Document:

exv10w4

Exhibit 10.4

DESCRIPTION OF DIRECTOR COMPENSATION PLAN

     On June 29, 2007, the Board of Directors adopted a non-employee director compensation program
under which each new non-employee director of the Company (those first appointed or elected to
serve on the Company’s Board after June 15, 2007) shall be granted on the date the individual
becomes a director 25,000 restricted shares of the Company’s Common Stock. In addition to the
initial grant received by a new Company director, each new director of the Company shall be granted
10,000 restricted shares of the Company’s Common Stock on the first anniversary of such director’s
appointment or election to the Board and annually on such date thereafter. Each current director
of the Company (those first appointed or elected to serve on the Company’s Board prior to June 15,
2007) shall be granted 10,000 restricted shares of the Company’s Common Stock on the second
anniversary of such director’s appointment or election to the Board and annually on such date
thereafter. Each of the above grants shall vest over 2 years with one half of the grant vesting on
the first anniversary of the grant and the remaining one half vesting on the second anniversary of
the grant, during which the non-employee director continuously serves as a Company director. On
December 20, 2007, the Board of Directors approved additional compensation for the non-employee
chairman of the Board in the amount of 4,000 restricted shares of the Company’s Common Stock
granted on the date of the Directors election as chairman and annually thereafter on the
anniversary of the election so long as the director continuously serves as chairman.

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

 

 

     On June 2, 2008, the Board of Directors approved compensation for each non-employee director
who is appointed to serve on the Privacy and Consumer Advocacy Committee. Each new director who is
appointed to serve on the Board’s Privacy and Consumer Advocacy Committee shall receive on the date
of the appointment, and annually thereafter on the anniversary date of such appointment, a grant of
1,500 restricted shares of the Company’s Common Stock. The Chair of the Privacy and Consumer
Advocacy Committee shall receive on the date the director is appointed or elected Chair of the
Privacy and Consumer Advocacy Committee and annually thereafter on the anniversary date of such
appointment an additional grant of 500 restricted shares of the Company’s Common Stock.exv10w5

Exhibit 10.5

EXECUTIVE AND SENIOR MANAGEMENT INCENTIVE PLAN

OBJECTIVES

	 	•	 	To provide annual and long term incentives for the CEO, the Executive Team and Senior
Management groups, as defined by the Compensation Committee
	 
	 	•	 	Incentives should be an appropriate mix of cash and stock based incentives
	 
	 	•	 	Incentives, whether cash or stock based, should be linked to a combination of personal
performance, corporate performance and shareholder returns
	 
	 	•	 	Stock based incentives shall be granted by the Compensation Committee from the 2005
Stock Incentive Plan, and shall be subject to all of the terms and conditions thereof

METHODOLOGY AND DEFINITONS

Target overall compensation market positioning based on a Mercer LLC compensation survey is as
follows:

	 	 	 	 	 
	 	 	 	 	     Range
	     •    CEO and Executive
Team

	 	-Salary
	 	2nd Quartile
	 

	 	-Annual
	 	3rd Quartile
	 

	 	-Long term
	 	4th Quartile
	 
	 	 	 	 
	   

	 	 	 	 
	     •    Senior Management

	 	-Salary
	 	3rd Quartile
	 

	 	-Annual
	 	3rd Quartile
	 

	 	-Long term
	 	3rd Quartile

Definitions used in both cash and stock based incentives include the following:

	 	•	 	The “Financial Metric Factor” is the average of the first three factors:

	 	•	 	Actual Revenues, as measured against the annual operating plan
established within the first quarter of the fiscal year
	 
	 	•	 	Actual EBITDA, excluding stock-based compensation expense, as measured
against such predetermined annual operating plan.
	 
	 	•	 	Upon registration pursuant to Section 12 of the
Securities Exchange Act, actual Net Income Per Share, as measured against such predetermined
annual operating plan
	 
	 	•	 	The minimum percentage for any factor is 90% and the maximum is 120%
(for example, if actual revenue is 110% of plan, actual EBITDA is 90% of plan and
actual EPS is 80% of plan, the Financial Metric Factor is 66.67% or .6667 (i.e.,
(110% + 90% + 0%) / 3 = 66.67% ))

1

 

	 	•	 	The factors comprising the Financial Metric Factor can be varied and
are established, and approved by the Compensation Committee, within the first
quarter of the fiscal year. The Compensation Committee reserves the right to
revise these goals throughout the fiscal year, or to make awards notwithstanding
the fact that these goals were not met.

	 	•	 	The “Personal Performance Factor”:

	 	•	 	The actual Personal Performance Factor is established after the end of
each fiscal year, based on individual performance during the previous fiscal year,
as determined by the Compensation Committee for the CEO and by the CEO with the
approval of the Compensation Committee for the Executive Team and by the CEO for
Senior Management.
	 
	 	•	 	The minimum percentage for this factor is 50% and the maximum is 120%

CASH BASED PERFORMANCE INCENTIVE

	 	•	 	The target cash based incentive as a percentage of annual base salary is as follows:
	 

	 	 	 	 	 	 	 
	 

	 	           •      CEO
	 	 	25	%
	 

	 	           •      Executive Team
	 	 	25	%
	 

	 	           •      Senior Management
	 	 	25	%

	 	•	 	Total cash based incentive award

	 	•	 	Annual base salary times the target incentive as a percent of salary
(25%)
	 
	 	•	 	Multiplied by the Financial Metric Factor
	 
	 	•	 	Multiplied by the Personal Performance Factor
	 
	 	•	 	Cash based incentive award will be made in the first quarter of the
fiscal year following the performance year

STOCK BASED PERFORMANCE INCENTIVE

	 	•	 	The target stock based incentive as a percentage of annual base salary is as follows:

	 	 	 	 	 	 	 
	 

	 	           •      CEO
	 	 	420	%
	 

	 	           •      Executive Team
	 	 	300	%
	 

	 	           •      Senior Management
	 	 	120	%

	 	•	 	Stock based awards will be made in the form of restricted stock units (RSUs) or
restricted stock awards (RSAs), as determined by the Compensation Committee

2

 

	 	•	 	Total stock based incentive award

	 	•	 	Annual base salary times the target incentive as a percentage of annual
base salary (120%, 300% or 420%)
	 
	 	•	 	Multiplied by the Personal Performance Factor
	 
	 	•	 	Divided by the stock price on the date of grant
	 
	 	•	 	One third of the resulting total is granted without further adjustment
and vests based on continued employment with the Company over a four year period,
with 50% vesting after two years from the date of grant and 1/24th of
the remaining vesting monthly thereafter
	 
	 	•	 	Two thirds of the total is multiplied by the Financial Metric Factor
and is then granted and vests based on continued employment with the Company over a
four year period, with 25% vesting after one year from the date of grant and
1/36th of the remaining vesting monthly thereafter
	 
	 	•	 	Stock based incentive award will be made in the first quarter of the
fiscal year following the performance year

3exv10w10c

Exhibit 10.10C

ADDENDUM NO. 5 TO MARKETING AGREEMENT

     This Addendum No. 5 to Marketing Agreement (this “Addendum No. 5”), dated as of July 1, 2008
(the “Addendum Effective Date”), by and between Adaptive Marketing LLC, a Delaware limited
liability company with principal offices located at 20 Glover Avenue, Norwalk, Connecticut 06850
(“Adaptive”), and Intelius Sales Company, LLC, a Nevada limited liability company with principal
offices located at 500 108th Avenue, NE, 25th Floor, Bellevue, Washington
98004 (“Intelius”; Intelius and Adaptive shall be referred to herein singularly as a “Party” and
together as the “Parties”), amends that certain Marketing Agreement by and between the Parties
dated as of July 10, 2007 (collectively with Addendum One to Marketing Agreement dated as of
September 8, 2007, Addendum Two to Marketing Agreement dated as of December 21, 2007, Addendum No.
3 dated as of January 1, 2008, and Addendum No. 4 dated as of March 14, 2008, the “Agreement”).

     WHEREAS, the Parties desire to amend certain provisions of the Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby mutually acknowledged, the Parties hereby agree as follows:

	 	1.	 	This Addendum No. 5 shall be effective as of the Addendum Effective Date.
	 
	 	2.	 	The Agreement is hereby revised as follows:

	 	a.	 	Section 5 entitled “Term; Termination” is hereby revised by deleting
the following sentence: “Additionally, either Party may terminate this Agreement
upon ( * * * ) written notice” and replacing it with the following sentence:

	 	 	 	“Additionally, either Party may terminate this Agreement upon ( * * * )
prior written notice.”

	 	b.	 	Section 6.2 is hereby revised to restate subsection (b) (ii)
thereof to read as follows:

	 	“(ii)	 	 the transfer of each such Customer’s Customer
Information to Adaptive as provided hereunder does not violate any
agreement between Intelius and any Customer, or any other third
party (including, without limitation, any privacy policy, terms of
use or customer agreement).”

	 	c.	 	A new Section 6.5 is hereby added reading as follows:

	 	 	 	“Further, Adaptive represents, warrants and covenants that all Ad Units
it authorizes to be transmitted by Intelius to Intelius customers fully
comply with all applicable local, state and federal laws and that such
Ad Units, when accepted by the customer, are sufficient to authorize
Intelius to transfer to Adaptive the customer’s credit or debit card
information (unless such transfer is otherwise prohibited by Intelius’
privacy policy, terms of use or any other agreement with its
customers).”

	 	d.	 	Section 9.10 is hereby revised to read as follows:

	 	 	 	“During the Term, at least ( * * * ) of the Post Transaction Integrated Ad Units
displayed by Intelius to its Customers for Membership Programs offered by
entities other than Intelius or its subsidiaries shall be Program Offers.
Intelius is otherwise free to offer any advertising from any entity for any
product or service in its discretion.”

	 	e.	 	The definition of “Eligible Enrollee” in Exhibit A is hereby revised to read as
follows:

(* * *) Certain information
in this agreement has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

	 	 	 	“‘Eligible Enrollee’ means an Enrollee ( * * * ) The only
exceptions to the definition of “Eligible Enrollee” (with respect to
which Intelius is compensated hereunder) are as noted above. ”

	 	f.	 	Section 1 of Exhibit C is hereby revised by adding the following paragraphs:
	 
	 	 	 	“Effective for all Enrollees enrolling in Programs
during each of the ( * * * )
in lieu of any other fees under this Exhibit C:

	 	(a)	 	Intelius shall receive from Adaptive ( * * * ) for each of the ( * * * ) Eligible Enrollees who enroll in
Programs ( * * * )
	 
	 	(b)	 	for each of the ( * * * ) Eligible Enrollees who enroll
in Programs ( * * * ) after the ( * * * ) Eligible Enrollees who enroll
in Programs ( * * * ) Eligible Enrollees have enrolled in Programs
( * * * ), Intelius shall receive from Adaptive ( * * * ); and
	 
	 	(c)	 	for each Eligible Enrollee who enrolls in a Program
( * * * ) after the ( * * * ) Eligible Enrollees have enrolled in
Programs ( * * * ), Intelius shall receive from
Adaptive ( * * * ).

	 	 	 	Effective for Enrollees enrolling in Programs ( * * * ) in lieu of any other
fees under this Exhibit C:

	 	(a)	 	Intelius shall receive from Adaptive ( * * * ) for each
of the first ( * * * ) Eligible Enrollees who enroll in Programs( * * * );
	 
	 	(b)	 	for each of the ( * * * ) Eligible Enrollees who enroll
in Programs ( * * * ) after the ( * * * ) Eligible Enrollees who enroll
in Programs ( * * * ) Eligible Enrollees have enrolled in Programs
( * * * ) Intelius shall receive from Adaptive ( * * * ); and
	 
	 	(c)	 	for each Eligible Enrollee who enrolls in a Program
( * * * ) after the ( * * * ) Eligible Enrollees have enrolled in
Programs ( * * * ) Intelius shall receive from Adaptive ( * * * )”

	 	g.	 	Exhibit A is hereby revised to add the following definition:

	 	 	 	“‘Post Transaction Integrated Ad Unit’ means an Integrated Ad Unit
transmitted or displayed to a Customer in the Transaction Path following such
Customer’s purchase of an Intelius product or service and prior to such
Customer’s viewing of the Intelius Purchase Confirmation Page for such Intelius
product or service.”

	 	3.	 	This Addendum No. 5 supplements and modifies the Agreement only to the extent
that the terms of this Addendum No. 5 expressly conflict with the Agreement. Nothing
in this Addendum No. 5 should be interpreted as invalidating the Agreement, and the
provisions of the Agreement will continue to govern relations between the Parties
insofar as they do not expressly conflict with this Addendum No. 5.
	 
	 	4.	 	This Addendum No. 5 may be executed in counterparts and by facsimile, each of
which shall be deemed an original and both of which together shall constitute one and
the same document.

     IN WITNESS WHEREOF, the Parties have caused this Addendum No. 5 to be executed by their duly
authorized representatives as of the Addendum Effective Date.

(* * *) Certain information
in this agreement has been omitted and filed separately with the
Securities and Exchange Commission. Confidential treatment has been
requested with respect to the omitted portions.

 

 

	 	 	 	 	 	 	 	 	 	 	 
	INTELIUS SALES COMPANY, LLC	 	 	 	ADAPTIVE MARKETING LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ John Arnold
 

John Arnold
	 	 	 	By:
	 	/s/ [illegible signature]
 

Idaptive Marketing LLC
	 	 
	Title:

	 	Executive Vice President    
	 	 	 	 	 	Its sole Member

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00164-of-00352.parquet"}]]