (iii) the Exercise Price under each outstanding Option. 

  

	(b)	Mergers and Consolidations. In the event that the Company is a party to a merger or consolidation, outstanding Options shall be subject to the agreement of
merger or consolidation. Such agreement, without the Optionees’ consent, may provide for: 

  

	 	(i)	The continuation of such outstanding Options by the Company (if the Company is the surviving corporation); 

  

	 	(ii)	The assumption of the Plan and such outstanding Options by the surviving corporation or its parent; 

  

	 	(iii)	The substitution by the surviving corporation or its parent of options with substantially the same terms for such outstanding Options; 

  

	 	(iv)	 The cancellation of each outstanding Option after payment to the Optionee of an amount in cash or cash equivalents equal to (a) the Fair Market
Value of the

  

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Shares subject to such Option at the time of the merger or consolidation minus (b) the Exercise Price of the Shares subject to such Option; or 

  

	 	(v)	The cancellation of such outstanding Option without payment of any consideration. 

  

	(c)	Reservation of Rights. Except as provided in this Section 8, an Optionee or Purchaser shall have no rights by reason of (i) any subdivision or
consolidation of shares of stock of any class, (ii) the payment of any dividend or (iii) any other increase or decrease in the number of shares of stock of any class. Any issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan
shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any
part of its business or assets. 

 SECTION 9. Securities Law Requirements. 
  

	(a)	General. Shares shall not be issued under the Plan unless the issuance and delivery of such Shares comply with (or are exempt from) all applicable requirements
of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the
Company’s securities may then be traded. 

  

	(b)	Financial Reports. The Company each year shall furnish to Optionees, Purchasers and Stockholders who have received Stock under the Plan its balance sheet and
income statement, unless such Optionees, Purchasers or Stockholders are key Employees whose duties with the Company assure them access to equivalent information. Such balance sheet and income statement need not be audited. 

SECTION 10. No Retention Rights. 
 Nothing in the Plan or in any right or Option granted under the Plan shall confer upon the Purchaser or Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the
rights of the Company (or any Parent or Subsidiary employing or retaining the Purchaser or Optionee) or of the Purchaser or Optionee, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason,
with or without cause. 
 SECTION 11. Duration and Amendments. 
  

	(a)	 Term of the Plan. The Plan, as set forth herein, shall become effective on the date of its adoption by the Board of Directors, subject to the
approval of the Company’s

  

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stockholders. In the event that the stockholders fail to approve the Plan within 12 months after its adoption by the Board of Directors, any grants of Options or sales or awards of Shares that
have already occurred shall be rescinded, and no additional grants, sales or awards shall be made thereafter under the Plan. The Plan shall terminate automatically 10 years after its adoption by the Board of Directors and may be terminated on any
earlier date pursuant to Subsection (b) below. 

  

	(b)	Right to Amend or Terminate the Plan. The Board of Directors may amend, suspend or terminate the Plan at any time and for any reason; provided, however, that any
amendment of the Plan which increases the number of Shares available for issuance under the Plan (except as provided in Section 8), or which materially changes the class of persons who are eligible for the grant of ISOs, shall be subject to the
approval of the Company’s stockholders. Stockholder approval shall not be required for any other amendment of the Plan. 

  

	(c)	Effect of Amendment or Termination. No Shares shall be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted
prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option previously granted under the Plan. 

 SECTION 12. Definitions. 
  

	(a)	“Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 

  

	(b)	“Cause” shall mean (i) 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, (ii) conviction of, or a plea of “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof, (iii) gross negligence or (iv) continued failure
to perform assigned duties after receiving written notification from the Board of Directors. The foregoing, however, shall not be deemed an exclusive list of all acts or omissions that the Company (or a Parent or Subsidiary) may consider as grounds
for the discharge of an Optionee or Purchaser. 

  

	(c)	“Change in Control” shall mean the sale, conveyance, disposal, or encumbrance of all or substantially all of the Company’s property or business or
the Company’s merger into or consolidation with any other corporation where the stockholders of the Company immediately prior to such merger or consolidation own less than fifty percent (50%) of such corporation, directly or indirectly,
after such merger or consolidation. A transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be owned in substantially the same
proportions by the persons who held the Company’s securities immediately before such transaction. 

  

	(d)	“Code” shall mean the Internal Revenue Code of 1986, as amended. 

  

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	(e)	“Committee” shall mean a committee of the Board of Directors, as described in Section 2(a). 

  

	(f)	“Company” shall mean ReachLocal, Inc., a Delaware corporation. 

  

	(g)	“Consultant” shall mean a person who performs bona fide services for the Company, a Parent or a Subsidiary as a consultant or advisor, excluding
Employees and Outside Directors. 

  

	(h)	“Disability” shall mean that the Optionee or Purchaser is unable to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment. 

  

	(i)	“Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 

  

	(j)	“Exercise Price” shall mean the amount for which one Share may be purchased upon exercise of an Option, as specified by the Board of Directors in the
applicable Stock Option Agreement. 

  

	(k)	“Fair Market Value” shall mean the fair market value of a Share, as determined by the Board of Directors in good faith. Such determination shall be
conclusive and binding on all persons. 

  

	(1)	“Involuntary Termination” shall mean the termination of the Optionee’s or Purchaser’s Service by reason of: 

  

	 	(i)	The involuntary discharge of the Optionee or Purchaser by the Company (or the Parent or Subsidiary employing him or her) for reasons other than Cause; or

  

	 	(ii)	The voluntary resignation of the Optionee or Purchaser within 30 days following (A) a change in his or her position with the Company (or the Parent or Subsidiary
employing him or her) that materially reduces his or her level of authority or responsibility or (B) a material reduction in his or her compensation (including base salary, fringe benefits and participation in bonus or incentive programs based
on corporate performance). 

  

	(m)	“ISO” shall mean an employee incentive stock option described in Section 422(b) of the Code. 

  

	(n)	“Nonstatutory Option” shall mean a stock option not described in Sections 422(b) or 423(b) of the Code. 

  

	(o)	“Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 

  

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	(p)	“Optionee” shall mean an individual who holds an Option. 

  

	(q)	“Outside Director” shall mean a member of the Board of Directors who is not an Employee. 

  

	(r)	“Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations
other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the
Plan shall be considered a Parent commencing as of such date. 

  

	(s)	“Plan” shall mean this ReachLocal, Inc. 2004 Stock Plan. 

  

	(t)	“Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified
by the Board of Directors. 

  

	(u)	“Purchaser” shall mean an individual to whom the Board of Directors has offered the right to acquire Shares under the Plan (other than upon exercise of
an Option). 

  

	(v)	“Retirement” shall mean that the Optionee or Purchaser has given up his or her employment in the Company. 

  

	(w)	“Service” shall mean service as an Employee, Outside Director or Consultant. 

  

	(x)	“Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if applicable). 

  

	(y)	“Stock” shall mean the Common Stock of the Company. 

  

	(z)	“Stock Option Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining
to the Optionee’s Option. 

  

	(aa)	“Stock Purchase Agreement” shall mean the agreement between the Company and a Purchaser who acquires Shares under the Plan which contains the terms,
conditions and restrictions pertaining to the acquisition of such Shares. 

  

	(bb)	“Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of
a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 

  

 11 

 SECTION 13. Execution. 
 To record the adoption of the Plan by the Board of Directors, the Company has caused its authorized officer to execute the same. 
  

	
	ReachLocal, Inc.
	a Delaware corporation
	 /s/ Zorik Gordon

	By: Zorik Gordon
	Its: CEO

  

 12 

 FIRST AMENDMENT TO 
 REACHLOCAL, INC. 
 2004 STOCK PLAN 
 THIS FIRST AMENDMENT (this “Amendment”) to the ReachLocal, Inc. 2004 Stock Plan (the “Plan”) is made and adopted as of April 8,
2005 by the Board of Directors of ReachLocal, Inc. (the “Company”). Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to them in the Plan. 
 WHEREAS, the Company maintains the Plan; 
 WHEREAS, in connection with the Company’s issuance of Series B-2 Preferred Stock, the Company desires to amend the Plan to increase the number of shares of Common Stock of the Company subject thereto; and 
 WHEREAS, pursuant to Section 11(b) of the Plan, the Plan may be amended by the Board of Directors from time to time; 
 NOW, THEREFORE, BE IT RESOLVED, that the Plan be amended as follows: 
 1. Section 4(a) of the Plan is hereby amended by deleting the number 382,445 in the second sentence thereof and replacing it with the number 533,195. 
 2. Section 4(b) of the Plan is hereby amended by deleting the number 382,445 in the final sentence thereof and replacing it with the
number 533,195. 
 3. This Amendment shall be effective as of the date hereof, subject to approval of the Company’s
stockholders. 
 4. This Amendment shall be and hereby is incorporated in and forms a part of the Plan. 
 5. Except as set forth herein, the Plan shall remain in full force and effect. 
 BY ORDER OF THE BOARD OF DIRECTORS 
  

			
		 	 /s/ Zorik Gordon

		 	Zorik Gordon
		 	Chairman of the Board of Directors

 SECOND AMENDMENT TO 
 REACHLOCAL, INC. 
 2004 STOCK PLAN 
 This SECOND AMENDMENT (this “Amendment”) to the ReachLocal, Inc. 2004 Stock Plan (the “Plan”) is made and adopted as of
July 31, 2006 by the Board of Directors of ReachLocal, Inc. (the “Company”). Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to them in the Plan. 
 WHEREAS, the Company maintains the Plan; 
 WHEREAS, the Company desires to amend the Plan to increase the number of shares of Common Stock of the Company subject thereto; 
 WHEREAS, the Company has effected a 5-for-l forward stock split of its Common Stock (the “Split”); and 
 WHEREAS, pursuant
to Section 11(b) of the Plan, the Plan may be amended by the Board of Directors from time to time; 
 NOW, THEREFORE, BE IT RESOLVED, that
the Plan be amended as follows: 
 1. Section 4(a) of the Plan is hereby amended by deleting the number 533,195 in the
second sentence thereof and replacing it with the number 3,665,975. 
 2. Section 4(b) of the Plan is hereby amended by
deleting the number 533,195 in the first sentence thereof and replacing it with the number 3,665,975. 
 3. All outstanding
option grants and stock grants under the Plan shall be automatically amended, in accordance with the Plan and each applicable grant agreement, to reflect the Split. 
 4. This Amendment shall be effective as of the date hereof, subject to approval of the Company’s stockholders. 
 5. This Amendment shall be and hereby is incorporated in and forms a part of the Plan. 
 6. Except as set forth herein, the Plan shall remain in full force and effect. 
 BY ORDER OF THE BOARD OF DIRECTORS

  

			
		 	 /s/ Zorik Gordon

		 	Zorik Gordon
		 	Chairman of the Board of Directors

 THIRD AMENDMENT TO 
 REACHLOCAL, INC. 
 2004 STOCK PLAN 
 This THIRD AMENDMENT (this “Amendment”) is made and adopted as of September 17, 2007 by the Board of Directors (the
“Board”) of ReachLocal, Inc. (the “Company”). Reference is made to that certain Reach Local Inc. 2004 Stock Plan, dated as of April 21, 2004 (as amended, restated or otherwise modified, the
“Plan”), as amended by that certain First Amendment, dated as of April 7, 2005 and as further amended by that certain Second Amendment, dated as of July 31, 2006. Capitalized terms used but not otherwise defined herein
shall have the respective meanings ascribed to them in the Plan. 
 WHEREAS, the Company maintains the Plan; 
 WHEREAS, the Company desires to amend the Plan to (i) amend the eligibility requirements under the Plan; and (ii) increase the
number of shares of Common Stock of the Company subject thereto; and 
 WHEREAS, pursuant to Section 11(b) of the Plan, the
Plan may be amended by the Board from time to time. 
 NOW, THEREFORE, BE IT RESOLVED, that the Plan be amended as follows:

  

	 	1.	Section 3(a) of the Plan is hereby amended by deleting such section in its entirety and replacing it with the following: 

 “General Rule. Only Employees, Outside Directors and Consultants shall be eligible for the grant of Options or the direct award
or sale of Shares, provided, however, that, effective as of June 1, 2007, in the state of Louisiana, only Employees shall be eligible for the grant of Options or the direct award or sale of Shares. Only Employees shall be eligible for the grant
of ISOs.” 
  

	 	2.	Section 4(a) of the Plan is hereby amended by deleting the number 3,665,975 in the first sentence thereof and replacing it with the number 4,415,975.

  

	 	3.	Section 4(b) of the Plan is hereby amended by deleting the number 3,665,975 in the second sentence thereof and replacing it with the number 4,415,975.

  

	 	4.	This Amendment shall be effective as of the date hereof, subject to approval of the Company’s stockholders. 

  

	 	5.	This Amendment shall be and hereby is incorporated in and forms a part of the Plan. 

  

	 	6.	Except as set forth herein, the Plan shall remain in full force and effect. 

 [Remainder of Page Left Blank] 

 BY ORDER OF THE BOARD OF DIRECTORS 
  

	
	 /s/ Zorik Gordon

	Zorik Gordon
	Chairman of the Board of Directors

 THIRD AMENDMENT TO STOCK OPTION PLANForm of Option Agreement (Regulation D Early Exercise)

 Exhibit 10.06 
 REG D EARLY EXERCISE AGREEMENT 
 REACHLOCAL, INC.

 2008 STOCK INCENTIVE PLAN 
 STOCK OPTION GRANT NOTICE AND 
 STOCK OPTION AGREEMENT 
 Early Exercise Permitted 
 ReachLocal, Inc., a Delaware corporation (the “Company”), pursuant to its 2008 Stock Incentive Plan (the “Plan”), hereby grants to the individual listed
below (the “Optionee”), an option to purchase the number of shares of the common stock of the Company, par value $.01 per share (“Common Stock”), set forth below (the “Option”).
This Option is subject to all of the terms and conditions set forth herein and in the Stock Option Agreement attached hereto as Exhibit A (the “Stock Option Agreement”) and the Plan, which are incorporated herein by
reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Grant Notice and the Stock Option Agreement. 
  

					
	Optionee:	  	  
	  	
			
	Grant Date:	  	  
	  	
			
	Vesting Commencement Date:	  	  
	  	
			
	Exercise Price per Share:	  	 $
	  	
			
	Total Exercise Price:	  	 $
	  	
			
	Total Number of Shares Subject to the Option:	  	 shares
	  	
			
	Expiration Date:	  	  
	  	

  

			
	Type of Option:	  	Non-Qualified Stock Option
		
	Exercise Schedule:	  	 ̈    Same as Vesting Schedule        ̈    Early Exercise Permitted
		
	Vesting Schedule:	  	This Option is exercisable immediately, in whole or in part, at such times as are established by the Administrator, conditioned upon Optionee entering into a Restricted Stock
Purchase Agreement with respect to any unvested shares of Common Stock. The shares of Common Stock subject to this Option shall vest and/or be released from the Company’s Repurchase Option, as set forth in the Restricted Stock Purchase
Agreement attached hereto as Exhibit C-1, according to the following schedule:
		
		  	Subject to the Optionee’s continued status as an Employee, Consultant or Non-Employee Director, the Option shall vest and become exercisable with respect to
[    ] shares of Common Stock as of the Grant Date, and with respect to an additional 1/36th
 of the shares of Common Stock subject to the Option on each monthly anniversary of the Vesting Commencement Date occurring after the Grant Date.

 By his or her signature, the Optionee agrees to be bound by the terms and conditions
of the Plan, the Stock Option Agreement and this Grant Notice. The Optionee has reviewed the Stock Option Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of

 
counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Stock Option Agreement and the Plan. The Optionee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or relating to the Option. 
  

									
	REACHLOCAL, INC.	 		 	OPTIONEE
					
	By:	 	  
	 		 	By:	 	  

	Print Name:	 	  
	 		 	Print Name:	 	  

	Title:	 	  
	 		 		 	
	Address:	 	  
	 		 	Address:	 	  

		 		 		 		 	  

  

 EXHIBIT A 
 TO STOCK OPTION GRANT NOTICE 
 STOCK OPTION
AGREEMENT 
 Pursuant to the Stock Option Grant Notice (the “Grant Notice”) to which this Stock
Option Agreement (this “Agreement”) is attached, ReachLocal, Inc., a Delaware corporation (the “Company”), has granted to the Optionee an option under the Company’s 2008 Stock Incentive Plan (the
“Plan”) to purchase the number of shares of Common Stock indicated in the Grant Notice. 
 ARTICLE I.

 GENERAL 
 1.1 Defined Terms. Wherever the following terms are used in this Agreement they shall have the meanings specified below, unless the context clearly indicates otherwise. Capitalized terms not
specifically defined herein shall have the meanings specified in the Plan and the Grant Notice. 
 (a)
“Cause” shall be deemed to exist if the Optionee is terminated by the Company for any of the following reasons: (i) the Optionee’s willful failure to substantially perform the Optionee’s duties and
responsibilities to the Company, (ii) the Optionee’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has caused material injury to the Company, (iii) unauthorized use or disclosure by the
Optionee of any proprietary information or trade secrets of the Company or any other party to which the Optionee owes an obligation of nondisclosure as a result of the Optionee’s relationship with the Company, (iv) the Optionee’s
willful material breach of any of the Optionee’s obligations under any written agreement or covenant with the Company, or (v) conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United
States or any state thereof, to the material detriment of the Company. 
 (b) “Termination of
Consultancy” shall mean the time when the engagement of the Optionee as a Consultant to the Company or a Subsidiary is terminated for any reason, with or without cause, including, but not by way of limitation, by resignation, discharge,
death or retirement, but excluding: (a) terminations where there is a simultaneous employment or continuing employment of the Optionee by the Company or any Subsidiary, and (b) terminations where there is a simultaneous re-establishment of
a consulting relationship or continuing consulting relationship between the Optionee and the Company or any Subsidiary. The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of
Consultancy, including, but not by way of limitation, the question of whether a particular leave of absence constitutes a Termination of Consultancy. Notwithstanding any other provision of the Plan, the Company or any Subsidiary has an absolute and
unrestricted right to terminate a Consultant’s service at any time for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in writing. 
 (c) “Termination of Directorship” shall mean the time when the Optionee, if he or she is or becomes a Non-Employee
Director, ceases to be a Director for any reason, including, but not by way of limitation, a termination by resignation, failure to be elected, death or retirement. The Board, in its sole and absolute discretion, shall determine the effect of all
matters and questions relating to Termination of Directorship with respect to Non-Employee Directors. 
 (d)
“Termination of Employment” shall mean the time when the employee-employer relationship between the Optionee and the Company or any Subsidiary is terminated for any

  

 A-1 

 
reason, with or without cause, including, but not by way of limitation, a termination by resignation, discharge, death, disability or retirement; but excluding: (a) terminations where there
is a simultaneous reemployment or continuing employment of the Optionee by the Company or any Subsidiary, and (b) terminations where there is a simultaneous establishment of a consulting relationship or continuing consulting relationship
between the Optionee and the Company or any Subsidiary. The Administrator, in its absolute discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the
question of whether a particular leave of absence constitutes a Termination of Employment. 
 (e) “Termination of
Service” shall mean the Optionee’s Termination of Consultancy, Termination of Directorship or Termination of Employment, as applicable. 
 1.2 Incorporation of Terms of Plan. The Option is subject to the terms and conditions of the Plan which are incorporated herein by reference. In the event of any inconsistency between the Plan and
this Agreement, the terms of the Plan shall control. 
 ARTICLE II. 
 GRANT OF OPTION 
 2.1 Grant of Option. In consideration of the Optionee’s past and/or continued employment with or service to the Company or a Subsidiary and for other good and valuable consideration, effective as of the Grant Date set forth in
the Grant Notice (the “Grant Date”), the Company irrevocably grants to the Optionee the Option to purchase any part or all of an aggregate of the number of shares of Common Stock set forth in the Grant Notice, upon the terms
and conditions set forth in the Plan and this Agreement. 
 2.2 Exercise Price. The exercise price of the shares of Common
Stock subject to the Option shall be as set forth in the Grant Notice, without commission or other charge; provided, however, that the price per share of the shares of Common Stock subject to the Option shall not be less than 100% of
the Fair Market Value of a share of Common Stock on the Grant Date. 
 2.3 Consideration to the Company. In consideration
of the grant of the Option by the Company, the Optionee agrees to render faithful and efficient services to the Company or any Subsidiary. Nothing in the Plan or this Agreement shall confer upon the Optionee any right to continue in the employ or
service of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of the Optionee at any time
for any reason whatsoever, with or without cause, except to the extent expressly provided otherwise in a written agreement between the Company or a Subsidiary and the Optionee. 
 ARTICLE III. 
 PERIOD OF EXERCISABILITY

 3.1 Commencement of Exercisability. 
 (a) Subject to Sections 3.2, 3.3, 5.13 and 5.16, the Option shall become vested and exercisable in such amounts and at such times as are set forth in the Vesting Schedule in the Grant Notice.
Alternatively, at the election of the Optionee, and as provided herein, this Option may be exercised in

  

 A-2 

 
whole or in part at such times as are established by the Administrator as to shares of Common Stock which have not yet vested. Vested shares of Common Stock shall be subject to the Company’s
Call Right (as set forth in Section 5.4 hereof) but shall not be subject to the Company’s Repurchase Option (as set forth in the Restricted Stock Purchase Agreement). As a condition to exercising this Option for unvested shares of Common
Stock, the Optionee shall execute the Restricted Stock Purchase Agreement. 
 (b) Notwithstanding Section 3.1(a), in the
event of a Change in Control, the Option shall, to the extent not then vested and not previously expired or terminated, become fully vested and exercisable immediately prior to the occurrence of the Change in Control. 
 (c) No portion of the Option which has not become vested at the date of the Optionee’s Termination of Employment, Termination of
Directorship or Termination of Consultancy shall thereafter become vested, except as may be otherwise provided by the Administrator or as set forth in a written agreement between the Company and the Optionee. 
 3.2 Duration of Exercisability. The installments provided for in the vesting schedule set forth in the Grant Notice are cumulative.
Each such installment which becomes vested and exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and exercisable until it becomes unexercisable under Section 3.3. 
 3.3 Expiration of Option. The Option may not be exercised to any extent by anyone after the first to occur of the following events:

 (a) The expiration of seven years from the Grant Date; 
 (b) The expiration of three months from the date of the Optionee’s Termination of Service, unless such termination occurs by reason of
the Optionee’s death or Disability or by the Company for Cause; 
 (c) The expiration of one year from the date of the
Optionee’s Termination of Service by reason of the Optionee’s death or Disability; or 
 (d) The date of the
Optionee’s Termination of Service by the Company for Cause. 
 ARTICLE IV. 
 EXERCISE OF OPTION 
 4.1 Person Eligible to Exercise. Except as provided in Sections 5.2(b) and 5.2(c), during the lifetime of the Optionee, only the Optionee may exercise the Option or any portion thereof. After the death of the Optionee, any
exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 3.3, be exercised by the Optionee’s personal representative or by any person empowered to do so under the deceased the
Optionee’s will or under the then applicable laws of descent and distribution. 
 4.2 Partial Exercise. Any
exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3. 
  

 A-3 

 4.3 Manner of Exercise. The Option, or any exercisable portion thereof, may be
exercised solely by delivery to the Secretary of the Company (or any third party administrator or other person or entity designated by the Company) of all of the following prior to the time when the Option or such portion thereof becomes
unexercisable under Section 3.3: 
 (a) An exercise notice in a form specified by the Administrator, stating that the
Option or portion thereof is thereby exercised, such notice complying with all applicable rules established by the Administrator; 
 (b) An executed copy of the Restricted Stock Purchase Agreement, if applicable; 
 (c) The receipt by the Company of
full payment for the shares of Common Stock with respect to which the Option or portion thereof is exercised, including payment of any applicable withholding tax, which may be in one or more of the forms of consideration permitted under
Section 4.4; 
 (d) Any other written representations or documents as may be required in the Administrator’s
reasonable discretion to evidence compliance with the Securities Act or any other applicable law rule, or regulation; and 
 (e)
In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise the Option. 
 Notwithstanding any of the foregoing, the Company shall have the right to specify all conditions of the manner of exercise, which conditions may vary by
country and which may be subject to change from time to time. 
 4.4 Method of Payment. Payment of the exercise price
shall be by any of the following, or a combination thereof, at the election of the Optionee: 
 (a) Cash; 
 (b) Check; 
 (c)
With the consent of the Administrator, delivery of a notice that the Optionee has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has been directed to pay
a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate exercise price; provided, that payment of such proceeds is then made to the Company upon settlement of such sale; 
 (d) With the consent of the Administrator, surrender of other shares of Common Stock which have been owned by the Optionee for such period
of time as may be required by the Administrator in order to avoid adverse accounting consequences and having a Fair Market Value on the date of surrender equal to the aggregate exercise price of the shares of Common Stock with respect to which the
Option or portion thereof is being exercised; 
 (e) With the consent of the Administrator, surrendered shares of Common Stock
issuable upon the exercise of the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the shares of Common Stock with respect to which the Option or portion thereof is being exercised; or 
 (f) With the consent of the Administrator, such other form of legal consideration as may be acceptable to the Administrator. 
  

 A-4 

 4.5 Conditions to Issuance of Stock Certificates. The shares of Common Stock
deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued shares of Common Stock or issued shares of Common Stock which have then been reacquired by the Company. Such shares of Common Stock
shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any certificates or make any book entries evidencing shares of Common Stock purchased upon the exercise of the Option or portion thereof prior to
fulfillment of the conditions set forth in Section 11.4 of the Plan. 
 4.6 Rights as Stockholder. The holder of the
Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares of Common Stock purchasable upon the exercise of any part of the Option unless and until such shares of Common Stock shall have
been issued by the Company to such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment will be made for a dividend or other right for which the record date
is prior to the date the shares of Common Stock are issued, except as provided in Section 13.2 of the Plan. 
 ARTICLE V.

 OTHER PROVISIONS 
 5.1 Administration. The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Optionee, the Company and all other
interested persons. No member of the Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the Option. 
 5.2 Transferability of Option. 
 (a) Except as otherwise set forth in the Plan or as provided in Sections 5.2(b) and 5.2(c) below: 
 (i) The Option may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the Administrator, pursuant to a
DRO, unless and until the Option has been exercised, or the shares underlying the Option have been issued, and all restrictions applicable to such shares have lapsed; 
 (ii) The Option shall not be liable for the debts, contracts or engagements of the Optionee or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge,
hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and
any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence; and 
 (iii) During the lifetime of the Optionee, only the Optionee may exercise the Option (or any portion thereof), unless it has been disposed of pursuant to a DRO; after the death of the Optionee, any
exercisable portion of the Option may, prior to the time when such portion becomes unexercisable under the Plan or this Agreement, be exercised by his personal representative or by any person empowered to do so under the deceased Optionee’s
will or under the then applicable laws of descent and distribution. 
  

 A-5 

 (b) The Optionee may transfer the Option to a trust that constitutes a Permitted Transferee
(as defined in the Plan) if, under Section 671 of the Code and applicable state law, the Optionee is considered the sole beneficial owner of the Option while it is held in the trust. 
 (c) Notwithstanding any other provision in this Agreement, the Optionee may, in the manner determined by the Administrator, designate a
beneficiary to exercise the rights of the Optionee and to receive any distribution with respect to the Option upon the Optionee’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the
Plan is subject to all terms and conditions of the Plan and this Agreement, except to the extent the Plan and this Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Administrator. If the Optionee
is married and resides in a community property state, a designation of a person other than the Optionee’s spouse as his or her beneficiary with respect to more than 50% of the Optionee’s interest in the Option shall not be effective
without the prior written consent of the Optionee’s spouse. If no beneficiary has been designated or survives the Optionee, payment shall be made to the person entitled thereto pursuant to the Optionee’s will or the laws of descent and
distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by the Optionee at any time provided the change or revocation is filed with the Administrator prior to the Optionee’s death. 
 5.3 Company’s Right of First Refusal. Before any shares of Common Stock acquired upon exercise of the Option and held by the
Optionee or any Permitted Transferee (each, a “Holder”) may be sold, pledged, assigned, hypothecated, transferred, or otherwise disposed of (including transfer by gift or operation of law and, collectively,
“Transfer” or “Transferred”), the Company or its assignee(s) shall have a right of first refusal to purchase the shares of Common Stock on the terms and conditions set forth in this Section 5.3
(the “Right of First Refusal”). 
 (a) Notice of Proposed Transfer. The Holder of the shares of
Common Stock shall deliver to the Company a written notice (the “Notice”) stating: (A) the Holder’s bona fide intention to sell or otherwise Transfer such shares of Common Stock; (B) the name of each proposed
purchaser or other transferee (“Proposed Transferee”); (C) the number of shares of Common Stock to be Transferred to each Proposed Transferee; and (D) the bona fide cash price or other consideration for which the
Holder proposes to Transfer the shares of Common Stock (the “Offered Price”), and the Holder shall offer the shares of Common Stock at the Offered Price to the Company or its assignee(s). 
 (b) Exercise of Right of First Refusal. Within thirty (30) days after receipt of the Notice, the Company and/or its assignee(s)
may elect in writing to purchase all, but not less than all, of the shares of Common Stock proposed to be Transferred to any one or more of the Proposed Transferees. The purchase price will be determined in accordance with Section 5.3(c).

 (c) Purchase Price. The purchase price (the “Purchase Price”) for the shares of Common Stock
repurchased under this Section 5.3 shall be the Offered Price. If the Offered Price includes consideration other than cash, the cash equivalent value of the non-cash consideration shall be determined by the Administrator in good faith.

 (d) Payment. Payment of the Purchase Price shall be made, at the option of the Company or its assignee(s), in cash (by
check), by cancellation of all or a portion of any outstanding indebtedness of the Holder to the Company (or, in the case of repurchase by an assignee, to the assignee), or by any combination thereof within thirty (30) days after receipt of the
Notice or in the manner and at the times set forth in the Notice. 
  

 A-6 

 (e) Holder’s Right to Transfer. If the shares of Common Stock proposed in the
Notice to be transferred to a given Proposed Transferee are not purchased by the Company and/or its assignee(s) as provided in this Section 5.3, then the Holder may sell or otherwise Transfer such shares of Common Stock to that Proposed
Transferee at the Offered Price or at a higher price, provided that such sale or other Transfer is consummated within one hundred twenty (120) days after the date of the Notice and provided further that any such sale or other Transfer is
effected in accordance with any applicable securities laws and the Proposed Transferee agrees in writing that the provisions of this Section 5.3 and the Restricted Stock Purchase Agreement, if applicable, shall continue to apply to the shares
of Common Stock in the hands of such Proposed Transferee. If the shares of Common Stock described in the Notice are not Transferred to the Proposed Transferee within such period, a new Notice shall be given to the Company, and the Company and/or its
assignees shall again be offered the Right of First Refusal as provided herein before any shares of Common Stock held by the Holder may be sold or otherwise Transferred. 
 (f) Exception for Certain Family Transfers and Fund-Related Transfers. Anything to the contrary contained in this Section 5.3 notwithstanding, the Transfer of any or all of the shares
of Common Stock during the Optionee’s lifetime or upon the Optionee’s death by will or intestacy to (i) the Optionee’s Immediate Family or any Fund-Related Person, or (ii) a trust for the benefit of the Optionee’s
Immediate Family or any Fund-Related Person, shall be exempt from the Right of First Refusal. As used herein, “Immediate Family” shall mean spouse, lineal descendant or antecedent, father, mother, brother or sister or
stepchild (whether or not adopted), and “Fund-Related Person” shall mean (a) any venture capital, private equity or other similar investment fund for which has designated Optionee as its Board representative (the
“designating fund”), (b) any venture capital, private equity or other similar investment fund affiliated with the designating fund and (c) the limited partners, general partners, and limited liability company members of any of
the foregoing entities. In such case, the transferee or other recipient shall receive and hold the shares so Transferred subject to the provisions of this Section 5.3 (including the Right of First Refusal) and there shall be no further Transfer
of such shares except in accordance with the terms of this Section 5.3. 
 (g) Termination of Right of First
Refusal. The Right of First Refusal shall terminate as to all shares of Common Stock upon the Public Trading Date. 
 5.4
Company Call Right. 
 (a) In the event of the Optionee’s Termination of Service for any reason, the Company shall
have the right to purchase from the Optionee, or the Optionee’s personal representative, as the case may be, any or all of the vested shares of Common Stock (“Vested Shares”) acquired upon exercise of the Option which
are then owned by the Optionee (and any or all Vested Shares acquired upon exercise of the Option after the date of the Optionee’s Termination of Service) at a per share price equal to the Fair Market Value of a share of Common Stock on the
date of such Termination of Service (the “Call Right”). 
 (b) The Company may exercise the Call Right
by delivering personally or by registered mail to the Optionee (or his transferee or legal representative, as the case may be), within ninety (90) days after the date of the Optionee’s Termination of Service, (or, in the case of Vested
Shares acquired upon exercise of the Option after the date of the Optionee’s Termination of Service, then within ninety (90) days after the date on which such Vested Shares are acquired), a notice in writing indicating the Company’s
intention to exercise the Call Right and setting forth a date for closing not later than thirty (30) days from the mailing of such notice. The closing shall take place at the Company’s office. At the closing, the holder of the certificates
for the Vested Shares being transferred shall deliver the stock certificate or certificates evidencing the shares, and the Company shall deliver the purchase price therefor. 
  

 A-7 

 (c) At its option, the Company may elect to make payment for the Vested Shares to a bank
selected by the Company. The Company shall avail itself of this option by a notice in writing to the Optionee stating the name and address of the bank, date of closing, and waiving the closing at the Company’s office. 
 (d) If the Company does not elect to exercise the Call Right conferred above by giving the requisite notice within the time provided in
Section 5.4(b) above, the Call Right shall terminate. 
 (e) The Call Right shall terminate as to all Vested Shares upon
the Public Trading Date. 
 5.5 Lock-Up Period. The Optionee hereby agrees that, if so requested by the Company or any
representative of the underwriters (the “Managing Underwriter”) in connection with any registration of the offering of any securities of the Company under the Securities Act or any applicable state laws, the Optionee shall
not sell or otherwise transfer any shares of Common Stock or other securities of the Company during the 180-day period (or such longer period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company)
following the effective date of a registration statement of the Company filed under the Securities Act in connection with the Company’s initial public offering of Common Stock (the “Market Standoff Period”). The Company
may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period and these restrictions shall be binding on any transferee of such shares of Common Stock.
Notwithstanding the foregoing, the 180-day period may be extended for up to such number of additional days as is deemed necessary by the Company or the Managing Underwriter to continue coverage by research analysts in accordance with NASD Rule 2711
or any successor rule. 
 5.6 Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as
a result of Optionee’s purchase or disposition of the shares of Common Stock subject to the Option. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition
of such shares and that Optionee is not relying on the Company for any tax advice. 
 5.7 Adjustments. The Optionee
acknowledges that the Option is subject to modification and termination in certain events as provided in this Agreement and Article 11 of the Plan. 
 5.8 Legends and Stop-Transfer Orders. 
 (a) Legends. The Optionee
understands and agrees that the Company shall cause the legends set forth below or legends substantially similar thereto, to be placed upon any certificate(s) evidencing ownership of the shares of Common Stock acquired upon exercise of the Option
together with any other legends that may be required by state or federal securities laws: 
 THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT AND SUCH
LAWS OR, IN THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH. 
  

 A-8 

 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
AND RIGHT OF FIRST REFUSAL AND REPURCHASE RIGHTS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL AND REPURCHASE RIGHTS ARE BINDING ON TRANSFEREES OF THESE SHARES. 
 (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions referred to herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records. 
 (c) Refusal to Transfer. The Company shall not be required (i) to transfer on its books any shares of Common Stock that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or
(ii) to treat as owner of such shares or to accord the right to vote or pay dividends to any purchaser or other transferee to whom such shares shall have been so transferred. 
 5.9 Notices. Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the
Secretary of the Company at the address given beneath the signature of the Company’s authorized officer on the Grant Notice, and any notice to be given to the Optionee shall be addressed to the Optionee at the address given beneath the
Optionee’s signature on the Grant Notice. By a notice given pursuant to this Section 5.9, either party may hereafter designate a different address for notices to be given to that party. Any notice which is required to be given to the
Optionee shall, if the Optionee is then deceased, be given to the person entitled to exercise his or her Option pursuant to Section 4.1 by written notice under this Section 5.9. Any notice shall be deemed duly given when sent via email or
when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service. 
 5.10 Optionee’s Representations. If the shares of Common Stock purchasable pursuant to the exercise of this Option have not been
registered under the Securities Act or any applicable state laws at the time this Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his or
her Investment Representation Statement in the form attached hereto as Exhibit B and shall make such other written representations as are deemed necessary or appropriate by the Company and/or its counsel. 
 5.11 Titles. Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of
this Agreement. 
 5.12 Governing Law; Severability. The laws of the State of Delaware shall govern the interpretation,
validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws. 
  

 A-9 

 5.13 Conformity to Securities Laws. The Optionee acknowledges that the Plan and this
Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state securities
laws and regulations. Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted
by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations. 
 5.14 Amendments, Suspension and Termination. To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or
from time to time by the Committee or the Board, provided, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely effect the Option in any material way
without the prior written consent of the Optionee. 
 5.15 Successors and Assigns. The Company may assign any of its
rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in Article 5, this Agreement shall be
binding upon the Optionee and his or her heirs, executors, administrators, successors and assigns. 
 5.16 Limitations
Applicable to Section 16 Persons. Notwithstanding any other provision of the Plan or this Agreement, if the Optionee is subject to Section 16 of the Exchange Act, the Plan, the Option and this Agreement shall be subject to any
additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule. To the extent
permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule. 
 5.17 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue to serve as an employee or other service provider of the Company or
any of its Subsidiaries. 
 5.18 Entire Agreement. The Plan, the Grant Notice and this Agreement (including all Exhibits
thereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Optionee with respect to the subject matter hereof. 
 5.19 Section 409A. Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement
and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the U.S. Internal Revenue Code of 1986, as amended (together with any Department of Treasury regulations and
other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”). The Administrator may, in its discretion, adopt
such amendments to the Plan, this Agreement or the Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary
or appropriate to comply with the requirements of Section 409A. 
  

 A-10 

 REG D EARLY EXERCISE AGREEMENT 
 EXHIBIT B 
 INVESTMENT REPRESENTATION
STATEMENT 
  

							
	OPTIONEE	 	:	  	[NAME]	  	
				
	COMPANY	 	:	  	REACHLOCAL, INC.	  	
				
	SECURITY	 	:	  	COMMON STOCK	  	
				
	AMOUNT	 	:	  	  
	  	
				
	DATE	 	:	  	  
	  	

 In connection with the purchase of the above-listed shares of Common Stock (the
“Securities”) of ReachLocal, Inc. (the “Company”), the undersigned (the “Optionee”) represents to the Company the following: 
 (a) Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the
Company to reach an informed and knowledgeable decision to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any
“distribution” thereof within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). Optionee does not presently have any contract, undertaking, agreement or arrangement with any person to sell,
transfer or grant participations to such person or to any third person, with respect to any of the Securities. 
 (b) Optionee
acknowledges and understands that the Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act or qualified under the California Corporate Securities Law of 1968, as
amended (the “California Securities Law”), in each case, in reliance upon specific exemptions therefrom, which exemptions depend upon, among other things, the bona fide nature of Optionee’s investment intent as expressed
herein. Optionee understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act and qualification under the California Securities Law, or an exemption from such registration and
qualification is available. Optionee further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee understands that the certificate evidencing the Securities will be imprinted with a legend which
prohibits the transfer of the Securities unless they are registered and qualified, or such registration and qualification is not required in the opinion of counsel satisfactory to the Company. Optionee acknowledges and understands that the
California Commissioner of Corporations has made no finding or determination relating to the fairness for investment of the Securities offered by the Company and that the Commissioner has not and will not recommend or endorse the Securities.
Optionee is familiar with the provisions of Rule 144 promulgated under the Securities Act, which, in substance, permits limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a
non-public offering subject to the satisfaction of certain conditions. 
 (c) The Securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which requires (i) the resale to occur not less than six months, or, in the event the

  

 B-1 

 
Company is not subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, not less than one year, after the later of the date the Securities were sold by the Company
or the date the Securities were sold by an affiliate of the Company, (ii) in the case of resales by persons who are not affiliates of the Company (within the meaning of Rule 144), the satisfaction of the conditions set forth in section
(2) of clause (iii) of this subsection (c), and (iii) in the case of resales by affiliates of the Company, the satisfaction of the following conditions: (1) the resale being made through a broker in an unsolicited
“broker’s transaction” or in transactions directly with a market maker (as said term is defined under the Securities Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of certain public information
about the Company, (3) the amount of Securities being sold during any three (3) month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable. Optionee acknowledges
that a copy of Rule 144 will be delivered to Optionee upon request. 
 (d) Optionee further understands that in the event all of
the applicable requirements of Rule 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 is not exclusive,
the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 will have a substantial burden of
proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk. Optionee understands that no assurances
can be given that any such other registration exemption will be available in such event. 
 (e) Optionee is an “accredited
investor” within the meaning of the rules promulgated under the Securities Act of 1933, as amended. In addition, Optionee either (i) has a preexisting personal or business relationship with the Company or its principals or (ii) has
substantial knowledge and experience in financial and business matters, has specific experience making investment decisions of a similar nature, and is capable, without the use of a financial advisor, of utilizing and analyzing the information made
available in connection with the acquisition of the Securities and of evaluating the merits and risks of an investment in the Securities and protecting the Optionee’s own interests in connection with this transaction. 
 (f) Optionee has carefully reviewed and understands the risks of, and other considerations relating to, an investment in the Securities.

 (g) Optionee is able to bear the economic risk of such Optionee’s investment in the Securities for an indefinite period
of time because the Securities have not been registered under the Securities Act and, therefore, cannot be sold unless subsequently registered under the Securities Act or an exemption from such registration is available and are subject to additional
restrictions as provided herein. 
 (h) Optionee has had an opportunity to discuss the Company’s business, management,
financial affairs and the terms and conditions of the offering of the Securities with the Company’s management. 
 (i)
Optionee has not seen or received any advertisement or general solicitation with respect to the sale of the Securities. 
 (j)
Optionee understands that no public market now exists for any of the securities issued by the Company and that the Company has made no assurances that a public market will ever exist for the Securities. 
  

 B-2 

 (k) Optionee is a resident and domiciliary of the state or other jurisdiction hereinafter
set forth opposite the Optionee’s signature. 
 (l) Optionee understands and acknowledges that the Company will rely upon
the accuracy and truth of the foregoing representations and Optionee hereby consents to such reliance. 
 [Remainder of Page Left
Blank] 
  

 B-3 

 IN WITNESS WHEREOF, the undersigned Optionee has executed this Investment Representation
Statement as of             ,             . 
  

					
	 By:
	 	  

		 	 Name:
	 	
			
		 	 Address:
	 	  

		 		 	  

		 		 	  

  

 B-4 

 REG D EARLY EXERCISE AGREEMENT 
 EXHIBIT C-1 
 REACHLOCAL, INC.

 2008 STOCK INCENTIVE PLAN 
 RESTRICTED STOCK PURCHASE AGREEMENT 
 THIS RESTRICTED STOCK PURCHASE
AGREEMENT (this “Agreement”) is made between                      (the “Purchaser”) and ReachLocal,
Inc. (the “Company”), as of                     ,             .

 RECITALS 
 (1) Unless otherwise defined herein, the terms defined in the Plan and the Option Agreement shall have the same defined meanings in this Agreement. Pursuant to the exercise of the Option granted to
Purchaser under the Company’s 2008 Stock Incentive Plan (the “Plan”) and pursuant to the Stock Option Grant Notice and Stock Option Agreement (the “Option Agreement”) dated
            , by and between the Company and Purchaser with respect to such grant, which Option Agreement is hereby incorporated by reference, Purchaser has elected to purchase
             of those shares which have not become vested under the Vesting Schedule set forth in the Grant Notice (“Unvested Shares”). The Unvested Shares and the
shares subject to the Option Agreement which have become vested are sometimes collectively referred to herein as the “Shares.” 
 (2) As required by the Option Agreement, as a condition to Purchaser’s election to exercise the Option, Purchaser must execute this Agreement, which sets forth the rights and obligations of the
parties with respect to Unvested Shares acquired upon exercise of the Option. 
 AGREEMENT 
 1. Repurchase Option. 
 (a) In the event of Purchaser’s Termination of Service for any reason, including for Cause, death and Disability, the Company or its assignee shall have the right and option to purchase from
Purchaser, or Purchaser’s personal representative, as the case may be, any or all of Purchaser’s Unvested Shares as of the date of Purchaser’s Termination of Service at a per share price equal to the per share exercise price paid by
Purchaser for such Shares in connection with the exercise of the Option (the “Repurchase Option”). 
 (b) The Company may exercise its Repurchase Option by delivering, personally or by registered mail, to Purchaser (or his or her transferee or legal representative, as the case may be), within ninety (90) days of the date of
Purchaser’s Termination of Service, a notice in writing indicating the Company’s intention to exercise the Repurchase Option and setting forth a date for closing not later than thirty (30) days from the mailing of such notice. The
closing shall take place at the Company’s office. At the closing, the holder of the certificates for the Unvested Shares being transferred shall deliver the stock certificate or certificates evidencing the Unvested Shares, and the Company shall
deliver the purchase price therefor. 
  

 C-1 

 (c) At its option, the Company may elect to make payment for the Unvested Shares to a bank
selected by the Company. The Company shall avail itself of this option by a notice in writing to Purchaser stating the name and address of the bank, date of closing, and waiving the closing at the Company’s office. 
 (d) If the Company does not elect to exercise the Repurchase Option conferred above by giving the requisite notice within ninety
(90) days following the date of Purchaser’s Termination of Service, the Repurchase Option shall terminate. 
 (e) One
hundred percent (100%) of the Unvested Shares shall initially be subject to the Repurchase Option. The Unvested Shares shall be released from the Repurchase Option in accordance with the Vesting Schedule set forth in the Grant Notice until all
Unvested Shares are released from the Repurchase Option. Fractional Unvested Shares shall be rounded to the nearest whole share. 
 2. Transferability of the Shares; Escrow. 
 (a) Purchaser hereby authorizes and directs the Secretary of the
Company, or such other person designated by the Company from time to time, to transfer the Unvested Shares as to which the Repurchase Option has been exercised from Purchaser to the Company. 
 (b) To insure the availability for delivery of Purchaser’s Unvested Shares upon repurchase by the Company pursuant to the Repurchase
Option under Section 1 hereof, Purchaser hereby appoints the Secretary of the Company, or any other person designated by the Company from time to time as escrow agent, as its attorney-in-fact to sell, assign and transfer unto the Company, such
Unvested Shares, if any, repurchased by the Company pursuant to the Repurchase Option and shall, upon execution of this Agreement, deliver and deposit with the Secretary of the Company, or such other person designated by the Company from time to
time, the share certificate(s) representing the Unvested Shares, together with the stock assignment duly endorsed in blank, attached hereto as Exhibit C-2. The Unvested Shares and stock assignment shall be held by the Secretary of the
Company, or such other person designated by the Company from time to time, in escrow, pursuant to the Joint Escrow Instructions of the Company and Purchaser attached as Exhibit C-3 hereto, until the Company exercises its Repurchase
Option as provided in Section 1, until such Unvested Shares are vested, or until such time as this Agreement no longer is in effect. As a further condition to the Company’s obligations under this Agreement, the spouse of Purchaser, if any,
shall execute and deliver to the Company the Consent of Spouse attached hereto as Exhibit C-4. Upon vesting of the Unvested Shares, the escrow agent shall promptly deliver to Purchaser the certificate or certificates representing such Shares
in the escrow agent’s possession belonging to Purchaser, and the escrow agent shall be discharged of all further obligations hereunder; provided, however, that the escrow agent shall nevertheless retain such certificate or certificates
as escrow agent if so required pursuant to other restrictions imposed pursuant to this Agreement. 
 (c) The Company, or its
designee, shall not be liable for any act it may do or omit to do with respect to holding the Shares in escrow and while acting in good faith and in the exercise of its judgment. 
 (d) Transfer or sale of the Shares is subject to restrictions on transfer imposed by any applicable state and federal securities laws. Any
transferee shall hold such Shares subject to all of the

  

 C-2 

 
provisions hereof and the exercise notice executed by Purchaser with respect to any Unvested Shares purchased by Purchaser and shall acknowledge the same by signing a copy of this Agreement. Any
transfer or attempted transfer of any of the Shares not in accordance with the terms of this Agreement shall be void and the Company may enforce the terms of this Agreement by stop transfer instructions or similar actions by the Company and its
agents or designees. 
 3. Ownership, Voting Rights, Duties. This Agreement shall not affect in any way the ownership,
voting rights or other rights or duties of Purchaser, except as specifically provided herein. 
 4. Adjustment for Stock
Split. All references to the number of Shares and the purchase price of the Shares in this Agreement shall be subject to adjustment in accordance with Article 11 of the Plan upon the occurrence of certain events which may occur after the date of
this Agreement. 
 5. Notices. Notices required hereunder shall be given in person or by registered mail to the address
of Purchaser shown on the records of the Company, and to the Company at its principal executive office. 
 6. Survival of
Terms. This Agreement shall apply to and bind Purchaser and the Company and their respective permitted assignees and transferees, heirs, legatees, executors, administrators and legal successors. 
 7. Section 83(b) Election for Unvested Shares Purchased Pursuant to a Non-Qualified Stock Option. Purchaser hereby acknowledges
that he or she has been informed that, with respect to the exercise of a Non-Qualified Stock Option for Unvested Shares, that unless an election is filed by Purchaser with the Internal Revenue Service and, if necessary, the proper state taxing
authorities, within thirty (30) days of the purchase of the Shares, electing pursuant to Section 83(b) of the Code (and similar state tax provisions if applicable) to be taxed currently on any difference between the purchase price
of the Shares and their fair market value on the date of purchase, there will generally be a recognition of taxable income to the Purchaser, measured by the excess, if any, of the fair market value of the Shares, at the time the Company’s
Repurchase Option lapses over the purchase price for the Shares. Purchaser represents that Purchaser has consulted any tax consultant(s) Purchaser deems advisable in connection with the purchase of the Shares or the filing of an election under
Section 83(b) and similar tax provisions. 
 PURCHASER ACKNOWLEDGES THAT IT IS PURCHASER’S SOLE RESPONSIBILITY AND
NOT THE COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF PURCHASER REQUESTS THAT THE COMPANY OR ITS REPRESENTATIVE MAKE THIS FILING ON PURCHASER’S BEHALF. 
 8. Representations. Purchaser has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences of
this investment and the transactions contemplated by this Agreement. Purchaser is relying solely on such advisors and not on any statements or representations of the Company or any of its agents. Purchaser understands that Purchaser (and not the
Company) shall be responsible for his or her own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement. 
 9. Governing Law; Severability. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware excluding that body of law pertaining to conflicts of law.
Should any provision of this Agreement be determined by a court of law to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 
 (Signature Page Follows) 
  

 C-3 

 Purchaser represents that he or she has read this Agreement and is familiar with its terms
and provisions. Purchaser hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board or other administrator of the Plan upon any questions arising under this Agreement. 
 IN WITNESS WHEREOF, this Agreement is deemed made as of the date first set forth above. 
  

					
	REACHLOCAL, INC.
		
	By:	 	  

			
		 	Name:	 	  

			
		 	Title:	 	  

  

			
	PURCHASER
		
	By:	 	  

		
	Name:	 	  

	
	Address:
	
	  

	
	  

  

 C-4 

 REG D EARLY EXERCISE AGREEMENT 
 EXHIBIT C-2 
 ASSIGNMENT SEPARATE FROM
CERTIFICATE 
 FOR VALUE RECEIVED I,
                    , hereby sell, assign and transfer unto
                    , or its assignee, (            ) shares of the Common Stock
of ReachLocal, Inc. registered in my name on the books of said corporation represented by Certificate No.              herewith and do hereby irrevocably constitute and appoint
                                        
to transfer said stock on the books of the within named corporation with full power of substitution in the premises. 
 This
Assignment Separate from Certificate may be used only in accordance with the Restricted Stock Purchase Agreement between ReachLocal, Inc. and the undersigned dated             ,
            . 
 Dated:
                    ,              
  

			
	Signature:	 	  

 INSTRUCTIONS: Please do not fill in any blanks other than the signature line. The
purpose of this assignment is to enable the Company to exercise the Repurchase Option, as set forth in the Restricted Stock Purchase Agreement, without requiring additional signatures on the part of Purchaser. 

 REG D EARLY EXERCISE AGREEMENT 
 EXHIBIT C-3 
 JOINT ESCROW INSTRUCTIONS 

                     ,              
 Secretary 
 ReachLocal, Inc. 
 [                    ] 
 [                    ] 
 Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Company’s 2008 Stock Incentive
Plan, and each of the Stock Option Agreement (the “Option Agreement”) and Restricted Stock Purchase Agreement (the “Restricted Stock Agreement”) between the Company and the undersigned to which these
Joint Escrow Instructions relate. As Escrow Agent for both ReachLocal, Inc. (the “Company”) and the undersigned purchaser of stock of the Company (the “Purchaser”), you are hereby authorized and
directed to hold the documents delivered to you pursuant to the terms of the Restricted Stock Agreement, in accordance with the following instructions: 
 1. In the event the Company or any entitled parties (referred to collectively for convenience herein as the “Company”) exercises the Company’s Repurchase Option set forth in
the Restricted Stock Agreement, the Company shall give to Purchaser and you a written notice specifying the number of shares of stock to be purchased, the purchase price, and the time for a closing hereunder at the principal office of the Company.
Purchaser and the Company hereby irrevocably authorize and direct you to close the transaction contemplated by such notice in accordance with the terms of said notice. 
 2. At the closing, you are directed (a) to date the stock assignments necessary for the transfer in question, (b) to fill in the number of shares of stock being transferred, and (c) to
deliver the same, together with the certificate evidencing the shares of stock to be transferred, to the Company or its assignee, against the simultaneous delivery to you of the purchase price (by cash, a check, or a combination thereof) for the
number of shares of stock being purchased pursuant to the exercise of the Company’s Repurchase Option. 
 3. Purchaser
irrevocably authorizes the Company to deposit with you any certificates evidencing shares of stock to be held by you hereunder and any additions and substitutions to said shares of stock as set forth in the Restricted Stock Agreement. Purchaser does
hereby irrevocably constitute and appoint you as Purchaser’s attorney-in-fact and agent for the term of this escrow to execute, with respect to such securities, all documents necessary or appropriate to make such securities negotiable and to
complete any transaction herein contemplated, including but not limited to the filing with any applicable state blue sky authority of any required applications for consent to, or notice of transfer of, the securities. Subject to the provisions of
this paragraph 3 and to the terms of the Option Agreement and the Restricted Stock Agreement, Purchaser shall exercise all rights and privileges of a stockholder of the Company while the stock is held by you. 
 4. Upon written request of Purchaser, but no more than once per calendar year, unless the Company’s Repurchase Option has been
exercised, you will deliver to Purchaser a certificate or certificates representing the number of shares of stock as are not then subject to the Company’s Repurchase Option. Within one hundred twenty (120) days after the date of
Purchaser’s Termination of Service, you will deliver

 
to Purchaser a certificate or certificates representing the aggregate number of shares of stock held or issued pursuant to the Restricted Stock Agreement and not purchased by the Company or any
other entitled parties pursuant to exercise of the Company’s Repurchase Option. 
 5. If at the time of termination of this
escrow you should have in your possession any documents, securities, or other property belonging to Purchaser, you shall deliver all of the same to Purchaser and shall be discharged of all further obligations hereunder. 
 6. Your duties hereunder may be altered, amended, modified or revoked only by a writing signed by all of the parties hereto. 
 7. You shall be obligated only for the performance of such duties as are specifically set forth herein and may rely and shall be protected
in relying or refraining from acting on any instrument reasonably believed by you to be genuine and to have been signed or presented by the proper party or parties. You shall not be personally liable for any act you may do or omit to do hereunder as
Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith, and any act done or omitted by you pursuant to the advice of your own attorneys shall be conclusive evidence of such good faith. 
 8. You are hereby expressly authorized to disregard any and all warnings given by any of the parties hereto or by any other person or
corporation, excepting only orders or process of courts of law and are hereby expressly authorized to comply with and obey orders, judgments or decrees of any court. In case you obey or comply with any such order, judgment or decree, you shall not
be liable to any of the parties hereto or to any other person, firm or corporation by reason of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed, modified, annulled, set aside, vacated or found to have
been entered without jurisdiction. 
 9. You shall not be liable in any respect on account of the identity, authorities or
rights of the parties executing or delivering or purporting to execute or deliver the Restricted Stock Agreement or any documents or papers deposited or called for hereunder. 
 10. You shall not be liable for the expiration of any rights under any applicable state, federal or local statute of limitations or similar
statute or regulation with respect to these Joint Escrow Instructions or any documents deposited with you. 
 11. You shall be
entitled to employ such legal counsel and other experts as you may deem necessary properly to advise you in connection with your obligations hereunder, may rely upon the advice of such counsel, and may pay such counsel reasonable compensation
therefor. 
 12. Your responsibilities as Escrow Agent hereunder shall terminate if you shall cease to be an officer or agent of
the Company or if you shall resign by written notice to each party. In the event of any such termination, the Company shall appoint a successor Escrow Agent. 
 13. If you reasonably require other or further instruments in connection with these Joint Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in furnishing such
instruments. 
 14. It is understood and agreed that should any dispute arise with respect to the delivery and/or ownership or
right of possession of the securities held by you hereunder, you are authorized and directed to

  

 2 

 
retain in your possession without liability to anyone all or any part of said securities until such disputes shall have been settled either by mutual written agreement of the parties concerned or
by a final order, decree or judgment of a court of competent jurisdiction after the time for appeal has expired and no appeal has been perfected, but you shall be under no duty whatsoever to institute or defend any such proceedings. 
 15. Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or
upon deposit in the United States Post Office, by registered or certified mail with postage and fees prepaid, addressed to each of the other parties thereunto entitled at such addresses as a party may designate by written notice to each of the other
parties hereto. 
 16. By signing these Joint Escrow Instructions, you become a party hereto only for the purpose of said Joint
Escrow Instructions; you do not become a party to the Option Agreement or the Restricted Stock Agreement. 
 17. This instrument
shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. 
 18. These Joint Escrow Instructions shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, excluding that body of law pertaining to conflicts of law. 
 (Signature Page Follows) 
  

 3 

 IN WITNESS WHEREOF, these Joint Escrow Instructions shall be effective as of the date first
set forth above. 
  

					
	REACHLOCAL, INC.
		
	By:	 	  

			
		 	Name:	 	  

			
		 	Title:	 	  

  

			
	PURCHASER
		
	By:	 	  

		
	Name:	 	  

	
	Address:
	
	  

	
	  

  

					
	ESCROW AGENT
		
	By:	 	  

			
		 	Name:	 	  

			
		 	Title:	 	  

  

 4 

 EXHIBIT C-4 
 CONSENT OF SPOUSE 
 I,
                                        , spouse
of                     , have read and approve the Restricted Stock Purchase Agreement dated
                    ,             , between my spouse and ReachLocal, Inc. In
consideration of granting of the right to my spouse to purchase shares of ReachLocal, Inc. set forth in the Restricted Stock Purchase Agreement, I hereby appoint my spouse as my attorney-in-fact in respect to the exercise of any rights under the
Restricted Stock Purchase Agreement and agree to be bound by the provisions of the Restricted Stock Purchase Agreement insofar as I may have any rights in said Restricted Stock Purchase Agreement or any shares issued pursuant thereto under the
community property laws or similar laws relating to marital property in effect in the state of our residence as of the date of the signing of the foregoing Restricted Stock Purchase Agreement. 
 Dated:                     ,
             
  

	
	  

	Signature of Spouse

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